Investment Rating - The investment rating for the company is "Accumulate" and is maintained [8] Core Views - In the first half of 2025, the company achieved revenue of 10.642 billion yuan, a year-on-year increase of 3.22%, and a net profit attributable to shareholders of 566 million yuan, a year-on-year increase of 16.8% [2][6] - The hazardous waste resource recovery business is stable, and the clean energy equipment sector shows strong performance. The decrease in period expense ratio and reduction in asset impairment losses have contributed to profit growth [2][12] - The company is expected to benefit from the release of orders in the clean energy equipment sector, with significant growth in revenue anticipated [12] Summary by Sections Financial Performance - For Q2 2025, the company reported revenue of 5.705 billion yuan, a year-on-year decrease of 2.59% but a quarter-on-quarter increase of 15.55%. The net profit attributable to shareholders was 295 million yuan, a year-on-year increase of 69.87% and a quarter-on-quarter increase of 9.06% [6] - The company’s net profit for 2025-2027 is projected to be 1.06 billion, 1.13 billion, and 1.18 billion yuan, respectively, with corresponding P/E ratios of 20.4x, 19.1x, and 18.2x [12] Business Segments - The hazardous waste disposal service segment generated revenue of 9.999 billion yuan, a year-on-year increase of 1.74%, with a gross margin of 9.54% [12] - The clean energy equipment segment achieved revenue of 615 million yuan, a year-on-year increase of 37.1%, with a gross margin of 44.7% [12] Cost and Expenses - The company’s period expense ratio for H1 2025 was 7.13%, a decrease of 0.42 percentage points year-on-year. The R&D expense ratio was 4.23%, down 0.29 percentage points [12] - Asset impairment losses were reversed by 12 million yuan, with a year-on-year reduction of 69 million yuan in impairment losses [12] Cash Flow and Capital Expenditure - The cash collection ratio slightly increased to 106.07%, up 1.21 percentage points year-on-year. However, the net cash flow from operating activities was -232 million yuan, compared to -83 million yuan in the same period last year [12] - Capital expenditures decreased by 29.63% year-on-year to 210 million yuan [12] Future Outlook - The company has established a production capacity of 20 sets per year for pumped storage generator sets and is positioned to benefit from large-scale hydropower projects [12]