The long-term positive trend remains unchanged. Weiming Environmental Protection's three major businesses are poised for growth.

Weiming Environmental Protection (603568) is entering a critical phase for earnings release. Leveraging the coordinated efforts across its three business segments—environmental protection operations, equipment manufacturing, and new energy materials—the company demonstrates clear growth expectations in overseas strategy, order delivery, and the commissioning of new-material production. As overseas projects are implemented, equipment orders are converted, and new-material production capacity ramps up, the certainty of the company’s future growth has been significantly strengthened.

A dual-wheel drive of overseas solid-waste expansion and rapid growth in equipment

Recently, Weiming Environmental Protection announced that, as the lead party, the consortium it formed successfully won the bid for the Bali, Indonesia waste incineration power project and the Mudu (Bogor), Indonesia waste incineration power project. The projects plan, in total, to build incineration and power-generation facilities with an intended daily processing capacity of approximately 3,000 tons, with each cooperation term lasting 30 years. This is the company’s breakthrough in the Indonesian market and marks that its waste incineration business has officially set sail overseas.

The demand in Indonesia’s waste treatment market is urgent. The country produces about 56.6 million tons of municipal solid waste every year, and the regulated treatment rate is only 9%-10%. According to the Indonesian government’s planning, it plans to build 33 waste incineration power plants nationwide, with total investment of about the equivalent of $5.6 billion. With each plant’s processing capacity at roughly 1,000 tons/day and electricity prices locked at $0.2 per kWh (about RMB 1.42 per kWh), the profitability level is more advantageous than that of domestic projects.

Weiming Environmental Protection is not a “latecomer” to the Indonesian market. As early as 2024, the company had already invested about $400 million to build and deploy an ice-nickel project with an annual output of 40,000 metric tons, deeply embedding itself in Indonesia’s new energy supply chain and accumulating valuable localized operational experience. Some analysts point out that, taking into account both Indonesia’s current round of construction plans and the company’s first-mover advantages, it is expected that Weiming Environmental Protection’s annual awarded projects can continue to grow between 2026 and 2029, with ample room for the long-term operating performance to double.

In the domestic environmental protection equipment sector, Weiming Environmental Protection shows strong technical competitiveness. In the first three quarters of 2025, the total value of newly added equipment orders for the company and its subordinate equipment manufacturing companies was approximately RMB 4.47 billion, a year-on-year increase of 66.29%. Equipment orders for the full year are expected to reach a record high. Among them, the proportion of new-material equipment orders is slightly over half. The equipment group has successfully developed new products such as oxygen-pressure autoclave agitators and dual-boiler dense-medium jiggers, and it has also been recognized as a national specialized, innovative, and “little giant” enterprise.

As orders are gradually delivered and verified, the equipment business will continue to release earnings from 2025 to 2026. The company stated that it is working to accelerate the order execution timeline and to promote optimization of project management.

New materials business enters the harvest period

As the company’s future “growth engine,” its new energy materials business is shifting from the investment phase to the harvest phase. The oxygen-enriched side-blown production line with an annual capacity of 20,000 metric tons under its subsidiary, Jiaman, has already been put into operation. In the third quarter of 2025, it achieved revenue of RMB 326 million; Weiming Shengqing achieved operating revenue of RMB 1.045 billion in the first three quarters.

More noteworthy is that Weiming Shengqing has signed a strategic cooperation agreement with Guangdong Bopupp Cycle Technology, a controlling subsidiary of Contemporary Amperex Technology Co., Limited (CATL), to sell directionally ternary cathode material precursor products. The cooperation output is planned at 24,000-48,000 tons per year, for a term of three years. With the commissioning and official production of the ternary precursor production lines, and as key customers such as Bopupp are locked in, it is expected that the company’s new materials business revenue in 2026 will increase significantly year over year.

Based on the solid fundamentals of 56 domestic waste incineration operation projects, Weiming Environmental Protection is opening up additional growth space by leveraging equipment technology output and expanding overseas projects, while also entering core links of the new energy industry chain by tapping nickel intermediates and precursor materials. Near-term stock price fluctuations cannot mask the company’s long-term growth fundamentals. The coordinated development of the three business segments lays a solid foundation for high-quality growth over the next three years.