环保行业专题报告：化债力度加大，重视板块困境反转的机会

Investment Rating - The industry investment rating is "Positive" [4] Core Viewpoints - The report highlights that the government's intensified debt resolution policies are expected to alleviate the financial pressures on local governments, which will positively impact the environmental protection industry [2][3] - Since 2017, accounts receivable in the environmental protection industry have rapidly increased, with total accounts receivable for A-share listed companies growing from 101.24 billion to 230.93 billion by 2024H1 [2][3] - The report suggests that the increased focus on debt resolution will provide opportunities for a turnaround in the environmental protection sector, leading to potential improvements in performance and valuation [3] Summary by Relevant Sections Accounts Receivable Growth - From 2017 to 2023, total accounts receivable in the environmental protection industry increased significantly, with a total of 230.93 billion by 2024H1, and the proportion of accounts receivable to total assets fluctuating between 0.15 and 0.18 [2][3] - The water and water governance sector has the largest accounts receivable, totaling 108.91 billion by 2024H1 [2][8] - The sanitation sector has seen the fastest growth in accounts receivable, increasing by 288% from 47.75 billion in 2017 to 185.30 billion in 2024H1 [2][8] Impact of Debt Resolution Policies - The government's debt resolution policies have shown preliminary success, with a 50% reduction in hidden debt balances since 2018 [3] - The policies are expected to improve cash flow for companies in the water and waste management sectors, enhancing their willingness to expand business [3] - Long-term effectiveness in fundamentally resolving the industry's receivables issues remains to be observed [3] Investment Recommendations - The report recommends focusing on investment opportunities in water operations, waste management, and sanitation services, specifically highlighting companies such as Huanlan Environment, Weiming Environmental, and Yingfeng Environment [3]