Core Viewpoint - The company reported a slight decline in revenue for H1 2025, primarily due to reduced construction income from waste disposal, but achieved a year-on-year increase in net profit attributable to shareholders [1] Group 1: Financial Performance - In H1 2025, the company achieved revenue of 3.09 billion yuan, a year-on-year decrease of 1.6%, mainly impacted by reduced construction income from waste disposal [1] - The net profit attributable to shareholders was 1.29 billion yuan, reflecting a year-on-year increase of 9.3% [1] - The core net profit from the waste-to-energy business was 450 million yuan, a year-on-year decrease of 6.0%, influenced by a high base and losses in the new energy segment [1] Group 2: Waste Disposal Operations - The waste disposal segment generated revenue of 2.38 billion yuan in H1 2025, a year-on-year decrease of 7.0%, with construction income dropping to 270 million yuan, down 54.5% [1] - The operating revenue for waste disposal was 2.11 billion yuan, a year-on-year increase of 7.6%, with 8.02 million tons of municipal waste processed, up 3% [1] - The company operated 87 waste-to-energy projects by the end of H1 2025, with 23 projects selling steam and 35 projects coordinating sludge disposal, marking an increase from the end of 2024 [1] Group 3: Cash Flow and Dividends - The net cash inflow from operating activities was 910 million yuan, a slight decrease of 20 million yuan year-on-year, mainly due to reduced renewable energy price subsidies [2] - The company announced an interim dividend of 0.1 HKD per share, totaling 164 million yuan [2] - The asset-liability ratio stood at 40.05% at the end of H1 2025, a decrease of 0.23 percentage points year-on-year, indicating ongoing efforts to reduce leverage [2] Group 4: Industry Outlook and Investments - The company's share of profits from joint ventures was 840 million yuan, a year-on-year increase of 19.7%, benefiting from improved competition dynamics in the cement industry [2] - Despite fluctuations in cement prices since May, the company anticipates that supply-side reforms will accelerate, supported by increased infrastructure investment in H2 2025 [2] Group 5: Profit Forecast and Valuation - The company maintains profit forecasts of 2.48 billion yuan, 2.76 billion yuan, and 3.03 billion yuan for 2025-2027 [3] - The company has adjusted its target price upward by 16.6% to 12.12 HKD, based on a valuation of 8.8x 2025 P/E for its environmental business and 9.3x 2025 P/E for its investment in the Conch Group [3]
海螺创业(0586.HK)：发电运营稳步增长 多元化卓有成效