Core Insights - Waste Management (WM) reported a 19% non-GAAP operating EBITDA growth in Q2 2025, contributing over half of the year-over-year increase in operating EBITDA [3][14] - The company achieved a total operating EBITDA margin of nearly 30% for Q2 2025, approaching historical best levels despite a negative impact from the expiration of the alternative fuel tax credit [3][27] - Management confirmed an upward revision of non-GAAP free cash flow guidance for 2025 to between $2.8 billion and $2.9 billion, with a total of $1.29 billion in free cash flow delivered in the first half of 2025 [4][31] Financial Performance - Collection and disposal operating EBITDA margin improved by 60 basis points to 37.9% in Q2 2025, supported by strong landfill volumes and targeted asset investments [3][21] - The legacy business achieved a 130 basis point improvement in operating EBITDA margin, reaching 31.3% in Q2 2025 [7][27] - Free cash flow for the first half of 2025 was $1.29 billion, with capital expenditures totaling $1.56 billion [7][30] Operational Efficiency - The operating expense ratio set a record in Q2 2025, remaining below 60% of revenue due to technological integration and process discipline [3][22] - Turnover for drivers and technicians improved by 370 basis points to 18.8% in Q2 2025, indicating progress in workforce stability [3][24] - The company completed a regional solid waste acquisition in the Washington, D.C. area, with full-year acquisition spending expected to exceed $500 million [7][15] Sustainability and Growth - Recycling operating EBITDA grew by 17% in Q2 2025, despite a nearly 15% decline in recycled commodity prices [7][16] - 90% of 2025 renewable gas off-take is locked, with an average RIN price of $2.55 in Q2 2025, exceeding market expectations [7][62] - The integration of WM Healthcare Solutions is on track to achieve the upper end of the $80-$100 million synergy target for 2025, with a 190 basis point improvement in operating EBITDA margin since acquisition [7][18] Market Trends - Collection and disposal volume grew by 1.6% in Q2 2025, influenced by wildfire cleanup efforts, while the loss of a large franchise contract negatively impacted residential and commercial volumes [3][21] - The company maintains annual volume guidance, projecting full-year volume growth between 0.25% and 0.75% [3][32] - The strength of the sustainability platform continues to distinguish WM in the industry, aligning with key secular drivers of circularity and energy demand [7][16]

Summary of Fosun Pharmaceutical Conference Call Company Overview - **Company**: Fosun Pharmaceutical (2196.HK) - **Industry**: Healthcare, specifically pharmaceuticals and medical technology Key Financial Results - **1Q25 Revenue**: Rmb9.4 billion, a decrease of 7% year-over-year (y/y) [3] - **Recurring Net Profit**: Rmb942 million, down 33% y/y, below consensus estimates [3] - **Pharmaceutical Segment**: Revenue of Rmb6.7 billion and net profit of Rmb740 million, both down approximately 10% y/y due to the impact of the 10th national volume-based procurement (VBP) [3] - **Device Segment**: Revenue of Rmb1.7 billion, an increase of 2% y/y, with profit remaining flat y/y [3] - **Services Segment**: Revenue of Rmb945 million, down 2% y/y, driven by reduced scale of online business; profit of Rmb464 million compared to a loss of Rmb87 million in 1Q24 due to the disposal of Unicorn (United Family Healthcare) [3] Strategic Developments - **Divestment of Non-Core Units**: Continuing divestment expected to generate Rmb5 billion in cash from non-core equity investments, financial assets, and fixed assets [4] - **Increased Stake in Henlius**: Stake increased from 59.56% to 63.43% [7] - **Focus on Innovation**: Accelerating transformation with a focus on drug and medtech innovation and internalization [7] Pipeline and Future Outlook - **Pipeline Catalysts for 2025**: - Serplulimab (PD-1) BLA filing for first-line extensive-stage small cell lung cancer (ES-SCLC) to the US FDA - Approval for FCN437c (CDK4/6) for second-line breast cancer (BC) - Approval for FCN-159 (MEK1/2) for NF1-pediatric LCH and ECD-adult - 2025 ASCO data readouts for several drugs from Henlius [4] Risks and Challenges - **Impact of VBP**: Ongoing challenges from generics and biosimilars under VBP affecting revenue [7] - **Subpar Performance**: Issues with Gland Pharma and loss-making hospitals and CAR-T segments are weighing on near-term earnings [7] - **Market Conditions**: Government control over drug prices and potential pipeline setbacks pose risks [11][11] Valuation and Ratings - **Stock Rating**: Equal-weight with a price target of HK$14.20 [6] - **Valuation Methodology**: Discounted cash flow analysis with a WACC of 8.1%, terminal growth rate of 3%, and long-term ROE of 11.2% [9] Conclusion Fosun Pharmaceutical is navigating a challenging environment with declining revenues and profits in the first quarter of 2025. The company is focusing on strategic divestments and innovation in drug development while facing significant risks from market dynamics and regulatory pressures.