Investment Rating - The report maintains a "Positive" outlook on the public utilities and environmental sectors, particularly in electricity and natural gas [1]. Core Insights - The report highlights a recovery in electricity consumption in June, driven by the tertiary sector and residential usage, with a total electricity consumption of 8,670 billion kWh, representing a year-on-year growth of 5.4% [15][17]. - Natural gas consumption showed a slight increase in June, with a total apparent consumption of 35.05 billion m³, up 1.4% year-on-year, indicating a recovery in industry sentiment [21][48]. - The report emphasizes the ongoing optimization of energy structure in China, with significant contributions from renewable energy sources, particularly solar and nuclear power [2][8]. Summary by Sections 1. Electricity: June Consumption Growth Accelerates - In June, the industrial electricity generation reached 7,963 billion kWh, a year-on-year increase of 1.7% [7][9]. - The breakdown of electricity generation types shows a decline in hydropower by 4.0%, while nuclear power grew by 10.3%, and solar power surged by 18.3% [9][15]. - The report notes that the second industry contributed significantly to the electricity increment, accounting for 38% of the total increase [16][17]. 2. Natural Gas: Global Price Decline and June Consumption Growth - The report states that the apparent consumption of natural gas in June was 35.05 billion m³, marking a 1.4% increase year-on-year [21][48]. - The average price of LNG in Northeast Asia decreased to $11.90/mmBtu, reflecting a broader trend of declining global gas prices [22][41]. - The report anticipates that the long-term outlook for natural gas will improve due to rising LNG export capacities from the US and the Middle East [48]. 3. Weekly Market Review - The public utilities and environmental sectors underperformed compared to the CSI 300 index, while the electrical equipment sector outperformed [50]. 4. Company and Industry Dynamics - The report mentions the increase in installed capacity for solar and wind energy, with solar capacity growing by 54.2% year-on-year [53]. - It highlights the ongoing construction of large seawater desalination projects in coastal provinces to support high water-consuming industries [53]. 5. Key Company Valuation Table - The report includes a valuation table for key companies in the public utilities and environmental sectors, indicating potential investment opportunities [60].

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending specific companies for investment based on their potential benefits from recent developments [3][4]. Core Insights - The commencement of the Yarlung Tsangpo River downstream hydropower project is expected to significantly boost demand for hydropower equipment, benefiting leading companies in the sector [4][14]. - The report highlights a decline in European and Asian gas prices due to varying supply and demand dynamics, suggesting a potential opportunity for gas companies [17][18]. Summary by Sections 1. Power: Yarlung Tsangpo Downstream Hydropower Project Commencement - The Yarlung Tsangpo River has substantial hydropower resources, with a theoretical capacity of 113 million kilowatts, making it one of the richest rivers in Tibet [8]. - The project involves the construction of five cascade power stations with a total investment of approximately 1.2 trillion yuan, primarily for power transmission outside Tibet [9][10]. - The project is expected to create a demand for hydropower equipment, with estimated annual orders of 4 billion yuan for Dongfang Electric and Harbin Electric, ensuring stable long-term performance for these companies [14][16]. 2. Gas: Global Supply and Demand Variations - As of July 18, the Henry Hub spot price in the US was $3.57/mmBtu, reflecting a weekly increase of 7.57%, while European gas prices showed a decline [17][19]. - The report notes that despite high temperatures increasing gas demand in the US, the overall supply remains stable, leading to a mixed outlook for gas prices [20][26]. - Recommendations include focusing on integrated gas companies like Kunlun Energy and New Hope Energy, which are expected to benefit from cost reductions and improved profitability [37]. 3. Weekly Market Review - The report indicates that the public utility, power, power equipment, environmental protection, and gas sectors underperformed compared to the CSI 300 index during the week [41]. 4. Company and Industry Dynamics - Recent government initiatives in Qingdao aim to accelerate the development of non-fossil energy and offshore wind projects, indicating a supportive policy environment for renewable energy [45]. - The report also highlights significant developments in nuclear power and energy storage projects in various provinces, showcasing ongoing investments in clean energy [47][48]. 5. Key Company Valuation Table - The report includes a valuation table for key companies in the public utility and environmental sectors, providing insights into their market positions and potential for growth [51].

Investment Rating - The investment rating for the environmental sector is "Positive" [2] Core Viewpoints - The report highlights the ongoing promotion of a dual pricing system for heating, indicating that the reform of heating prices is continuously advancing. The centralized heating area in China has shown a growth trend, increasing from 8.309 billion square meters in 2017 to 11.549 billion square meters in 2023, with a compound annual growth rate of 5.6% [3][14] - The report emphasizes that the heating pricing mechanism is expected to be further streamlined with policy support, as local governments have initiated price adjustment policies in response to rising operational pressures on heating enterprises [3][24][25] Summary by Sections Market Performance - As of July 18, the environmental sector declined by 0.49%, underperforming the broader market, which saw the Shanghai Composite Index rise by 0.69% to 3534.48 [3][9] Industry Dynamics - The Central Urban Work Conference held on July 14-15 emphasized building green and low-carbon cities and improving urban biodiversity [29] - New national ecological standards for air quality monitoring were approved, set to be implemented on August 1, 2025 [31] Special Topic: Heating Price Reform - The report details the dual pricing system for heating, which combines a basic heating price and a metered heating price. The basic price can be set between 30%-60% of the total heating price, with encouragement for a 30% ratio in practice [22][24] - The total heating supply through hot water has increased from 2.765 billion gigajoules in 2014 to 3.63 billion gigajoules in 2023, with a compound annual growth rate of approximately 3.1% [17][19] Investment Recommendations - The report suggests that the "14th Five-Year Plan" will maintain high demand for energy conservation and environmental protection, with a focus on quality operational assets in the water and waste incineration sectors. Key recommendations include companies like Hanlan Environment, Xingrong Environment, and Hongcheng Environment, with additional attention to companies such as Wangneng Environment and Junxin Co [3][46]

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1]. Core Views - The report emphasizes the improvement in cash flow and dividend potential due to reduced capital expenditures in the waste management sector, alongside enhanced return on equity (ROE) through quality improvements in heating and IDC collaborations [1][11][15]. Summary by Sections Industry Trends - The environmental protection sector is experiencing a significant shift with a 9% increase in the sector's performance compared to the Shanghai and Shenzhen 300 indices [3]. - The report highlights a 73% increase in sales of new energy sanitation vehicles, with a penetration rate rising to 14.95% [25]. Key Recommendations - The report recommends several companies for investment, including Huaneng Environment, Green Power, and Yongxing Co., among others, due to their strong dividend potential and operational efficiency [5][11]. - It suggests focusing on companies like Yuehai Investment and Xingrong Environment for their robust cash flow and high dividend yields [17]. Policy Tracking - The Ministry of Ecology and Environment has issued a notice to enhance the quality of law enforcement, which is expected to improve operational efficiency and compliance in the industry [9][10]. - The report notes that the government is concentrating on environmental governance funding for 2025, which may positively impact the sector [7]. Financial Performance - The waste management sector is projected to see a significant increase in free cash flow, with dividends expected to rise as capital expenditures decrease [11][12]. - Specific companies are highlighted for their dividend growth, such as Junxin Co. with a 37% increase in cash dividends and Green Power with a 100% increase [12][13]. Market Dynamics - The report discusses the trend of garbage incineration and IDC collaborations as a new growth avenue, emphasizing the advantages of clean and efficient energy generation [14]. - The water utility sector is also highlighted for its stable growth and high dividends, with ongoing water price reforms expected to enhance profitability [15][17]. Sector Performance - The environmental protection and public utilities index rose by 2.69% during the week of July 7-11, 2025, outperforming the broader market indices [45].

Core Viewpoint - Jiangxi Hongcheng Environment Co., Ltd. has decided not to exercise the early redemption rights of its convertible bonds, known as "Hongcheng Convertible Bonds," based on a comprehensive assessment of current market conditions and the company's actual situation [1][4]. Group 1: Issuance and Terms of "Hongcheng Convertible Bonds" - The company issued 18 million convertible bonds on November 20, 2020, with a total amount of 1.8 billion yuan and a maturity period of 6 years [1]. - The initial conversion price was set at 7.13 yuan per share, while the latest conversion price is 4.88 yuan per share [2]. - The bonds have a tiered interest rate structure, starting from 0.2% in the first year and increasing to 2.0% in the sixth year [1]. Group 2: Redemption Conditions - The company has conditional redemption terms, allowing the board to redeem the bonds if the stock price exceeds 130% of the conversion price for at least 15 out of 30 consecutive trading days or if the remaining unconverted bonds are less than 300 million yuan [2][3]. - The redemption clause can be triggered between June 22 and July 11, 2025, if the stock price conditions are met [3]. Group 3: Board Decision and Future Considerations - The board has resolved not to exercise the early redemption rights for the "Hongcheng Convertible Bonds" and will reassess the situation after July 12, 2026, if the redemption conditions are met again [4]. - The company has confirmed that major stakeholders have not traded the convertible bonds in the six months prior to the redemption condition being met [4]. Group 4: Compliance and Verification - The underwriting institution has verified that the decision not to redeem the bonds early complies with relevant regulations and has been approved by the company's board [5].

| 证券代码：600461 | 证券简称：洪城环境 | 公告编号：临 2025-038 | | --- | --- | --- | | 转债代码：110077 | 转债简称：洪城转债 | | 江西洪城环境股份有限公司 根据《江西洪城水业股份有限公司公开发行 A 股可转换公司债券募集说明 书》的中约定：转股期内，当下述两种情形的任意一种出现时，公司董事会有权 决定按照债券面值加当期应计利息的价格赎回全部或部分未转股的可转债： 关于不提前赎回"洪城转债"的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 江西洪城环境股份有限公司（以下简称"公司"）股票自 2025 年 6 月 22 日 至 2025 年 7 月 11 日已触发"洪城转债"的赎回条款。公司董事会决定本次不 行使"洪城转债"的提前赎回权利，不提前赎回"洪城转债"，且在未来 12 个月 内（即 2025 年 7 月 12 日至 2026 年 7 月 11 日），若"洪城转债"触发赎回条款， 公司均不行使提前赎回权利。 以 2026 年 7 月 12 ...

申万宏源证券承销保荐有限责任公司 关于江西洪城环境股份有限公司 ① 在转股期内，如果公司股票在任何连续三十个交易日中至少十五个交易 日的收盘价格不低于当期转股价格的 130%（含 130%）； ② 当本次发行的可转债未转股余额不足 3,000 万元时。 当期应计利息的计算公式为：IA=B×i×t/365 不行使"洪城转债"提前赎回权利的核查意见 申万宏源证券承销保荐有限责任公司（以下简称"申万宏源承销保荐"或"保 荐机构"）作为江西洪城环境股份有限公司（曾用名：江西洪城水业股份有限公 司，以下简称"洪城环境"或"公司"）公开发行可转换公司债券的保荐及持续 督导机构，根据《证券发行上市保荐业务管理办法》《上海证券交易所股票上市 规则》《可转换公司债券管理办法》《上海证券交易所上市公司自律监管指引第 1 号——规范运作》《上海证券交易所上市公司自律监管指引第 12 号——可转换 公司债券》等相关法律、行政法规、部门规章及其他规范性文件的相关规定，本 保荐机构对洪城环境本次不行使"洪城转债"提前赎回权利的事项进行了审慎核 查，并出具核查意见如下： 一、"洪城转债"发行上市情况 经中国证券监督管理委员会（以下简称"中 ...

Group 1 - The company issued 18 million convertible bonds with a total amount of 1.8 billion yuan, with a face value of 100 yuan each, and a tiered interest rate structure over six years [1][2] - The convertible bonds can be converted into company shares starting from May 26, 2021, at a conversion price of 4.88 yuan per share [2] - The company has the right to redeem the convertible bonds if the stock price meets certain conditions, specifically if the stock price is at least 130% of the conversion price for at least 15 out of 30 consecutive trading days, or if the remaining unconverted bonds are less than 300 million yuan [2] Group 2 - As of June 22, 2025, the company's stock price has met the condition for potential redemption, with ten trading days' closing prices above the 130% threshold of the conversion price [2] - The company will hold a board meeting to decide on the redemption of the convertible bonds if the redemption conditions are triggered, and will fulfill its information disclosure obligations accordingly [3]

江西洪城环境股份有限公司 | 证券代码：600461 | 证券简称：洪城环境 | 公告编号：临 2025－037 | | --- | --- | --- | | 转债代码：110077 | 转债简称：洪城转债 | | 关于"洪城转债"预计满足赎回条件的提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 （二）赎回条款可能触发情况 二、可转债赎回条款与可能触发的情况 （一）赎回条款 根据《江西洪城水业股份有限公司公开发行 A 股可转换公司债券募集说明 书》（以下简称"《募集说明书》"）的中约定：转股期内，当下述两种情形的任 意一种出现时，公司董事会有权决定按照债券面值加当期应计利息的价格赎回全 部或部分未转股的可转债： ① 在转股期内，如果公司股票在任何连续三十个交易日中至少十五个交易 日的收盘价格不低于当期转股价格的 130%（含 130%）； ② 当本次发行的可转债未转股余额不足 3,000 万元时。 一、可转债发行上市概况 经中国证券监督管理委员会《关于核准江西洪城水业股份有限公司公开发行 可转换公司债券的批 ...

Investment Rating - The report rates the environmental industry as "Overweight," indicating that the industry is expected to outperform the overall market [2][10]. Core Insights - Municipal water services are operating steadily, with some companies benefiting from strategic expansion and adjustments in sewage treatment pricing. However, the overall demand for sewage engineering is declining, leading to a forecasted slight decrease in engineering business [3]. - The waste incineration sector is stable, but performance varies among companies due to factors such as historical electricity revenue recognition and increased depreciation from new capacity. Major companies are expected to show varied net profit growth in Q1-Q2 2025 [3]. - The sanitation market remains stable, with no significant profit contribution from automation technologies yet. Major companies are expected to see steady net profit growth [3]. - Equipment performance is diverging due to different downstream impacts. Conventional equipment companies may face margin pressure, while power environmental equipment is benefiting from increased demand [3]. Summary by Category Municipal Water Services - Overall operations are stable, with net profit growth expected for major companies: Tianyuan Environmental (+50%), Xingrong Environment (+8%), and Hongcheng Environment (+4%) in Q1-Q2 2025 [3][4]. Waste Incineration - The sector is stable, with varied net profit growth: Huanlan Environment (+1%), Junxin Co. (+42%), Green Power (+25%), Chengfa Environment (+10%), and Yongxing Co. (+7%) [3][4]. Sanitation - The sanitation market is stable, with expected net profit growth for major companies: Yingfeng Environment (+5%) and Yuhua Tian (+7%) [3][4]. Equipment - Conventional equipment companies are facing competitive pressure, with expected declines in net profit growth: Jingjin Equipment (-15%). In contrast, power environmental equipment companies are seeing significant growth: Qingda Environmental (+359%) and water treatment equipment companies like Wotton Technology (+23%) [3][4]. Investment Recommendations - Municipal environmental companies are recommended for their stable profitability and improving cash flow, including Junxin Co., Huanlan Environment, Xingrong Environment, Green Power, Hongcheng Environment, Yongxing Co., Yuehai Investment, and Guangda Environment [3]. - Companies in the unmanned sanitation sector, such as Yingfeng Environment and Yuhua Tian, are recommended for their potential in digital transformation [3]. - SAF suppliers and raw material providers are highlighted for their growth potential due to EU policies [3]. - Wotton Technology is recommended for its ongoing import substitution in reverse osmosis membranes [3].