环保行业深度跟踪：垃圾焚烧逻辑持续兑现，期待国补支付改善

Investment Rating - The industry investment rating is "Buy" [2]. Core Viewpoints - The report emphasizes the continuous realization of the garbage incineration logic and anticipates improvements in national subsidy payments. The Ministry of Finance has allocated a total subsidy of 5.4 billion yuan for renewable energy price subsidies, with expectations for better national subsidy distribution in the future [2][7]. - The garbage incineration sector is expected to become the next water utility sector, with improving cash flows and potential for increased dividends. The sector has shown strong stock performance, with significant price increases for key companies [2][9]. - The report highlights the importance of solid waste reduction and comprehensive utilization, as well as the need for ongoing high-quality improvements in air pollution control and solid waste management [2][12]. Summary by Sections Garbage Incineration Sector - The garbage incineration sector has outperformed other environmental sectors, with a year-to-date price increase of 22%, surpassing the Shanghai and Shenzhen 300 index. Key companies like China Everbright Environment and Huaneng Environment have seen stock price increases of 49% and 32%, respectively [7][9]. - The sector's cash flow is expected to improve significantly, with a projected positive free cash flow and potential for higher dividends as capital expenditures decrease [9][11]. Policy and Market Trends - The report tracks domestic and international carbon neutrality policies, noting that the carbon trading market remains at historically low transaction volumes, with the latest price at 91.43 yuan per ton [15]. - Recent policies from the Ministry of Ecology and Environment aim for significant improvements in soil pollution prevention by 2027, with specific targets for remediation and safety in land use [18][20]. Company-Specific Insights - Key companies such as Huaneng Environment and Sanfeng Environment are highlighted for their strong financial performance and potential for future growth. Huaneng Environment reported a significant increase in operating cash flow, while Sanfeng Environment has shown consistent growth in net cash flow [11][21]. - The report also notes the importance of equipment upgrades and the recycling sector, with companies like Jingjin Equipment and Meiyu Technology being identified as potential investment opportunities [2][12].