Grandblue Environment (SH:600323) 3 6 Ke·2025-09-25 03:59Group 1: Debt Resolution Process - The government has initiated a new round of large-scale debt resolution, focusing on addressing hidden debts and overdue payments to enterprises, with a heightened emphasis on resolving these issues in 2024 [1][4]. - The solid waste treatment industry is one of the main beneficiaries of the "debt resolution trend" [2]. Group 2: Financial Status of the Solid Waste Industry - The overall asset-liability ratio of the solid waste industry has been on a downward trend since 2021, although there was a slight increase in the first half of 2025 compared to the same period last year [5]. - The accounts receivable turnover rate has been gradually declining since 2021, with a further decrease noted in the first half of 2025 [5][7]. - The solid waste treatment industry has transitioned from rapid growth to a more stable phase, with accounts receivable growth rates significantly outpacing revenue growth rates [7][11]. Group 3: Cash Flow and Investment - The overall cash flow of the industry has improved, with 2024 expected to be the first year where operating cash flow covers investment cash flow, indicating a shift towards net debt repayment [8][10]. - The improvement in operating cash flow is partly attributed to the ongoing debt resolution actions [10][11]. Group 4: Individual Company Analysis - Hanlan Environment - Hanlan Environment, a key player in waste treatment, generates revenue primarily from waste incineration electricity and related subsidies, with government contracts determining processing fees [12][16]. - The company's accounts receivable increased significantly from 1.731 billion to 4.252 billion from 2021 to 2025, with a notable impact from the consolidation of Yuefeng Environmental [16][19]. - The structure of accounts receivable shows a concerning trend, with a significant portion being overdue, indicating challenges in cash collection [19][21]. Group 5: Future Outlook and Investment Opportunities - The solid waste industry is expected to see substantial improvements in cash flow due to the government's focus on debt resolution and financial support through special bonds [24]. - Historically, the dividend payout ratio in the solid waste industry has been below 30%, but there is potential for an increase in dividends, which could lead to stock price revaluation opportunities [24].