中金环境：剥离不良资产，开拓海外和终端客户

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 4.46 [19][20]. Core Views - The company has successfully divested from the Daming wastewater treatment PPP project, which will be repurchased by the government for a total of RMB 40 million from 2025 to 2029. This move is part of the company's strategy to focus on advanced manufacturing and improve its core competitiveness [19]. - The company continues to expand its overseas and terminal customer base, leveraging the brand effect of its subsidiary, Nanpump. The environmental business primarily serves government clients and is expected to benefit from debt reduction policies that will enhance cash flow and profitability [19][20]. - The company has reported overseas revenue of approximately RMB 760 million in 2023 and RMB 370 million in the first half of 2024, with positive business development in regions such as Southeast Asia, North America, Africa, and Eastern Europe [3]. Summary by Sections Financial Performance - The company’s revenue for 2023 is projected at RMB 5.433 billion, with a slight decline expected in 2024 to RMB 5.321 billion, followed by growth in subsequent years [21]. - The net profit attributable to the parent company is expected to increase from RMB 200.58 million in 2023 to RMB 259.79 million in 2024, and further to RMB 473.18 million by 2026 [21]. - The company’s earnings per share (EPS) is projected to rise from RMB 0.10 in 2023 to RMB 0.25 in 2026 [21]. Valuation Metrics - The target price corresponds to a price-to-earnings (PE) ratio of 22.3 for 2025, which is an increase from the previous estimate of 18.1 [4]. - The company’s market capitalization is approximately RMB 7.704 billion, with a closing price of RMB 4.01 as of December 26 [5]. Market Position - The company holds a leading position in the pump manufacturing sector, with a focus on various types of pumps including centrifugal pumps and fire pumps. The company aims to enhance its market share and explore new markets [3]. - The company’s accounts receivable as of June 30 amounted to RMB 1.517 billion, with a significant portion attributed to the environmental sector [3].