Core Viewpoint - The announcement of the fifth batch of national public open units for environmental facilities and urban sewage and waste treatment facilities by the Ministry of Ecology and Environment marks a significant milestone for the company, showcasing its commitment to environmental responsibility and the "Two Mountains" concept [1] Group 1: Company Achievements - The company has successfully included 18 environmental projects in the national public open unit list, reflecting its dedication to the "open sharing" philosophy and its role as a leading environmental enterprise in China [1][2] - Since the second half of 2018, the company has opened 226 projects to the public, receiving approximately 220,000 visitors over three years, making it the earliest and largest enterprise in China to open environmental facilities to the public [2] - The "Urban Living Room" waste-to-energy project in Changzhou, Jiangsu, has been recognized as one of the "Top Ten National Environmental Facility Open Units," receiving high praise from the Ministry of Ecology and Environment [2] Group 2: Project Details - The 18 projects included in the latest public open unit list are as follows: 1. Tianjin Xiqing Waste-to-Energy Project 2. Hebei Zhangjiakou Waste-to-Energy Project 3. Heilongjiang Harbin Waste-to-Energy Project 4. Jiangsu Yixing Waste-to-Energy Project 5. Jiangsu Suzhou Waste-to-Energy Project 6. Jiangsu Rugao Biomass Direct Combustion Project 7. Jiangsu Danyang Waste-to-Energy Project 8. Zhejiang Ninghai Waste-to-Energy Project 9. Zhejiang Shengzhou Waste-to-Energy Project 10. Jiangxi Jiujiang Waste-to-Energy Project 11. Shandong Zhucheng Waste-to-Energy Project 12. Shandong Dongping Waste-to-Energy Project 13. Shandong Binzhou Development Zone Sewage Treatment Project 14. Henan Nanyang Waste-to-Energy Project 15. Henan Xinyang Waste-to-Energy Project 16. Henan Taikang Waste-to-Energy Project 17. Hunan Xiangtan Waste-to-Energy Project 18. Hunan Shaoyang Waste-to-Energy Project [3]

Investment Rating - The report maintains a "Positive" investment rating for the environmental sector [11] Core Insights - The environmental sector's net profit attributable to the parent company is expected to decline by 6.6% in 2024 and increase by 3.9% in Q1 2025, with solid performance in waste incineration and water services [2][6] - The sector's revenue for 2024 is projected at 305.7 billion, a slight decrease of 0.44% year-on-year, while the net profit attributable to the parent company is expected to be 20.9 billion, down 11.1% [6][22] - The report highlights the improvement in free cash flow for waste incineration and water services, indicating a potential for higher dividends in the future [8][9] Summary by Sections Profit and Loss Statement - In 2024, the environmental sector is expected to achieve a revenue of 3057 billion, with a net profit of 209 billion, reflecting a decline of 11.1% year-on-year [6][22] - The sector's gross margin is projected to be 27.5%, an increase of 0.46 percentage points compared to the previous year [6][22] Balance Sheet - The environmental sector's debt ratio is expected to stabilize at 57.17%, a decrease of 0.19 percentage points year-on-year [7] - Accounts receivable as a percentage of revenue is projected to increase by 7.0 percentage points to 62.8% in 2024, indicating pressure on local government finances [7] Cash Flow Statement - The cash collection ratio for the environmental sector is expected to be 91.4%, an increase of 1.7 percentage points year-on-year [8] - The free cash flow for the sector is projected to be 2.1 billion, an increase of 10.5 billion year-on-year, with significant improvements in waste incineration and water services [8] Investment Strategy - The report suggests a moderately optimistic outlook for the sector, driven by market reforms and the "14th Five-Year Plan" assessment year, which may enhance cash flow and valuation recovery [9] - Key investment targets include companies in waste incineration and water services, such as Huaneng Environment, Xingrong Environment, and Weiming Environmental [9]

Summary of Conference Call Records Industry Overview - The conference call discusses the solid waste management industry, particularly focusing on the integration of waste incineration and IDC (Internet Data Center) projects, emphasizing the potential for efficiency improvements and enhanced return on equity (ROE) through market reforms and pricing adjustments [1][2]. Key Points and Arguments - **Market Valuation and ROE Potential**: The solid waste management sector, particularly through IDC initiatives, has the potential to double its ROE, with reference to international leaders like Waste Management (WM) achieving ROE of over 30%, a price-to-earnings (PE) ratio of 33x, and a price-to-book (PB) ratio of 11x [1]. - **Zero Carbon Projects**: The combination of waste incineration and IDC is positioned as a solution for ultra-low Power Usage Effectiveness (PUE) zero carbon projects, highlighting advantages such as cleanliness, efficiency, stability, and economic viability, especially in urban centers [1]. - **Profitability Models**: Different operational models (pure energy supply, energy supply with cabinet leasing, and energy supply with computing power leasing) show significant profitability elasticity, with potential increases in ROE from 12% to 16%, 15%, and 18% respectively [1]. - **Operational Scale and Location**: Companies like Yongxing, Junxin, and others have a high percentage of their operations meeting the scale and location requirements for effective waste management and IDC integration [1]. Financial Highlights - **Increased Cash Flow and Dividends**: The industry is entering a mature phase with declining capital expenditures, leading to positive free cash flow in 2023 and continued growth in 2024. Companies are significantly increasing their dividends, with notable examples including: - Green Power: Cash dividend of 418 million yuan (+100%), dividend payout ratio of 71.45% [2]. - Hanlan Environment: Dividend of 0.8 yuan per share (+67%), payout ratio of 39.20% [2]. - Junxin Co.: Dividend payout ratio of 95% (+23%) with a commitment to maintain a minimum of 50% [2]. - Yongxing Co.: Cash dividend of 540 million yuan (+15%), payout ratio of 65.81% [2]. - Other companies also reported significant increases in dividends and payout ratios, indicating a strong trend towards returning value to shareholders [2]. Additional Insights - **Policy Impact**: The push for metered charging in waste management is expected to streamline commercial models and improve cash flow, further supporting the financial health of companies in the sector [2]. - **Long-term Dividend Commitments**: Several companies have made long-term commitments to maintain or increase dividend payouts, indicating confidence in future cash flows and profitability [2]. This summary encapsulates the key insights from the conference call, highlighting the solid waste management industry's growth potential, financial performance, and strategic direction.

Core Viewpoint - The rural waste management market in China is expanding due to increasing waste generation, with a per capita daily waste production of 0.86 kg, growing faster than urban areas. The market size reached 302.7 billion yuan in 2024, reflecting a year-on-year growth of 7.19% [1][13]. Industry Overview - Rural waste management involves the classification, collection, transportation, and disposal of waste generated by rural residents, aiming for reduction, resource recovery, and harmless treatment. The main model is "household classification, village collection, town transportation, county processing," but some areas still rely on simple landfilling or open burning, leading to secondary pollution [2][5]. Industry Development History - The industry has evolved through four stages: 1. Self-consumption period before 2003, where waste was managed naturally [5]. 2. Governance initiation from 2003 to 2007, with the introduction of centralized waste management [5][6]. 3. Pilot promotion from 2008 to 2014, where waste classification began to be implemented [6]. 4. Special governance period from 2015 onwards, with systematic deployment of rural waste management strategies [6]. Industry Chain - The upstream of the rural waste management industry includes waste generation, waste treatment equipment, and technology research and services. The midstream involves waste processing, while the downstream applications include environmental protection, energy, and agriculture [8]. Market Size - The rural waste management market is driven by the increasing waste generation and supportive government policies. The market size in 2024 is projected at 302.7 billion yuan, with a growth rate of 7.19% [1][13]. Key Enterprises - Leading companies in the rural waste management sector include: - **Huanlan Environment**: Offers integrated waste management solutions and operates numerous waste-to-energy projects [15][17]. - **Fuchun Environmental**: Focuses on waste-to-energy projects, effectively addressing rural waste issues [19]. - **China Everbright International**: Engages in various waste management sectors, promoting standardized and professional development [17]. - **Weili Environmental**: Specializes in leachate treatment and landfill restoration, contributing to rural ecological improvements [17]. Industry Development Trends 1. **Technological Upgrades and Resource Utilization**: The industry is moving towards more environmentally friendly and efficient circular economy practices, with waste-to-energy and resource recovery becoming mainstream [21]. 2. **Diversified Operation Models and Market Transformation**: The shift from government-led to multi-stakeholder management is expected, with increased participation from social capital [22]. 3. **Full-Chain Control and Digital Transformation**: Emphasis on comprehensive management from waste generation to processing, utilizing digital tools for improved efficiency and quality [23].

Investment Rating - The industry investment rating is "Positive" and is maintained [9] Core Viewpoints - As of April 25, 2025, the issuance of special refinancing bonds for replacing hidden debts has reached 80% of the 2 trillion yuan quota, indicating strong momentum in debt replacement efforts. The environmental sector, particularly in government-related debts, is expected to benefit significantly from this policy shift, which is supported by a more proactive fiscal policy in 2025 [2][4][15] Summary by Sections Background - Since November 2024, local debt replacement has accelerated, with a total of 2 trillion yuan in debt limits set for replacement from 2024 to 2026. The central government has emphasized the need to resolve local government debts and accelerate payments owed to enterprises [4][14] Progress - By April 25, 2025, a total of 1.59 trillion yuan in special refinancing bonds has been issued, all aimed at replacing hidden debts. The issuance has significantly increased compared to previous years, with 2025 showing a marked acceleration in bond issuance [5][25][28] Investment Logic - The debt replacement strategy is expected to provide substantial benefits to companies with receivables from government entities. Two investment strategies are recommended: 1. Value Side: Focus on sectors with large receivables and low risk, such as waste incineration and water operations, which are likely to see reduced bad debt risks and improved cash flow [7][41] 2. Elasticity Side: Target leading companies in water, waste incineration, and environmental services that have a high proportion of government receivables and are significantly impacted by credit impairment losses [7][41]

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The solid waste sector is expected to enhance dividends and return on equity (ROE), supported by decreasing capital expenditures and improving free cash flow as the industry matures [9][10] - The report emphasizes the importance of stable growth, price reforms, and increased dividends, suggesting a comprehensive allocation strategy focusing on domestic demand-driven assets [11][13] Summary by Sections Industry Trends - The solid waste sector is entering a mature phase, leading to improved free cash flow and higher dividends. The report highlights that the free cash flow turned positive in 2023 and is expected to continue increasing in 2024 [9] - The report tracks the performance of various companies, noting significant increases in dividends for firms like Junxin Co. and Green Power, with cash dividends of 5.07 billion CNY (+37%) and 4.18 billion CNY (+100%) respectively for 2024 [9][10] Company Tracking - Green Power reported a 33% increase in net profit for Q1 2025, driven by reduced costs and increased heating supply, with a significant rise in free cash flow [9] - Junxin Co. achieved a revenue of 24.31 billion CNY (+31%) for 2024, with a net profit of 5.36 billion CNY (+4%) [9] - The report also highlights the performance of other companies like Jingjin Equipment and Yongxing Co., noting their dividend plans and revenue growth [9] Policy Tracking - The Ministry of Finance allocated over 13.5 billion CNY for energy-saving and emission-reduction subsidies in 2025, indicating government support for the industry [9] - The report discusses the impact of new policies on the solid waste sector, including the push for garbage treatment fee measurement and the promotion of commercial models [9] Market Performance - The report notes a 51% year-on-year increase in sales of new energy sanitation vehicles in the first quarter of 2025, with a penetration rate of 14.36% [27] - The average price of biodiesel remained stable, while the price of waste cooking oil showed a slight increase, reflecting market dynamics [37] Investment Recommendations - The report recommends focusing on companies with strong dividend growth and stable cash flows, such as Huanlan Environment, Green Power, and Yongxing Co. [11][13] - It suggests monitoring companies involved in resource recycling and those benefiting from price reforms and domestic demand [11][13]

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The solid waste sector is expected to enhance dividends and return on equity (ROE), supported by a decrease in capital expenditure and improved free cash flow as the industry matures [9][10] - The report emphasizes the importance of stable growth, price reforms, and increased dividends, suggesting a comprehensive allocation strategy focusing on domestic demand-driven assets [11][13] Summary by Sections Industry Trends - The solid waste sector is entering a mature phase, leading to a significant improvement in free cash flow and dividend payouts. For instance, Junxin Co. plans to distribute 507 million yuan in cash dividends for 2024, a 37% increase, with a dividend payout ratio of 94.59% [9] - The report highlights the growth of the environmental sanitation equipment market, with a 51% year-on-year increase in new energy vehicle sales in the first quarter of 2025, reaching a penetration rate of 14.36% [27][28] Company Tracking - Green Power reported a 33% increase in net profit for Q1 2025, driven by reduced costs and increased heating supply, with a significant rise in free cash flow [9] - Junxin Co. achieved a 31% revenue growth in 2024, with a net profit of 536 million yuan, reflecting strong performance from new projects [9] - The report notes that Jingjin Equipment experienced a 92% increase in revenue from supporting equipment, despite a slight decline in overall revenue [9] Policy Tracking - The Ministry of Finance allocated over 13.5 billion yuan for energy-saving and emission-reduction subsidies in 2025, indicating strong governmental support for the industry [9] - The report discusses the impact of price reforms on the water industry, which is expected to enhance profitability and stabilize cash flows [14] Market Opportunities - The report identifies potential growth areas in the recycling of lithium batteries, with stable metal prices and a slight decline in profitability, suggesting a need for industry consolidation and improvement in profit margins [38][39] - The solid waste sector is expected to benefit from new business models, including waste-to-energy and data center collaborations, which could significantly enhance ROE [10]

Company Overview - China Everbright Environment Group Limited is the largest environmental enterprise in China and a leading player in Asia's environmental protection industry, focusing on solid waste, water-related business, and clean energy [4]. - The company operates in 229 cities across 25 provinces and has expanded its presence to international markets including Germany, Poland, Vietnam, and Mauritius [5]. - Everbright Environment has been ranked first among the "Top Ten Influential Solid Waste Treatment Enterprises in China" for 14 consecutive years and is a constituent member of the Dow Jones Sustainability Indices for nine years running [6]. - The company reported significant growth in its waste-to-energy operations, being the world's largest investor and operator in this sector [4]. - Everbright Environment's corporate mission emphasizes its commitment to ecological and environmental sustainability, aiming to create investment value while undertaking social responsibility [6]. Financial Performance - Revenue for 2024 decreased to HK$30,258,009, a decline of 6% compared to HK$32,090,207 in 2023 [18]. - EBITDA for 2024 was HK$10,074,731, down 21% from HK$12,827,961 in 2023 [18]. - Profit attributable to equity holders decreased by 24% to HK$3,377,200 in 2024 from HK$4,429,160 in 2023 [18]. - Return on shareholders' equity fell to 7.01% in 2024, down 2.26 percentage points from 9.27% in 2023 [18]. - Total assets decreased by 2% to HK$186,027,024 in 2024 from HK$189,182,824 in 2023 [18]. - Total liabilities decreased by 3% to HK$119,610,448 in 2024 from HK$123,659,603 in 2023 [18]. - Current ratio improved to 134% in 2024, an increase of 20 percentage points from 114% in 2023 [18]. Operational Highlights - The Group operated 193 waste-to-energy projects, 162 wastewater treatment projects, and 31 integrated biomass utilization projects, serving approximately 160 million residents [47][48]. - The Group generated 27.7 billion kWh of electricity, sufficient to meet the annual needs of over 23 million households, saving more than 11 million tonnes of standard coal and displacing over 13 million tonnes of CO2 emissions [47][48]. - The Group's investment in new business areas, including biomethane and battery recycling, led to significant breakthroughs [51][52]. - The Group established a Science and Technology Committee to enhance technological capabilities and successfully launched a coke-cleaning robot service [54][55]. - The Group's investments and contracts exceeded RMB 1.7 billion and RMB 1.8 billion, respectively, while entering the Central Asian market for the first time [56][57]. Market Expansion and Strategic Initiatives - The company continues to enhance its market expansion strategies, aiming for sustainable growth in both domestic and international markets [5]. - The Group is actively involved in strategic partnerships for green development initiatives along the Belt and Road and the Yangtze River Economic Belt [6]. - The Group's international market expansion includes securing contracts in Egypt, Indonesia, Malaysia, and India [84]. - The Group's Guangdong Nanxiong Livestock and Poultry Manure Resource Utilisation Project commenced operation, laying a foundation for new business growth points [92]. Environmental and Social Responsibility - The Group received multiple awards for its social responsibility initiatives, including the "Social Responsibility Brand of the Year" for the 10th consecutive year [106]. - The Group supported rural revitalization through its integrated biomass utilization model, with the Hunan Xinhua Waste-to-energy Project recognized as a "2024 China Livelihood Project" [62]. - The Group's projects attracted over 80,000 visitors and more than 100,000 participants in online activities, promoting environmental education [97]. Technological Innovations - The Group has been granted a total of 2,149 intellectual property rights and received over 20 provincial and ministerial-level scientific and technological awards, showcasing its innovation capabilities [89]. - The Group's carbon asset management system has been applied to over 370 projects, enhancing intelligent management of carbon emission data [152]. - The company has made technological breakthroughs in fields like battery recycling and flue gas treatment to drive innovation [193]. Challenges and Risk Management - The principal risks for 2024 include accounts receivable risk, environmental compliance and safety management risk, and market competition risk [186]. - The Company implemented targeted control measures for accounts receivable risk to enhance management effectiveness [189]. - The Company faced high pressure related to environmental compliance and safety management due to stringent regulations [191]. Future Outlook - The Group aims to enhance its core competitiveness and embark on a new journey of "Second-stage Entrepreneurship" to support the "15th Five-Year Plan" [158]. - The Group will focus on integrating technology and industry to drive innovation and improve operational management [157]. - The Company is exploring new business areas such as fly ash recycling and carbon trading to uncover growth opportunities [193].

证券研究报告 环保 | 环境治理 港股|公司点评报告 hyzqdatemark 2025 年 04 月 17 日 查浩 SAC：S1350524060004 zhahao@huayuanstock.com 刘晓宁 SAC：S1350523120003 liuxiaoning@huayuanstock.com 蔡思 SAC：S1350524070005 caisi@huayuanstock.com | 基本数据 | 2025 | 04 | 日 | 月 | 16 | 年 | | --- | --- | --- | --- | --- | --- | --- | | 收盘价（港元） | | | 3.41 | | | | | 一年内最高/最低（港 | | | 4.14/3.01 | | | | | 元） | | | | | | | | 总市值（百万港元） | | | 20,947.55 | | | | | 流通市值（百万港元） | | | 20,947.55 | | | | | 资产负债率（%） | | | 64.30 | | | | | 资料来源：聚源数据 | | | | | | | 光大环境(00257.HK) ...

7天5板贝因美（002570），收到浙江证监局行政监管措施决定书。 二是公司控股股东贝因美集团存在非经营性资金占用情形，控股股东2021年和2022年分别占用公司资金3091.66万元和1693.55万元，上述资金在当年内归 还公司； 三是公司对广西全安圣企业管理有限公司的财务资助事项未及时审议并披露。 经过两日回调后，4月16日，贝因美股价午后再度冲上涨停板，当日换手率44.52%，成交额达32.93亿元。 此前在4月8日至11日的连续4个交易日间，贝因美股价收获连续涨停板，加上16日报收的涨停，该股在连续7个交易日间实现了5个涨停板。 不过16日晚间贝因美即披露收到浙江证监局行政监管措施决定书。 公告显示，贝因美及相关人员、控股股东于近日收到浙江证监局下发的行政监管措施决定书。 浙江证监局在现场检查中发现公司存在三大问题： 一是公司收入确认不符合企业会计准则，上述事项导致公司定期财务报告披露不准确； 对此，浙江证监局决定对贝因美及相关人员、贝因美集团分别采取出具警示函的监督管理措施。 贝因美主要从事婴幼儿配方奶粉、营养米粉和其他婴幼儿辅食、营养品的研发、生产和销售。在2022年业绩亏损后，近年来该公司经营 ...