Investment Rating - The report maintains a "Buy" rating for the company [6][10]. Core Views - The company's revenue for the first half of 2025 decreased by 8% year-on-year, primarily due to a decline in income from BOT water service construction projects. However, significant savings in financial expenses and effective cost control were noted [2][10]. - The report forecasts net profits for 2025-2027 to be 1.522 billion, 1.603 billion, and 1.672 billion RMB respectively, with corresponding EPS of 0.15, 0.16, and 0.17 RMB [10][11]. Financial Summary - Total revenue (million RMB): - 2023A: 24,519 - 2024A: 24,270 - 2025E: 24,257 - 2026E: 25,003 - 2027E: 26,122 - Net profit (million RMB): - 2023A: 1,896 - 2024A: 1,678 - 2025E: 1,522 - 2026E: 1,603 - 2027E: 1,672 - The report indicates a gross profit margin improvement of 1.98 percentage points to 39.95% due to an increase in high-margin water treatment service revenue [4][10]. Revenue Composition - Revenue contributions from various segments for the first half of 2025: - Sewage treatment: 43% - Water supply: 14% - Urban resource services: 29% - Construction and technical service equipment sales: 14% [10]. Cost Management - Management expenses decreased by 8% to 1.157 billion RMB, and financial expenses reduced by 31% to 0.958 billion RMB, reflecting effective cost control measures [10][11]. Dividend and Capital Expenditure - The company plans to distribute an interim dividend of 0.0735 HKD per share, a 5% increase year-on-year. Capital expenditure for the first half of 2025 decreased by 40% to 0.943 billion RMB [10][11].
北控水务集团（00371）：经营稳健，费用管控良好