环保行业专题报告：11月化债加速落地，优选财政预算内及资产质量修复相关公司

Investment Rating - The report maintains a "Positive" investment rating for the environmental protection industry [9]. Core Insights - The new round of debt resolution is larger and more sustainable, with a total of 20 trillion yuan allocated annually from 2024 to 2026 to support local governments in replacing various types of hidden debts, aiming for complete resolution by the end of 2028 [5][17]. - The acceleration of debt resolution is expected to provide substantial benefits to government-facing (To G) enterprises, particularly in the environmental sector, where government arrears are significant [5][17]. Summary by Sections New Round of Debt Resolution - The National People's Congress approved a proposal to increase local government debt limits, allowing for a total of 10 trillion yuan in additional resources for debt resolution [17]. - The scale of special refinancing bonds issued for debt resolution has reached 15,442 billion yuan, surpassing the total for the previous year [5][29]. Acceleration of Debt Resolution - In November, the expected issuance of special refinancing bonds for "replacing hidden debts" is projected to exceed 11,558 billion yuan, indicating a significant increase compared to previous months [5][29]. - The issuance of special refinancing bonds has been a key tool in addressing local government hidden debts, with a focus on sustainable financial practices [18][25]. Investment Logic - The report suggests selecting companies with strong asset quality and those operating within fiscal budgets, particularly in sectors like water management and waste incineration, which are expected to benefit from reduced bad debt risks [7][36]. - Companies with high accounts receivable and low risk profiles are highlighted as potential investment opportunities, particularly in the water and waste management sectors [7][37]. Investment Strategy - The focus is on sectors with low price-to-book ratios and high government receivables, including water management, waste incineration, and environmental monitoring [7][37]. - Key companies identified include those in waste management and water treatment, which are expected to see performance improvements due to the ongoing debt resolution efforts [7][37].