Sanfeng Environment(SH:601827) Xin Lang Cai Jing·2025-04-01 04:34Core Viewpoint - The company reported stable growth in its main business, maintaining industry-leading operational efficiency in waste-to-energy generation despite a slight decline in overall revenue [2][3]. Financial Performance - In 2024, the company achieved operating revenue of 5.991 billion yuan, a year-on-year decrease of 0.59%. However, after excluding one-time factors from 2023 and 2024, the revenue showed a same-caliber growth of 0.30% [2]. - The net profit attributable to shareholders reached 1.168 billion yuan, reflecting a year-on-year increase of 0.20%, with a same-caliber growth of 7.08% [2]. - The company's net profit after deducting non-recurring items was 1.155 billion yuan, marking a year-on-year growth of 1.54% [2]. Operational Highlights - As of the end of 2024, the company operated 54 waste incineration projects, with 44 being wholly-owned or controlled, and a total processing capacity of 42,500 tons per day [2]. - The company processed 15.08 million tons of waste in its controlled projects, a year-on-year increase of 7.42% [2]. - The electricity generated from waste reached 5.24 billion kWh, up 8.53% year-on-year, with power generation per ton of waste at 428.8 kWh, maintaining an industry-leading position [2]. - Steam sales amounted to 936,400 tons, reflecting an 18.46% increase year-on-year [2]. Business Development - The company has extended its focus on waste incineration, with a total of 57 projects in domestic investment, achieving a design waste processing scale of 61,450 tons per day [3]. - In January 2025, the company won a bid for a small-scale waste incineration project in Youyang County, adding 200 tons per day of waste processing capacity [3]. - The company signed 10 new steam sales contracts in 2024, expected to add approximately 630,000 tons of steam supply annually [3]. - Investments in energy storage and distributed photovoltaic projects totaled over 350 million yuan, with ongoing projects showing gradual benefits [3]. International Expansion - In 2024, the company signed nine contracts for the supply of incinerators and complete equipment, with a processing capacity of 6,370 tons per day, including contracts in India, Thailand, and Vietnam, totaling over 800 million yuan [4]. - The company secured 35 new orders for wastewater and drinking water equipment, including five overseas projects, with a contract value of 239 million yuan [4]. Profit Forecast - The company is projected to achieve operating revenues of 6.294 billion yuan, 6.676 billion yuan, and 7.125 billion yuan for 2025-2027, representing year-on-year growth rates of 5.06%, 6.08%, and 6.72% respectively [4]. - The net profit attributable to shareholders is expected to be 1.337 billion yuan, 1.470 billion yuan, and 1.619 billion yuan for the same period, with growth rates of 14.48%, 9.91%, and 10.15% respectively [4]. - Based on the closing price on March 28, 2025, the corresponding PE ratios are projected to be 10.70, 9.74, and 8.84, with EPS of 0.80, 0.88, and 0.97 yuan respectively, leading to a "recommended" rating for the company [4].