Investment Rating - The report maintains an "Overweight" rating for the environmental protection industry [1]. Core Views - Indonesia has launched a $5.6 billion waste-to-energy project, indicating a vast market opportunity for solid waste management companies to expand internationally [11][12]. - The solid waste sector is experiencing strong fundamentals, with a notable increase in free cash flow and improved return on equity (ROE) due to operational efficiencies and reduced capital expenditures [14][15]. - The water services sector is poised for growth, with expectations of increased cash flow and dividend payouts as capital expenditures decline [18][19]. Summary by Sections Industry News - Indonesia's sovereign fund has initiated the first waste-to-energy project tender, with plans for 33 plants and a total investment of approximately 56 billion USD [11]. - The solid waste industry is transitioning to a mature phase, focusing on efficiency improvements and cash flow generation [14]. - The environmental sanitation vehicle market saw a 63.18% increase in new energy vehicle sales, with a penetration rate of 17.40% [20]. Key Recommendations - Recommended stocks include: - **Waiming Environmental**: Selected as a supplier for Indonesia's waste-to-energy projects, with significant operational capacity [13]. - **Green Power**: Strong performance driven by increased heating capacity and cost savings [14]. - **Yongxing Co.**: Notable growth in revenue and profit due to improved operational efficiency [14]. - Companies to watch include **Dayu Water Saving**, **Lian Tai Environmental**, and **Wang Neng Environment** [1]. Financial Performance - The solid waste sector reported a 12% increase in net profit and a 2.7 percentage point rise in gross margin for the first three quarters of 2025 [14]. - Free cash flow for the sector reached 13.3 billion CNY, marking a 28% increase year-on-year [14]. - Dividend payouts are expected to rise, with several companies maintaining high payout ratios [15][18]. Market Trends - The water services sector is expected to see a cash flow turnaround, similar to the solid waste sector, with anticipated increases in dividend payouts as capital expenditures decrease [18][19]. - Price reforms in water services are expected to enhance growth and valuation, with cities like Guangzhou and Shenzhen implementing price increases [18]. Equipment and Technology - The report highlights the growth in the environmental sanitation vehicle market, particularly in new energy vehicles, which are becoming increasingly prevalent [20]. - The report also notes improvements in the profitability of lithium battery recycling, with a slight decrease in metal prices leading to better margins [34][35].

Core Insights - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.12%, with 238 stocks having a shareholding ratio exceeding 20% [1] - Southbound funds hold a total of 4,829.92 million shares, accounting for 19.12% of the total share capital of the stocks, with a market value of 62,903.32 billion HKD, representing 14.56% of the total market value [1] - The stocks with the highest shareholding ratios by southbound funds are primarily AH concept stocks, with 127 out of 238 stocks exceeding 20% shareholding being AH stocks [1] Summary by Category Southbound Fund Holdings - Southbound funds have a significant presence in the Hong Kong market, with 238 stocks having over 20% shareholding, 135 stocks between 10% and 20%, 96 stocks between 5% and 10%, 82 stocks between 1% and 5%, and 18 stocks below 1% [1] - The highest shareholding is in China Telecom (601728) at 71.42%, followed by Green Power (601330) at 69.43% and COSCO Shipping Energy (600026) at 69.25% [2] Industry Distribution - The stocks with over 20% shareholding by southbound funds are mainly concentrated in the healthcare, industrial, and financial sectors, with 56, 35, and 34 stocks respectively [2] - A detailed list of high shareholding stocks includes China Telecom, Green Power, COSCO Shipping Energy, and others, with varying market prices and daily price changes [2][3]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (71.42%), Gree Power (69.43%), and COSCO Shipping Energy (69.25%) [1] - The largest increases in holdings over the last five trading days were seen in the Tracker Fund of Hong Kong (+5.118 billion), CNOOC (+2.935 billion), and Xiaomi Group-W (+2.839 billion) [1] - The largest decreases in holdings were recorded for SMIC (-2.428 billion), Tencent Holdings (-1.831 billion), and Alibaba-W (-1.394 billion) [2] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding of 9.913 billion shares, representing 71.42% [1] - Gree Power (01330) has a holding of 281 million shares, representing 69.43% [1] - COSCO Shipping Energy (01138) has a holding of 898 million shares, representing 69.25% [1] - Other notable companies include China Shenhua (67.69%) and Tianjin Capital Environmental Protection (66.73%) [1] Group 2: Recent Increases in Holdings - Tracker Fund of Hong Kong (02800) saw an increase of 5.118 billion in holdings, with a change of 19,240.45 million shares [1] - CNOOC (00883) increased by 2.935 billion, with a change of 14,057.10 million shares [1] - Xiaomi Group-W (01810) increased by 2.839 billion, with a change of 6,536.38 million shares [1] - Other companies with significant increases include Meituan-W (+2.148 billion) and China Mobile (+1.663 billion) [1] Group 3: Recent Decreases in Holdings - SMIC (00981) experienced a decrease of 2.428 billion, with a change of -31.55 million shares [2] - Tencent Holdings (00700) saw a decrease of 1.831 billion, with a change of -2.84 million shares [2] - Alibaba-W (09988) decreased by 1.394 billion, with a change of -844.60 million shares [2] - Other companies with notable decreases include ZTE Corporation (-628 million) and Longi Green Energy (-538 million) [2]

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 綠色動力環保集團股份有限公司（備註） 呈交日期: 2025年11月6日 本月底法定/註冊股本總額： RMB 1,393,454,130 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01330 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 404,359,792 | | 0 | | 404,359,792 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 404,359,792 | | ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 綠色動力環保集團股份有限公司（備註） 呈交日期: 2025年11月6日 | 2. 股份分類 | 普通股 | | 股份類別 | A | | 於香港聯交所上市 (註1) | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 601300 | 說明 | | 於上海證券交易所上市 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 989,094,229 | | 0 | | 989,094,229 | | 增加 / 減少 (-) | | | | 109 | | 0 | | | | 本月底結存 | | | | 989,094,338 | | 0 | | 989,094,338 | I. 法定/註冊股本變動 | 1. 股份分類 | 普 ...

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (71.27%), COSCO Shipping Energy (70.09%), and GCL-Poly Energy (69.45%) [1][2] - The largest increases in holdings over the last five trading days were seen in the Tracker Fund of Hong Kong (+4.963 billion), Meituan-W (+2.012 billion), and Hang Seng China Enterprises (+1.946 billion) [1][2] - The largest decreases in holdings were recorded for SMIC (-2.028 billion), Tencent Holdings (-1.614 billion), and Hua Hong Semiconductor (-638 million) [1][3] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding of 9.892 billion shares, representing 71.27% [2] - COSCO Shipping Energy (01138) has a holding of 908 million shares, representing 70.09% [2] - GCL-Poly Energy (01330) has a holding of 281 million shares, representing 69.45% [2] - Other notable companies include China Shenhua (67.64%) and Tianjin Capital Environmental Protection (66.54%) [2] Group 2: Recent Increases in Holdings - Tracker Fund of Hong Kong (02800) saw an increase of 4.963 billion in holdings, with a change of 19.059 million shares [2] - Meituan-W (03690) experienced an increase of 2.012 billion, with a change of 1.988 million shares [2] - Hang Seng China Enterprises (02828) had an increase of 1.946 billion, with a change of 2.079 million shares [2] Group 3: Recent Decreases in Holdings - SMIC (00981) had a decrease of 2.028 billion in holdings, with a change of 2.828 million shares [3] - Tencent Holdings (00700) saw a decrease of 1.614 billion, with a change of 256,560 shares [3] - Hua Hong Semiconductor (01347) experienced a decrease of 638 million, with a change of 868,410 shares [3]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (71.17%), COSCO Shipping Energy (70.06%), and GCL-Poly Energy (69.25%) [1][2] - The largest increases in holdings over the last five trading days were seen in the Tracker Fund of Hong Kong (+56.53 billion), Hang Seng China Enterprises (+19.83 billion), and Meituan-W (+17.13 billion) [1][2] - The largest decreases in holdings were recorded for Tencent Holdings (-18.04 billion), ZTE Corporation (-6.76 billion), and Innovent Biologics (-6.70 billion) [1][3] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding ratio of 71.17% with 9.878 billion shares [2] - COSCO Shipping Energy (01138) has a holding ratio of 70.06% with 908 million shares [2] - GCL-Poly Energy (01330) has a holding ratio of 69.25% with 280 million shares [2] Group 2: Recent Increases in Holdings - Tracker Fund of Hong Kong (02800) saw an increase of +56.53 billion in holdings, with a change of +21.71 million shares [2] - Hang Seng China Enterprises (02828) increased by +19.83 billion, with a change of +2.12 million shares [2] - Meituan-W (03690) increased by +17.13 billion, with a change of +1.71 million shares [2] Group 3: Recent Decreases in Holdings - Tencent Holdings (00700) experienced a decrease of -18.04 billion, with a change of -2.86 million shares [3] - ZTE Corporation (00763) saw a decrease of -6.76 billion, with a change of -2.09 million shares [3] - Innovent Biologics (01801) decreased by -6.70 billion, with a change of -0.77 million shares [3]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (71.15%), COSCO Shipping Energy (70.05%), and GCL-Poly Energy (69.20%) [1] - The largest increases in holding amounts over the last five trading days were seen in the Tracker Fund of Hong Kong (+39.80 billion), China National Offshore Oil Corporation (+17.62 billion), and Hua Hong Semiconductor (+16.45 billion) [1] - The largest decreases in holding amounts were recorded for Alibaba-W (-15.35 billion), Li Auto-W (-12.16 billion), and Innovent Biologics (-7.70 billion) [2] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding ratio of 71.15% with 9.874 billion shares [1] - COSCO Shipping Energy (01138) has a holding ratio of 70.05% with 908 million shares [1] - GCL-Poly Energy (01330) has a holding ratio of 69.20% with 280 million shares [1] Group 2: Recent Increases in Holdings - Tracker Fund of Hong Kong (02800) saw an increase of +39.80 billion in holding amount, with a change of +15.154 million shares [1] - China National Offshore Oil Corporation (00883) increased by +17.62 billion, with +8.613 million shares added [1] - Hua Hong Semiconductor (01347) increased by +16.45 billion, with +2.138 million shares added [1] Group 3: Recent Decreases in Holdings - Alibaba-W (09988) experienced a decrease of -15.35 billion, with a reduction of -0.94078 million shares [2] - Li Auto-W (02015) saw a decrease of -12.16 billion, with -1.50328 million shares reduced [2] - Innovent Biologics (01801) had a decrease of -7.70 billion, with -0.85364 million shares reduced [2]

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Views - The report emphasizes the importance of the "15th Five-Year Plan" focusing on green dual carbon goals, marketization, and debt management [4][8] - The solid waste sector shows strong performance in Q3 2025, with improved cash flow and profitability [4][12] Summary by Sections Industry Investment Rating - The report maintains an "Accumulate" rating for the environmental protection sector, highlighting strong fundamentals and growth potential [1] Key Investment Themes - The "15th Five-Year Plan" prioritizes green transformation, dual carbon goals, marketization, and debt management as key themes for the environmental sector [4][8] - The report suggests that the solid waste sector is experiencing robust growth, with Q3 2025 showing a 12% increase in net profit and a 2.7 percentage point rise in gross margin [4][12] Solid Waste Sector Insights - The solid waste sector's free cash flow improved significantly, with a net operating cash flow of 13.3 billion yuan in Q1-Q3 2025, representing a 28% increase [4][12] - The report highlights that the sector is entering a mature phase, with capital expenditures declining and dividend payouts increasing [12][14] Water Management Sector Insights - The water management sector is expected to experience a cash flow turning point, similar to the solid waste sector, with anticipated increases in free cash flow starting in 2026 [17][18] - The report notes that water pricing reforms are crucial for ensuring reasonable returns on investments, with cities like Guangzhou and Shenzhen implementing price adjustments [17][18] Renewable Energy and Recycling Insights - The report indicates a 63.18% year-on-year increase in sales of new energy sanitation vehicles in the first nine months of 2025, with a penetration rate of 17.40% [20][28] - The report also highlights improvements in profitability for lithium battery recycling due to rising metal prices, with lithium carbonate prices reaching 80,600 yuan per ton [20][28]

Core Insights - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.01%, with 233 stocks having a shareholding ratio exceeding 20% [1] - Southbound funds hold a total of 4,799.05 million shares, accounting for 19.01% of the total share capital of the stocks, with a market value of 61,425.84 billion HKD, representing 14.49% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 98.59 million shares held, accounting for 71.03% of the issued shares [1] Group 1: Southbound Fund Holdings - 233 stocks have a shareholding ratio of over 20%, while 136 stocks are in the 10%-20% range, 96 stocks are in the 5%-10% range, 82 stocks are in the 1%-5% range, and 18 stocks have a shareholding ratio below 1% [1] - A significant portion of stocks with high southbound fund holdings are AH concept stocks, with 124 out of 233 stocks (53.22%) having a shareholding ratio over 20% being AH stocks [1] Group 2: Industry Distribution - Southbound fund holdings exceeding 20% are primarily concentrated in the healthcare, financial, and industrial sectors, with 54, 34, and 34 stocks respectively [2] - The table lists several stocks with high southbound fund holdings, including China Telecom (71.03%), Green Power Environmental (70.14%), and COSCO Shipping Energy (70.01%) [2][3]