ECEC(SZ:002140) Tianfeng Securities·2025-09-10 14:16Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Insights - The company achieved a revenue of 4.784 billion yuan in H1 2025, representing a year-on-year increase of 9.29%, and a net profit attributable to shareholders of 240 million yuan, up 14.64% year-on-year [1]. - The company is focusing on technology leadership and a "T+EPC" model in the domestic market while accelerating its globalization strategy in the international market [1]. - The projected net profit attributable to shareholders for 2025-2027 is estimated at 487 million, 565 million, and 651 million yuan, corresponding to P/E ratios of 15, 13, and 11.3 times, respectively [1]. Revenue and Profit Growth - In H1 2025, the company reported a revenue of 4.028 billion yuan from the chemical industry, an increase of 8.78% year-on-year, while the environmental governance segment saw a revenue of 360 million yuan, down 36.93% [2]. - The overall gross margin for H1 2025 was 9.1%, an increase of 0.71 percentage points year-on-year, with Q2 2025 gross margin at 9.44%, up 1.56 percentage points year-on-year [2]. Order Growth and Backlog - The new contract amount signed in H1 2025 was 7.781 billion yuan, a year-on-year increase of 23.78%, with Q2 2025 new orders totaling 5.895 billion yuan, up 41.68% year-on-year [3]. - The company has a strong backlog with a total signed contract amount of 51.339 billion yuan, reflecting a year-on-year increase of 28.73% [3]. Cost Control and Profitability - The company’s expense ratio for H1 2025 was 2.94%, a decrease of 0.90 percentage points year-on-year, contributing to a net profit margin of 5.04%, up 0.35 percentage points year-on-year [4]. - Cash flow from operations for H1 2025 was 57 million yuan, a decrease of 207 million yuan year-on-year [4]. Financial Data and Valuation - The company’s projected revenue for 2025 is 10.361 billion yuan, with a growth rate of 16.92% [5]. - The estimated net profit for 2025 is 486.59 million yuan, reflecting a growth rate of 18.61% [5]. - The P/E ratio is projected to decrease from 21.29 in 2023 to 15.05 in 2025 [5].