Core Viewpoint - The company reported a slight decline in revenue but an increase in net profit, driven by investment income from Conch Cement, indicating a mixed performance in its core operations [1][2]. Financial Performance - The company achieved a revenue of 3.086 billion yuan in H1 2025, a year-on-year decrease of 1.55% [1]. - The net profit attributable to shareholders reached 1.286 billion yuan, reflecting a year-on-year increase of 9.33% [1]. - Investment income from joint ventures, primarily from Conch Cement, contributed 839 million yuan, a year-on-year increase of 19.72% [1]. Segment Analysis - The company's main business net profit, excluding investment income, was 446 million yuan, a year-on-year decrease of 6.02%, mainly due to a decline in gross profit from the new energy business [1]. - The waste disposal segment generated an operating revenue of 2.107 billion yuan, a year-on-year increase of 7.61%, with waste input and electricity generation increasing by 3% and 6%, respectively [1]. - The gross margin for the waste disposal segment improved by 5.32 percentage points to 43.71% [1]. Cash Flow and Shareholder Returns - Operating cash flow for H1 2025 was 915 million yuan, slightly down year-on-year, primarily due to lower government subsidy receipts [2]. - Capital expenditures decreased significantly from 1.306 billion yuan in H1 2024 to 549 million yuan, resulting in positive free cash flow of 366 million yuan [2]. - The company announced an interim dividend of 0.10 HKD per share for the first time [2]. Investment Outlook - The profit forecast for 2025-2027 has been revised upward to 2.352 billion, 2.446 billion, and 2.540 billion yuan, respectively, reflecting improved cash flow and dividend potential [2].
海螺创业(00586.HK)：投资收益带动利润增长 自由现金流转正