CEVIA(SZ:000885) Zheng Quan Zhi Xing·2025-07-07 16:06Core Viewpoint - The credit rating of Chengfa Environment Co., Ltd. has been upgraded from AA+ to AAA, reflecting its strategic importance in ecological protection and high-quality development in the Yellow River Basin, supported by its major shareholder, Henan Investment Group [3][4][17]. Company Overview - Chengfa Environment Co., Ltd. primarily engages in waste incineration power generation and wastewater treatment, as well as highway development and infrastructure investment [12][30]. - As of September 2024, the company operates 32 waste incineration power generation projects with a total waste processing capacity of 28,550 tons per day [17][19]. Financial Performance - In 2023, the company achieved total revenue of 65.22 billion yuan, a year-on-year increase of 2.61% [30]. - The company's total assets reached 301.42 billion yuan by September 2024, with total liabilities of 154.01 billion yuan [6][9]. - The EBITDA for 2023 was 31.1 billion yuan, indicating a growth trend [9][30]. Strategic Positioning - The company is positioned as the largest environmental investment and operation platform in Henan Province, focusing on ecological investment and integrated water supply and drainage systems [17][18]. - The strategic importance of the company has increased within the shareholder and provincial state-owned asset system, enhancing its ability to secure ecological and environmental business resources [5][11][17]. Operational Strengths - The company has a strong operational capacity in waste treatment, with high processing efficiency and a robust supply of waste materials [17][19]. - The core highway assets provide stable income and cash flow, contributing significantly to the company's financial stability [26]. Industry Context - The waste incineration power generation market is experiencing a slowdown in growth, with increasing competition in hazardous waste disposal, leading to reduced profit margins [14][15]. - The environmental industry in China is evolving, with a focus on solid waste management, air quality improvement, and water environment governance [15][16]. Future Outlook - The company plans to expand its waste incineration projects and is actively exploring overseas opportunities in countries like Uzbekistan and Egypt [17][18]. - With government support, the company aims to enhance its water treatment capabilities and integrate its operations to improve efficiency and profitability [22][25].