Sanfeng Environment(SH:601827) Xin Lang Cai Jing·2025-08-29 02:37Core Viewpoint - The company reported a decline in revenue but a growth in net profit, indicating stable performance despite challenges [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 2.847 billion yuan, a year-on-year decrease of 9% [1]. - The net profit attributable to shareholders was 678 million yuan, a year-on-year increase of 2% [1]. - Excluding the impact of the sale of the subsidiary Sanfeng Chengfu, revenue decreased by 6% on a comparable basis, while net profit increased by 2% on the same basis, reflecting steady performance [1][2]. Group 2: Operational Highlights - The company's core operational business showed strong performance, supporting profit growth [2]. - The total waste treatment volume reached 7.7311 million tons, a year-on-year increase of 2.6% [2]. - The electricity generated was 2.718 billion kWh, a year-on-year increase of 3.76% [2]. - The steam sales business was a highlight, with sales reaching 525,600 tons, a significant year-on-year increase of 11.84% [2]. - The company saw rapid growth in collaborative disposal services, with kitchen waste treatment volume increasing by 16.44% and sludge treatment volume increasing by 99.35% year-on-year [2]. Group 3: Strategic Initiatives - The "dual-wheel drive" strategy has shown significant results, with the company actively expanding its overseas business [3]. - The company has achieved a total of 264 projects and 423 incineration lines globally, with a total design processing capacity exceeding 230,000 tons per day [3]. - During the reporting period, the company won 8 new international and domestic technical transformation and equipment supply projects, with steady progress in overseas engineering projects [3]. - The company successfully issued the first "Belt and Road" technology innovation green bond in the country and signed a strategic cooperation agreement with Suez Group, laying a solid foundation for deepening overseas market expansion [3]. Group 4: Technological Innovation and Domestic Expansion - The company continues to drive development through technological innovation, with AI smart incineration technology applied to 7 projects and plans to expand to 6 more projects in the second half of the year [4]. - The company has made key progress in the field of fly ash resource utilization, with a regional hazardous waste disposal center project in Southwest China advancing smoothly [4]. - The company successfully won the bid for a small-scale waste incineration heating project in Youyang County, setting a benchmark for small-scale projects focused on heating [4]. - Currently, there are 3 domestic waste incineration projects under construction or in preparation, with a total processing capacity of 1,900 tons per day, providing ongoing momentum for future performance growth [4]. Group 5: Profit Forecast - The company is expected to achieve revenues of 6.294 billion yuan, 6.676 billion yuan, and 7.125 billion yuan for 2025-2027, with year-on-year growth rates of 5.06%, 6.08%, and 6.72% respectively [4]. - The net profit attributable to shareholders is projected to be 1.265 billion yuan, 1.387 billion yuan, and 1.524 billion yuan for the same period, with year-on-year growth rates of 8.33%, 9.64%, and 9.86% respectively [4]. - Based on the closing price on August 27, 2025, the corresponding PE ratios are expected to be 11.23, 10.24, and 9.32 times, with EPS of 0.76, 0.83, and 0.91 yuan respectively [4].