Core Viewpoint - Longjing Environmental Protection (龙净环保) is actively pursuing its "environmental protection + new energy" dual-driven strategy by investing in significant projects both domestically and internationally, with a total investment exceeding 5.2 billion yuan in a single day [2][5]. Group 1: Project Developments - The company announced the acquisition of 80% of GML in the Democratic Republic of Congo, securing the development rights for the 140MW Kalan Geng Hydropower Station, with a total investment of approximately 3.99 billion USD (about 28.43 billion yuan) [3][4]. - Additionally, the company plans to invest in the Mami Cuo Integrated Energy Station project, with a total investment of around 2.39 billion yuan, which includes a combination of solar, energy storage, and thermal power generation [5][6]. Group 2: Financial Performance - Longjing Environmental Protection has maintained over 10 billion yuan in annual revenue for six consecutive years, with a reported revenue of 10.02 billion yuan in 2024, a decrease of 8.69% year-on-year, while net profit increased by 63.15% to 830 million yuan [7][8]. - In the first half of 2025, the company achieved a revenue of 4.68 billion yuan, a slight increase of 0.24% year-on-year, and a net profit of 445 million yuan, up 3.27% [7][8]. Group 3: Market Position and Strategy - The company holds a robust position in the environmental protection industry, with a total of 19.97 billion yuan in contracts on hand as of mid-2025, solidifying its status as an industry leader [8]. - Longjing Environmental Protection emphasizes technological innovation and has increased its R&D expenditure to 219 million yuan in the first half of 2025, reflecting a 4.7% year-on-year growth [8].

Investment Rating - The report maintains a "Recommended" rating for Longking Environmental [2] Core Views - The report highlights the high profitability of the Congo (DRC) hydropower projects, specifically the Kailangeng hydropower station and the Mami Cuo energy station, which are expected to significantly contribute to the company's profits [5][6] - The company is positioned to benefit from its strategic investments in clean energy and environmental protection, with a strong pipeline of projects and contracts [5][6] Financial Forecast Summary - **Revenue Forecast**: Projected revenues for 2024A, 2025E, 2026E, and 2027E are 10,019.42 million, 11,807.95 million, 13,221.30 million, and 14,701.36 million respectively, with a revenue growth rate of -8.69% in 2024, followed by 17.85%, 11.97%, and 11.19% in the subsequent years [6] - **Net Profit Forecast**: Expected net profits for the same years are 830.40 million, 1,163.96 million, 1,425.03 million, and 1,666.14 million, with profit growth rates of 63.15%, 40.17%, 22.43%, and 16.92% respectively [6] - **Key Ratios**: The projected PE ratios for 2024A, 2025E, 2026E, and 2027E are 20.08, 14.33, 11.70, and 10.01 respectively, indicating a decreasing trend in valuation multiples as earnings grow [6][7] Project Highlights - **Kailangeng Hydropower Project**: The project has a total investment of approximately 3.99 billion USD, with an expected annual generation of 714 million kWh and a high utilization rate of 5,100 hours per year. The electricity price for mining operations is around 0.16 USD/kWh [5] - **Mami Cuo Energy Station**: This project is expected to have a competitive electricity settlement price of 0.7 RMB/kWh and is projected to generate an average annual output of 761 million kWh [5] Strategic Positioning - The company is focusing on a dual strategy of environmental protection and new energy, with significant contracts in hand and a strong market position in the environmental sector [5][6] - The integration of energy production, storage, and consumption in remote areas is expected to enhance the stability and profitability of the company's projects [5]

Core Viewpoint - Longjing Environmental Protection (龙净环保) has announced the acquisition of an 80% stake in the Kairangeng Hydropower Station project in the Democratic Republic of Congo, which is a significant step in the company's strategy to enhance its global clean energy footprint and support Zijin Mining's operations in the region [1] Group 1 - The Kairangeng Hydropower Station is located on the Lualaba River in Haut Lomami Province, 200 km from Zijin Mining's operations in Kolwezi, where there is a significant electricity shortage [1] - The total investment for the project is approximately $399 million, which will be funded by the company [1] - The project has a capacity of 140 MW and aims to prioritize electricity supply to Zijin Mining's enterprises in the Democratic Republic of Congo, thereby enhancing industrial synergy and reducing electricity costs [1] Group 2 - This project is a key initiative for the company to implement its "environmental protection + new energy" dual-driven strategy and deepen its global clean energy layout [1] - The completion of this project is expected to enhance the company's competitiveness and brand influence in overseas markets [1] - The implementation of the project will expand the scale of clean energy generation and provide a sustainable profit growth point, aligning with the company's long-term development strategy and the global trend towards low-carbon development [1]

Core Insights - Longking Environmental (龙净环保) announced the acquisition of an 80% stake in the Kairangeng Hydropower Station project located on the Lualaba River in Haut Lomami Province, Democratic Republic of the Congo [1] - The project has a total investment of approximately $399 million, which will be funded by the company’s own resources [1] - The Kairangeng Hydropower Station has a capacity of 140 MW, addressing the significant power shortage in the Kolwezi region of the Democratic Republic of the Congo [1]