CECEP ENVIRONMENT(SZ:300140) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - The recent financial report of Energy Conservation Environment (300140) shows a modest increase in revenue and a significant rise in net profit, indicating improved profitability and cost management [1] Financial Performance - Total revenue for the first half of 2025 reached 2.956 billion yuan, a year-on-year increase of 1.03% [1] - Net profit attributable to shareholders was 545 million yuan, up 24.61% year-on-year [1] - In Q2 2025, total revenue was 1.534 billion yuan, reflecting a 2.16% increase year-on-year [1] - Q2 net profit attributable to shareholders was 263 million yuan, a 9.69% increase year-on-year [1] Profitability Metrics - Gross margin improved to 38.4%, an increase of 2.67% year-on-year [1] - Net margin rose to 18.96%, reflecting a year-on-year increase of 23.27% [1] - Total selling, administrative, and financial expenses amounted to 400 million yuan, accounting for 13.51% of revenue, down 8.92% year-on-year [1] Key Ratios - Earnings per share (EPS) increased to 0.18 yuan, a rise of 25.21% year-on-year [1] - Cash flow per share was 0.25 yuan, a decrease of 5.09% year-on-year [1] - The company's net asset per share was 4.49 yuan, up 2.39% year-on-year [1] Historical Performance - The company's return on invested capital (ROIC) was 4.59% last year, indicating weak capital returns [3] - The historical median ROIC over the past decade was 4.86%, with a notably poor performance in 2020, where ROIC was -10.15% [3] - The company has reported losses in three of its 14 annual reports since going public, suggesting a fragile business model [3] Financial Health Indicators - Cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 77.67% [4] - Debt situation is also a concern, with interest-bearing debt ratio reaching 25.72% [4] - Accounts receivable to profit ratio is alarmingly high at 847.26% [4]