QINGDA ENVIRONMENT(SH:688501) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - Qingda Environmental Protection (688501) reported significant growth in revenue and net profit for the first half of 2025, indicating strong operational performance and potential investment opportunities [1]. Financial Performance - Total revenue for the first half of 2025 reached 1.186 billion yuan, a year-on-year increase of 130.76% [1]. - Net profit attributable to shareholders was 108 million yuan, up 351.78% compared to the previous year [1]. - In Q2 2025, total revenue was 567 million yuan, reflecting a 55.13% year-on-year growth, while net profit for the quarter was 39.64 million yuan, an increase of 124.18% [1]. - The gross profit margin decreased to 25.47%, down 17.78% year-on-year, while the net profit margin improved to 9.7%, up 114.37% [1]. Cost and Efficiency Metrics - Total selling, administrative, and financial expenses amounted to 121 million yuan, accounting for 10.19% of revenue, a decrease of 51.08% year-on-year [1]. - The company’s return on invested capital (ROIC) was 8.17%, indicating average capital returns [3]. - The average cash flow from operating activities over the past three years has been negative, raising concerns about cash flow sustainability [4]. Balance Sheet Highlights - Inventory increased significantly, with a year-on-year growth of 34.28% [1]. - Cash and cash equivalents decreased by 12.61% to 330 million yuan [1]. - Accounts receivable rose by 12.95% to 708 million yuan, with accounts receivable to profit ratio reaching 761.68% [4]. Future Expectations - Analysts project that the company will achieve a net profit of 212 million yuan in 2025, with an average earnings per share of 1.71 yuan [5].