Company Overview - Sains Environmental Co., Ltd. is a specialized "little giant" enterprise focused on heavy metal pollution prevention, aiming to become a leader in the global heavy metal pollution control field [2] - The company provides comprehensive solutions for heavy metal pollution prevention, including product sales (environmental agents, copper extractants, integrated equipment, and customized products) and operational services [2] - The business strategy is based on core technology, utilizing comprehensive solutions as a vehicle, and focusing on product sales and operational services to provide all-around heavy metal pollution prevention services [2] Strategic Direction - The company has established a strategic direction of "environmental protection + resource recovery + new materials," focusing on heavy metal pollution control while expanding into resource recovery and new materials markets [3] - Future plans include optimizing the existing business structure, expanding operational scale, and enhancing market position through strategic investments and acquisitions [3] Financial Performance - In Q1 2025, the company achieved sales revenue of 170 million, a year-on-year increase of 63%, while the net profit attributable to shareholders was 17.72 million, a decrease of 77.68% [4][6] - The lower growth rate of net profit compared to revenue is attributed to credit impairment losses and increased sales, management, and R&D expenses [4] - The company reported a gross margin of 36.21% and a debt ratio of 39.12% [6] Future Collaborations - The company sees potential for closer collaboration with Zijin Mining, an important shareholder and a major player in the non-ferrous metals industry, particularly in environmental governance [5] Market Sentiment - In the last 90 days, five institutions have rated the stock, with four buy ratings and one hold rating, and the average target price is 39.18 [7] Profit Forecast - Various institutions have provided profit forecasts for 2025, with estimates ranging from 196 million to 223 million [8] - The company is expected to see continued growth in its operational services and product sales, which are projected to be key areas for future development [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][15] Core Views - The company has shown improvement in its business structure, with a significant increase in revenue and net profit for 2024. The revenue reached 927.19 million yuan, a year-on-year increase of 14.69%, while the net profit attributable to shareholders was 180.76 million yuan, up 100.11% year-on-year [7][8][15] - The company is focusing on enhancing its overseas business and deepening cooperation with Zijin Mining, which has led to a notable increase in overseas revenue [14][15] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 9.27 billion yuan, with a year-on-year growth of 14.69%. The net profit attributable to shareholders was 1.81 billion yuan, reflecting a 100.11% increase. The first quarter of 2025 saw revenue of 1.7 billion yuan, a 63.46% increase year-on-year, but net profit decreased by 77.68% to 0.18 billion yuan [8][9][15] - The gross profit margin improved by 5.91 percentage points to 34.74% in 2024, driven by the growth in high-margin product sales and operational services [9][15] Business Segments - The revenue from product sales reached 2.69 billion yuan, a 96.00% increase, with a gross margin of 49.29%. The operational services segment generated 3.21 billion yuan, up 66.06%, with a gross margin of 32.51% [9][13] - The heavy metal pollution prevention solutions segment saw a revenue decline of 34.18% to 3.03 billion yuan, attributed to challenges in the copper smelting industry [9][10] International Expansion - The company reported 2.55 billion yuan in revenue from Zijin Mining, accounting for 27.5% of total revenue. Overseas business revenue reached 0.83 billion yuan, a 25.5% increase year-on-year, with a gross margin of 42.5% [14][15] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been adjusted to 1.96 billion yuan and 2.45 billion yuan, respectively, with expected year-on-year growth rates of 8.32% and 25.21%. The corresponding P/E ratios are projected at 16.0 and 12.8 times [15][18]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][15] Core Views - The company has shown improvement in its business structure, with a significant increase in revenue and net profit for 2024. The revenue reached 927.19 million yuan, a year-on-year increase of 14.69%, while the net profit attributable to shareholders was 180.76 million yuan, up 100.11% year-on-year [7][8][15] - The company is focusing on enhancing its overseas business and deepening cooperation with Zijin Mining, which has led to a notable increase in overseas revenue [14][15] Summary by Relevant Sections Financial Performance - In 2024, the company achieved total revenue of 927.19 million yuan, with a year-on-year growth of 14.69%. The net profit attributable to shareholders was 180.76 million yuan, reflecting a 100.11% increase year-on-year. The first quarter of 2025 saw revenue of 170 million yuan, a 63.46% increase year-on-year, but net profit decreased by 77.68% to 18 million yuan [8][9][15] - The gross profit margin improved by 5.91 percentage points to 34.74% in 2024, driven by the growth in high-margin product sales and operational services [9][15] Business Structure Improvement - The sales and operational service revenue has increased, indicating a positive shift in the business structure. The product sales segment generated 269 million yuan, a 96% increase year-on-year, with a gross margin of 49.29% [9][10] - The operational services segment achieved revenue of 321 million yuan, up 66.06% year-on-year, although the gross margin slightly decreased [13][15] International Expansion - The company has deepened its collaboration with Zijin Mining, resulting in related revenue of 255 million yuan, accounting for 27.5% of total revenue. Overseas business revenue reached 83 million yuan, a 25.5% increase year-on-year, with a gross margin of 42.5% [14][15] Profit Forecast and Valuation - The profit forecasts for 2025-2026 have been adjusted to 196 million yuan and 245 million yuan, respectively, with expected year-on-year growth rates of 8.32% and 25.21%. The corresponding P/E ratios are projected at 16.0 and 12.8 times [15][18]