中金环境（300145）：制造板块承压，环境亏损收窄

Mfg.SegmentPressured,EnvironmentalLossesNarrowed Rating (Maintain):OVERWEIGHTTarget price (RMB):3.81 Huatai Research Company Update 15 May 2025│China (Mainland) Waste Management AnalystWANG WeijiaSAC No. S0570517050002SFC No. BEB090wangweijia@htsc.com+(86) 21 2897 2079 Nanfang Zhongjin Environment (NZE) posted 2024 revenue/attributable net profit(NP)ofRMB5,054/218mn(-6.98/+8.81%yoy),withthelattermissingourexpectationofRMB260mn, mainlyduetolowermanufacturingrevenueandhigher-than-expectedcreditimpairment.1Q25revenue/attributableNPwereRMB1,054/67mn(+2.02/-25.25%yoy),inlinewithourprofitforecastofRMB60-80mn.NZEcontinuedtoconsolidateitstraditionalstrengthsinenvironmental water treatment, municipal water conservancy, and HVAC, whileactively expanding into new application scenarios such as new energy and datacenters, boding well for steady earningsgrowth. Maintain OVERWEIGHT. AnalystHUANG BoSAC No. S0570519090003SFCNo. BQR122huangbo@htsc.com+(86) 755 8249 3570 AnalystLI YalinSAC No. S0570523050003SFC No. BTC420liyalin018092@htsc.com+(86) 10 6321 1166 Key data Mfg. segment pressured, overseas revenue rose against the trendFor 2024, NZE's manufacturing segment recorded revenue/attributable NP of c. RMB4,416/432mn(-7.9/-19.6%yoy);overseasrevenuereachedRMB869mn(+14.83% yoy). The company established a service center in Vietnam and a newoffice in Riyadh, Saudi Arabia, with its overseas market share continuing toexpand. NZE remains focused on its core manufacturing business, promotingtechnologyiterationandindustrialupgradesofpumpproducts,enhancingmarketing capabilities, and advancing cost reduction and efficiency improvement–positioning the company for enhanced market competitiveness. Environ losses narrowed, risks mitigated by improved business mixNZE'senvironmentalmanagementbusinessspanshazardous& solidwaste disposal, investigation & design, environmental consulting, and project operations.In 2024, the environmental operation/environmental consulting & engineering/comprehensive waste resource utilization/investigation & design subsegmentsgeneratedrevenueofRMB61/169/208/201mn(+13.83/+56.01/+57.54/-41.66%yoy). Overall losses in the environmental segment narrowed significantly. In 2024,the company completed the equity and debt transfer of Jiangsu Nanfang ZhongjinSludge and sold idle land in Yixing Wanshi. It also signed a termination andrepurchase agreement for the sewage treatment PPP project in Daming County'sChengxi Industrial Park and is proactively accelerating the disposal of otherenvironmentalassets.Thebusinessstructureoftheenvironmentalsegmentcontinues to improve, and we expect risks to gradually ease. Source:Wind Operating cash flow stable, holding increase showed confidenceFor 2024, NZE's accounts receivable/net operating cash flow/capexstood at RMB1,514/714/325mn (+3.20/-0.89/+58.12% yoy). On 8 April 2025, the companyannounced that its controlling shareholder, Wuxi Public Utilities Industrial Group,plans to acquire a 5.01% stake from Shen Jinhao, raising its shareholding to26.60% uponcompletion, demonstrating confidence in NZE's future development. Cut earnings forecast, target price at RMB3.81Consideringdownstreamordertrends,welowerour manufacturingrevenueforecast and now estimate NZE's 2025/2026/2027 EPS at RMB0.15/0.19/0.23(revised down by 25/24% for 2025/2026). We value the stock at 25.4x 2025E PE,at par with its peers' average on Wind consensus, for our target price of RMB3.81(previous: RMB4.46, based on 22.3x 2025E PE). Risks: macroeconomic volatility impacting manufacturing orders; impairment riskof environmental assets; accounts receivable collection risk. Source:Wind, Huatai Research Source:Wind, Huatai Research Full financials Disclaimers Analyst CertificationI/We, WANG Weijia, HUANG Bo, LI Yalin, hereby certify that the views expressed in this report accurately reflect the personal views of the analyst(s) about the subject securities or issuers; and no part of the compensation of the analyst(s) was, is, or willbe, directly or indirectly, related to the inclusion of specific recommendations or views in this report. General Disclaimers and DisclosuresThis research report has been prepared by Huatai Financial Holdings (Hong Kong) Limited (hereinafter referred to as “HFHL”).The information herein is strictly confidential to the recipient. This report is intended for HFHL, its clients and associatedcompanies. Any other person shall not be deemed a client of the Company merely from his or her receipt of this report. This report is based on information deemed reliable and publicly available by HFHL, but HFHL and its associated company(ies)(collectively, hereinafter “Huatai”) makes no guarantee as to the accuracy or completeness of such information. The opinions, assessments and projections contained herein only reflect the views and judgments at the issuance date. Huataimay issue research reports that contain inconsistent views, assessments and projections with those set out her