环保行业深度报告：环保受益化债：现金流/资产质量/估值，关注优质运营/弹性/成长三大方向

Investment Rating - The report maintains an "Overweight" rating for the environmental protection industry [1] Core Insights - The report highlights the significant support for debt resolution measures, which are expected to enhance cash flow, asset quality, and valuation in the environmental sector [1][7] - The environmental industry faces notable accounts receivable issues, with accounts receivable to total assets at 18%, exceeding the industry average by 7 percentage points [9][11] - The report emphasizes three main directions for investment: operational revaluation, elasticity, and growth [1][17] Summary by Sections 1. Policy Support for Debt Resolution - The report outlines the largest debt resolution measures to date, with the Ministry of Finance planning to increase debt limits significantly to help local governments address hidden debt risks [7][8] - The People's Bank of China and other departments have issued opinions on leveraging green finance to support the construction of a beautiful China [7] 2. Impact of Debt Resolution - Debt resolution is expected to alleviate accounts receivable issues, optimize financial statements, and promote new investments, leading to a revaluation of the environmental sector [9][15] - The environmental sector's credit impairment losses are significantly higher than the industry average, with a credit impairment to revenue ratio of 1.0% [11][12] 3. Focus Areas: Operational Revaluation, Elasticity, and Growth 3.1. Operational Revaluation - The report suggests focusing on water and solid waste assets that have been affected by receivable concerns, indicating a potential for value recovery as debt resolution measures are implemented [17][22] - The water sector shows a net cash ratio of 1.2, compared to 2.0 in the U.S., indicating room for improvement [17][18] 3.2. Elasticity - Companies with high accounts receivable ratios and significant impairment impacts are highlighted, with recommendations for firms like碧水源 and 建工修复 due to their high elasticity coefficients [26][31] 3.3. Growth - The report emphasizes the importance of policy investments in areas such as underground pipeline construction and energy-saving equipment, suggesting that companies in these sectors may benefit from increased funding [33]