WANGNENG(SZ:002034) Xin Lang Cai Jing·2025-09-04 02:39Core Viewpoint - The company's solid waste business is performing steadily, with revenue growth in waste incineration and kitchen waste management, alongside an improvement in gross profit margins [1]. Financial Performance - The company maintains a "Buy" rating, with projected net profits for 2025-2027 at 688 million, 718 million, and 754 million yuan, corresponding to EPS of 1.59, 1.66, and 1.74 yuan. A target price of 23.45 yuan is set based on a 15x PE ratio for 2025 [2]. - For the first half of 2025, the company achieved revenue of 1.701 billion yuan, a year-on-year increase of 7%. The net profit attributable to shareholders was 382 million yuan, up 5%, while the net profit excluding non-recurring items was 379 million yuan, a 4% increase. The net cash flow from operating activities was 624 million yuan, also up 5% [2]. Solid Waste Business Overview - The waste incineration segment has a total capacity of 23,200 tons, with 21,800 tons already operational. Projects under construction include a 750-ton expansion in Anji and a 600-ton project in Vietnam. For H1 2025, the revenue from household waste treatment was 1.252 billion yuan, with a net profit of 428 million yuan and a gross margin increase of 1.85 percentage points to 49.89% [3]. - The kitchen waste management segment has a total capacity of 3,720 tons, with 2,810 tons operational and three projects under construction totaling 710 tons. For H1 2025, revenue from kitchen waste treatment was 211 million yuan, with a net profit of 44.65 million yuan and a gross margin increase of 3.41 percentage points to 36.07% [3]. - The waste rubber recycling segment has an established capacity of 90,000 tons per year, generating revenue of 104 million yuan in H1 2025, but incurred a net loss of 19.76 million yuan [3]. - The waste battery recycling segment is currently inactive, focusing on personnel layoffs and inventory management, with revenue of 18.03 million yuan and a net loss of 20.23 million yuan in H1 2025 [4]. Recycling Business Performance - The overall gross margin for the recycling business segment decreased by 2.38 percentage points to 8.59% [5]. AIDC Collaboration - The company is actively exploring AIDC collaboration, having completed the registration of the "Zero Carbon Intelligent Computing Center" in Huzhou on March 4, 2025. It has passed the provincial expert review and will be included in the provincial computing infrastructure project list. The company is working on customer engagement, leveraging its 2,150 tons per day processing capacity to provide stable green electricity for data centers [5].