Core Insights - The company reported a decline in revenue for the first three quarters of 2025, with total revenue of 4.155 billion yuan, down 8.03% year-on-year, while net profit attributable to shareholders increased by 9.31% to 1.104 billion yuan [2][3] - The decline in revenue was primarily due to the transfer of the subsidiary Sanfeng Chengfu's controlling stake, which is no longer consolidated in the financial statements; excluding this impact, the core business remains stable [2][3] - The company's net profit showed significant acceleration in Q3, reaching 426 million yuan, a year-on-year increase of 23.94%, driven by improved operational efficiency in waste-to-energy operations and rapid growth in heating services [2][3] Business Performance - The waste-to-energy segment demonstrated solid performance, processing 11.7669 million tons of waste, a 3.68% increase year-on-year, and generating a total electricity output of 4.641 billion kWh, up 3.10% [2] - The heating business saw substantial growth, with steam sales reaching 805,400 tons, a 15.49% increase year-on-year, becoming a significant profit growth point for the company [2] - The company is leveraging technological innovations to reduce costs and enhance efficiency, implementing AI smart incineration control in projects [2] International Expansion - The company's "going global" strategy is yielding results, transitioning from equipment and EPC exports to a full industry chain model of "investment + operation," which is expected to be a core growth engine [3] - The profitability of overseas projects is higher, contributing to an increase in the gross margin of the engineering construction business to 25.66% in the first half of 2025 [3] - The company successfully won the operation project for a waste-to-energy plant in Macau, with a contract value of approximately 2.6 billion Macanese patacas, laying a solid foundation for expanding into international markets [3] - A strategic cooperation framework agreement was signed with Suez Group, enhancing the company's ability to secure quality projects globally [3] Profit Forecast - The company is projected to achieve revenues of 5.929 billion yuan, 6.214 billion yuan, and 6.536 billion yuan for 2025-2027, with year-on-year growth rates of -1.03%, 4.81%, and 5.17% respectively [3] - Net profit attributable to shareholders is expected to be 1.383 billion yuan, 1.482 billion yuan, and 1.591 billion yuan for the same period, with growth rates of 18.42%, 7.16%, and 7.33% respectively [3] - Based on the closing price on October 30, 2025, the corresponding PE ratios are projected to be 10.44, 9.74, and 9.08, with EPS of 0.83 yuan, 0.89 yuan, and 0.95 yuan [3]