XREC(SZ:000598) Zheng Quan Zhi Xing·2025-07-16 11:15Core Viewpoint - Chengdu Xingrong Environment Co., Ltd. has been assigned a long-term credit rating of AAA and a bond rating of AAAsti for its 2025 public offering of technology innovation corporate bonds, with a stable outlook [1][3]. Company Overview - Chengdu Xingrong Environment Co., Ltd. is the main water service operator in Chengdu, with significant regional monopoly advantages in water supply and sewage treatment [4][5]. - The company has a robust governance structure and experienced management team, contributing to its operational efficiency [4][16]. Financial Performance - The company reported total revenue of 90.49 billion yuan and a profit of 24.17 billion yuan for 2024, with a continuous increase in revenue and profit margins from 2022 to 2024 [8][14]. - As of March 2025, the company's total assets reached 491.79 billion yuan, with owner’s equity at 201.70 billion yuan [8][14]. Investment and Growth Prospects - The company plans to issue bonds up to 600 million yuan to repay maturing debts, indicating a strategy to manage its financial obligations effectively [4][5]. - Future projects in water supply and sewage treatment are expected to enhance the company's capacity and expand its business scale [4][5]. Industry Environment - The water industry in China is characterized by public service and regional monopoly, with the water supply sector being relatively mature while sewage treatment is still developing [11][12]. - The industry faces challenges such as low marketization and long water price adjustment cycles, but there is potential for growth in sewage treatment due to increasing urbanization and policy support [11][12]. Regional Economic Context - Chengdu's GDP is projected to grow by 5.7% in 2024, supported by a stable fiscal environment and increasing public budget revenues [14][15]. - The city aims to enhance its water resource management and infrastructure, with plans to construct and expand water treatment facilities to meet future demand [14][15].