Core Viewpoint - The valuation of Huicheng Environmental Protection is significantly inflated, with a TTM P/E ratio of 2468 and an estimated P/E ratio of 184 for 2025, while the average P/E ratio for the environmental sector is around 48 [1][6]. Group 1: Stock Performance - Huicheng Environmental Protection's stock price has surged over 15 times since November 2022, making it the top-performing stock in the A-share market during this period [1][2]. - The stock experienced a 28.33% increase in the last two weeks of May, despite a general market downturn, indicating a potential topping pattern [2]. - The stock has shown a year-to-date increase of 77.52%, with monthly gains exceeding 20% in most months [2]. Group 2: Business Model and Market Position - The company specializes in solid waste treatment and disposal services, focusing on the processing and recycling of waste catalysts for refining enterprises [2][3]. - Huicheng Environmental Protection's business model includes waste catalyst treatment, resource recycling, and sales of recycled catalysts [2]. Group 3: Financial Performance - The company reported a significant revenue increase in 2023, achieving 1.071 billion yuan, a 194.76% year-on-year growth, and a net profit of 138 million yuan, a 55-fold increase [6]. - However, the company has faced profitability challenges in 2024, with a projected revenue of 1.149 billion yuan, a 7.33% increase, but a net profit decline of 69.25% [7]. - The first quarter of 2024 saw a continued net loss of 10.336 million yuan, with revenue down 4.27% to 285 million yuan [7]. Group 4: Market Dynamics and Challenges - The environmental protection sector has seen a rise in interest due to policy catalysts, but Huicheng Environmental Protection's performance is not aligned with its stock price [3][6]. - The company's reliance on the refining catalyst business is concerning, as demand for refined oil is declining due to the rise of electric vehicles and regional economic pressures [7]. - The company is attempting to diversify by developing a waste plastic recycling project, which is still in the preparatory phase and has uncertain revenue contributions [7].

Investment Rating - The report maintains a "Buy" rating for key companies in the chemical industry, specifically recommending Minsheng Chemical's "Five Tigers": Shengquan Group, Guocera Materials, Guoguang Co., Anli Co., and Polymeric Co. [1][4] Core Insights - The chemical market is active, with growth stocks presenting a favorable allocation opportunity. The demand for phosphate fertilizers remains stable, and the high price of phosphate rock is expected to continue due to supply-demand balance. [1] - The domestic production capacity of polycarbonate (PC) is projected to grow significantly from 875,000 tons in 2018 to 3,810,000 tons by 2024, with an expected improvement in supply-demand dynamics from 2025 to 2029. [2] - The organic silicon industry is experiencing a recovery in the supply-demand balance, with a compound annual growth rate of 22.4% in production capacity from 2021 to 2024, driven by demand from emerging industries such as new energy vehicles and photovoltaics. [2] Summary by Sections Chemical Market Overview - The basic chemical industry index closed at 3,406.53 points, down 1.23% from the previous week, underperforming the CSI 300 index by 1.05%. [10] - Among 462 stocks in the chemical sector, 31% rose while 67% fell during the week. [18] Key Chemical Sub-Industries - **Polyester Filament**: The market is stable with slight price increases, and the average industry operating rate is approximately 89.96%. [26][27] - **Tires**: The operating rate for all-steel tires is 60.12%, down 2.88 percentage points from the previous week. [40] - **Refrigerants**: Prices for refrigerants like R22 and R134a are stable to strong, with R22 averaging 36,000 CNY/ton and R134a at 48,000 CNY/ton. [45][47] Price Trends - The top price increases for chemical products include cotton short velvet (up 15%), trichloromethane (up 14%), and domestic naphtha (up 13%). [24] - Conversely, the largest price drops were seen in liquid chlorine (down 71%) and TMA (down 9%). [25] Company Profit Forecasts - Guoguang Co. is projected to have an EPS of 0.78 CNY in 2024, with a PE ratio of 19, while Shengquan Group is expected to have an EPS of 1.03 CNY with a PE ratio of 25. Both companies are rated as "Recommended." [4]

| 证券代码：300779 | 证券简称：惠城环保 | 公告编号：2025-036 | | --- | --- | --- | | 债券代码：123118 | 债券简称：惠城转债 | | 青岛惠城环保科技集团股份有限公司 2024 年度股东大会决议公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 重要内容提示： 1、本次股东大会没有否决议案； （三）会议召开方式：采取现场投票和网络投票相结合的方式。 （四）会议召集人：青岛惠城环保科技集团股份有限公司（以下简称"公 司"）董事会。 （五）会议主持人：公司董事长叶红女士。 （六）本次股东大会的召集、召开、审议和表决程序符合《中华人民共和国 公司法》等法律、法规及《公司章程》的有关规定，会议各项决议合法有效。 2、本次股东大会不涉及变更以往股东大会已通过的决议。 一、会议召开和出席情况 （一）会议召开时间： 1、 现场会议召开的时间：2025 年 5 月 27 日（星期二）14:00 2、 网络投票时间：2025 年 5 月 27 日（星期二） 其中通过深圳证券交易所交易系统进行网络投票的具体时间为 2025 ...

公司已向本所律师保证和承诺，其已提供了本所律师认为出具本法律意见书 所必需的材料，所提供的原始材料、副本、复印件、扫描件等材料、口头证言均 符合真实、准确、完整的要求，有关副本、复印件、扫描件等材料与原始材料一 致，且无任何隐瞒、疏漏之处。 在本法律意见书中，本所律师对本次股东大会的召集、召开程序、出席会议 人员资格、召集人资格及会议表决程序、表决结果是否符合《公司法》《证券法》 《股东会规则》等法律、法规、规范性文件和《公司章程》《股东大会议事规则》 的规定发表意见。不对会议审议的议案内容以及这些议案所表述的事实或数据的 真实性及准确性发表意见。 本法律意见书仅供见证公司本次股东大会之目的使用，不得用作任何其他目 的。 北京市中伦律师事务所 关于青岛惠城环保科技集团股份有限公司 2024 年度股东大会的法律意见书 北京市中伦律师事务所（以下简称"本所"）接受青岛惠城环保科技集团股 份有限公司（以下简称"公司"）的委托，就公司 2024 年度股东大会（以下简称 "本次股东大会"）召开的有关事宜，根据《中华人民共和国公司法》（以下简称 "《公司法》"）、《中华人民共和国证券法》（以下简称"《证券法》"）、中国证 ...

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental sector, including Huicheng Environmental, GaoNeng Environment, and HongCheng Environment [5][36]. Core Insights - The report highlights the issuance of the "Beautiful Rivers and Lakes Protection and Construction Action Plan (2025-2027)" by the Ministry of Ecology and Environment and other departments, aiming for a 40% completion rate by 2027 and significant improvements by 2030 and 2035 [10][11]. - The report emphasizes the importance of industrial park wastewater treatment standards and the need for differentiated management based on the type of industrial park [23][35]. - The current macroeconomic environment, characterized by historically low interest rates, presents opportunities for high-dividend and growth-oriented assets in the environmental sector [2][36]. Summary by Sections Investment Views - The report discusses the "Beautiful Rivers and Lakes Protection and Construction Action Plan," which aims to enhance water ecological governance and attract social capital for joint management [10][22]. - It also mentions the release of technical guidelines for wastewater discharge standards in industrial parks, focusing on a classification management approach [23][35]. - The report suggests focusing on companies involved in environmental monitoring and treatment, such as JuGuang Technology and HongCheng Environment [22][35]. Market Performance - The environmental sector underperformed compared to the broader market, with a decline of 1.47% against a 0.57% drop in the Shanghai Composite Index [38]. - Notable stock performances include Shenwu Energy (+27.51%), Huicheng Environmental (+13.77%), and Anche Detection (+11.05%) [38]. Key Announcements - The report includes various announcements related to environmental policies and performance ratings of key industries in response to pollution control measures [49][50].

Market Performance - On May 23, major market indices experienced fluctuations and closed lower, with A-shares trading volume reaching 1.18 trillion yuan, and over 1,100 stocks closing higher, including 52 stocks hitting the daily limit [1] - For the week, the Shanghai Composite Index fell by 0.57%, the ChiNext Index dropped by 0.88%, and the STAR Market 50 Index decreased by 1.47% [1] Individual Stock Performance - Over 1,600 stocks rose this week, with 22 stocks gaining over 30%. Notably, six stocks surged over 50%, with the largest increase being 99.96% for Sanofi [1][2] - Other significant gainers included Huibo Yuntong (301316) and Binhai Energy (000695), both of which saw weekly increases exceeding 60% [1][2] Sector Analysis - Among the stocks that rose over 30%, the pharmaceutical and biological sector had six representatives, followed by light industry manufacturing with three stocks [1] Historical Highs - On May 23, 17 stocks reached historical closing highs, with the pharmaceutical and biological, mechanical equipment, and automotive sectors showing a concentration of high performers [3][4] - The average increase for stocks reaching historical highs was 8.20%, with notable gainers including Xintiandi (301277) and Zhongzhou Special Materials (300963) [3] Institutional Activity - On May 23, ten stocks saw net purchases from institutions, with Yixin Tang (002727) leading at a net buy of 102 million yuan [5][6] - Conversely, institutions sold off stocks such as Hongchuang Holdings (002379) and Tianqimo (002510), each experiencing net sales exceeding 50 million yuan [5][6] Northbound Capital Flow - Northbound capital was present in nine stocks on the trading board, with net purchases in three stocks: Xue Ren Shares (002639), Huibo Yuntong, and Jinlongyu (002882) [7] - Yixin Tang faced the highest net sell-off from northbound capital, totaling 68.98 million yuan [7] Company Announcements - Zhongjin Gold (600489) plans to inject four companies, including Inner Mongolia Jintao, into the company to resolve competition issues [8] - Huakang Clean (301235) won a bid for a healthcare project with a contract value of 60.24 million yuan and a duration of 120 days [8] - Weier Shares (603501) intends to issue H-shares and list on the Hong Kong Stock Exchange [9] - Yunchongma (603130) plans to raise no more than 640 million yuan for a project to produce DTY silk and high-performance leather base fabric [9]

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental sector, including Huicheng Environmental and Gao Neng Environment [4][24]. Core Insights - The report emphasizes the importance of digital and green transformation in the environmental industry, driven by new policies and regulations aimed at enhancing energy efficiency and promoting low-carbon technologies [10][20]. - It highlights the expected benefits for companies involved in energy-saving processes, low-carbon technology research, and circular economy innovations, particularly in high-energy-consuming sectors like power, metallurgy, and petrochemicals [20][21]. - The report suggests focusing on companies with leading advantages in green process research and industrial pollution control equipment, such as Longjing Environmental and Bihui Source [20][22]. Summary by Sections 1. Investment Views - The report discusses the issuance of the "2025 Digital and Green Collaborative Transformation Development Work Points" by multiple government departments, which outlines systematic requirements for low-carbon digitalization and traditional industry empowerment [10]. - It also mentions the "2025 Legislative Work Plan" from the State Council, which focuses on upgrading environmental legislation and enhancing regulatory frameworks for green development [21][22]. - The report notes that the current macroeconomic environment, characterized by historically low interest rates, presents a favorable backdrop for investing in high-dividend and growth-oriented assets [2][23]. 2. Market Performance - The environmental sector underperformed compared to the broader market, with the environmental index rising only 0.10% against a 0.76% increase in the Shanghai Composite Index [3][25]. - Specific sub-sectors showed varied performance, with monitoring up by 1.61% while water treatment and energy-saving sectors declined [3][25]. 3. Industry News - Recent policies in Henan Province aim to enhance resource recycling and promote the establishment of a comprehensive recycling system [38]. - The central government has issued guidelines to accelerate urban renewal actions, focusing on improving urban infrastructure and waste management systems [38]. - New regulations on ecological environment protection have been introduced, emphasizing the need for robust environmental oversight [38]. 4. Key Announcements - The report includes various corporate announcements, such as bond issuances and share transfers, which reflect ongoing activities within the environmental sector [39][40].

Group 1: Project Progress - The 200,000 tons/year mixed waste plastic resource utilization demonstration project is currently in the preparation stage for commencement, with progress reported as smooth [2][3][7][19]. - The project successfully completed ignition on April 8, 2025, and is now undergoing testing before official production [3][22]. - The project is expected to expand capacity based on strategic development plans and waste plastic recovery conditions after the initial production [5][21]. Group 2: Stakeholder Engagement - The company held a collective performance briefing for listed companies in Qingdao on May 12, 2025, to engage with investors [2]. - Investors are encouraged to check the company's periodic reports for the latest shareholder numbers, which can be confirmed by contacting the securities affairs department [4][8]. Group 3: Financial Matters - The company's current fundraising plan of 850 million yuan is on hold due to the need for energy approval processes, with a resumption of review pending [6][10][12][13]. - The company is closely monitoring stock price trends and emphasizes the importance of rational investor perspectives on market fluctuations [22]. Group 4: Technical and Operational Queries - The company has established a comprehensive technical management system to protect its proprietary technology related to waste plastic cracking [20]. - The expected yield from the mixed waste plastic deep catalytic cracking project is approximately 85%-90%, influenced by the types and compositions of the waste plastic [18].

Group 1: Market Overview - As of March 31, 2025, there are 11 A-share listed companies in Qingdao West Coast New Area, with a total market capitalization of 197.499 billion yuan, accounting for 24% of the total market capitalization of A-share listed companies in the city [1] - The total assets of these 11 companies reached 201.772 billion yuan in the first quarter, representing a year-on-year growth of 7.8%, and accounting for 10% of the total assets of A-share listed companies in the city [2] - The total operating revenue of these companies was 33.661 billion yuan in the first quarter, with a year-on-year increase of 5.7%, making up 20.5% of the total operating revenue of A-share listed companies in the city [3] Group 2: Company Performance - In the first quarter, the 11 A-share listed companies achieved a net profit attributable to shareholders of 2.996 billion yuan, reflecting a year-on-year growth of 2%, and accounting for 21% of the total net profit of A-share listed companies in the city [5] - Seven companies in the area reported positive growth in net profit, with Qingdao Port and Sailun Tire each exceeding 1 billion yuan in net profit for the first quarter [5] - Notably, Sanxiang Technology reported a significant increase in net profit, with a year-on-year growth of over 320% [5] Group 3: Individual Company Highlights - Hisense Visual achieved an operating revenue of over 13 billion yuan in the first quarter, with a year-on-year growth of 5.3% [4] - Sailun Tire reported an operating revenue exceeding 8 billion yuan, with a year-on-year increase of 15.3% [4] - Huicheng Environmental Protection saw a substantial increase in total assets, with a year-on-year growth of 55% in the first quarter [2]

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental protection sector, including Huicheng Environmental, Gaoneng Environment, and Hongcheng Environment [4]. Core Insights - The environmental protection industry faced pressure in 2024, with overall revenue declining by 3.3% year-on-year to CNY 348.96 billion, and net profit dropping by 37.7% to CNY 13.8 billion, attributed to difficulties in accounts receivable collection and increased impairment losses [1][13]. - In Q1 2025, the industry showed signs of recovery with revenue at CNY 78.83 billion, a slight decline of 1.8% year-on-year, while net profit increased by 4.1% to CNY 7.25 billion, driven by reduced production costs and increased investment income [1][16]. - The report highlights a divergence in performance among sub-sectors, with solid waste management showing growth while energy-saving and atmospheric governance sectors faced significant challenges [3][19]. Summary by Sections Overview - The environmental protection industry is categorized into six sub-sectors: water services, water treatment, solid waste management, atmospheric governance, monitoring, and energy-saving [11]. Sub-Industry Analysis - **Solid Waste Management**: Revenue increased by 6.2% to CNY 162.26 billion, but net profit fell by 12.3% to CNY 7.28 billion due to increased credit impairment losses [41][45]. - **Water Services**: Revenue remained stable at CNY 76.72 billion, with a slight decline of 0.4%, while net profit rose by 24.7% to CNY 12.11 billion, benefiting from operational efficiencies [49][54]. - **Monitoring**: Revenue decreased by 1.7% to CNY 10.28 billion, with net profit showing a significant decline of 109.5% to -CNY 0.45 billion due to increased impairment losses [60]. Financial Performance - The overall net profit margin for the environmental sector decreased to 4.6%, down 2.1 percentage points year-on-year, influenced by rising asset impairment losses and increased expense ratios [23]. - Operating cash flow for the industry grew by 10.9% to CNY 48.3 billion, primarily due to reduced procurement and improved collection [28]. Investment Recommendations - The report recommends focusing on high-growth areas such as resource recycling and public utility platforms, particularly companies like Gaoneng Environment and Huicheng Environmental, which are expected to benefit from carbon neutrality initiatives [3][4].