BGE(SH:603588) Xinda Securities·2026-02-04 12:55Investment Rating - The investment rating for the company is "Buy" [2]. Core Insights - The company is transitioning into the mining sector and plans to list in Hong Kong, aiming to enhance its position as a leader in resource utilization [4][18]. - The company has a clear and robust strategic layout focusing on resource recycling, having expanded its operations into hazardous waste and metal processing through acquisitions [4][18]. - The company is expected to benefit from rising metal prices, which will enhance profit margins and revenue from its resource recycling business [6][17]. Summary by Sections Company Overview - The company originated from the Institute of High Energy Physics of the Chinese Academy of Sciences and is one of the earliest firms in China to engage in solid waste pollution prevention [18]. - It has expanded its business scope significantly since its establishment in 1992, focusing on environmental remediation and resource recycling [18]. Business Transformation - The company has made substantial progress in its strategic layout, including plans to acquire stakes in three mining companies to extend its resource recycling chain [4][18]. - The company’s resource recycling business has seen significant growth, with revenue from this segment increasing by 72.17% year-on-year in 2024 [27]. Financial Performance - The company is projected to achieve revenues of 163.55 billion, 203.36 billion, and 215.22 billion yuan for the years 2025 to 2027, reflecting growth rates of 12.8%, 24.3%, and 5.8% respectively [10]. - The net profit attributable to the parent company is expected to reach 8.23 billion, 11.09 billion, and 12.03 billion yuan for the same years, with growth rates of 70.8%, 34.8%, and 8.5% respectively [10]. Market Dynamics - The company is positioned to benefit from favorable policies promoting circular economy and resource recycling, with significant growth potential in the recycling industry [34]. - The rising prices of metals such as gold, silver, and copper are expected to enhance the profitability of the company's resource recycling operations [6][17]. Future Outlook - The company is actively pursuing an H-share listing to support its international expansion and enhance its competitive edge [7][18]. - The integration of mining operations with resource recycling is anticipated to create synergies and open new avenues for growth [17].