环保行业周报：再生资源央企设立，加速行业规范化提升

Investment Rating - The report maintains an Overweight rating for the environmental protection sector [1] Core Views - The establishment of a new central state-owned enterprise (SOE) for resource recycling is expected to accelerate industry standardization and improve resource recovery efficiency [1][8] - The new SOE, China Resource Recycling Group, will act as a national platform to enhance the resource recycling chain, focusing on areas such as steel scrap, electronic products, and renewable energy equipment recycling [8] - The report highlights the potential for increased resource recovery rates and the alleviation of uneven VAT policies across regions due to the new SOE's operations [8] Sector Performance - Last week, the environmental protection sector saw a +4.08% increase, while gas, water, and power sectors fluctuated by +0.62%, +2.59%, and -0.89% respectively [4] - Top gainers in the environmental protection sector included Blue Shield Optoelectronics (+24.83%), Aikelan (+23.24%), and Zhongjian Huanneng (+23.00%) [4] - Top decliners were Hainan RuiZe (-3.98%), Weiming Environmental (-3.08%), and Yueyang Forest & Paper (-2.88%) [4] Carbon Market Tracking - Last week, the national carbon market (CEA) traded 345.52 million tons, a 4% decrease from the previous week, with an average price of 100.23 yuan/ton, up 7% [11] - Local carbon markets traded 114.14 million tons, a 42% decrease, with an average price of 45.15 yuan/ton, up 72% [11] - CCER transactions in local markets totaled 20.33 million tons, a 78% decrease [11] Key Events - The United Nations Climate Change Baku Conference was held, focusing on climate finance, mitigation, and international carbon markets [12] - The Water Resource Tax Reform Pilot Implementation Measures were announced, set to take effect on December 1, 2024, targeting entities extracting surface or groundwater [13] Company Updates - Fuchun Environmental Protection reported a 80%-110% YoY increase in net profit for the first three quarters of 2024, with Q3 profits up 150%-180% [15] - Longjing Environmental Protection saw a 11.64% YoY decline in revenue but a 0.91% increase in net profit for the first three quarters of 2024 [15] - Handan Environment reported an 18.82% YoY increase in net profit for the first nine months of 2024 [15] Investment Recommendations - The report recommends focusing on the resource recycling sector, particularly recycled plastics and recycled metals [8] - Key stocks to watch include Sanlian Hopecast (recycled plastics), GaoNeng Environment, and Huahong Technology (recycled metals) [8][9]