Core Viewpoint - The report highlights that Yongxing Co., Ltd. has achieved significant revenue and profit growth in the first half of 2025, driven by increased waste processing capacity and operational efficiency, leading to a "buy" rating from Dongwu Securities [1][2]. Financial Performance - In H1 2025, the company reported revenue of 2.065 billion yuan, a year-on-year increase of 12.60%, and a net profit attributable to shareholders of 461 million yuan, up 9.32% [2]. - The gross margin for the waste incineration power generation business was 43.3%, reflecting a slight increase of 0.54 percentage points year-on-year [2]. - The company achieved a free cash flow of 670 million yuan, representing a 34.0% increase year-on-year, indicating strong cash flow health [4]. Operational Highlights - The company operates 16 waste incineration power generation projects with a total capacity of 34,690 tons per day, all of which are operational [2]. - The total waste processed by the incineration projects reached 5.3583 million tons in H1 2025, with a capacity utilization rate of 84.6% [2]. - The company has expanded its waste processing services by incorporating various waste types, significantly enhancing the utilization rate of its incineration projects [3]. Strategic Initiatives - Yongxing Co., Ltd. is actively pursuing external project expansions and acquisitions to enhance its operational scale and regional presence, including increasing its stake in Jiejin Company from 49% to 90% [3]. - The company is also focusing on combined heat and power generation, with steam supply to surrounding industrial enterprises reaching 88,300 tons in H1 2025 [3]. Future Outlook - The company maintains a positive outlook for net profit growth, projecting net profits of 917 million yuan, 1.017 billion yuan, and 1.087 billion yuan for 2025, 2026, and 2027, respectively, with corresponding growth rates of 11.7%, 11.0%, and 6.9% [4].
东吴证券：给予永兴股份买入评级