Soochow Securities Co., Ltd.: Maintains WEIMING "Buy" rating, new material production lines gradually coming into operation bring performance increment

Dongxing Securities Co., Ltd. research report points out that WEIMING achieved a net profit attributable to the parent company of 2.135 billion yuan in Q1-Q3 2025, a year-on-year increase of 1.14%; the net profit attributable to the parent company in Q3 was 710 million yuan, a year-on-year increase of 3.23% and a quarter-on-quarter increase of 0.21%. The performance shows steady growth, profit margins are rising, and free cash flow has turned significantly positive. In Q1-Q3 2025, equipment orders increased by 66% year-on-year, continuously promoting product technology innovation. The waste incineration and collaborative businesses are growing steadily, with the Kunshan project about to be put into production. In addition, WEIMING Shengqing signed a cooperation framework agreement with Guangdong Bangpu Recycling Technology Co., Ltd., planning to sell designated models of ternary cathode material precursors, with a cooperative production capacity of 24,000 to 48,000 tons per year and a cooperation period of three years. Solid waste operations are growing steadily, with an expansion of equipment categories and a significant increase in orders, while new material production lines are gradually being put into operation, bringing performance increments. The forecast for net profit attributable to the parent company for 2025-2027 is maintained at 3.003 billion / 3.574 billion / 4.029 billion yuan, corresponding to 12/10/9 times PE, maintaining a "buy" rating