Investment Rating - The report maintains an "Accumulate" rating for the company [5][12]. Core Views - The heating business is experiencing rapid growth, with significant profit increases in a single quarter, achieving a record high [2][12]. - The company is actively pursuing mergers and acquisitions, contributing to its growth strategy [12]. Financial Performance - For the first half of 2025, the company reported revenue of 848 million yuan, a year-on-year increase of 4%, and a net profit attributable to shareholders of 196 million yuan, up 20% year-on-year [12]. - The second quarter of 2025 saw a net profit of 119 million yuan, a quarter-on-quarter increase of 53% and a year-on-year increase of 30%, marking a historical high [12]. - The net cash flow from operating activities was 298 million yuan, reflecting a 25% year-on-year improvement [12]. Business Segments - Revenue from household waste treatment increased by 15% to 691 million yuan, with a gross margin improvement of 1.27 percentage points to 52.57% [12]. - The construction project segment saw a revenue increase of 44% to 133 million yuan, with a gross margin improvement of 1.57 percentage points to 3.78% [12]. - The company processed 2.1363 million tons of household waste in the first half of 2025, a 10% increase year-on-year, and the heating volume reached 877,500 tons, a 12% increase year-on-year [12]. Strategic Initiatives - The company is focusing on optimizing operations through detailed management and execution improvements, resulting in a 1.3% reduction in electricity consumption per ton of waste processed compared to the same period last year [12]. - The company has completed the acquisition of the Jinzhou project, which turned profitable in its first month post-acquisition, and is pursuing additional projects to enhance operational synergies [12].