环保2024年报及2025Q1总结：业绩承压，长帆正待顺风行

Investment Rating - The report maintains a "Buy" rating for key stocks in the environmental protection sector, including Huicheng Environmental, Gaoneng Environment, and Hongcheng Environment [4][6]. Core Insights - The environmental protection industry faced pressure in 2024, with overall revenue of 348.96 billion yuan, a year-on-year decline of 3.3%. Net profit attributable to shareholders was 13.8 billion yuan, down 37.7% year-on-year, attributed to difficulties in accounts receivable collection and increased impairment losses [1][14]. - In Q1 2025, the industry showed signs of recovery with revenue of 78.83 billion yuan, a decrease of 1.8% year-on-year, while net profit increased by 4.1% to 7.25 billion yuan, driven by lower production costs and increased investment income [1][17]. Summary by Sections Overview - The report analyzes 97 listed companies in the environmental protection sector, categorizing them into six sub-industries: water services, water treatment, solid waste treatment, air pollution control, monitoring, and energy conservation [12]. Sub-Industry Analysis - Solid Waste Treatment: Revenue reached 162.26 billion yuan in 2024, up 6.2% year-on-year, with net profit of 7.28 billion yuan, down 12.3%. The sector benefits from stable growth driven by hazardous waste resource recovery and resource recycling [41][45]. - Water Services: Revenue was 76.72 billion yuan, a slight decline of 0.4%, while net profit increased by 24.7% to 12.11 billion yuan, supported by urban population growth and improved operational efficiency [49][54]. - Monitoring: The sector's revenue was 10.28 billion yuan, down 1.7%, with a net loss of 450 million yuan, reflecting increased competition and external challenges [60]. Financial Performance - The overall net profit margin for the environmental protection sector decreased to 4.6%, down 2.1 percentage points year-on-year, influenced by increased asset impairment losses and rising expense ratios [23][25]. - Operating cash flow for the industry grew significantly to 48.3 billion yuan, a 10.9% increase year-on-year, primarily due to reduced procurement and improved collection [28]. Key Recommendations - The report recommends focusing on companies benefiting from carbon neutrality initiatives, particularly in the resource recycling sector, such as Gaoneng Environment and Huicheng Environmental, which are expected to see significant growth [3].