企业持续发力再生循环领域，“十五五”循环经济有望释放潜力

Investment Rating - The report maintains a "Positive" investment rating for the environmental sector, consistent with the previous rating [2]. Core Insights - The report highlights the robust development trend in China's circular economy, driven by significant policy support and market demand. The goal is to achieve a substantial increase in resource utilization and waste recycling by 2030 [19][20]. - The report emphasizes the importance of large-scale equipment upgrades and the promotion of circular economy practices, aiming for a total annual utilization of 4.5 billion tons of solid waste by 2030 [20][39]. - The report identifies key growth areas within the circular economy, including recycled plastics, metals, and lithium battery recycling, with significant market potential projected for the coming years [32][34][36]. Summary by Sections Market Performance - As of October 24, the environmental sector saw a 1.4% increase, underperforming compared to the broader market, which rose by 2.9% [3][10]. - The water management and waste incineration sectors showed positive growth, with increases of 1.65% and 1.15%, respectively [13]. Industry Dynamics - The report discusses the outcomes of the 20th Central Committee's Fourth Plenary Session, which outlines future directions for environmental enterprises, focusing on urban renewal, smart technology, and significant reductions in pollutant emissions [39]. - The establishment of new companies and partnerships, such as Sinopec's circular technology company and collaborations in renewable energy, indicates a proactive approach to enhancing the circular economy [20][44]. Investment Recommendations - The report suggests maintaining a focus on energy conservation and resource recycling, which are expected to sustain high levels of economic activity. It recommends specific companies for investment, including Huanlan Environment, Xingrong Environment, and Hongcheng Environment, while also suggesting attention to other firms like Wangneng Environment and Yingke Recycling [4][55].