环保：多维度对比，环保红利公司的升级之路

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [2]. Core Viewpoints - The report emphasizes the investment opportunities in environmental protection dividend assets, highlighting the relative valuation advantages of leading companies in the solid waste and water sectors. It notes that the solid waste industry is entering a period of increased dividends following a peak in capital expenditures, with significant potential for dividend growth [5][23]. Summary by Sections 1. Performance Comparison - Environmental protection leading companies in solid waste and water sectors have significantly outperformed the market and industry indices in 2024. For instance, from the beginning of 2024 to July 1, the Shanghai Composite Index rose by 1.10%, while the solid waste leaders, such as Hanlan Environment and Sanfeng Environment, saw increases of 23.78% and 29.15%, respectively [8]. 2. Excess Returns and Valuation - The CSI Dividend Index has shown notable excess returns this year, with a rise of 8.97% compared to the 2.71% increase in the CSI 300 Index. The current P/E ratio of the CSI Dividend Index stands at 7.42, below the historical median [10][11]. 3. Capital Expenditure and Balance Sheet Recovery - The report compares the capital expenditure trends of solid waste and water companies with other sectors, noting a significant decline in capital expenditures post-2021. This decline is expected to enhance cash flow and improve balance sheets, providing a strong basis for future dividend increases [14][16]. 4. Relative Valuation Advantages - The report highlights that the P/E and P/B ratios of water and solid waste companies are below their historical medians, indicating relative valuation advantages. For example, the average P/E for solid waste companies is 12.57, with a P/B of 1.13, both suggesting undervaluation compared to other sectors [20][21]. 5. Dividend Potential - The average cash dividend payout ratio for solid waste companies is currently lower than that of other sectors, indicating room for improvement. Companies like Yongxing Shares and Junxin Shares have already achieved high dividend payout ratios, suggesting that solid waste companies can enhance their dividends in the future [18][19]. 6. Investment Recommendations - The report recommends specific companies for investment: for solid waste, it suggests Everbright Environment, Sanfeng Environment, and Hanlan Environment; for water, it recommends Beijing Enterprises Water Group, with other beneficiaries including Hongcheng Environment and Xingrong Environment [23].