Investment Rating - The industry investment rating is "Buy" [4] Core Insights - The AI recycling market is poised for exponential growth, with the value of AI waste projected to reach 500 billion by the end of the 14th Five-Year Plan [8] - The introduction of new regulations is expected to formalize the recycling process, leading to the first wave of AI server recycling around 2027-2028 [8] - High-value and high-barrier characteristics of AI server recycling present significant opportunities for leading electronic waste dismantling companies [8] Summary by Sections AI's Hidden Track - The First Wave of Server Recycling - The AI industry is rapidly expanding, with the AI server market expected to grow at a compound annual growth rate (CAGR) of 31% from 2024 to 2028 [16] - The demand for AI servers is driving a significant increase in electronic waste, with projections indicating a potential increase of nearly 1000 times in AI-related electronic waste from 2020 to 2030 [17] Analysis of AI Server Recycling - AI servers exhibit high residual value and concentration, with Nvidia H100 GPUs maintaining a residual value of 80-90% and a recovery price of 28,000 to 35,000 USD [26] - The recycling process for AI servers is complex and requires adherence to high standards, including data security and environmental compliance [32] Policy Driving Industry Formalization - New regulations have been implemented to include AI waste in the national control system, marking a new phase for the industry [42] - The updated regulations require stricter disposal standards and comprehensive monitoring throughout the recycling process [43] Key Recommendations - The report highlights "Dadi Ocean" as a key player in the recycling industry, particularly due to its recent acquisition of "Tiger Brother" to enhance its waste recycling capabilities [58] - The "Tiger Brother" model effectively addresses challenges in waste collection and recycling, achieving a resource utilization rate of over 90% [62]

Quantitative Factors and Construction Methods 1. Factor Name: Large Buy Order Transaction Amount Ratio - **Construction Idea**: This factor captures the buying behavior of large capital by measuring the proportion of large buy orders in the total transaction amount for a given day[7] - **Construction Process**: - Utilize tick-by-tick transaction data to identify buy and sell orders based on bid and ask sequence numbers - Filter transactions by order size to isolate large orders - Calculate the proportion of large buy order transaction amounts relative to the total transaction amount for the day - Formula: $ \text{Large Buy Order Transaction Amount Ratio} = \frac{\text{Large Buy Order Amount}}{\text{Total Transaction Amount}} $ where "Large Buy Order Amount" represents the sum of transaction amounts for large buy orders, and "Total Transaction Amount" is the aggregate transaction amount for the day[7] - **Evaluation**: This factor effectively reflects the behavior of large-scale investors and their influence on market dynamics[7] 2. Factor Name: Net Active Buy Transaction Amount Ratio - **Construction Idea**: This factor measures the active buying behavior of investors by calculating the net active buy transaction amount as a proportion of the total transaction amount for a given day[7] - **Construction Process**: - Use tick-by-tick transaction data to classify each transaction as either an active buy or an active sell based on the buy/sell indicator - Compute the net active buy transaction amount by subtracting the active sell amount from the active buy amount - Calculate the proportion of the net active buy transaction amount relative to the total transaction amount - Formula: $ \text{Net Active Buy Transaction Amount Ratio} = \frac{\text{Active Buy Amount} - \text{Active Sell Amount}}{\text{Total Transaction Amount}} $ where "Active Buy Amount" and "Active Sell Amount" represent the transaction amounts for active buy and sell orders, respectively, and "Total Transaction Amount" is the aggregate transaction amount for the day[7] - **Evaluation**: This factor provides insights into the level of active buying interest in the market, which can be indicative of investor sentiment[7] --- Factor Backtesting Results 1. Large Buy Order Transaction Amount Ratio - **Top 10 Stocks by 5-Day Average**: - Highest value: 89.4% (Zhouji Oil & Gas, 600759.SH)[9] - Lowest value in the top 10: 85.0% (Wentou Holdings, 600715.SH)[9] - Time-series percentile range: 81.1% to 100.0%[9] 2. Net Active Buy Transaction Amount Ratio - **Top 10 Stocks by 5-Day Average**: - Highest value: 14.2% (China Construction Bank, 601939.SH)[10] - Lowest value in the top 10: 11.5% (Zhende Medical, 603301.SH)[10] - Time-series percentile range: 93.8% to 100.0%[10] 3. Broad Market Indices - **Large Buy Order Transaction Amount Ratio (5-Day Average)**: - Highest: 73.7% (CSI 300 Index)[12] - Lowest: 70.4% (ChiNext Index)[12] - **Net Active Buy Transaction Amount Ratio (5-Day Average)**: - Highest: 2.0% (CSI 500 Index)[12] - Lowest: -0.4% (SSE 50 Index)[12] 4. Industry-Level Analysis - **Large Buy Order Transaction Amount Ratio (5-Day Average)**: - Highest: 79.2% (Non-Banking Financials)[13] - Lowest: 69.3% (Telecommunications)[13] - **Net Active Buy Transaction Amount Ratio (5-Day Average)**: - Highest: 12.8% (Non-Banking Financials)[13] - Lowest: -5.2% (Oil & Petrochemicals)[13] 5. ETFs - **Large Buy Order Transaction Amount Ratio (5-Day Average)**: - Highest: 94.3% (Huatai-PineBridge CSI A500 ETF, 563360.SH)[15] - Lowest in the top 10: 89.6% (Fuguo CSI Tourism Theme ETF, 159766.SZ)[15] - **Net Active Buy Transaction Amount Ratio (5-Day Average)**: - Highest: 33.1% (HFT SSE Urban Investment Bond ETF, 511220.SH)[16] - Lowest in the top 10: 9.8% (Harvest CSI Rare Earth Industry ETF, 516150.SH)[16]

Investment Rating - The report maintains an "Buy" rating for the environmental protection industry [2] Core Insights - The government work report for 2026 emphasizes the need for a 17% reduction in carbon emissions per unit of GDP and a 3.8% reduction in total carbon emissions, marking a shift towards dual control of carbon emissions [12][14] - The report highlights the increasing demand for green energy and biofuels, particularly biodiesel, driven by rising oil prices and geopolitical tensions [5][21] - The report suggests focusing on companies involved in the recycling and green energy sectors, such as biofuels and green methanol, as potential investment opportunities [5][13] Summary by Sections Government Work Report - The 2026 government work report sets higher targets for carbon emissions reduction and introduces a national low-carbon transition fund to support hydrogen and green fuel development [12][15] - The report indicates that 2026 will be the first year of formal carbon assessments for local governments [12][14] Biodiesel Market - The average export price of UCO (Used Cooking Oil) in 2025 was 7,742 CNY/ton, a year-on-year increase of 21.6% [21] - UCO export volume for 2025 was 2.7558 million tons, with a 6.6% decrease compared to the previous year [21] - The report notes that the price of UCO has been on an upward trend, reaching 8,125.54 CNY/ton by December 2025 [21] Carbon Market and Policies - The report tracks developments in the carbon market, noting a recent trading volume of 56.05 million tons and a closing price of 81.85 CNY/ton [36][39] - It highlights the establishment of a comprehensive recycling system for retired solar panels, aiming for a cumulative utilization of 250,000 tons by 2027 [34] Key Companies to Watch - The report recommends monitoring companies such as Langkun Technology, Shanhai Environment, and Huanxin Co., which are positioned to benefit from the growing demand for biofuels and recycling [5][33]

Investment Rating - The report suggests a focus on green fuel, green electricity, natural gas, CCUS, renewable resources, carbon monitoring, and zero-carbon parks as key investment opportunities [4][7][43]. Core Insights - The transition to a dual carbon control system is urgent, with the need to achieve carbon peak by 2030 and a 65% reduction in carbon intensity compared to 2005 levels by 2030 [4][11]. - The establishment of a comprehensive carbon management system is underway, integrating carbon evaluation and market mechanisms [4][21]. - The path to implementation emphasizes energy transition and efficiency improvements, with pilot projects for zero-carbon factories and parks leading the way [4][44]. Summary by Sections Policy Transition - The shift from energy consumption control to carbon emission control is highlighted, with a focus on dual carbon control [6][8]. - The government has outlined a comprehensive policy framework for carbon peak and neutrality, emphasizing the need for a robust carbon management system [12][14]. System Construction - A dual approach combining administrative measures and market mechanisms is being developed, including carbon evaluation and a national carbon market [21][24]. - The national carbon market has expanded to include key industries such as power generation, steel, cement, and aluminum smelting [24][30]. Implementation Path - The report outlines a clear path for energy transition, focusing on green energy supply, energy efficiency improvements, and the establishment of zero-carbon factories and parks [4][44]. - Key tasks include developing renewable energy sources, enhancing energy efficiency, and implementing carbon management systems [46][50].

Core Viewpoint - As of February 13, 2026, the company has a total of 4,227 shareholders [1] Group 1 - The company, Dadi Ocean (301068), responded to investor inquiries on an interactive platform [1]

Group 1 - The company Dadi Ocean (301068) reported that as of January 30, 2026, it has a total of 4,756 shareholders [1]

Financial Performance Expectations - The company expects a net profit loss of between -30.06 million and -24.60 million RMB for the fiscal year 2025, compared to a profit of 137.25 million RMB in the previous year[3] - The expected loss after deducting non-recurring gains and losses is between -61.35 million and -50.20 million RMB, compared to a profit of 80.02 million RMB in the previous year[3] Impact of Subsidy Policy - The decline in performance is primarily due to changes in the subsidy policy for the treatment of waste electrical and electronic products, with a significant reduction in subsidy amounts compared to previous years[5] - The Ministry of Finance has allocated 5 billion RMB for the 2025 special fund for waste electrical and electronic product treatment, with 2.3 billion RMB for previously unpaid subsidies and 2.7 billion RMB for industry support[6] Strategic Initiatives - The company completed the acquisition of Zhejiang Tiger Waste Management Co., Ltd. in August 2025, integrating the front-end recycling system into a closed-loop full industry chain[8] - The company aims to enhance operational management precision, optimize cost structure, and improve the value extraction capability of waste electrical and electronic product dismantling[8] Monitoring and Risk Disclosure - The company will continue to monitor the impact of the special fund policy on its operations and fulfill information disclosure obligations in a timely manner[7] - The preliminary financial data provided is subject to final audit results, and investors are advised to be aware of investment risks[8]

Core Viewpoint - Dadi Ocean (301068) is actively selling dismantled products from discarded electronic devices, which contain precious metals like gold and silver, to qualified downstream companies without direct refining [1] Group 1: Company Operations - The company has stated that it sells dismantled products, such as waste circuit boards, directly to downstream enterprises with relevant qualifications [1] - The company does not engage in the direct refining of these dismantled products [1] Group 2: Market Response - The company acknowledges that fluctuations in metal prices in 2025 may impact its procurement and sales prices [1] - To address potential price volatility, the company is enhancing its metal price monitoring and adjusting its pricing strategies flexibly [1]

Investment Rating - The report recommends a "Buy" rating for several companies in the environmental sector, including Lianmei Holdings, Shanggou Environmental, Longkun Technology, Weiming Environmental, Hanlan Environment, Dadi Ocean, Shanghai Industrial Holdings, and Conch Venture [1]. Core Insights - The transition from "energy consumption dual control" to "carbon emission dual control" is emphasized, with a focus on circular reduction and green energy industries. The year 2026 marks the first year of full transition to carbon emission dual control, with significant efforts expected in carbon reduction [1][11]. - The report highlights the impact of the EU carbon tariff, which will officially be implemented on January 1, 2026, significantly increasing the cost of exports from China to the EU. Current carbon prices in the EU are around 80-90 euros per ton, compared to approximately 81 yuan per ton in China [1][16]. - Companies involved in the circular economy, such as those in recycling and green energy, are recommended for investment due to their potential to reduce carbon emissions and adapt to new regulations [1][17]. Summary by Sections Section 1: Carbon Emission Dual Control Implementation - The "14th Five-Year Plan" shifts focus to carbon emission control, emphasizing the need for a new energy system and the integration of carbon reduction, pollution reduction, and green growth [11][12]. Section 2: Fund Holdings in Environmental Stocks - As of Q4 2025, the fund allocation for environmental stocks is only 0.23%, a decrease of 0.13 percentage points year-on-year, indicating a recovery trend since the lows of 2020 [21][26]. Section 3: Biodiesel Market Insights - The price of UCO (Used Cooking Oil), a key raw material for biodiesel, has increased by 7.6% to $1,060 per ton, while SAF (Sustainable Aviation Fuel) prices have decreased slightly but remain high at $2,150 per ton [31][35]. Section 4: Policy and Event Tracking in the Dual Carbon Field - Recent policies emphasize the construction of zero-carbon factories and the promotion of green development, with specific targets set for various industries by 2030 [39][40]. Section 5: Key Company Valuations and Financial Analysis - The report provides detailed financial metrics for key companies, including earnings per share (EPS), price-to-earnings (PE) ratios, and return on equity (ROE), indicating a generally positive outlook for the sector [4].

Investment Rating - The report maintains a "Buy" rating for several companies in the environmental sector, including Huanlan Environment, Sanfeng Environment, and others, indicating a positive outlook for their stock performance [5]. Core Insights - The environmental industry is entering a critical phase of carbon reduction, with a focus on recycling and waste incineration. The demand for green energy and recycling industries is expected to rise significantly as China transitions to a dual control system for carbon emissions starting in 2026 [4][17]. - The introduction of the EU carbon tariff in 2026 is anticipated to increase the cost of exports from China, prompting companies to adopt greener practices to mitigate carbon emissions [4][17]. - High dividend assets in the environmental sector are expected to remain attractive in 2026, with companies like Guangda Environment and Huanlan Environment showing significant stock price increases in 2025 [4][5]. - The bio-diesel sector is experiencing a rise in UCO prices, which are expected to benefit companies involved in waste oil processing and bio-fuel production [19][25]. Summary by Sections Section 1: Market Performance - The environmental sector has shown strong performance in 2026, with water treatment, energy-saving, and recycling sectors leading the gains. Companies are diversifying into secondary businesses to enhance growth [11][14]. Section 2: Policy and Regulatory Developments - The report highlights the implementation of the "Solid Waste Comprehensive Governance Action Plan" aimed at reducing industrial solid waste and enhancing recycling efforts [33]. - The introduction of the carbon trading market and the EU carbon tariff are significant regulatory changes that will impact the industry [17][31]. Section 3: Company Performance and Recommendations - Key companies recommended for investment include Huanlan Environment, Shanghai Industrial Holdings, and others, which are expected to benefit from favorable market conditions and policy support [4][5]. - The report notes that the environmental sector's valuation is currently at a historical low, suggesting potential for future growth [45][52]. Section 4: Financial Analysis - The financial metrics for key companies indicate a positive outlook, with projected earnings per share (EPS) and price-to-earnings (PE) ratios suggesting undervaluation relative to historical performance [5]. Section 5: Market Trends - The report tracks the performance of various sub-sectors within the environmental industry, noting that energy-saving manufacturing and recycling have shown the most significant growth [49]. Section 6: Export and Pricing Trends - UCO prices have remained strong, with recent data showing a 6.1% increase compared to early 2025, indicating robust demand for bio-diesel feedstock [19][23]. Section 7: Carbon Market Activity - The carbon market has seen significant trading volumes, with recent data indicating a closing price of 78.50 CNY per ton, reflecting ongoing market activity and interest [31]. Section 8: Company Announcements - Recent announcements from companies like Dongjiang Environmental and Zhongyuan Environmental indicate strategic acquisitions aimed at enhancing operational capabilities and market positioning [42].