伟明环保（603568）：装备订单同增66%，新材料实现盈利

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 27.94 [1]. Core Insights - The company reported a 66% year-on-year increase in new equipment orders, indicating strong demand in the equipment manufacturing sector [6]. - The new materials segment has achieved profitability, with significant revenue contributions from its subsidiaries [7]. - The company's environmental operations and equipment manufacturing are expected to support steady growth in performance [4]. Financial Performance - For Q3, the company achieved revenue of RMB 1.976 billion, a year-on-year increase of 2.28% and a quarter-on-quarter increase of 4.35% [4]. - The net profit attributable to the parent company for Q3 was RMB 710 million, reflecting a year-on-year increase of 3.23% [4]. - The company expects a compound annual growth rate (CAGR) of 8.54% in net profit from 2025 to 2027, with projected net profits of RMB 28.91 billion, RMB 31.55 billion, and RMB 34.58 billion for those years respectively [8]. Business Segments - Environmental Operations: The company processed a total of 10.5526 million tons of waste in the first three quarters, a year-on-year increase of 7.5% [5]. - Equipment Manufacturing: The total new equipment orders amounted to approximately RMB 4.47 billion in the first three quarters, marking a 66% increase year-on-year [6]. - New Materials: The subsidiary companies have started generating profits, with projected contributions from new material projects expected to increase in 2026 [7]. Valuation Metrics - The company’s projected earnings per share (EPS) for 2024, 2025, 2026, and 2027 are RMB 1.59, RMB 1.70, RMB 1.85, and RMB 2.03 respectively [3]. - The price-to-earnings (PE) ratio is expected to decrease from 13.86 in 2025 to 10.83 in 2027, indicating potential undervaluation [3]. - The target price of RMB 27.94 is based on a PE of 15.1 for 2026, reflecting the company's growth potential in solid waste revenue and new materials [8].