Company Overview - Founded in 1955, joined Xizi Elevator Group in 2002, and listed on the Shenzhen Stock Exchange in 2011 as Xizi Clean Energy Equipment Manufacturing Co., Ltd. [2] - Main business includes waste heat boilers, clean energy power generation equipment, and comprehensive solutions for energy utilization [2][3] Business Segments - Four main business areas: - Waste heat boilers (including gas turbine waste heat boilers, dry quenching waste heat boilers, etc.) [2] - Clean energy equipment (including waste incineration boilers, biomass boilers, etc.) [3] - Solutions (including molten salt energy storage, heat exchangers, etc.) [3] - Spare parts and services (including technical services and project renovation) [3] Key Projects - The "Steam Extraction Energy Storage" molten salt thermal peak-shaving technology demonstration project at Guoneng Hebei Longshan 600MW thermal power unit began trial operation on December 28, 2024 [4] - Performance indicators include: - Load reduction capability down to 51 MW (8.5% Pe) for at least 4 hours [4] - Peak output increase of 47 MW for at least 6 hours [4] - Internal heat exchange efficiency of the molten salt system not less than 98% [4] - Frequency modulation capability improved by 1.5 times [4] Strategic Development Directions - Three main strategic directions: - Overseas market expansion, particularly in Southeast Asia, South America, Africa, and Belt and Road countries [5][7] - New energy market, focusing on molten salt energy storage applications [5][6] - Spare parts and renovation market, leveraging government policies for equipment upgrades [6] Order and Financial Performance - In Q1 2025, the company secured new orders totaling 1.57 billion CNY, with breakdowns as follows: - Waste heat boilers: 491 million CNY - Clean energy equipment: 105 million CNY - Solutions: 844 million CNY - Spare parts and services: 130 million CNY [8] - As of March 31, 2025, total orders on hand reached 6.527 billion CNY [8] Competitive Position - Leading position in the waste heat boiler sector, competing with major domestic boiler manufacturers [9] - The company is recognized as one of the largest and most comprehensive research, development, design, and manufacturing bases for waste heat boilers in China [11] Recent Financial Results - In 2024, the company reported a net profit of 440 million CNY, a year-on-year increase of 705.74% [10] - In Q1 2025, revenue reached 1.213 billion CNY, a 5.32% increase year-on-year, with a net profit of 47 million CNY, up 217.11% [10]

Company Overview - The company was established in 2002 and became part of the Xizi Elevator Group, listed on the Shenzhen Stock Exchange in 2011, and renamed Xizi Clean Energy Equipment Manufacturing Co., Ltd. in 2022 [2][3] - Main business includes waste heat boilers, clean energy power generation equipment, and overall solutions for energy utilization [2][3] Business Segments - The company operates in four main segments: - Waste heat boilers (e.g., gas turbine waste heat boilers, dry quenching waste heat boilers) - Clean energy equipment (e.g., waste incineration boilers, biomass boilers) - Solutions (e.g., molten salt energy storage, heat exchangers) - Spare parts and services [2][3] Order Situation - In Q1 2025, the company secured new orders totaling CNY 1.57 billion, with breakdowns as follows: - Waste heat boilers: CNY 491 million - Clean energy equipment: CNY 105 million - Solutions: CNY 844 million - Spare parts and services: CNY 130 million - As of March 31, 2025, the total orders on hand amounted to CNY 6.527 billion [4] Key Projects - The company participated in the first "steam extraction energy storage" molten salt thermal storage project in China, which began operations on December 28, 2024. Key performance indicators include: - Load reduction capability down to 51 MW (8.5% of Pe) for at least 4 hours - Peak load increase of 47 MW for at least 6 hours - Internal heat exchange efficiency of no less than 98% and electrical conversion efficiency of no less than 70% [5][6] Financial Performance - In 2024, the company reported a net profit of CNY 440 million, a year-on-year increase of 705.74% - In Q1 2025, the company achieved revenue of CNY 1.213 billion, a 5.32% increase year-on-year, and a net profit of CNY 47 million, up 217.11% [8] Strategic Development Directions - Future strategies focus on: - Expanding into overseas markets, particularly in Southeast Asia, South America, and Africa - Developing the renewable energy market, leveraging molten salt storage technology - Targeting the spare parts and retrofitting market in response to national policies on equipment upgrades [9][10] Stock Buyback Progress - As of April 30, 2025, the company repurchased 3,267,300 shares, accounting for 0.44% of the total share capital, with a total transaction amount of CNY 39,955,177.20 [12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a revenue of 9.113 billion yuan for 2024, a year-on-year decrease of 13.31%, and a net profit attributable to shareholders of 704 million yuan, down 4.98% year-on-year [5] - The company plans to distribute a cash dividend of 0.35 yuan per share for 2024, which represents 61.08% of the net profit attributable to shareholders [5] - The first quarter of 2025 saw a revenue of 1.964 billion yuan, a decline of 32.25% year-on-year, and a net profit of 129 million yuan, down 30.77% year-on-year [5] - The company is facing pressure on its performance due to a contraction in engineering business and losses from joint ventures [5] - The company is implementing a new round of equity incentive plans to stabilize and improve operational performance [5] Financial Summary - The company’s total market capitalization is approximately 8.728 billion yuan, with a circulating market capitalization of about 8.604 billion yuan [3] - The company’s debt-to-asset ratio stands at 59.29% [3] - The projected net profits for 2025-2027 are estimated to be 734 million, 850 million, and 898 million yuan respectively, with year-on-year growth rates of 4.25%, 15.73%, and 5.67% [6] - The company’s earnings per share (EPS) for 2025 is projected to be 0.77 yuan, with a price-to-earnings (P/E) ratio of 11.89 [7][9] - The company’s operating income is expected to grow from 9.113 billion yuan in 2024 to 10.989 billion yuan in 2025, reflecting a growth rate of 20.58% [7]

Core Viewpoint - The company's 2024 performance fell short of expectations, primarily due to significant asset impairment losses, while the first quarter of 2025 showed improvement in revenue and net profit growth [1][2]. Financial Performance - In 2024, total revenue reached 69.695 billion yuan, a year-on-year increase of 14.86%, while net profit attributable to shareholders was 2.922 billion yuan, a decrease of 17.7% due to asset impairment losses of approximately 1.15 billion yuan [1]. - For Q1 2025, total revenue was 16.548 billion yuan, up 9.93% year-on-year, and net profit attributable to shareholders was 1.154 billion yuan, an increase of 27.39% [1]. Business Segments - Clean and Efficient Energy: In 2024, revenue from coal, gas, and nuclear power increased by 17.8%, 87.6%, and 68.0% respectively, with gross margins slightly declining [1]. - Renewable Energy: In 2024, revenue from hydropower and wind power grew by 27.9% and 19.6% respectively, with the company ranking among the top three in offshore wind installations [1]. - Modern Manufacturing Services: Revenue from power station services surged by 61.9% in 2024, with a slight increase in gross margin [1]. Order Growth and Profitability - New effective orders increased by 17% in 2024 to 101.1 billion yuan, with Q1 2025 seeing a 36% rise to 35.88 billion yuan, driven by strong demand in clean and renewable energy equipment [2]. - In Q1 2025, the gross margin was 16.6%, a decrease of 0.7 percentage points year-on-year, while the net profit margin improved to approximately 7.1%, an increase of 1 percentage point [2]. Industry Trends - The company is expected to benefit from policy support for traditional energy sources, including coal, nuclear, and hydropower, with ongoing upgrades and approvals for new projects [3]. - Recent government initiatives aim to enhance the performance of existing coal power units and maintain a steady approval pace for nuclear power projects [3]. Profit Forecast and Valuation - The profit forecast for 2025 has been revised down by 11.1% to 4.16 billion yuan, with a new forecast for 2026 set at 5.01 billion yuan [4]. - Current A and H shares are valued at 12.4/10.3 times and 8.1/6.6 times P/E for 2025/2026, respectively, with target prices set at 17 HKD and 11.6 HKD, indicating potential upside [4].

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company is expected to achieve a revenue of 10.5 billion yuan in 2025, with a total profit of 1.15 billion yuan [2][3]. - The thermal power operation scale is steadily increasing, with a projected revenue of 10.5 billion yuan by 2025 [2][3]. - The equipment manufacturing business has shown signs of recovery, with a 20.18% year-on-year increase in revenue for 2024 [1][2]. - The company is actively expanding its thermal power generation projects, with a nearly 1.3 GW installed capacity by the end of 2024 [2][3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 9.113 billion yuan, a decrease of 13.31% year-on-year, and a net profit of 704 million yuan, down 4.98% [1][4]. - For Q1 2025, the revenue was 1.965 billion yuan, a decline of 32.25% year-on-year, with a net profit of 129 million yuan, down 30.77% [1][2]. Business Segments - The equipment manufacturing segment's revenue increased to 1.742 billion yuan in 2024, up 20.18% year-on-year, although the gross margin decreased by 6.74 percentage points to 10.23% [1][2]. - The engineering and services segment saw a significant revenue drop of 54.42% in 2024, totaling 1.985 billion yuan, while the gross margin improved by 4.57 percentage points to 17.38% [2]. Future Outlook - The company anticipates achieving a revenue of 10.5 billion yuan in 2025, with a total profit of 1.15 billion yuan [2][3]. - The company is focusing on hydrogen energy projects and flexible coal-fired power generation technology, which are expected to contribute positively to future earnings [3][4].

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company is expected to benefit from the dual momentum of hydrogen production and flexible transformation of thermal power, supporting rapid development [5]. - The company reported a revenue of 9.113 billion yuan in 2024, a year-on-year decrease of 13.31%, and a net profit of 704 million yuan, down 4.98% year-on-year [1][6]. Financial Performance - In 2024, the company's revenue from power station engineering dropped significantly by 70.08% to 675 million yuan due to price fluctuations in photovoltaic components and increased uncertainty in project returns [2]. - The environmental operation services generated revenue of 638 million yuan, an increase of 5.50% year-on-year, while thermal power operations saw a total heat sale of 9.7132 million tons, up 18.76% year-on-year [3]. - The equipment manufacturing segment achieved a revenue of 1.742 billion yuan, a year-on-year increase of 20.18%, driven by the development of high-end environmental boiler markets [3]. Future Projections - The company is projected to achieve net profits of 801 million yuan, 935 million yuan, and 1.051 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.84, 0.98, and 1.10 yuan per share [5][6]. - The report anticipates a revenue growth rate of 12.1% in 2025, followed by 11.8% in 2026 and 13.8% in 2027 [6]. Orders and Projects - The company has secured a significant order for hydrogen production equipment and is involved in the world's largest integrated green hydrogen project [4]. - As of the end of 2024, the company had a total order backlog of 11 billion yuan for traditional power station engineering, with a notable increase in orders for environmental boiler equipment [3][4].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown significant growth in Q1 2025, with revenue reaching 619 million yuan, a year-on-year increase of 317.34%, and net profit attributable to shareholders at 69 million yuan, up 990.26% [1] - The substantial growth is primarily driven by the completion of the "Fish-Solar Complementary" project, which contributed significantly to the company's performance [1] - The company is positioned to benefit from the increasing demand for coal power upgrades and auxiliary equipment, with a projected market potential of 700 million to 2.9 billion yuan over the next three years [2] - The company is actively expanding into international markets and diversifying its product offerings, which are expected to become new growth engines for future performance [3] Financial Summary - The company is projected to achieve revenues of 1.987 billion yuan in 2025, with a year-on-year growth rate of 51.2%, and net profits of 212 million yuan, reflecting a growth rate of 128.2% [4] - Earnings per share (EPS) are expected to be 1.72 yuan in 2025, with corresponding price-to-earnings (P/E) ratios of 15.1, 12.4, and 10.4 for 2025, 2026, and 2027 respectively [4][5] - The financial outlook indicates a steady increase in revenue and profit margins, with net profit margins projected to improve from 8.4% in 2023 to 11.1% by 2027 [4]

Summary of Qinda Environmental Conference Call Company Overview - **Company**: Qinda Environmental - **Industry**: Environmental Protection and Energy Key Points and Arguments Industry and Market Dynamics - Qinda Environmental benefits from the new construction and upgrade cycle of coal-fired power plants, along with policy support, leading to increased market demand in traditional photovoltaic business, thermal power renovation, desulfurization wastewater treatment, and steel slag processing [2][4] - The company’s core technology for full-load denitrification in thermal power flexibility renovation has emerged as a new growth point, addressing issues related to the increase in renewable energy installations [2][3] - The market for slag energy-saving treatment and flue gas treatment has become significant, with dry and wet slag treatment systems accounting for over 50% of revenue in recent years, and low-temperature flue gas waste heat recovery increasing from 10% in 2012 to nearly 30% in 2023-2024 [2][8] Financial Performance and Projections - Qinda Environmental expects significant growth in 2025, with a projected revenue of approximately 200 million yuan, driven by advancements in core and emerging businesses, as well as overseas market orders from Korea and Indonesia [3][5][25] - High-margin spare parts orders significantly contribute to the company’s performance, with nearly 40% of slag treatment orders in 2024 being high-margin spare parts, and expectations for this to exceed 40% in 2025 [10][16] Business Segments and Growth Areas - The company’s main business areas include traditional photovoltaic, thermal power renovation, desulfurization wastewater treatment, and steel slag processing, all of which have seen improved market conditions [4][6] - Emerging businesses, such as steel slag processing and the recently completed 90 MW fish-solar complementary project, are expected to contribute positively to 2025 performance [5][23] - The desulfurization wastewater treatment business is anticipated to become a significant growth point, especially with the introduction of high-salinity wastewater reuse technology [24] Competitive Position and Strategy - Qinda Environmental has a strong competitive edge due to its experienced management, including the chairman with a background in power equipment manufacturing, and a solid customer base developed over years [7][13] - The company is actively expanding into overseas markets, particularly in Southeast Asia and Korea, where demand for thermal power is growing [19][20][21] Future Outlook - The industry outlook for Qinda Environmental is optimistic, with expectations for continued growth driven by the ongoing upgrade cycle of coal-fired power plants and increasing demand for flexible power generation solutions [11][17] - The company’s marketing network is expanding internationally, with a potential annual market size of approximately 1 billion yuan based on a 600,000 kW unit benchmark [14] - The company is well-positioned to capitalize on the growing need for equipment upgrades and renovations in the coal power sector, supported by favorable policies and market conditions [12][25] Additional Insights - The full-load denitrification project has shown rapid growth since its inception, although growth rates have moderated recently due to order release cycles [9] - The company’s traditional business segments, particularly flue gas waste heat treatment and slag processing, have experienced rapid growth, with stable profit margins [15] This comprehensive overview highlights Qinda Environmental's strategic positioning, market opportunities, and growth potential within the environmental protection and energy sector.