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]

Group 1 - The core viewpoint of the article is that Weiming Environmental is experiencing a steady recovery in its equipment business, particularly in the environmental project equipment contracting sector [2] - The company's revenue fluctuations are primarily influenced by the environmental project equipment contracting business [2] - Weiming Environmental is committed to closely monitoring market dynamics and continuously optimizing its operational strategies [2]

Core Viewpoint - The company, Weiming Environmental (伟明环保), has provided details regarding the concession periods for various projects, indicating a long-term commitment to these initiatives [1] Group 1: Project Concession Periods - The concession period for the Zhaoyuan project is 25 years [1] - The concession period for the Tongcheng project is 27 years [1] - The concession periods for the Kaili, Ningyang, and Lhasa projects are all set at 30 years [1]

Group 1 - The core viewpoint of the article is that Weiming Environmental (603568) acknowledges the mature technology and solutions of Shengyun Environmental in the field of conveying equipment, which supports the equipment needs of the company's new materials business [1] - Shengyun Environmental is committed to enhancing its own business while collaborating with Weiming Environmental for mutual development [1]

Group 1 - The core viewpoint of the article highlights that the revenue of waste-to-energy projects can be influenced by various factors such as maintenance downtime, the volume of waste received, fluctuations in waste calorific value, and seasonal variations [2] - The recent revenue fluctuations of Lhasa Shengyun are primarily attributed to maintenance downtime [2]

Summary of Conference Call on Waste Management Industry in Southeast Asia Industry Overview - The Southeast Asian waste management market is experiencing significant demand growth, with a restructuring of the market currently underway [1] - The region faces a continuous increase in waste generation coupled with insufficient end-processing capacity, particularly in incineration rates [1] Key Insights - Chinese companies have accelerated their overseas expansion starting in 2023, leveraging cost and engineering capabilities to rapidly increase market share in Southeast Asia [2] - High electricity prices and disposal fees are enhancing profitability, although operational and policy risks must be monitored [2] - Under the assumption of a unified scale of 1,000 tons per day, optimistic scenarios suggest that project revenues in Southeast Asia could be approximately 1.8 to 2.7 times that of domestic projects, with profits ranging from 2 to 5 times domestic levels, and net profit margins potentially exceeding 25% [2] Financial Performance and Outlook - As overseas projects come online, international business is expected to become a core engine for smoothing domestic cycles and enhancing company performance [3] - The high returns in overseas markets also imply a more complex operational environment and policy negotiations, necessitating improved local management, risk hedging, and comprehensive operational capabilities [3] - The industry is witnessing a cash flow turning point, with over 90% of companies increasing dividend payouts due to robust cash flow [3] - Average waste disposal volume, power generation, and grid-connected electricity are projected to grow by 8%, 7%, and 8% year-on-year, respectively, in the first half of 2025 [3] - The industry is entering a capital expenditure contraction phase, with the proportion of under-construction capacity dropping below 10%, leading to a decline in financial costs and substantial cash flow improvement [3] Strategic Recommendations - Recommended companies to watch include: 1. Operators: Weiming Environmental, Junxin Co., China Everbright Environment, Hanlan Environment, China Tianying, Zhongke Environmental, Wangneng Environment, Green Power, etc. [4] 2. Equipment/Engineering Output: Sanfeng Environment [4] - Short-term strategies include heat transformation and collaborative disposal to extract existing profits, while long-term strategies focus on overseas contributions to performance elasticity and exploring new green energy monetization paths such as zero-carbon parks and integrated electricity solutions [3]

Investment Rating - The report maintains a strong investment rating for the public utility sector, emphasizing a focus on "dividend + growth" opportunities and an increased allocation towards solid waste management in the environmental sector [1][5]. Core Insights - The public utility sector's fund allocation stabilized and increased in Q4 2025, with a market value of approximately 144.54 billion yuan, accounting for 0.39% of total fund allocation, a slight increase of 0.02% from the previous quarter [5][18]. - The report highlights the importance of focusing on leading companies that possess both dividend attributes and growth potential, particularly in light of improved profitability expectations due to capacity and electricity price policies [5][23]. - The environmental sector is advised to concentrate on solid waste management operations and companies with marginal improvements or thematic flexibility, as the demand for green fuels continues to tighten [5][27]. Summary by Sections Public Utility Sector Dynamics - In February 2026, the average transaction price for electricity in Jiangsu was 312.80 yuan/MWh, a decrease of 3.67% month-on-month and 23.89% year-on-year. In Shanxi, the average price was 288.65 yuan/MWh, down 1.17% month-on-month and 10.95% year-on-year [2][41]. - The total national power generation in December 2025 was approximately 858.6 billion kWh, reflecting a year-on-year increase of 1.46% and a month-on-month increase of 10.19% [2][44]. Fund Holdings Overview - The top ten stocks in the public utility sector by fund holdings in Q4 2025 included Changjiang Electric Power, Huaneng International, and China Nuclear Power, with significant increases in holdings for Huaneng International and Changjiang Electric Power [5][23][24]. - In the environmental sector, the top ten stocks by fund holdings included Weiming Environmental and Huanlan Environment, with notable increases in holdings for Weiming Environmental and Dadi Ocean [5][27][28]. Price Tracking - The report tracks the price trends of various energy sources, noting that the CCI index for thermal coal was 696 yuan/ton as of February 4, 2026, reflecting a slight increase [7][29]. - The LNG ex-factory price index in China was reported at 3965 yuan/ton, showing a decrease of 1.98% [8][29].

Investment Rating - The report maintains a strong investment rating for the public utility sector, emphasizing a focus on "dividend + growth" opportunities and an increased allocation towards solid waste management in the environmental sector [1][5]. Core Insights - The public utility sector's fund allocation stabilized and increased in Q4 2025, with a market value of approximately 144.54 billion yuan, accounting for 0.39% of total fund allocation, a slight increase of 0.02% from the previous quarter [5][18]. - The report highlights the importance of focusing on leading companies that possess both dividend attributes and growth potential, particularly in light of improved profitability expectations due to capacity and electricity pricing policies [5][23]. - The environmental sector is advised to concentrate on solid waste management operations and companies with marginal improvements or thematic flexibility, as the demand for green fuels continues to tighten [5][27]. Summary by Sections 1. Fund Holdings Overview - In Q4 2025, the top ten stocks in the public utility sector by fund holdings included Changjiang Electric, Huaneng International, and China Nuclear Power, with significant increases in holdings for Huaneng International and Changjiang Electric [5][23][24]. 2. Weekly Review of the Sector - From February 2 to February 6, 2026, the public utility index rose by 0.16%, while the environmental index increased by 0.09%, contrasting with declines in the Shanghai Composite and ChiNext indices [5][29]. 3. Dynamics of the Public Utility Sector 3.1 Electricity Tracking - In February 2026, the average transaction price for electricity in Jiangsu was 312.80 yuan/MWh, down 3.67% month-on-month and 23.89% year-on-year. In Shanxi, the average price was 288.65 yuan/MWh, down 1.17% month-on-month and 10.95% year-on-year [5][41]. 3.2 Power Generation - The total power generation in December 2025 was approximately 858.6 billion kWh, a year-on-year increase of 1.46% and a month-on-month increase of 10.19% [5][44]. 4. Price and Inventory Tracking - The report notes an upward trend in thermal coal prices, with the CCI index at 696 yuan/ton as of February 4, 2026, reflecting a slight increase [5][7]. - Natural gas prices showed a decrease, with the LNG ex-factory price index at 3965 yuan/ton as of February 6, 2026, down 1.98% [5][8].

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The Southeast Asian waste incineration market is poised for significant growth, with a projected demand for incineration capacity reaching 222,000 tons per day by 2030 and 491,000 tons per day by 2050, representing an investment opportunity exceeding 100 billion [6][15] - The domestic waste incineration market in China has entered a mature phase, with the operational capacity reaching 1.16 million tons per day by the end of 2024, reflecting an 8% year-on-year increase [16][20] - The profitability of waste incineration projects in Southeast Asia is expected to be significantly higher than domestic projects, with potential net profit margins exceeding 25% under optimistic scenarios [6][15] Summary by Sections Domestic Waste Market - The domestic incineration market is relatively saturated, with listed companies' capacity under construction accounting for less than 10% of total operational capacity [16][26] - The business model of waste incineration is resilient, characterized by stable profits and strong cash flow, with a 4.9% year-on-year increase in revenue for the waste incineration sector in Q1-Q3 2025 [28][31] Southeast Asian Waste Incineration Market - Population growth and urbanization are driving waste generation, making incineration the preferred solution for urban management in Southeast Asia [6][15] - The incineration rate in Southeast Asia is expected to accelerate, with significant investment opportunities available [6][15] Profitability and Operational Risks - High electricity prices and disposal fees are enhancing profitability, with revenue from Southeast Asian projects estimated to be 1.8 to 2.7 times that of domestic projects [6][15] - The operational environment in overseas markets presents complexities that require enhanced local management and risk mitigation strategies [6][15] Recommendations - Focus on operators using BOT/BOO models for overseas investments, such as Weiming Environmental, Junxin Co., and China Tianying [6][15] - Consider equipment and engineering firms like Sanfeng Environment that leverage their manufacturing capabilities to enter overseas markets [6][15]

Investment Rating - The report provides a "Buy" rating for several key stocks in the financial and manufacturing sectors, including China Resources Land and Beike-W [15][18][20][21]. Core Insights - The macroeconomic environment shows a continuation of strong supply and weak demand characteristics, with short-term growth pressure remaining manageable [9]. - The real estate sector is experiencing a valuation recovery opportunity for quality developers due to a resonance between fundamentals and policies [10]. - The banking sector is witnessing a recovery from oversold conditions, with stock prices rebounding ahead of improvements in the funding environment [20]. - The non-bank financial sector is expected to benefit from policy-driven high-quality development, with a focus on high-performing stocks [22]. - The new energy sector has established a bottom line, with attention on marginal changes in new technologies [25]. - The machinery sector is gaining order resilience from overseas solar expansion and new business developments, while space solar technology opens growth opportunities [31]. - The environmental sector is focusing on carbon neutrality opportunities, with overseas expansion and metal prices providing elasticity [33]. Summary by Sections Real Estate - The sector is expected to face challenges in 2026, but recent policy easing and improved second-hand housing sales indicate a potential recovery [14]. - China Resources Land is highlighted as a leading developer with strong operational capabilities and a solid financial position, projected to achieve a net profit of 26.2 billion, 27 billion, and 28.2 billion from 2025 to 2027 [15]. Banking - Nanjing Bank is recommended due to its expected double-digit revenue growth in 2025, driven by stable asset quality and improved net interest margins [21]. Non-Bank Financials - New China Life Insurance is noted for its high elasticity and potential for improved returns on equity, with projected intrinsic values of 292.1 billion and 329.0 billion for 2025 and 2026, respectively [24]. New Energy - The storage sector is expected to see demand stability supported by national capacity pricing, while lithium battery technology is anticipated to rebound with improved economic conditions [25]. - JunDa Co. is recognized for its strategic partnerships and potential growth in the space solar sector, with projected profits increasing significantly by 2027 [27]. Machinery - The machinery sector is benefiting from overseas solar project expansions, with companies like DiEr Laser positioned to capitalize on new technologies and increased order volumes [31][32]. Environmental - Weiming Environmental is highlighted for its potential in the Indonesian waste-to-energy market, with expected project launches in early 2026 [39]. - The company is projected to achieve net profits of 2.88 billion and 3.44 billion in 2025 and 2026, respectively [39]. Light Industry - The light industry is seeing a rebound in export-driven companies, with a focus on quality stocks that can leverage cost efficiencies and supply chain advantages [43]. Military Industry - The military sector is expected to benefit from the transition of military technology to civilian applications and increased military trade, with key recommendations including Aviation Power and AVIC Xi'an Aircraft Industry [51][53].