Sanfeng Environment(SH:601827) Soochow Securities·2025-04-01 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's operating performance shows steady growth, with overseas equipment orders continuing to break through [1] - The company achieved a revenue of 5,991 million yuan in 2024, a year-on-year decrease of 0.59%, while the net profit attributable to the parent company was 1,168 million yuan, a slight increase of 0.20% [7] - The report highlights that the company's solid waste operations are growing steadily, and operational efficiency remains leading in the industry [7] Financial Performance Summary - Revenue and Profit Forecast: - Total revenue for 2023 is 6,027 million yuan, with a forecast of 5,991 million yuan for 2024, and expected growth to 6,577 million yuan in 2025 [1] - Net profit attributable to the parent company is projected to be 1,168 million yuan in 2024, increasing to 1,264 million yuan in 2025 [1] - Profitability Metrics: - The gross profit margin for 2024 is 33.18%, an increase of 1.42 percentage points year-on-year [7] - The net profit margin for 2024 is 20.42%, up by 0.24 percentage points [7] - Cash Flow and Dividends: - The company reported a free cash flow of 14,910 million yuan in 2024, a significant increase of 160.65% [7] - The dividend payout ratio for 2024 is 35.07%, an increase of 1.28 percentage points [7] Operational Highlights - Solid Waste Operations: - The company’s solid waste operation revenue reached 38,400 million yuan in 2024, with a growth of 5.29% [7] - The total waste processing volume for fully owned and controlled projects was 15.08 million tons, an increase of 7.42% [7] - Equipment Sales: - Engineering construction revenue decreased to 19,180 million yuan in 2024, down by 13.93% [7] - The company signed contracts for overseas equipment sales totaling over 800 million yuan [7] Future Outlook - The report indicates that the company's solid waste operations and accelerated overseas equipment sales are expected to enhance cash flow value, which is currently underestimated [7] - The forecast for net profit attributable to the parent company is adjusted to 12,640 million yuan for 2025 and 13,500 million yuan for 2026, with a new estimate of 14,230 million yuan for 2027 [7]