环保行业跟踪周报：金科环境就新水岛达成RWA发行合作意向，瀚蓝环境内生、并购成长超预期-20250721

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The report highlights the collaboration between Jinko Environment and Kunheng International to issue RWA, enhancing the market value of quality assets [9] - Huanlan Environment's internal growth and acquisition performance exceeded expectations, with a significant increase in net profit [12] - The report emphasizes the decline in capital expenditure in waste incineration, leading to improved free cash flow and increased dividends, while also noting the efficiency improvements in heating and IDC that boost ROE and valuation [16] - The water service sector is positioned as the next growth area similar to waste incineration, with a focus on marketization and cash flow improvements [19] Summary by Sections Jinko Environment - Jinko Environment has reached a cooperation intention for RWA issuance with Kunheng International, aiming to enhance the market value of its quality assets through digital asset management [9][10] Huanlan Environment - Huanlan Environment reported a net profit of 9.67 billion yuan for H1 2025, a year-on-year increase of 9.00%, with a significant internal growth rate of 18% in Q2 2025 [12][14] - The integration of Yuefeng has contributed positively to the company's performance, with a monthly profit contribution exceeding previous levels [14][15] Waste Incineration - The report notes a decrease in capital expenditure in the waste incineration sector, leading to a substantial improvement in free cash flow and increased dividends for companies like Junxin and Green Power [16][17] - The sector is transitioning into a mature phase, with a focus on efficiency improvements and cost reductions to enhance ROE [16][18] Water Services - The water service sector is highlighted as a stable and low-valuation area with high dividend potential, with companies like Xingrong and Hongcheng Environment expected to see significant cash flow improvements [19][21] - The report anticipates a shift in water pricing policies that will support sustainable growth and valuation increases similar to trends observed in the US water industry [20][21] Environmental Equipment - The report indicates a 90.56% year-on-year increase in sales of new energy sanitation vehicles, with a penetration rate of 15.86% [28] - The overall sales of sanitation vehicles increased by 3.59%, indicating a positive trend in the environmental equipment sector [28][34] Biodiesel and Lithium Battery Recycling - Biodiesel prices remained stable, but profit margins have decreased, with the average profit per ton dropping to 130 yuan [42] - The lithium battery recycling sector is experiencing an upward trend in metal prices, leading to slight improvements in profitability [44]