国补退坡趋势下，关注垃圾焚烧企业供热转型环保周报

Investment Rating - The investment rating for the environmental protection sector is "Positive" [2] Core Insights - The report highlights the trend of declining national subsidies for waste incineration projects, emphasizing the importance of heat supply transformation for profitability [2][21] - The report indicates that the environmental protection sector underperformed the broader market, with a 2.0% decline as of March 28, 2025 [8][10] - The report discusses the recent regulatory developments, including the expansion of the national carbon emissions trading market and new renewable energy regulations in Beijing [2][36] Market Performance - As of March 28, 2025, the environmental protection sector declined by 2.0%, while the Shanghai Composite Index fell by 0.4% [8][10] - Specific sub-sectors showed varied performance, with the waste incineration sector slightly increasing by 0.03% [10][12] Industry Dynamics - The report notes the release of a work plan by the Ministry of Ecology and Environment to expand the carbon emissions trading market, which is expected to cover over 60% of national carbon emissions [2][36] - The report also mentions the introduction of new regulations for renewable energy development in Beijing, applicable to various renewable sources [2][36] Investment Recommendations - The report suggests that the "14th Five-Year Plan" will maintain high demand for energy conservation and environmental protection, with a focus on resource recycling [2][42] - Key companies recommended for investment include: Huanlan Environment, Xingrong Environment, and Hongcheng Environment, with additional companies to watch such as Wangneng Environment and Junxin Co. [2][42] Heat Supply Transformation - The report emphasizes that waste incineration projects can significantly enhance profitability through heat supply, estimating an additional income of 110 to 170 RMB per ton of waste when steam prices range from 170 to 200 RMB per ton [21][22] - Companies like Zhongke Environmental and Huanlan Environment are leading in heat supply volume, indicating potential for growth in this area [24][25]