Soochow Securities·2026-03-23 06:52Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1]. Core Insights - The environmental protection industry is experiencing significant growth, with companies like Longjing Environmental reporting a 34% increase in net profit, and Guangda Environment showing a substantial increase in revenue and dividends [1][2]. - The report emphasizes the unique value of waste-to-energy projects, highlighting their cash flow potential and the increasing importance of green energy and resource value [1][2]. Industry Overview - Industry Trends: The report notes a 12% increase in the environmental protection sector compared to the CSI 300 index, indicating a positive market trend [3]. - Key Recommendations: The report recommends companies such as Longjing Environmental, High Energy Environment, and Guangda Environment for investment, while suggesting to pay attention to companies like Dayu Water Saving and Lian Tai Environmental [1][2]. - Financial Performance: Guangda Environment's main business revenue for 2025 is projected at HKD 27.52 billion, a decrease of 9% year-on-year, while net profit is expected to rise by 16% to HKD 3.93 billion [1][2]. Policy Tracking - The report discusses the "High-Quality Development Implementation Plan for Energy-Saving Equipment," which focuses on six core types of energy-saving equipment, aiming to enhance industrial green transformation [9][10]. Sector Performance - Biomass Oil: The report highlights a significant increase in the price of bio-jet fuel, with European prices rising by 24.4% to USD 2,800 per ton, while domestic prices increased by 4.7% to USD 2,250 per ton [19]. - Sanitation Equipment: The report notes a 70.9% increase in sales of new energy sanitation vehicles in 2025, with a penetration rate of 21.11% [34]. - Lithium Battery Recycling: The report indicates a decline in the prices of lithium and carbonate, leading to reduced profitability in the lithium recycling sector [48][49].