“十五五”低碳转型加速，循环经济、低碳能源、国产替代三条主线大有可为

Core Viewpoint - The environmental protection industry is expected to improve in operational performance and valuation due to policy incentives and market mechanisms during the "14th Five-Year Plan" period, with a focus on recycling economy, green energy, and domestic substitution [2][5]. Group 1: Industry Performance and Valuation - As of December 1, 2025, the Shenwan (2021) environmental protection industry index has increased by 16.67%, ranking 17th among 31 industries [2][3]. - The overall PE of the environmental protection sector is 35.94X, showing a significant increase compared to the first half of 2024 [2][3]. - In the first three quarters of 2025, the total market value of environmental stocks held by funds reached 5.56 billion, accounting for 0.18% of total holdings, primarily focusing on water treatment, waste incineration power generation, and environmental equipment [2][3]. Group 2: Investment Opportunities - Three main investment lines are identified within the environmental protection sector: 1. The recycling economy is expected to release potential, particularly in the fields of recycled plastics and metals. The goal is to achieve an annual utilization of approximately 4.5 billion tons of solid waste by 2030, with a 45% increase in resource output rates compared to 2020 [2][3]. 2. Under the "dual carbon" goals, green energy is anticipated to contribute significantly. The aim is to reduce greenhouse gas emissions by 7%-10% from peak levels by 2035, with a focus on promoting bio-jet fuel and green methanol [3][4]. 3. Domestic substitution and intelligent upgrades are expected to invigorate the sector, particularly in scientific instruments and sanitation equipment, with a notable increase in demand for new energy sanitation vehicles [4][5]. Group 3: Recommended Companies - For the recycling economy, companies such as Yingke Recycling, High Energy Environment, and Fuchun Environmental are recommended [5]. - In the green energy sector, key recommendations include Xingrong Environment, Hongcheng Environment, and Hanlan Environment, with additional attention to Jiaao Environmental and Wangneng Environment [5]. - For domestic substitution, companies like Xuedilong, Juguang Technology, and Puni Testing are highlighted as having significant investment value [5].