Core Viewpoint - The article discusses an innovative heating solution in Dongli District, Tianjin, where waste heat from garbage incineration is utilized to provide residential heating, replacing traditional gas boilers. This "warm flow revolution" highlights the potential of waste heat recovery in addressing energy costs and environmental concerns [1][13]. Group 1: Waste Heat Utilization - Dongli District collects waste heat from two garbage incineration plants to supply heating to residential areas, transforming previously wasted energy into a valuable resource [1][7]. - The project utilizes a three-stage heat extraction system, which includes a turbine heat pump that efficiently captures and transfers heat from the incineration process [5][12]. - The incineration plants process approximately 1,900 tons of household waste daily, generating significant amounts of waste heat that can be repurposed for heating [7][13]. Group 2: Technical Innovations - Key technical modifications were made to the existing equipment, including the overhaul of three boilers to ensure stable operation and reduce failures during the heating period [4][10]. - The system's first stage uses steam at around 400°C to extract heat, while subsequent stages further refine the temperature for efficient heating delivery [5][10]. - The project has successfully achieved a heating temperature of around 70°C, meeting the heating demands of approximately 300 million square meters [10][12]. Group 3: Economic and Environmental Impact - The cost of heating has been significantly reduced from 110 yuan to 55 yuan per gigajoule, resulting in substantial savings for the local government and residents [10][12]. - The project is expected to lower carbon emissions by approximately 9.33 million tons annually, equivalent to the environmental benefit of planting 8.5 million trees [13]. - The initiative not only reduces government subsidies but also enhances the quality of life for residents by providing reliable heating at a lower cost [12][13]. Group 4: Challenges and Collaboration - The project faced numerous logistical challenges, including the need to lay 12 kilometers of pipeline across various terrains and infrastructure [7][8]. - A framework cooperation agreement was established to ensure fair pricing and investment returns, facilitating collaboration between different stakeholders [8][12]. - The successful implementation of this project serves as a model for other cities to explore similar waste heat recovery solutions, promoting urban sustainability and energy efficiency [13].

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]

Group 1: Company Performance Overview - The company reported a capital expenditure of approximately CNY 540 million for project construction and acquisitions in 2024, with an expected expenditure of CNY 1-1.3 billion in 2025, where 30% will be funded by internal resources and 70% through project loans [3] - As of the end of 2024, accounts receivable aging shows that about 74.6% of receivables are expected to be collected within one year, indicating a strong financial position [4] - The company has successfully completed a 72+24 hour full-load trial run for the Yuxi project, which has now entered the production phase [2] Group 2: Heating Supply and Market Expansion - The company has been focusing on green thermal energy utilization since 2010, with significant growth potential in heating supply due to stable demand from surrounding industrial enterprises [6] - The company’s heating projects in Ningbo and Hebei have covered over 50 industrial users, with plans to expand heating capacity and enhance collaboration with large chemical enterprises [8] - The company aims to accelerate the construction of heating networks in various regions, including Mianyang and San Tai, to improve heating efficiency and market coverage [8] Group 3: Investor Relations and Communication - The investor relations activity held on June 12, 2025, involved in-depth communication between the company and investors, focusing on operational highlights and future projects [1] - The company emphasized that the communication did not involve any undisclosed significant information, adhering strictly to regulatory requirements [8]

Group 1: Company Performance - The company achieved a total revenue of 41,190.76 million yuan in Q1 2025, representing a year-on-year growth of 14.08% [2] - The net profit attributable to shareholders was 7,767.43 million yuan, with a year-on-year increase of 7.11% [3] Group 2: Heat Supply Pricing and Market Position - Heat supply pricing is determined based on local market guidance and user demand, with costs significantly lower than coal and gas heating [4] - The company emphasizes the green attributes of waste incineration heating, which aids in carbon footprint management and energy savings [4] Group 3: Competitive Advantages - The company has a clear project location advantage, focusing on industrial parks since 2010, leading to sustained heat demand [6] - It possesses rich experience in green energy transformation and project operation, with a heat utilization efficiency of 60% in the Cixi project [6] Group 4: Future Growth Potential - The company expects a heat supply of 175.45 million tons in 2024, a year-on-year increase of 57.31%, primarily from the Shijiazhuang, Cixi, and Ningbo projects [8] - The company’s heat supply capacity exceeds current demand, indicating significant growth potential in green energy supply [9] Group 5: Strategic Focus - The company will implement a core strategy of optimizing green energy in the short term and aims for large-scale development of heat supply business [7] - Future projects will enhance collaboration with large chemical enterprises to expand heat supply in key regions [9]