ZJMI Environmental Energy (SH:603071) China Post Securities·2025-10-30 02:49Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance in the near term [5][11]. Core Insights - The company reported a revenue of 26.98 billion yuan for the first three quarters of 2025, a year-on-year decrease of 12.8%, and a net profit attributable to shareholders of 450 million yuan, down 15.1% year-on-year. The decline in performance was primarily due to lower coal prices and reduced sales volume [3][5]. - The company is actively expanding its renewable energy business, participating in various industry standards and projects, including a 200MW/400MWh shared energy storage project in Yunnan [4][5]. - The earnings forecast for 2025-2027 has been adjusted downward due to low coal prices, with projected revenues of 40.55 billion yuan, 41.78 billion yuan, and 43.20 billion yuan respectively, and net profits of 720 million yuan, 790 million yuan, and 850 million yuan [5][7]. Summary by Sections Company Overview - The latest closing price is 14.29 yuan, with a total market capitalization of 8 billion yuan. The company has a debt-to-asset ratio of 44.0% and a price-to-earnings ratio of 10.83 [2]. Financial Performance - For Q3 2025, the company reported a revenue of 8.56 billion yuan, with a year-on-year decline of 22.4% and a quarter-on-quarter increase of 1.0%. The net profit for the same period was 150 million yuan, reflecting a year-on-year decrease of 13.3% but a quarter-on-quarter increase of 1.7% [3][5]. Profitability Metrics - The gross margin and net margin for the first three quarters of 2025 were 5.0% and 2.1%, respectively, showing slight improvements year-on-year. However, the overall expense ratio increased by 0.2 percentage points, which slightly impacted profitability [3]. Future Projections - The company’s revenue and net profit forecasts for 2025-2027 have been revised downwards due to the impact of low coal prices. The projected earnings per share (EPS) for 2025 is 1.29 yuan, with a price-to-earnings ratio of 11.05 [5][7].