Core Insights - The environmental governance sector saw a 0.7% increase on October 10, with Zhonghuan Environmental leading the gains [1] - The Shanghai Composite Index closed at 3897.03, down 0.94%, while the Shenzhen Component Index closed at 13355.42, down 2.7% [1] Environmental Governance Sector Performance - Zhonghuan Environmental (300692) closed at 10.63, up 19.98% with a trading volume of 290,500 shares and a transaction value of 301 million [1] - Zhongshan Public Utilities (000685) closed at 14.00, up 8.95% with a trading volume of 1,025,300 shares [1] - Other notable performers included Weili (300190) up 4.95%, Gaon Environment (603588) up 4.82%, and Deepwater Haina (300961) up 4.82% [1] Decliners in the Sector - Huicheng Environmental (300779) saw a significant decline of 13.09%, closing at 142.40 with a trading volume of 121,700 shares [2] - Yihai Xidan (603200) dropped 10.00%, closing at 85.04 with a trading volume of 172,600 shares [2] - Other notable decliners included Fuzhijie Environmental (688335) down 3.91% and Qiaoyin Co. (002973) down 3.64% [2] Capital Flow Analysis - The environmental governance sector experienced a net outflow of 905 million from institutional investors, while retail investors saw a net inflow of 757 million [2][3] - Notable net inflows from retail investors were observed in Zhonghuan Environmental and Deepwater Haina, while significant outflows were noted in Zhongshan Public Utilities [3]

Core Insights - Zhongshan Public Utility achieved a trading volume of 1.333 billion RMB, marking the highest level since December 10, 2014 [2] - The latest stock price increased by 8.17%, with a turnover rate of 7.86% [2] - The previous trading day recorded a total trading volume of 971 million RMB [2] Company Overview - Zhongshan Public Utility Group Co., Ltd. was established on December 26, 1992, with a registered capital of 1.475 billion RMB [2]

Core Viewpoint - Zhongshan Public Utilities (000685.SZ) has made an early investment in Muxi Co., which is expected to have a positive impact on the company and validate its strategic vision for forward-looking industrial investments [1] Group 1 - The company has invested in Muxi Co. through a new energy fund [1] - The specific shareholding ratio can be referenced in the prospectus of Muxi Integrated Circuit (Shanghai) Co., Ltd [1] - The IPO of Muxi Co. is anticipated to bring positive effects to Zhongshan Public Utilities [1]

Core Viewpoint - Zhongshan Public Utility has shown significant stock price appreciation this year, with a year-to-date increase of 49.43% and a recent surge of 17.31% over the past five trading days [1] Company Overview - Zhongshan Public Utility Group Co., Ltd. is located at No. 18, North Building, Caixing Mansion, Xingzhong Road, Zhongshan City, Guangdong Province, established on December 26, 1992, and listed on January 23, 1997 [1] - The company's main business areas include environmental water services, solid waste treatment, sanitation services, engineering construction, market operations, port passenger transport, financial services, and equity investment [1] - The revenue composition of the main business is as follows: water supply and sewage treatment 37.07%, engineering installation 34.53%, sanitation and waste-to-energy 18.79%, others (supplementary) 9.32%, and new energy sector 0.28% [1] Financial Performance - For the first half of 2025, Zhongshan Public Utility achieved operating revenue of 2.121 billion yuan, a year-on-year increase of 0.64%, and a net profit attributable to shareholders of 719 million yuan, a year-on-year increase of 29.57% [2] - The company has distributed a total of 4.529 billion yuan in dividends since its A-share listing, with 1.251 billion yuan distributed in the last three years [3] Shareholder Information - As of September 19, 2025, the number of shareholders of Zhongshan Public Utility was 32,200, an increase of 1.20% from the previous period, with an average of 38,963 circulating shares per person, a decrease of 1.19% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 16.0905 million shares (a decrease of 597,200 shares), and Silver Hua Prosperity Theme Mixed A (180012), which is a new shareholder holding 8 million shares [3]

Group 1 - Zhongshan Public Utility's stock price increased by 5.01% to 12.99 CNY per share, with a trading volume of 355 million CNY and a turnover rate of 2.21%, resulting in a total market capitalization of 19.162 billion CNY [1] - The stock has risen for three consecutive days, with a cumulative increase of 10.35% during this period [1] - The company, established on December 26, 1992, and listed on January 23, 1997, operates in various sectors including environmental water services, solid waste treatment, sanitation services, engineering construction, market operations, port passenger transport, financial services, and equity investment [1] Group 2 - The main revenue composition of Zhongshan Public Utility includes: water supply and sewage treatment (37.07%), engineering installation (34.53%), sanitation and waste-to-energy (18.79%), other (supplementary) (9.32%), and new energy sector (0.28%) [1] - Among the top ten circulating shareholders, a fund under Southern Fund increased its holdings in Zhongshan Public Utility by 336,400 shares, bringing its total to 6.9535 million shares, which accounts for 0.55% of the circulating shares [2] - The Southern CSI 1000 ETF (512100) has achieved a year-to-date return of 28.58% and a one-year return of 34.04%, ranking 2093 out of 4221 and 1521 out of 3848 respectively [2]

Group 1 - Zhongshan Public Utility's stock price increased by 5.01% to 12.99 CNY per share, with a trading volume of 354 million CNY and a turnover rate of 2.20%, resulting in a total market capitalization of 19.162 billion CNY [1] - The stock has risen for three consecutive days, with a cumulative increase of 10.35% during this period [1] - The company, established on December 26, 1992, and listed on January 23, 1997, operates in various sectors including environmental water services, solid waste treatment, sanitation services, engineering construction, market operations, port passenger transport, financial services, and equity investment [1] Group 2 - The main revenue composition of Zhongshan Public Utility includes: water supply and sewage treatment (37.07%), engineering installation (34.53%), sanitation and waste-to-energy (18.79%), other (supplementary) (9.32%), and new energy sector (0.28%) [1] - Among the top ten circulating shareholders, a fund under Yinhua Fund, Yinhua Rich Theme Mixed A (180012), entered the list in the second quarter, holding 8 million shares, accounting for 0.64% of circulating shares, with a floating profit of approximately 4.96 million CNY today and 9.28 million CNY during the three-day increase [2] - Yinhua Rich Theme Mixed A (180012) was established on November 16, 2006, with a latest scale of 10.706 billion CNY, reporting a year-to-date loss of 1.48% and a one-year loss of 2.87% [2]

Core Viewpoint - The report highlights the successful completion of China's first ship-based green methanol refueling operation at Ningbo Zhoushan Port, marking a significant milestone in the development of green fuel capabilities in the region [3]. Market Review - In September, the CSI 300 Index rose by 3.20%, while the public utility index increased by 0.41% and the environmental index by 0.77%. The relative monthly returns for these indices were -2.80% and -2.43% respectively [2]. - Among the 31 primary industry sectors, public utilities and environmental sectors ranked 13th and 11th in terms of growth. The environmental sector saw a 0.77% increase, while the electricity sector's thermal power rose by 2.34%, and hydropower fell by 3.08% [2]. Important Events - The successful refueling of the "COSCO Shipping Libra" with 230 tons of green methanol at Ningbo Zhoushan Port signifies the port's capability to handle LNG, biofuels, and methanol, enhancing its status as an international hub [3]. - This operation involved collaboration between China Ship Fuel, Zhejiang Port Group, and Ningbo Zhoushan Port Group, utilizing seven specialized methanol transport tankers and explosion-proof refueling equipment [3]. Investment Strategy - Public Utilities: Recommendations include Huadian International for thermal power, Longyuan Power and Three Gorges Energy for renewable energy, and China Nuclear Power for stable nuclear power operations [4][5]. - Environmental Sector: Focus on companies like China Everbright Environment and Zhongshan Public Utilities, as well as opportunities in the domestic waste oil recycling industry due to upcoming EU SAF policies [5].

Core Insights - The report maintains an "Outperform" rating for the public utilities and environmental sectors, highlighting the successful completion of China's first ship-based green methanol refueling operation in Zhejiang Province and the anticipated demand for fusion equipment in Q4 [1][2][3] Market Review - In September, the CSI 300 index rose by 3.20%, while the public utilities index increased by 0.41% and the environmental index by 0.77%. The relative performance of public utilities and environmental sectors ranked 13th and 11th among 31 first-level industry classifications [1][13][23] - The environmental sector saw a 0.77% increase, with the power sector's thermal power rising by 2.34%, while hydropower and new energy generation fell by 3.08% and 1.36%, respectively. The water sector increased by 1.27%, and the gas sector rose by 5.65% [1][26][32] Important Events - China Ship Fuel successfully completed the first ship-based green methanol refueling operation in Zhejiang Province, marking a significant milestone for the Ningbo-Zhoushan Port as a hub for LNG, biofuels, and methanol refueling capabilities [2][14] - The BEST fusion energy project achieved a key milestone with the successful installation of its first critical component, the Dewar base, indicating progress in the construction of fusion devices in China [3][15][16] Sector Analysis Public Utilities - Coal and electricity prices are declining simultaneously, allowing thermal power profitability to remain reasonable. Recommendations include major thermal power companies such as Huadian International and Shanghai Electric [4][21] - Continuous government support for renewable energy development is expected to stabilize profitability in the sector, with recommendations for leading companies like Longyuan Power and Three Gorges Energy [4][21] - Nuclear power companies are expected to maintain stable profitability due to growth in installed capacity and generation, with recommendations for China National Nuclear Power and China General Nuclear Power [4][21] Environmental Sector - The water and waste incineration industries are entering a mature phase, with significant improvements in free cash flow. Recommendations include companies like China Everbright Environment and Zhongshan Public Utilities [22] - The domestic scientific instrument market, valued at over $9 billion, presents substantial opportunities for domestic replacements, with recommendations for companies like Focused Photonics [22] - The EU's SAF blending policy is expected to increase demand for raw materials, benefiting the domestic waste oil recycling industry, with recommendations for companies like Shanggou Environmental Energy [22] Investment Strategy - The report emphasizes the importance of integrating renewable energy with smart energy management, recommending investments across the renewable energy supply chain and companies involved in comprehensive energy management [21][22]

Group 1 - The company's stock (Zhongshan Public Utilities Group Co., Ltd., stock code: 000685) experienced an abnormal trading fluctuation, with a cumulative closing price increase exceeding 20% over three consecutive trading days from September 22 to September 24, 2025 [1][2] - The company's board of directors conducted an investigation into the abnormal trading and confirmed that there were no undisclosed significant matters or changes in the company's operational environment [1][2] - The board also stated that there were no recent media reports that could have significantly impacted the company's stock price, and that the information previously disclosed by the company does not require correction or supplementation [1][2] Group 2 - The board confirmed that there are no undisclosed matters that should have been disclosed according to the Shenzhen Stock Exchange's listing rules, nor any ongoing negotiations or agreements that could affect the stock price [2] - The company reassured investors that it has not violated any information disclosure regulations and emphasized that all information should be verified through designated media outlets [2]

Core Viewpoint - The company, Zhongshan Public Utilities (000685), experienced an abnormal stock price fluctuation with a cumulative increase of over 20% over three consecutive trading days from September 22 to 24, 2025 [1] Summary by Relevant Sections - **Stock Price Movement** - The stock price of Zhongshan Public Utilities showed a significant deviation, with a cumulative increase exceeding 20% over three trading days [1] - **Board and Shareholder Verification** - The company's board conducted a verification process and confirmed with the controlling shareholder and actual controller that there was no need to correct or supplement previously disclosed information [1] - No undisclosed significant information affecting the stock price was found in media reports [1] - **Operational Environment** - There have been no major changes in the company's recent operations or external environment [1] - During the period of abnormal fluctuation, the controlling shareholder and actual controller did not engage in any buying or selling of the company's stock [1] - **Disclosure Compliance** - The company confirmed that there are no violations of information disclosure regulations and reminded investors to rely on information from designated media sources [1]