Investment Rating - The report maintains a "Buy" rating for Infore Enviro with a target price of RMB 6.74 [7][5]. Core Insights - Infore Enviro reported a revenue of RMB 13.118 billion for 2024, a year-on-year increase of 3.85%, and a net profit of RMB 514 million, up 3.04% year-on-year, although below expectations due to credit impairment losses [1][5]. - The company has developed a "full range of smart equipment + full scene smart city services" model, with a significant increase in sales of new energy (NE) equipment, which grew by 177% year-on-year in Q1 2025 [1][2]. - The city services revenue increased by 14.41% to RMB 6.441 billion in 2024, with a gross profit margin improvement of 1.3 percentage points to 18.0% [3]. - Free cash flow grew by 34% year-on-year to RMB 3.56 billion, and the company announced a dividend of RMB 0.19 per share, a 46% increase year-on-year, resulting in a dividend yield of 3.80% [4]. Revenue and Profitability - The revenue from sanitation equipment increased by 2.0% to RMB 5.187 billion in 2024, marking the first increase since 2021, with NE equipment accounting for 22% of total sales [2]. - The company sold 2,691 pure electric sanitation vehicles in 2024, achieving a market share of 30.5%, and this increased to 35% in Q1 2025 with a 117% year-on-year sales growth [2]. Financial Projections - The report projects earnings per share (EPS) of RMB 0.21, RMB 0.27, and RMB 0.33 for 2025, 2026, and 2027 respectively, with a downward adjustment of 19% and 13% for 2025 and 2026 [5][12]. - The expected revenue for 2025 is RMB 14.214 billion, reflecting an 8.35% increase, with net profit projected at RMB 671.15 million, a 30.70% increase [12].