Core Viewpoint - Jiangnan Waterworks (601199) announced on August 6 that its subsidiary, Pudong Development Village Bank, will undergo a restructuring, with the company planning to transfer its 8% stake in the bank through a public listing at a minimum price of 12.548353 million yuan [1] Group 1 - The company aims to optimize its investment structure through the transfer of its stake [1] - The stake being transferred is 8% of Pudong Development Village Bank [1] - The minimum transfer price is set at 12.548353 million yuan [1]

Core Viewpoint - Jiangnan Waterworks (601199.SH) announced the restructuring of its associate company, Pudong Development Village Bank, to implement national policies, leading to the decision to transfer its 8% stake through a public listing [1] Summary by Relevant Sections - **Company Actions** - The company plans to optimize its investment structure by publicly listing the transfer of its 8% stake in Pudong Development Village Bank [1] - The market value of the 8% stake is assessed at 12.548353 million yuan as of the evaluation benchmark date [1] - The transfer price will not be lower than the assessed market value, with the final transaction price and counterpart determined by the public listing results [1]

Group 1 - The core viewpoint of the articles highlights a continuing trend of insurance funds actively participating in the capital market through share acquisitions, with a total of 21 instances reported this year, surpassing the 20 instances recorded for the entirety of 2024 [1][2] - The surge in insurance companies' share acquisitions is attributed to adjustments in asset allocation strategies, driven by supportive policies aimed at encouraging long-term capital market investments [1][2] - In July alone, four insurance companies, including Lianan Life and Taikang Life, engaged in share acquisitions, indicating sustained enthusiasm among insurers [1] Group 2 - The companies targeted for acquisitions include major banks and various sectors such as public utilities, energy, transportation, and technology, with bank stocks being the most frequently acquired [2] - Ping An Life has notably acquired bank stocks seven times this year, with multiple instances of re-acquisition for Postal Savings Bank and Agricultural Bank [2] - The regulatory environment has significantly boosted insurance funds' market participation, with a reported fund utilization balance of 34.93 trillion yuan as of the end of Q1, reflecting a 5.03% increase from the end of 2024 [3] Group 3 - Recent policy adjustments by the Ministry of Finance aim to enhance the assessment of insurance fund performance, promoting a longer-term investment approach and increasing equity investment ratios [3] - The outlook for the second half of the year suggests that the trend of insurance funds acquiring shares will continue, supported by ongoing policy initiatives that facilitate long-term investments [3]

证券日报网讯江南水务7月31日在互动平台回答投资者提问时表示，公司积极利用人工智能技术助力减 污降碳协同增效。公司深化智慧水务2.0管理系统建设，构建全方位的智慧水务管理系统，在污水处理 业务中，采用"智慧排水"系统，通过传感器技术、网络和移动应用与水务信息系统的结合，实现数据化 监控和智慧化管理，提高污水处理能力。同时，公司推动绿色低碳发展，着力打造"零碳水厂"等示范项 目，加快企业生产运营标准体系建设、标杆水厂建设，支持厂、站向绿色低碳转型。 （文章来源：证券日报） ...

Core Viewpoint - Jiangnan Waterworks (601199.SH) has confirmed that its current business focus is primarily in the water sector, with no plans to expand into the energy sector [1] Business Operations - The main operations of the company include the production and sale of tap water, drainage services, and related water treatment activities [1] - The company also engages in engineering services and drainage operations, which encompass wastewater treatment, drainage network operation and maintenance, drainage network engineering, and entrusted operation services for wastewater treatment plants [1] Future Business Development - As of now, there are no business developments or plans for diversification into the energy sector [1]

（文章来源：证券日报） 证券日报网讯江阴银行7月29日在互动平台回答投资者提问时表示，江南水务与新国联不构成一致行动 人。 ...

Core Viewpoint - Since 2025, insurance companies have triggered 21 investment events involving stock acquisitions, surpassing the total number of such events in the previous year [4]. Group 1: Investment Activities - The A-share market has been experiencing upward fluctuations, and the Hong Kong stock market is recovering, leading to increased activity from insurance funds in the capital markets [2]. - In July 2025, Zhongyou Insurance announced its acquisition of shares in Green Power Environmental (01330.HK), triggering a stock acquisition disclosure [3][8]. - Other insurance companies, such as Xintai Life and Lianan Life, also disclosed stock acquisitions in July 2025 [9] [10]. Group 2: Specific Investment Cases - Zhongyou Insurance purchased 726,000 shares of Green Power Environmental, increasing its holdings to 20.51 million shares, representing 5.0722% of the company's H-share capital [8]. - Xintai Life increased its holdings in Hualing Steel (000932.SZ) to 345 million shares, raising its ownership from 4.99% to 5.00% [10]. - Lianan Life acquired 1.1 million shares of Jiangnan Water (601199.SH), increasing its stake from 4.91% to 5.03% [10]. Group 3: Financial Data and Trends - As of June 30, 2025, Zhongyou Insurance reported a net buy of over 90 billion yuan in public market equity investments [6]. - Xintai Life's equity assets amounted to 565.78 billion yuan, accounting for 19.07% of its total assets as of June 30, 2025 [10]. - Lianan Life's equity assets were reported at 205.6 billion yuan, making up 16.29% of its total assets as of May 31, 2025 [10]. Group 4: Market Dynamics and Regulatory Environment - The current wave of stock acquisitions by insurance companies is driven by a preference for high-dividend stocks, particularly in sectors like banking, public utilities, and pharmaceuticals, with an average dividend yield of 4.6% since 2024 [14]. - The downward trend in interest rates has increased investment pressure on insurance companies, prompting them to seek stable long-term investment returns through frequent stock acquisitions [15]. - Regulatory changes have encouraged insurance funds to engage in long-term equity investments, with new guidelines introduced to assess net asset returns over extended periods [19].

Core Viewpoint - The insurance sector is increasingly active in the capital markets, with a notable rise in shareholding stakes in listed companies, indicating a strategic shift towards long-term equity investments driven by low interest rates and regulatory support [2][7][11]. Group 1: Shareholding Activities - In 2025, insurance companies triggered 21 shareholding events, surpassing the total for the previous year, with notable participation from companies like China Life, Postal Insurance, and Xinhua Life [3][4]. - Postal Insurance acquired 726,000 shares of Green Power Environmental, raising its stake to 5.0722%, and previously triggered a shareholding event in April by acquiring 79.42 million shares of Eastern Airlines Logistics [4][5]. - Xintai Life and Lian Life also reported shareholding increases in July, with Xintai Life raising its stake in Hualing Steel to 5.00% and Lian Life increasing its stake in Jiangnan Water to 5.03% [5]. Group 2: Investment Trends - The average dividend yield of companies targeted for shareholding by insurance funds has reached 4.6%, the highest in recent years, reflecting a preference for high-dividend stocks in sectors like banking and utilities [7][8]. - The shift towards long-term equity investments is partly due to the mismatch in asset and liability durations, with insurance liabilities averaging over 12 years compared to asset durations of about 6 years [9]. Group 3: Regulatory Environment - Recent regulatory changes encourage insurance funds to engage in long-term equity investments, with new assessment criteria introduced that emphasize long-term performance metrics [11]. - The new accounting standards allow for more stable valuation of long-term equity investments, motivating insurance companies to increase their holdings in high-dividend stocks [10].

Investment Rating - The report rates the environmental industry as "Overweight" indicating that it is expected to outperform the overall market [2][10]. Core Insights - Insurance capital is increasingly investing in environmental assets, driven by favorable policies and the potential for long-term stable returns [2]. - The report highlights that insurance companies have made multiple significant investments in environmental firms, showcasing the sector's investment value [2]. - The water and waste management sectors are characterized by stable demand and revenue, with a strong potential for profit growth due to factors like water price adjustments and reduced financial costs [2]. - Cash flow in the environmental sector is expected to improve, leading to higher dividends as companies respond to shareholder return demands [2]. - Investing in environmental assets offers insurance companies a combination of dividends, earnings per share (EPS) growth, and valuation increases [2]. Summary by Sections Investment Opportunities - The report identifies specific companies for investment, recommending A-shares such as Hanlan Environment, Xingrong Environment, Yongxing Co., Hongcheng Environment, Green Power, Junxin Co., and Chengfa Environment, as well as H-shares like Conch Venture, Everbright Environment, and Yuehai Investment [2]. Financial Metrics - The report provides detailed financial metrics for various environmental companies, including market capitalization, dividend rates, and expected earnings growth for 2024 and 2025 [5]. For instance, Junxin Co. has a market cap of 120 billion RMB with a projected PE of 22 and a dividend yield of 4.23% for 2024 [5].

Investment Rating - The report maintains a "Positive" investment rating for the environmental protection industry [10] Core Insights - In 2023, insurance capital has collectively acquired stakes in five environmental companies, focusing on waste incineration and water utility state-owned enterprises, which exhibit stable operational performance and significant free cash flow improvement, indicating high dividend potential [2][6][7] - The report emphasizes the long-term investment value of waste incineration and water utility assets due to their high dividend potential and low valuation, recommending several companies in these sectors [8][38] Summary by Sections Insurance Capital Allocation - Insurance capital is increasingly allocating to equity investments due to declining net investment returns and the need for higher-yielding assets [6][18] - Policy changes and the expansion of long-term investment trials are encouraging insurance capital to invest in dividend and high ROE assets [24] Focus on Waste Incineration and Water Utility Assets - Insurance capital has targeted five environmental companies, primarily in waste incineration and water utility sectors, indicating a preference for stable operational assets [7][26] - The report highlights the potential for increased dividend payouts as the industry has passed its infrastructure peak, with a focus on long-term equity investments [37] Long-term Investment Value - Waste incineration and water utility assets are characterized by steady growth, improving cash flows, and increasing dividends, making them attractive for long-term investment [38][41] - The report identifies specific companies such as Huanlan Environment, Xingrong Environment, and others as key recommendations for investment [8][38] Financial Performance and Valuation - The report notes that the financial performance of waste incineration and water utility companies has shown resilience, with significant improvements in free cash flow and dividend payouts expected in the coming years [30][41] - Valuation metrics indicate that these companies are not overvalued, with PE ratios suggesting room for valuation recovery [34][41]