Core Viewpoint - North Control Water's performance in the first half of 2025 showed a decline in revenue and net profit, primarily due to unexpected impairment losses, but the company maintains a strong dividend policy and potential for cash flow improvement [1][3]. Financial Performance - In 1H25, North Control Water achieved revenue of 10.459 billion yuan, a year-on-year decrease of 7.5%, and a net profit attributable to shareholders of 0.897 billion yuan, down 20.1% year-on-year, which was below previous expectations [1]. - The company declared an interim dividend of 0.674 billion yuan, representing 80% of net profit (excluding perpetual bond distributions), with a corresponding dividend per share (DPS) of 7.35 Hong Kong cents, up 5% from 7.0 Hong Kong cents in 1H24 [1][3]. Business Segments - Water treatment service revenue increased by 2% year-on-year, while water governance construction service revenue decreased by 57% to 0.071 billion yuan [2]. - The revenue from sewage and reclaimed water treatment services grew by 3% to 4.52 billion yuan, with a gross margin increase of 1 percentage point to 60% due to a rise in average water prices [2]. - The supply service revenue remained stable at 1.45 billion yuan, but gross margins declined due to changes in customer structure and rising operational costs [2]. Capital Expenditure and Cash Flow - Capital expenditure in 1H25 decreased by 40% to 0.94 billion yuan, while free cash flow significantly improved to 1.75 billion yuan [3]. - The company’s cash flow showed a positive trend, with operating net cash inflow expected to be 1.94 billion yuan, compared to 0.25 billion yuan in 1H24 [3]. - The company’s design capacity reached 43.3 million tons per day, with new signed projects adding 120,000 tons per day, aligning with its light asset transformation strategy [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been slightly adjusted, with net profit estimates of 1.52 billion yuan for 2025, reflecting a decrease of 1.3% [3]. - The target price is set at 3.15 Hong Kong dollars, based on a target price-to-earnings (PE) ratio of 18.9 times for 2025, indicating a positive outlook for cash flow and profitability improvement [3].

Core Viewpoint - North Control Water Group reported a decline in revenue and net profit for the first half of 2025, while maintaining a slight increase in dividend per share compared to the previous year [1][2]. Revenue Breakdown - Total revenue for H1 2025 was 10.46 billion, a decrease of 7.5% year-on-year, with net profit attributable to shareholders at 0.897 billion, down 20.0% [1]. - Revenue from operational services, including water treatment and urban resource services, accounted for 86.1% of total revenue, reflecting a 10.8 percentage point increase year-on-year [1]. Water Treatment Services - Revenue from wastewater and reclaimed water business reached 4.52 billion, up 3.0% year-on-year, with a domestic gross margin of 60%, an increase of 1 percentage point [2]. - Water supply services generated revenue of 1.45 billion, a slight increase of 0.4% year-on-year, but the domestic gross margin decreased to 41%, down 2 percentage points due to changes in customer structure [2]. Construction Services - Revenue from construction services fell to 0.712 billion, a significant decline of 56.6% year-on-year, attributed to the company's shift to a light asset strategy and completion of existing projects [2]. Technical Services and Equipment Sales - Revenue from technical services and equipment sales was 0.742 billion, down 35.5% year-on-year, but gross margin improved to 34%, an increase of 4 percentage points [2]. Urban Resource Services - Urban resource services generated 3.04 billion in revenue, a year-on-year increase of 13.1%, although gross margin decreased to 20%, down 1 percentage point due to intensified competition in hazardous waste markets [2]. Financial Performance - The company recognized an asset impairment loss of 0.259 billion in H1 2025, impacting overall performance but not cash flow [2]. - Financial expenses decreased by 0.37 billion due to debt structure optimization [2]. Capital Expenditure and Cash Flow - Capital expenditure for H1 2025 was 0.943 billion, a significant decrease of 40.0% from 1.57 billion in the same period last year [3]. - Free cash flow has turned positive since 2022, with expectations for continued improvement as capital expenditures decline [3]. Profit Forecast and Valuation - Projected net profit attributable to shareholders for 2025-2027 is 1.66 billion, 1.70 billion, and 1.71 billion respectively, with expected dividends showing a growth of 3%-5% [3]. - The estimated dividend yield for the stock price as of August 28, 2025, is between 6.4%-6.6%, leading to a "buy" rating [3].

证券研究报告 港股通 北控水务集团 (371 HK) 减值拖累净利，1H25 派息同比+5% 2025 年 8 月 29 日│中国香港 环保及水务 北控水务公布上半年业绩，1H25 实现营收 104.59 亿元（yoy -7.5%），归 母净利 8.97 亿元（yoy -20.1%），低于我们此前预期（11.22 亿元），主 要系确认的减值规模（归母净利层面影响 2.6 亿）超预期所致。公司派发中 期股息 6.74 亿元，占归母净利（剔除永续债相关派发后）的比例为 80%， 对应 DPS 7.35 港仙（1H24 7.0 港仙，yoy +5.0%）。1H25 公司资本开支 同比-40%至 9.4 亿，自由现金流同比大幅提升至 17.5 亿。考虑轻资产转型 下 2025 年资本开支或仍有压降空间，随化债政策推进回款有望改善，自由 现金流改善为分红提升注入潜力，维持"买入"评级。 1H25 水处理服务业务营收同比+2%，水治理建造服务业务营收同比-57% 1H25 公司污水及再生水处理服务业务收入同比增长 3%至 45.2 亿元，且中 国毛利率同比+1pp 至 60%，主要系中国平均水价提升至 1.56 元/吨（ ...

丨证券研究报告丨 港股研究丨公司点评丨北控水务集团（0371.HK） [Table_Title] 北控水务集团 2025H1 业绩点评：减值拖累利 润，中期每股派息额提升 5.0% 报告要点 [Table_Summary] 北控水务集团发布 2025 年中报，2025H1 公司实现营业收入 104.6 亿元，同比下降 7.5%；归 母净利润 8.97 亿元，同比下降 20.0%。2025 年中期每股派息 7.35 港仙，较去年同期的 7.0 港 仙增长 5.0%。运营业务经营稳定，建造收入继续下滑改善收入结构，资产减值拖累公司业绩， 财务费用持续优化。资本开支大幅下降，现金流向好趋势不变。 分析师及联系人 [Table_Author] SFC：BUV415 SFC：BUZ393 徐科 任楠 贾少波 李博文 盛意 SAC：S0490517090001 SAC：S0490518070001 SAC：S0490520070003 SAC：S0490524080004 SAC：S0490525070006 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com [Table_Tit ...

2025年中期业绩简报 2025年8月 中国光大水务有限公司 前瞻性陈述 本简报或包含前瞻性陈述，该等陈述乃建基于有关中国光大水务有限公司(「光大水务」或「本公司」，连 同其附属公司统称「本集团」)业务的大量假设及不受本公司控制的因素，并受到重大风险及不明朗因素的 影响，因此实际业绩或与该等前瞻性陈述出现重大偏差。本公司概不承担就日后发生的事件或情况而更新 该等陈述的责任。 本简报包含的资料应以简报作出时候为准，本公司未曾作出更新及将不会更新该等资料以反映本简报日后 或发生的重大发展。本简报的投影片只供支持有关本公司背景资料作出讨论。本公司不会明示或暗示陈述 或保证本简报包含的任何资料或意见是公平、准确、完整或正确，因此不应依赖该等资料或意见。收件人 在作出判断时不应以该等资料或意见为基础，本简报包含的资料和意见或基于或取自本公司管理层的判断 及意见，因此该等资料不可能经常获得核实或确认。本公司或本公司的财务顾问、或任何有关董事、高级 职员、雇员、代理人或顾问概不会就内容承担责任，或因使用本简报的资料或本简报而引起的任何损失承 担责任。本简报并无考虑任何投资者的投资目标、财务状况或特别需要，因此不构成招揽或邀 ...

Group 1 - The stock price of Jinko Environment closed at 24.22 yuan on August 5, down by 0.72 yuan, representing a decline of 2.89% [1] - The trading volume on that day was 54,500 hands, with a transaction amount of 1.34 billion yuan, and a turnover rate of 4.43% [1] - The company is located in Beijing and specializes in the water treatment sector as a high-tech enterprise [1] Group 2 - Jinko Environment recently participated in the establishment of Jinko Smart Water (Wuhan) Technology Co., Ltd., which focuses on artificial intelligence software development, integrated circuit design, and intelligent robot research and development [1] - On August 5, the net outflow of main funds was 1.8997 million yuan, with a cumulative net outflow of 3.4557 million yuan over the past five days [1] - The current total market value of the company is 2.982 billion yuan, with a price-to-earnings ratio of 64.49 times [1]

Core Insights - The company reported a revenue of 6.611 billion yuan for 2024, a year-on-year increase of 1.36%, with a net profit of 1.229 billion yuan, up 4.16% from the previous year [1] - In Q1 2025, the company achieved a total profit of 379 million yuan, a 21.16% increase year-on-year, and a net profit of 297 million yuan, up 19.08% [2] - The acquisition of 85% of Aolande Environment for 477 million yuan is expected to enhance the company's market position and operational capabilities [2][3] Financial Performance - For 2024, the company's main business revenue was 6.39 billion yuan, accounting for 96.66% of total revenue, with a net profit attributable to shareholders of 1.141 billion yuan [1] - The total assets of the company reached 30.708 billion yuan by the end of 2024, reflecting a 5.42% year-on-year increase, while the asset-liability ratio was 68.88% [1] - In Q1 2025, the company reported an operating income of 1.536 billion yuan, a 13.19% increase year-on-year, with a gross margin of 39.57% [2] Strategic Initiatives - The acquisition of Aolande Environment is seen as a significant step for the company to strengthen its position in the sanitation market, providing new growth opportunities and enhancing operational synergy [3] - The company plans to develop an integrated "big solid waste" industry ecosystem, focusing on waste disposal, heating, and medical waste projects [4] - Future business development will focus on expanding core businesses, developing growth areas, and optimizing existing business layouts [3][4] Market Expansion - The company aims to address fragmented water supply and drainage issues in Henan Province, with plans to integrate water supply and sewage projects [4] - The sanitation business has seen significant growth, with revenue and profits doubling over the past three years, and the acquisition of Aolande is expected to further increase market share [4] - The company is exploring new business avenues such as environmental equipment manufacturing and carbon trading, with a focus on innovative technologies and business models [5]

Core Viewpoint - Shanghai Xiba (603200) is returning a land parcel originally acquired for 1.28 billion yuan to build an environmental technology industrial park, resulting in an estimated loss of 36.42 million yuan, which constitutes 85% of the company's projected net profit for 2024 [1][2]. Group 1: Project Background - The land parcel, measuring 8,867 square meters, was acquired in May 2020 for 1.28 billion yuan with plans to invest 2.1 billion yuan over three years to complete the industrial park [1]. - The project aimed to enhance the company's talent attraction, technical research capabilities, information technology level, and service efficiency to improve core competitiveness [1]. Group 2: Reasons for Project Cancellation - The project faced significant delays due to public health events and unaddressed underground municipal pipeline issues, which adversely affected cash flow [2]. - Market research indicated that the office property market in the area was not performing well, prompting the company to seek to minimize losses and protect overall interests [2]. Group 3: Financial Impact - The return of the land use rights is expected to result in a direct loss of approximately 36.42 million yuan, which includes 29.43 million yuan in direct land costs and 6.99 million yuan in design, surveying, and construction expenses [2]. - This loss is substantial for the company, as it represents 85% of the projected net profit of 42.95 million yuan for 2024 [2]. Group 4: Future Outlook - The operational loss from this strategic adjustment is anticipated to pressure the company's performance in 2025, with a significant decline in net profit and revenue observed in the first quarter of 2025 [3]. - The company plans to focus on its core water treatment services while reducing involvement in engineering construction and exploring advanced materials in the renewable energy sector, although this segment has not yet generated stable revenue [3].