GOLDEN SUN SECURITIES·2025-08-04 03:05Investment Rating - The report maintains a "Buy" rating for key companies in the environmental protection sector, including Huicheng Environmental, GaoNeng Environment, and HongCheng Environment [6]. Core Insights - The report highlights the acceleration of ecological environment protection responsibility system construction and the rapid development of waste-free city initiatives, which directly benefit the environmental protection industry and green technology application sectors [1][20]. - The implementation of the "Waste-Free Island" initiative in Hainan Province aims to establish a comprehensive waste management system by 2030, significantly increasing demand in environmental governance, ecological restoration, and environmental monitoring industries [1][21]. Summary by Sections Investment Views - The issuance of the "Regulations on the Responsibility System for Ecological Environment Protection of Local Party and Government Leaders" is expected to enhance the integration of environmental protection into development planning, benefiting sectors such as ecological restoration and environmental monitoring [9][20]. - The "Waste-Free Island" initiative in Hainan outlines a comprehensive plan for solid waste management, including the construction of 105 new construction waste treatment facilities by 2030, which will boost demand in waste treatment services and high-precision environmental monitoring [21][23]. Market Performance - The environmental protection sector underperformed compared to the broader market, with a decline of 1.29% during the week, while the Shanghai Composite Index fell by 0.94% [3]. - Key stocks in the environmental sector showed varied performance, with Anchek Testing leading with a gain of 12.69%, while Huicheng Environmental faced a decline of 6.81% [3]. Industry News - The report notes significant developments in the waste management sector, including the establishment of a smart organic waste treatment system by ShenGao Environment and the central government's economic deployment for the second half of the year [2][3].