公用环保行业点评：红利回调提供机遇 H股更具高股息优势

Investment Rating - The report maintains a "Positive" outlook on the public utility and environmental protection industry, indicating a favorable investment environment for high dividend stocks [1]. Core Insights - The report highlights that the recent market pullback in public utility stocks presents an opportunity for investors, particularly in high dividend yield sectors [2]. - It emphasizes the potential for long-term capital inflows into the market, driven by a low interest rate environment, which enhances the attractiveness of high dividend stocks [2]. - The report notes that H-shares in the public utility sector are undervalued compared to A-shares, offering higher dividend yields, with some companies reaching over 7% [2][3]. - The stability of earnings and improvement in cash flow for municipal environmental companies are expected to lead to sustained dividend increases, making them attractive investment targets [2][4]. Summary by Sections Public Utility Sector - The report predicts a recovery in dividend yields for key thermal and gas companies, with forecasts indicating yields above 4% for thermal power and 4.5% for gas companies by 2024 [2][3]. - It recommends specific companies such as China Nuclear Power and China General Nuclear Power for their growth potential in the nuclear sector [2][3]. - The report identifies several high dividend companies in the public utility sector, including Inner Mongolia Huadian and Sheneng Co., with projected dividend yields ranging from 4.33% to 5.89% [3][7]. Environmental Sector - The report lists high dividend companies in the environmental sector, such as Junxin Co. and Yongxing Co., with dividend yields projected to increase significantly [4][6]. - It highlights the potential for cash flow improvements and debt reduction in municipal environmental companies, which could enhance their dividend-paying capabilities [2][4]. - The report suggests that the environmental sector is poised for growth, particularly in municipal water and solid waste management, with several companies showing strong dividend potential [4][6]. Valuation and Recommendations - The report provides a detailed valuation table for key public utility and environmental companies, indicating a generally favorable price-to-earnings (PE) ratio for many recommended stocks [7][9]. - Specific recommendations include companies like Huadian International Power and China Power, which are expected to outperform the market based on their current valuations and growth prospects [7][9]. - The report emphasizes the importance of selecting stocks with strong dividend histories and stable earnings to maximize investment returns in the current market environment [2][4].