Core Viewpoint - The company maintains a "Buy" rating with a target price of 6.94 yuan, projecting net profits of 403 million, 492 million, and 549 million yuan for 2025-2027, respectively, with corresponding EPS of 0.27, 0.33, and 0.37 yuan [1] Group 1: Financial Performance - In H1 2025, the company achieved revenue of 848 million yuan, a year-on-year increase of 4% [1] - The net profit attributable to shareholders was 196 million yuan, up 20% year-on-year, with a non-recurring net profit of 193 million yuan, also up 20% [1] - In Q2 2025, the single-quarter net profit attributable to shareholders reached 119 million yuan, a quarter-on-quarter increase of 53% and a year-on-year increase of 30%, marking a historical high [1] - The net cash flow from operating activities was 298 million yuan, reflecting a 25% year-on-year growth [1] Group 2: Business Segments - Revenue from the household waste treatment business grew by 15% year-on-year to 691 million yuan, with a gross margin improvement of 1.27 percentage points to 52.57% [1] - Revenue from construction projects increased by 44% year-on-year to 133 million yuan, with a gross margin improvement of 1.57 percentage points to 3.78% [1] Group 3: Operational Efficiency and Growth - In H1 2025, the company processed 2.1363 million tons of household waste, a 10% increase year-on-year, and the heat supply volume was 877,500 tons, up 12% year-on-year, maintaining a heat supply ratio of over 40% [2] - The company focuses on green heating and is expanding its industrial heating advantages while venturing into mobile heating, residential heating, compressed air, and refrigeration [2] - The company has optimized operations, reducing the electricity consumption per ton of waste processed by 1.3% compared to the same period last year [2] Group 4: Mergers and Acquisitions - In H1 2025, the Jinzhou project completed its delivery and achieved profitability in the first month post-delivery, creating synergies with the Shijiazhuang project [2] - The company won 100% equity of the Beikong Water Guigang project (1,500 tons/day) and the Pingnan project (1,200 tons/day, with the first phase at 600 tons/day) through public bidding [2] - The Yuxi project became profitable in its first month of operation, while the Hengyang project has fully commenced construction, and the Tencounty project is accelerating its preparatory work [2]