CECEP ENVIRONMENT(SZ:300140) Xin Lang Cai Jing·2025-12-30 08:48Core Viewpoint - The company has significantly improved its profitability through a major asset restructuring that integrates waste incineration operations, focusing on operational efficiency and cost reduction [1][2]. Group 1: Investment Highlights - The company is rated "Buy," with projected net profits for 2025-2027 at 935 million, 1.024 billion, and 1.115 billion yuan, respectively, corresponding to EPS of 0.30, 0.33, and 0.36 yuan [2]. - Based on comparable company PE averages and the expectation of new vitality from its central enterprise backing, the company is assigned a target price of 7.50 yuan for 2025, using a 25x PE ratio [2]. - The company has integrated 57 waste incineration power generation projects into its operations through restructuring, establishing a core focus on waste incineration operations supported by equipment manufacturing [2]. Group 2: Financial Performance - In the first three quarters of 2025, the company reported operating revenue of 4.42 billion yuan, a slight year-on-year increase, and a net profit attributable to shareholders of 883 million yuan, representing a 32.97% year-on-year growth [2]. - For Q3 2025, the company achieved operating revenue of 1.464 billion yuan, a 5.20% year-on-year increase, and a net profit of 338 million yuan, reflecting a 49.11% year-on-year growth [2]. - The operating cash flow has improved, with approximately 1.739 billion yuan in the first three quarters of 2025, marking an 11.26% year-on-year increase [2]. Group 3: Industry Position and Growth - As of the first half of 2025, the company operates 47 waste incineration power generation project companies across 16 provinces in China, leading the industry in scale [3]. - The company is expanding its heating and steam supply business to diversify its revenue sources while managing 23 subsidiaries under China Environment, including 13 focused on waste incineration [3]. - The environmental equipment segment is advancing "water-solid integration," with its subsidiary leading in wastewater treatment equipment and increasing its portfolio of small-scale waste incineration and water treatment projects [3]. - In the electrical equipment sector, the subsidiary has provided over 2,600 units to nearly 500 enterprises, with its products being selected by renowned companies like Siemens and State Grid, achieving a leading market share [3].