Core Viewpoint - The report highlights a decline in the production of air pollution control equipment in China, indicating potential challenges for the industry in the coming years [1]. Industry Summary - According to the National Bureau of Statistics, the production of air pollution control equipment in China is projected to be 33,000 units by December 2025, reflecting a year-on-year decrease of 3.4% [1]. - The cumulative production of air pollution control equipment for the entire year of 2025 is expected to reach 326,000 units, which represents a significant decline of 13.9% compared to the previous year [1]. Company Summary - Listed companies in the air pollution control sector include Longjing Environmental Protection (600388), Qingxin Environment (002573), Fida Environmental Protection (600526), Xuelang Environment (300385), China Electric Environmental Protection (300172), and Yongqing Environmental Protection (300187) [1].

同壁财经讯，企查查数据显示，根据《2号炉电除尘变频电源节能优化升级改造（第二次）中标结果公 告》，福建龙净环保股份有限公司于2026年2月14日公告中标广东粤电韶关发电厂有限公司采购项目， 中标金额为185.70万元。 相关上市公司：龙净环保(600388.SH) 同壁财经小贴士： 龙净环保（600388.SH）2024年营业收入为100.19亿元，营业收入增长率为-8.69%，归属母公司净利润 为8.30亿元，归属母公司净利润增长率为63.15%，净资产收益率为10.13%。 同壁财经小贴士： 龙净环保（600388.SH）2024年营业收入为100.19亿元，营业收入增长率为-8.69%，归属母公司净利润 为8.30亿元，归属母公司净利润增长率为63.15%，净资产收益率为10.13%。 2025年上半年公司营业收入为46.83亿元，营业收入增长率为0.24%，归属母公司净利润为4.45亿元，归 属母公司净利润增长率为3.27%。 目前公司属于工业行业，主要产品类型为电子元器件、工控机械、水电、物业出租和管理、烟气脱硫系 统，2024年报主营构成为除尘器及配套设备:49.57%;脱硫、脱硝工程项目:30. ...

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Insights - The mining industry is entering a new investment cycle driven by rising metal prices and increasing capital expenditures (CAPEX), with a projected 50% growth in global mining CAPEX by 2030 [6][12] - The report highlights two main themes: 1) Green energy and equipment consumables, and 2) Resources and recycling [6] Summary by Sections Main Line 1: Green Energy and Equipment Consumables - **Longjing Environmental Protection**: Driven by rising metal prices, mining CAPEX is expected to increase, leading to a surge in demand for green electricity and new energy equipment in mining [6][14] - **Sains**: With Zijin Mining's support, there is significant potential in mining pollution prevention and chemical agents, as the company expands its offerings in customized solutions for heavy metal pollution [21][24] - **Jingjin Equipment**: As a leader in solid-liquid separation equipment, the company has a market share of over 40%. The report indicates a recovery in demand and highlights the company's high dividend yield as a safety margin [33][34] - **Yutong Heavy Industry**: The company is experiencing a doubling in sales of new energy mining vehicles, benefiting from the electrification trend. The mining equipment segment saw revenue of 641 million yuan in the first half of 2025, a year-on-year increase of 111% [6][14] Main Line 2: Resources and Recycling - **High Energy Environment**: The company is seeing significant growth in metal resource recycling, with a strategic move into mining. The performance of recycling projects is expected to improve with rising metal prices [6][19] - **Sains**: The price of rhenium, a strategic aerospace metal, continues to rise, and the company is positioned to benefit from this trend through its collaboration with Zijin Mining [6][23] - **Weiming Environmental Protection**: The tightening supply of nickel is driving price increases, and the company is focusing on overseas solid waste management opportunities, particularly in Indonesia [6][19]

Investment Rating - The report maintains an "Accumulate" rating for the utility sector [1] Core Insights - The Jilin Green Power Direct Connection Project is under public consultation, aiming for a minimum of 30% self-consumed electricity by 2030, increasing to 35% for new projects [4][6] - The State Grid has announced a fixed asset investment of 4 trillion yuan for the 14th Five-Year Plan, a 40% increase from the previous plan, focusing on green energy transition [4][6] - The average electricity purchase price in January 2026 decreased by 8% year-on-year [4][38] - The price of thermal coal at Qinhuangdao port was 695 yuan per ton as of February 6, 2026, a year-on-year decrease of 7.70% [4][46] - The inflow to the Three Gorges Reservoir increased by 65.3% year-on-year, while the outflow decreased by 5.3% [4][54] Industry Data Tracking Electricity Consumption - Total electricity consumption in 2025 was 10.37 trillion kWh, a year-on-year increase of 5.0% [4][13] - The growth rates for different sectors were: primary industry +9.9%, secondary industry +3.7%, tertiary industry +8.2%, and urban-rural residential +6.3% [4][13] Power Generation - Total power generation in 2025 was 9.72 trillion kWh, a year-on-year increase of 2.2% [4][20] - The growth rates for different power sources were: thermal power -1.0%, hydropower +2.8%, nuclear power +7.7%, wind power +9.7%, and solar power +24.4% [4][20] Installed Capacity - New installed capacity in 2025 included: thermal power +94.5 million kW (up 63.8%), hydropower +12.15 million kW (down 11.9%), nuclear power +1.53 million kW, wind power +120.48 million kW (up 50.9%), and solar power +317.51 million kW (up 14.2%) [4][58] Investment Recommendations - For green power, focus on companies like Longyuan Power, Zhongmin Energy, and Three Gorges Energy, with a strong recommendation for Longjing Environmental Protection [4] - For thermal power, consider Huaneng International and Huadian International [4] - For hydropower, Longjiang Power is highlighted due to its low cost and strong cash flow [4] - For nuclear power, China National Nuclear Power and China General Nuclear Power are recommended due to their growth potential [4] - For solar assets and charging pile assets, companies like Southern Power Grid Energy and Longxin Technology are suggested [4]

Investment Rating - The report maintains a positive outlook on the environmental industry, indicating an "Overweight" investment rating for the sector, suggesting it will outperform the overall market [2][11]. Core Insights - The environmental industry is experiencing a continuous differentiation in performance, with stable operational assets. The report anticipates steady growth in net profits for various segments in 2025, with specific companies showing significant year-on-year increases [2][3]. - Municipal water services are stable, benefiting from strategic expansions and water price adjustments, while the demand for sewage engineering is declining [2]. - The waste incineration sector is also stable, with operational improvements despite a slowdown in new projects and tenders. Different companies are experiencing varied profit growth due to factors like historical revenue recognition and depreciation [2][3]. - The sanitation market remains stable, with profit growth influenced by impairment and the introduction of automated sanitation orders [2]. - Equipment products are facing a widening performance gap due to varying impacts from downstream sectors, with some companies expected to see declines in net profit growth [2]. Summary by Segment Municipal Water Services - Overall operations are stable, with net profit growth expected to be steady in 2025. Key companies include: - Zhongshan Public Utilities: 2025 net profit expected to increase by 67% to 2,000 million [3]. - Jiangnan Water: 3% increase to 415 million [3]. - Xingrong Environment: 8% increase to 2,150 million [3]. - Hongcheng Environment: 1% increase to 1,200 million [3]. Waste Incineration - The sector is stable with operational improvements. Key companies include: - Green Power: 23% increase to 720 million [3]. - Hanlan Environment: 20% increase to 2,000 million [3]. - Junxin Co.: 49% increase to 800 million [3]. Sanitation - The market is stable, with profit growth influenced by impairment and automation. Key companies include: - Yingfeng Environment: 36% increase to 700 million [3]. - Yuhua Tian: 4% increase to 600 million [3]. Equipment Products - Performance varies significantly across companies. Key companies include: - Longjing Environmental: 32% increase to 1,100 million [3]. - Qinda Environmental: 88% increase to 175 million [3]. - Woton Technology: 26% increase to 250 million [3]. Investment Recommendations - Municipal Environmental: Stable profitability with improving cash flow and opportunities in environmental assets. Recommended companies include Zhongshan Public Utilities, Junxin Co., Hanlan Environment, and others [2]. - Automated Sanitation: Growth potential in the field of sanitation robots. Recommended companies include Yingfeng Environment and Yuhua Tian [2]. - Green Methanol and SAF: Benefiting from EU policies, with recommended companies including CIMC Anrui and others [2].

Investment Rating - The report maintains a positive outlook on the carbon trading market and related sectors, indicating a favorable investment environment for companies involved in power generation and environmental protection [2][9]. Core Insights - The carbon market in China is expanding, with a cumulative trading volume of 865 million tons and a total transaction value of 57.663 billion yuan as of December 31, 2025. The trading volume for the year increased by approximately 24% year-on-year, although the average transaction price fell by 19.23% to 62.36 yuan per ton [2][6]. - The report highlights the government's commitment to carbon reduction, transitioning from energy control to carbon control, which is expected to create investment opportunities in the environmental sector [9]. - Natural gas prices have decreased due to a combination of supply-demand dynamics and seasonal factors, with significant price drops observed in various markets, including a 39.20% decrease in the Henry Hub spot price [2][12]. Summary by Sections 1. Power Sector - The carbon trading market is projected to continue expanding, with key emission units increasing awareness of carbon reduction. The number of units under management reached 3,378, with significant representation from the power, steel, cement, and aluminum industries [2][6]. - Recommendations for investment include companies with stable revenue sources such as Guodian Power, Inner Mongolia Huadian, and China Huaneng, which benefit from diversified income streams [9][11]. 2. Natural Gas Sector - Natural gas prices have seen a significant decline, with the Henry Hub spot price at $4.37/mmBtu, reflecting a 39.20% week-on-week drop. The report notes that the supply-demand balance is improving, contributing to this price decrease [2][12]. - Investment recommendations include companies like Kunlun Energy and New Hope Energy, which are expected to benefit from lower upstream resource costs and improved sales volumes [34][35]. 3. Market Performance Review - The report indicates that the power equipment and gas sectors outperformed the broader market during the review period from February 2 to February 6, 2026 [37]. 4. Company and Industry Dynamics - Recent regulatory updates include the National Development and Reform Commission's notification on improving the capacity pricing mechanism for coal and gas power generation, which aims to enhance revenue recovery for power plants [39][40]. - Key company announcements include performance forecasts from major players like Datang Power and Shanghai Electric, indicating significant year-on-year profit growth [41]. 5. Valuation Tables - The report provides valuation metrics for key companies in the utility sector, with several companies rated as "Buy," indicating strong growth potential and favorable market conditions [43][44].

Group 1 - The core viewpoint of the news is that Longking Environmental Protection Co., Ltd. has shown a mixed performance in stock price and financial results, with a notable increase in revenue and net profit year-on-year [1][2][3] Group 2 - As of February 5, Longking's stock price decreased by 2.03% to 17.86 CNY per share, with a total market capitalization of 22.683 billion CNY [1] - The company has seen a year-to-date stock price increase of 9.50%, with a slight decline of 0.67% over the last five trading days [1] - For the period from January to September 2025, Longking achieved an operating revenue of 7.858 billion CNY, representing a year-on-year growth of 18.09%, and a net profit attributable to shareholders of 780 million CNY, up 20.53% [2] Group 3 - Longking's main business segments include environmental equipment manufacturing (64.93%), new energy business (24.59%), project operation revenue (7.34%), and others (2.27%) [1] - The company has distributed a total of 3.184 billion CNY in dividends since its A-share listing, with 763 million CNY distributed in the last three years [3] - As of September 30, 2025, the number of shareholders increased to 44,400, with an average of 28,630 circulating shares per person [2][3]

Summary of Key Points Core Viewpoint - The A-share market experienced significant block trading activity on February 3, with a total transaction value of 2.236 billion yuan, highlighting notable trading in specific stocks such as Shanghai Airport, Zijin Mining, and Longjing Environmental Protection [1]. Group 1: Block Trading Activity - A total of 80 stocks underwent block trading, with Shanghai Airport leading at 349 million yuan, followed by Zijin Mining at 274 million yuan and Longjing Environmental Protection at 161 million yuan [1]. - Among the stocks traded, 7 were sold at par value, 2 at a premium, and 71 at a discount, indicating a predominance of discounted trades [1]. Group 2: Premium and Discount Rates - The stocks with the highest premium rates were DeMa Technology at 5.67% and Shen High-Speed at 2.01% [1]. - The stocks with the highest discount rates included Kai Fa Technology at 29.94%, New Wave Shares at 23.56%, and Ai Meike at 23.43% [1]. Group 3: Institutional Buying and Selling - The top institutional buying positions included Shanghai Airport at 349 million yuan, Longxin Zhongke at 116 million yuan, and Xinyuan Shares at 60.575 million yuan [2]. - The leading institutional selling positions were Nanxin Technology at 8.4 million yuan and Guobo Electronics at 4.1784 million yuan [2].

Investment Recommendations - Key companies recommended for investment include Longjing Environmental Protection, High Energy Environment, Sains, Hanlan Environment, Green Power Environmental Protection, and others [1] Companies to Watch - Companies suggested for attention include Dayu Water Saving, Lian Tai Environmental Protection, Wang Neng Environment, and others [2] Company Tracking - Jingjin Equipment is a leader in filter press with a market share of over 40%, and its new energy revenue is expected to grow as the lithium battery market recovers [3] - Longjing Environmental Protection has begun delivering pure electric mining trucks, with a projected domestic sales volume of 2,500 units in 2024 [3] - Sains is benefiting from rising rhenium prices driven by aerospace demand, with a rhenium price of 39.26 million yuan/ton expected by January 2026 [3] - High Energy Environment's performance exceeded expectations, driven by improvements in resource recycling profitability and strategic expansion into upstream mining [3] Event Tracking - The Shanghai Old Port Eco-Environmental Base has launched green methanol, marking a significant advancement in carbon utilization technology [4] Strategic Outlook for 2026 - The strategy emphasizes value and growth resonance, focusing on marketization and efficiency improvements in the solid waste sector [5] - Key recommendations include Hanlan Environment, Green Power, and others for their potential in dividend growth and operational efficiency [5] Industry Tracking - The sanitation equipment sector is seeing significant growth, with a 150% increase in unmanned sanitation project bids and a 71% increase in sales of new energy sanitation vehicles [7] - The market for biofuels remains stable, with prices for kitchen waste oil increasing by 100 yuan/ton [8] - Lithium battery recycling is experiencing price fluctuations, with carbonated lithium prices down by 6.2% as of January 30, 2026 [8]

Core Insights - The report indicates that after a period of volatility, the market is expected to regain momentum in February, supported by a decrease in the volatility index from a peak of 102 to around 32, which is historically low [2][3] - The report emphasizes the importance of focusing on two main investment themes: technology growth and cyclical recovery, as funds are likely to rotate towards underperforming sectors [3][4] Investment Themes - **Technology Growth**: The AI industry is experiencing significant positive changes, with expectations for OAI listings and advancements in storage, CPU, and packaging sectors. The report highlights the importance of monitoring policy catalysts and industry developments, particularly in emerging sectors like aerospace, new materials, and quantum technology [6][6] - **Cyclical Recovery**: The report suggests that sectors such as chemicals, real estate, and core consumer assets are expected to see a rebound as market sentiment improves. The report notes that these sectors are currently at low points in their economic cycles, with potential for recovery as institutional positions are historically low [6][6] Recommended Stocks - **Jingsheng Electromechanical (300316.SZ)**: The company is positioned to benefit from increasing demand in space and overseas photovoltaic equipment, with a market cap of 58.3 billion and projected EPS growth from 0.95 in 2026 to 1.17 in 2027 [7][7] - **Nuwai Co., Ltd. (603699.SH)**: As a leading industrial valve manufacturer, the company is expected to see growth driven by LNG and marine vessel demand, with a projected EPS increase from 2.51 in 2026 to 3.00 in 2027 [7][7] - **Longjing Environmental Protection (600388.SH)**: The company is focusing on green electricity and energy storage, with a projected EPS growth from 1.20 in 2026 to 1.37 in 2027 [7][7] - **Chip Microelectronics (688630.SH)**: The company anticipates significant profit growth, with EPS expected to rise from 4.18 in 2026 to 6.08 in 2027 [7][7] - **AVIC High-Tech (600862.SH)**: The company is expected to benefit from the increasing demand for aerospace materials, with projected EPS growth from 1.17 in 2026 to 1.29 in 2027 [7][7] - **Ping An Insurance (601318.SH)**: The company is projected to maintain strong growth in new business value (NBV), with EPS expected to rise from 8.59 in 2026 to 9.74 in 2027 [7][7] - **Rabbit Baby (002043.SZ)**: The company is expected to see steady growth in the decorative board industry, with projected EPS growth from 1.05 in 2026 to 1.15 in 2027 [7][7] - **Wanhua Chemical (600309.SH)**: The company is expected to benefit from improving MDI and TDI market conditions, with projected EPS growth from 5.13 in 2026 to 5.79 in 2027 [7][7] - **Tianfu Communication (300394.SZ)**: The company is positioned to benefit from the demand for optical modules, with projected EPS growth from 4.10 in 2026 to 5.38 in 2027 [7][7] - **Shaanxi Tourism (603402.SH)**: The company is expected to see growth driven by its core tourism operations, with projected EPS growth from 6.65 in 2026 to 7.61 in 2027 [7][7]