Sanfeng Environment(601827) 华泰证券·2025-03-04 07:10Investment Rating - The investment rating for the company is "Buy" with a target price of 11.44 RMB [7]. Core Views - The company is expected to maintain rapid growth in its heating scale, with a robust operational performance in waste incineration power generation. The company has sufficient equipment contracts to execute, amounting to 1.5 billion RMB as of 9M24, and its overseas equipment supply contracts in Thailand, Malaysia, and Vietnam are progressing smoothly, which is anticipated to drive performance growth [1][3]. Summary by Sections Equipment Contracts and Overseas Expansion - As of September 30, 2024, the company has approximately 50 signed but unexecuted equipment contracts worth about 1.5 billion RMB. Notable projects include a contract in Thailand valued at 800-900 million THB and contracts in Malaysia and Vietnam worth 40-60 million RMB and 60-70 million USD respectively [3][4]. Heating Scale Growth - The company signed around 10 new heating contracts in 2024, adding over 600,000 tons of heating capacity, with total heating capacity expected to exceed 900,000 tons for the year. The company anticipates continued rapid growth in heating scale through 2025 [4]. Financial Projections - The company maintains its profit forecast, expecting net profits attributable to the parent company to be 1.25 billion, 1.34 billion, and 1.41 billion RMB for 2024, 2025, and 2026 respectively. The target price corresponds to a PE ratio of 14.3 for 2025, compared to a sector average of 12.4 [5][6].