WEIMING(603568) Changjiang Securities·2025-04-28 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved operating revenue of 2.01 billion yuan in Q1 2025, representing a year-on-year growth of 0.09%. The net profit attributable to the parent company was 716 million yuan, up 0.50% year-on-year, while the net profit excluding non-recurring items was 673 million yuan, an increase of 0.73% year-on-year [2][6]. - The environmental business showed steady growth, with the waste incineration projects handling 3.33 million tons of waste in Q1 2025, a year-on-year increase of 8.57%. The electricity generated reached 932 million kWh, up 12.43% year-on-year [11]. - New orders in equipment manufacturing and services amounted to 2.34 billion yuan in Q1, a significant increase compared to 701 million yuan in Q1 2024. The overall revenue remained stable, with expectations for future support from the new orders [11]. - The company’s comprehensive gross margin was 46.97%, an increase of 0.98 percentage points year-on-year, attributed to the active development of new products and an expanded product line [11]. - Cash flow improved, with the cash collection ratio rising by 8.69 percentage points to 71.85% year-on-year, indicating a positive trend in cash flow management [11]. - The second high-nickel production line of the new energy materials project has commenced production, further enhancing the company's capabilities in this sector [11]. Summary by Sections Financial Performance - In Q1 2025, the company reported operating revenue of 2.01 billion yuan, a slight increase of 0.09% year-on-year. The net profit attributable to the parent company was 716 million yuan, reflecting a 0.50% increase year-on-year [2][6]. - The company’s gross margin improved to 46.97%, up 0.98 percentage points year-on-year, driven by product development and diversification [11]. Business Segments - The environmental business segment saw a significant increase in waste processed, with 3.33 million tons of waste incinerated in Q1 2025, marking an 8.57% increase year-on-year. The electricity generated from these projects was 932 million kWh, up 12.43% year-on-year [11]. - Equipment manufacturing and services reported new orders of 2.34 billion yuan in Q1, a substantial increase from the previous year, indicating strong demand and future revenue potential [11]. Future Outlook - The company is expected to see continued growth in its environmental business as more waste incineration projects come online. The new energy materials segment is also anticipated to contribute to revenue starting in 2025 [11]. - The projected net profits for 2025, 2026, and 2027 are 3.36 billion yuan, 4.03 billion yuan, and 4.61 billion yuan, respectively, with corresponding price-to-earnings ratios of 9.7x, 8.1x, and 7.0x [11].