Core Viewpoint - High Energy Environment (603588.SH), a leading company in the solid waste industry in A-shares, has announced a share buyback plan for the first time in nearly six years, aiming to enhance investor confidence and promote long-term development [1][2]. Group 1: Share Buyback Plan - The company plans to use between 100 million to 150 million yuan of its own and self-raised funds to repurchase shares, with a maximum price of 8.8 yuan per share [2]. - This buyback is based on the company's confidence in its future stable development and recognition of its value [2]. - The buyback is expected to involve approximately 11.36 million to 17.05 million shares, accounting for 0.75% to 1.12% of the total share capital [2]. Group 2: Financial Performance - In the first half of 2025, the company achieved a net profit of 502 million yuan, a year-on-year increase of 20.85%, surpassing the total net profit for the entire year of 2024 and setting a historical high for the same period [1][6]. - The company's revenue for the first half of 2025 was 6.7 billion yuan, reflecting an 11.2% year-on-year decline [6]. - From 2016 to 2021, the company's revenue and net profit grew significantly, with revenue increasing from 1.565 billion yuan to 7.827 billion yuan and net profit from 157 million yuan to 726 million yuan, representing growth rates of approximately 400% and 362% respectively [4]. Group 3: Business Segments and Market Conditions - High Energy Environment's main business segments include solid waste and hazardous waste resource utilization, environmental operation services, and environmental engineering [1][4]. - The company has faced challenges in recent years, with a decline in net profit despite increasing revenue from 2022 to 2024, attributed to high competition in the policy-driven environmental industry and significant goodwill impairments [4][5]. - The recovery in profitability in 2025 is attributed to the gradual increase in production capacity in the metal resource recycling segment and rising metal prices, which have boosted product margins [6].

Core Viewpoint - The company shows steady revenue growth, significant improvement in non-recurring profit, and substantial enhancement in operating cash flow [3] Financial Performance - In 2024, the company achieved operating revenue of 4.722 billion yuan, a year-on-year increase of 11%, while net profit attributable to shareholders was 36 million yuan, a year-on-year decrease of 33% [1] - In Q1 2025, the company reported operating revenue of 879 million yuan, a year-on-year increase of 4%, and net profit attributable to shareholders of 40 million yuan, a year-on-year increase of 27% [2] - The non-recurring net profit for 2024 reached 18 million yuan, a significant year-on-year increase of 630%, indicating enhanced profitability from core operations [3] Business Segment Performance - The catalyst business achieved operating revenue of 532 million yuan in 2024, a year-on-year increase of 25%, with profits of 46.56 million yuan, a substantial increase of 40.2 million yuan [4] - The environmental engineering business reported operating revenue of 1.568 billion yuan, a year-on-year increase of 31%, but with a decline in gross margin by 4.23 percentage points to 2.44% [4] - The desulfurization and denitrification concession business generated operating revenue of 2.242 billion yuan, a year-on-year increase of 1%, with a slight increase in gross margin by 0.52 percentage points to 15.31% [4] - The water business achieved operating revenue of 777 million yuan, a year-on-year increase of 12%, with a gross margin of 32.12% [4] Strategic Initiatives - The company initiated a major asset restructuring in 2024, aiming to transform into a hydropower asset integration platform by acquiring 100% equity of Wuling Power and 64.93% equity of Changzhou Hydropower [5] - The restructuring is expected to significantly alter the company's main business structure and asset scale, enhancing core competitiveness [5] Profit Forecast - The company forecasts operating revenues of 5.019 billion yuan, 5.327 billion yuan, and 5.601 billion yuan for 2025-2027, representing year-on-year growth rates of 6.29%, 6.12%, and 5.15% respectively [5] - Net profit attributable to shareholders is projected to be 89 million yuan, 107 million yuan, and 119 million yuan for the same period, with year-on-year growth rates of 147.51%, 20.01%, and 11.74% respectively [5]