Investment Rating - The investment rating for the company is "Accumulate" [9]. Core Insights - In the first half of 2025, the company achieved operating revenue of 6.463 billion yuan, a year-on-year increase of 3.69%, and a net profit attributable to the parent company of 382 million yuan, a year-on-year increase of 0.43%. In Q2 2025, the company recorded operating revenue of 3.281 billion yuan, a year-on-year increase of 1.41%, while net profit decreased by 3.14% to 202 million yuan [2][6]. - The company continues to enhance its market share in the environmental sanitation equipment sector, with a market share of 18.8%, an increase of 1.2 percentage points year-on-year. The market share for new energy equipment reached 32.6%, up 6.1 percentage points year-on-year [11]. - The gross profit margin remains under pressure, declining to 22.4%, a decrease of 1.1 percentage points year-on-year. However, the expense ratio has decreased, with the period expense ratio at 13.6%, down 0.5 percentage points year-on-year [11]. - The company is seeing initial success in its new business layout, with rapid growth in overseas orders, which opens up long-term growth potential. In the first half of 2025, overseas business revenue reached 23.83 million yuan, a year-on-year increase of 59.55% [11]. Summary by Sections Financial Performance - The company reported a stable revenue and profit performance, with a total operating revenue of 6.463 billion yuan for the first half of 2025, and a net profit of 382 million yuan. The Q2 revenue was 3.281 billion yuan, with a net profit of 202 million yuan [2][6]. - The environmental sanitation equipment business generated 2.585 billion yuan in revenue, a year-on-year increase of 15.27%, with sales volume reaching 6,194 units [11]. - The environmental sanitation service business achieved revenue of 3.237 billion yuan, a year-on-year increase of 2.25%, with a new annual contract amount of 825 million yuan [11]. Market Position - The company holds the leading position in the environmental sanitation equipment market, with a market share of 18.8% and a leading sales scale. The new energy equipment segment has also seen significant growth, with a market share of 32.6% [11]. - The company operates 256 urban service projects with a total contract amount of 54.646 billion yuan, providing a solid foundation for stable operations [11]. Future Outlook - The company expects net profits attributable to the parent company for 2025, 2026, and 2027 to be 690 million yuan, 810 million yuan, and 1.06 billion yuan, respectively, corresponding to PE ratios of 35x, 29x, and 23x [11].

Core Viewpoint - The company's performance is under short-term pressure, but the new energy equipment and service business still show potential [2] Financial Performance - In 2024, the company achieved operating revenue of 5.04 billion yuan, a year-on-year decrease of 1% - The net profit attributable to shareholders was 145 million yuan, down 37% year-on-year - In Q1 2025, the company reported operating revenue of 1.164 billion yuan, a year-on-year decline of 2% - The net profit attributable to shareholders for Q1 2025 was 63 million yuan, also down 2% year-on-year [1][2] Business Segments - The environmental industry ecological operation revenue reached 3.824 billion yuan, a year-on-year increase of 4%, with a gross margin of 21.77% - The intelligent equipment manufacturing business generated revenue of 1.078 billion yuan, a year-on-year decrease of 18%, with a gross margin of 20.80% - Sales of new energy sanitation equipment (including robots) reached 608 units, generating revenue of 361 million yuan [2][3] Order Backlog and Cash Flow - In 2024, the company won 52 new sanitation service projects with a first-year annual amount of 768 million yuan and a total contract amount of 4.607 billion yuan - As of the end of 2024, the annualized contract amount for ongoing sanitation service projects was 4.270 billion yuan, with a total contract amount of 34.730 billion yuan and a backlog of 19.586 billion yuan - The company faces challenges with accounts receivable and contract assets due to extended government payment periods, with accounts receivable valued at 2.553 billion yuan and contract assets at 1.084 billion yuan [3][4] New Energy Equipment Performance - The market share of new energy sanitation equipment is 6.77%, ranking third in the industry - The company is actively expanding into overseas markets, achieving breakthroughs in Saudi Arabia, New Zealand, and Italy - The CITIBOT robot has been deployed in 34 scenarios with a cumulative operating mileage of 16,000 kilometers [4] Profit Forecast - The company is expected to achieve operating revenues of 5.660 billion yuan, 6.360 billion yuan, and 7.150 billion yuan for 2025-2027, with year-on-year growth rates of 12.31%, 12.37%, and 12.41% - The net profit attributable to shareholders is projected to be 196 million yuan, 224 million yuan, and 260 million yuan for the same period, with growth rates of 34.76%, 14.26%, and 16.19% respectively [4]

Investment Rating - The investment rating for the company is "Accumulate" and is maintained [8]. Core Views - In 2024, the company achieved an operating income of 13.12 billion yuan, a year-on-year increase of 3.85%, and a net profit attributable to the parent company of 510 million yuan, up 3.04% year-on-year. For Q1 2025, the company reported an operating income of 3.18 billion yuan, a year-on-year increase of 6.15%, and a net profit of 180 million yuan, up 4.74% year-on-year. Both service and equipment segments experienced growth, with the market share of new energy equipment further increasing [2][6][10]. - The gross profit margin remains under pressure, showing a slight decline, while the expense ratio has decreased. The comprehensive gross profit margin for 2024 was 21.77%, down 1.07 percentage points year-on-year. The gross profit margin for the sanitation equipment business decreased by 1.77 percentage points to 25.87%, while the sanitation service business saw an increase of 1.35 percentage points to 18.03% [10][10]. - The company expects continued growth in sanitation services and an increase in new energy sanitation equipment sales to drive performance improvements. The penetration rate of new energy sanitation equipment reached approximately 14.9% in 2024, with significant growth potential in the future [10][10]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 13.12 billion yuan and a net profit of 510 million yuan. For Q1 2025, revenue was 3.18 billion yuan with a net profit of 180 million yuan. The sanitation service revenue grew by 14.41% year-on-year, while sanitation equipment revenue increased by 2.01% [2][6][10]. Market Position - The market share of new energy equipment reached 35% in Q1 2025, with sales increasing by 117% year-on-year. The company holds a leading position in the sanitation equipment market, with a market share of 30.5% for pure electric sanitation vehicles [2][10]. Profitability and Expenses - The comprehensive gross profit margin for 2024 was 21.77%, with a slight decline attributed to changes in revenue structure. The expense ratio for 2024 was 14.37%, down 0.99 percentage points year-on-year, indicating improved cost management [10][10]. Future Outlook - The company anticipates net profits of 690 million yuan, 810 million yuan, and 1.06 billion yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 27x, 23x, and 17x [10][10].

Investment Rating - The investment rating for the company is "Accumulate" and is maintained [8] Core Views - The company is expected to achieve operating revenue of 3.8 billion yuan in 2024, representing a year-on-year growth of 30.67%, with a net profit attributable to shareholders of 230 million yuan, up 3.97% year-on-year [2][6] - The sales volume of sanitation equipment is projected to be 3,221 units in 2024, reflecting a year-on-year increase of 17.2%, significantly higher than the industry growth rate [2][12] - The sales of new energy sanitation equipment are expected to grow by 77.4% year-on-year in 2024, indicating strong competitiveness in this segment [12] Summary by Sections Revenue and Profitability - The company anticipates a total revenue of 3.8 billion yuan in 2024, with a net profit of 230 million yuan and a non-recurring net profit of 170 million yuan, showing respective year-on-year growths of 3.97% and 22.71% [2][6] - In Q4 2024, the company achieved revenue of 1.293 billion yuan, a year-on-year increase of 44.77%, with a net profit of 96 million yuan, up 3.01% [6] Sales Performance - The sanitation equipment industry is expected to see a decline in sales volume by 8.7% in 2024, while the company’s sales volume of sanitation equipment is projected to grow by 17.2% [12] - The revenue from sanitation equipment is expected to reach 1.543 billion yuan in 2024, marking a year-on-year increase of 28.92% [12] Cost Management and Cash Flow - The company has successfully reduced its expense ratio by 3.85 percentage points in 2024, indicating effective cost management [12] - Operating cash flow is expected to improve significantly, with a net cash flow from operating activities of 572 million yuan in 2024, compared to 36 million yuan in 2023 [12] Long-term Outlook - The company is viewed positively for its competitive advantages, including integrated manufacturing capabilities and strong cost control, which are expected to drive performance recovery in the long term [12] - The penetration rate of new energy sanitation equipment is currently around 13.4%, suggesting significant growth potential as policies for electrification in public vehicles are implemented [12]