洪城环境（600461）：2025Q1点评：归母净利润同比增2.63%，资本开支下行

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - In Q1 2025, the company achieved revenue of 1.922 billion yuan, a year-on-year decrease of 10.64%, while the net profit attributable to the parent company was 332 million yuan, an increase of 2.63% year-on-year [2][6] - The company's capital expenditure has significantly decreased, which is beneficial for maintaining a high dividend payout ratio [2][13] - The ongoing market-oriented reforms in public utilities are expected to enhance the profitability and cash flow of water companies, supporting valuation recovery [2][13] Summary by Sections Financial Performance - Revenue for Q1 2025 was 1.922 billion yuan, down 10.64% year-on-year; net profit attributable to the parent company was 332 million yuan, up 2.63% year-on-year; and the non-recurring net profit was 331 million yuan, up 2.45% year-on-year [2][6] - The gross margin for Q1 2025 was 31.12%, an increase of approximately 2.1 percentage points year-on-year, attributed to cost reduction and efficiency improvements [13] - The basic earnings per share (EPS) was 0.26 yuan, a decrease of 3.7% year-on-year, mainly due to dilution from an increase in share capital [13] Capital Expenditure and Cash Flow - The cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets was 294 million yuan, a significant decrease from 738 million yuan in the same period last year, indicating a downward trend in capital expenditure [2][13] - The net cash flow from operating activities was 104 million yuan, down 56.22% year-on-year, with a cash collection ratio of 81.1%, up approximately 2.0 percentage points year-on-year [13] Market Reforms and Future Outlook - The market-oriented reforms in public utilities are expected to improve the profitability and cash flow of water companies, with price adjustments for water services already being implemented in several first-tier cities [13] - The company forecasts net profits attributable to the parent company for 2025-2027 to be 1.23 billion, 1.27 billion, and 1.30 billion yuan, respectively, with corresponding price-to-earnings ratios of 10.2, 9.8, and 9.58 [13]