Core Viewpoint - The National Development and Reform Commission (NDRC) has revised and issued the "Measures for Energy Conservation Review and Carbon Emission Evaluation of Fixed Asset Investment Projects," which will take effect on September 1, 2025, replacing the previous energy conservation review measures [1] Group 1 - The revised measures incorporate carbon emission evaluation and coal consumption management requirements into the energy conservation review system, allowing for a comprehensive assessment of project energy use and carbon emissions [2] - A dynamic adjustment mechanism for energy conservation review authority has been established, with the NDRC responsible for reviewing major projects in key areas and detailing specific review processes [2] - The measures enhance the management of energy conservation reviews during and after project implementation, requiring oversight of review implementation and clarifying circumstances for significant project changes and non-compliance with review opinions [2]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company is a leading energy-saving service provider, primarily focused on industrial and building energy efficiency, with a stable growth trajectory in its core business [1][14]. - The energy-saving industry is expected to experience significant growth, with the market size projected to reach approximately 1 trillion yuan by 2025 and 1.5 trillion yuan by 2035 [2][29]. - The company has a strong competitive advantage due to its extensive project experience and is actively pursuing business upgrades to enhance its service offerings [3][50]. Summary by Sections 1. Company Overview - The company specializes in energy-saving services, providing comprehensive solutions for energy diagnosis, design, renovation, and operation maintenance [14]. - It is backed by the Southern Power Grid, which holds about 40.4% of its shares [14]. 2. Industry Landscape - The energy-saving service industry is characterized by high capital intensity, strong policy guidance, and significant technological reliance [2]. - The industry is currently in a growth phase, with a projected market size of around 1 trillion yuan by 2025, driven by national policies and increasing energy efficiency awareness [29][31]. 3. Business Strategy and Competitive Advantage - The company has accumulated substantial project experience and maintains a strong market presence, particularly in the Southern region of China [3][50]. - It plans to invest over 3 billion yuan in external projects in 2025, with a consistent annual growth rate of over 20% in fixed assets since 2023 [3][50]. 4. Financial Performance and Forecast - The company achieved revenue of 3.2 billion yuan in 2024, a year-on-year increase of 5.6%, but reported a net loss due to underperforming biomass assets [1][20]. - Excluding the impact of low-efficiency assets, the net profit for 2024 would have been approximately 540 million yuan [20]. - Forecasted net profits for 2025, 2026, and 2027 are 480 million yuan, 590 million yuan, and 720 million yuan, respectively, with corresponding EPS of 0.13, 0.16, and 0.19 yuan [3][10].

Core Viewpoint - The company focuses on energy-saving services, primarily in industrial and building sectors, and is experiencing steady growth despite facing challenges from low-efficiency biomass assets [1][2] Group 1: Company Overview - The company is primarily engaged in energy-saving services, with a focus on industrial and building energy efficiency projects, adopting an investment-holding model for energy-saving renovation projects [1] - Southern Power Grid is the controlling shareholder, and the company is centered in South China while expanding its reach nationwide [1] - In 2024, the company achieved revenue of 3.2 billion yuan, a year-on-year increase of 5.6%, but reported a net loss due to the impact of low-efficiency biomass assets [1] Group 2: Financial Performance - Excluding the impact of biomass assets, the company's net profit for 2024 would have been 540 million yuan [1] - The company plans to gradually exit biomass-related projects, which is expected to lead to a significant recovery in performance [1] Group 3: Industry Outlook - The energy-saving industry has a clear development outlook, with leading enterprises holding first-mover advantages in industrial, building, and public facility energy-saving services [1][2] - The sector is characterized by capital intensity, strong policy guidance, high technological dependence, and stringent safety requirements [1] - According to estimates from the State Grid, the market size for energy-saving services is expected to reach around 1 trillion yuan by 2025 and approximately 1.5 trillion yuan by 2035 [1] Group 4: Competitive Advantage - The current supply side of energy-saving services is characterized by a "many but weak, small and scattered" structure, with leading companies likely to achieve sustained business growth [2] - The company has accumulated extensive project experience and a solid customer base over years in the energy-saving service industry, showcasing its first-mover advantages in brand influence, technology, talent, capital, and credit [2] - The company is transitioning from a primary focus on "investment holding" to a balanced approach of "investment holding + high-end services" and expanding from "comprehensive energy" to "comprehensive energy + energy-saving carbon reduction" [2] Group 5: Future Investment Plans - The company plans to invest over 3 billion yuan externally by 2025, maintaining a fixed asset growth rate of over 20% annually since 2023, while also experiencing a decline in financing costs [2] - With existing competitive advantages and the exploration of new business areas and downstream customers, the company's energy-saving business is expected to grow in line with industry trends [2] Group 6: Investment Recommendation - The company is expected to benefit from its first-mover advantage and business transformation in the energy-saving service industry [3] - Projected net profits for 2025-2027 are 480 million, 590 million, and 720 million yuan, with corresponding EPS of 0.13, 0.16, and 0.19 yuan, leading to PE ratios of 38, 31, and 25 times respectively [3]

Group 1 - The core focus of Beijing's clean production initiatives is to support the construction of an international green economy benchmark city through top-level design, policy services, regional cooperation, and demonstration effects [1][3] - In the first half of the year, 44 enterprises completed clean production audits, resulting in annual energy savings of 7,720 tons of standard coal and a reduction of 16,600 tons of carbon dioxide emissions [1][3] - The Beijing Development and Reform Commission and the Beijing Energy Conservation and Environmental Protection Center organized a training session for over 300 participants to promote clean production audits and energy conservation awareness [1][2] Group 2 - The Beijing-Tianjin-Hebei clean production partnership plan is being advanced, focusing on key units with headquarters in Beijing and production facilities in Tianjin and Hebei [2] - The implementation of clean production projects at Beijing Beilu Pharmaceutical Co., Ltd. and its facilities in Hebei is expected to enhance energy efficiency and wastewater treatment [2] - A clean production demonstration project at Zhengda Egg Chicken Breeding (Beijing) Co., Ltd. is projected to save 51 tons of standard coal and reduce carbon dioxide emissions by 237 tons annually [2][3] Group 3 - A total investment of 350 million yuan was made for various clean production schemes, achieving significant reductions in water usage and hazardous waste generation [3] - The Beijing Development and Reform Commission plans to continue promoting clean production in the second half of the year, focusing on equipment updates and integrating clean production with ESG mechanisms [3]

国家发改委修订相关办法，把好节能降碳"源头关"—— 助推经济社会发展绿色转型 固定资产投资项目节能审查和碳排放评价是从源头提高新上项目能源利用效率、减少碳排放的一项重要 制度，是中国节能降碳制度体系的重要组成部分。近日，国家发展改革委修订印发《固定资产投资项目 节能审查和碳排放评价办法》（以下简称《办法》），自2025年9月1日起施行。据了解，此举旨在贯彻 落实党中央、国务院关于节能降碳的部署要求，进一步健全有关制度规定、着力提升管理效能，推动经 济社会高质量发展。 促进用能主体节能增效 节能审查制度有什么作用？据国家发展改革委有关负责人介绍，节能审查制度建立实施以来，在提高能 源利用效率、促进产业提质升级等方面发挥了重要作用。一是从源头减少能源浪费和二氧化碳排放，二 是推动产业转型升级，三是促进用能主体节能增效。 "节能审查依据节能政策制度和法规标准等要求，指导项目建设单位在开工建设前优化项目能源管理机 制，完善工艺技术路线设计和节能高效设备选型等方案，可有效减少不合理能源消费、提高能源利用效 率。"该负责人说，"十四五"以来，全国每年通过节能审查有效减少项目不合理设计能耗约1400万吨标 准煤，相当于减少 ...

近日，山东省荣成市热电厂内机械轰鸣，高温次高压供暖锅炉节能改造工程施工正酣。改造完成后，供 暖锅炉的热效率将得到有效提高，煤炭消耗量将进一步降低，既能保障冬季供暖的稳定性与充足性，又 能为当地节能减排、推动绿色低碳发展。 李信君摄（人民视觉） 固定资产投资项目节能审查和碳排放评价是从源头提高新上项目能源利用效率、减少碳排放的一项 重要制度，是中国节能降碳制度体系的重要组成部分。近日，国家发展改革委修订印发《固定资产投资 项目节能审查和碳排放评价办法》（以下简称《办法》），自2025年9月1日起施行。据了解，此举旨在 贯彻落实党中央、国务院关于节能降碳的部署要求，进一步健全有关制度规定、着力提升管理效能，推 动经济社会高质量发展。 促进用能主体节能增效 节能审查制度有什么作用？据国家发展改革委有关负责人介绍，节能审查制度建立实施以来，在提 高能源利用效率、促进产业提质升级等方面发挥了重要作用。一是从源头减少能源浪费和二氧化碳排 放，二是推动产业转型升级，三是促进用能主体节能增效。 "节能审查依据节能政策制度和法规标准等要求，指导项目建设单位在开工建设前优化项目能源管 理机制，完善工艺技术路线设计和节能高效设备选 ...

Core Insights - The company is transforming coal into industrial raw materials such as olefins and polyolefins, with a focus on innovative technologies for resource utilization [1] - The company has developed advanced water injection techniques to enhance oil recovery rates, achieving an increase from 13.7% to 17.3% [1][2] - The company is also capturing and injecting CO2 produced during coal chemical processes to reduce emissions and enhance oil production, with an annual injection capacity of 360,000 tons [2] - Over the past decade, the company has invested over 60 billion yuan in technology, leading to the establishment of numerous innovative platforms and the development of over ten globally first-of-their-kind facilities [2] - The company aims to exceed 20 million tons of oil and gas equivalent and achieve revenues of 390 billion yuan in 2024, with a focus on modern industrial system construction and new productivity development [3] Company Developments - The company has established four research institutions and over 33 national and provincial innovation platforms, employing more than 2,000 researchers [2] - A series of reforms have been implemented to enhance technological innovation, including the hiring of experts and incentivizing long-term R&D through equity and profit-sharing [2] - The company is transitioning from a single oil extraction entity to a comprehensive energy and chemical enterprise that efficiently develops and utilizes multiple resources [2] Financial Performance - In 2024, the company expects to achieve an oil and gas equivalent production of 20.146 million tons and a revenue of 390 billion yuan, with a profit of 14.802 billion yuan [3] - The company anticipates breakthroughs in modern industrial systems and productivity development over the next 5 to 10 years due to increased investment in technology [3]

Core Viewpoint - The company is transforming from a traditional oil extraction enterprise into a large-scale energy and chemical company that efficiently develops and utilizes multiple resources, including oil, gas, and coal, through innovative technologies and sustainable practices [1][2][3]. Group 1: Technological Innovations - The company has developed a controlled-speed water injection technology that has increased oil recovery rates from 13.7% to 17.3%, enhancing production stability [1][2]. - The company captures CO2 produced during coal chemical processes and injects it into oil layers, achieving an annual injection scale of 360,000 tons, which reduces carbon emissions and aids in oil recovery [2]. - Over the past decade, the company has invested over 60 billion yuan in technology, resulting in the establishment of over 10 globally first-of-their-kind facilities for comprehensive resource utilization [2]. Group 2: Financial Performance - In 2024, the company’s oil and gas equivalent production surpassed 20 million tons, reaching 20.146 million tons, with revenue of 390 billion yuan and a total profit of 14.802 billion yuan [3]. - The company anticipates breakthroughs in modern industrial system construction and new productive forces development in the next 5-10 years due to increased investment in technological research and development [3]. Group 3: Organizational Structure and Incentives - The company has established four research institutions and over 30 national and provincial innovation platforms, employing more than 2,000 researchers to drive innovation [2]. - Various mechanisms have been implemented to enhance innovation, including hiring experts, providing incentives through equity and dividends, and rewarding technology transfer based on contract amounts [2].

Core Viewpoint - The company is committed to energy conservation and carbon reduction, positioning itself as a leader in green energy production and innovation, contributing significantly to national clean energy goals and carbon reduction efforts [1][2]. Group 1: Technological Innovation - The company has invested 150 million yuan in boiler ultra-low emission upgrades, implementing advanced technologies to ensure long-term compliance with stringent emission standards [1]. - The project is expected to reduce greenhouse gas emissions by 1,584 tons annually, supporting national carbon reduction targets [1]. Group 2: Energy Efficiency Improvements - Major technological upgrades have led to significant reductions in resource consumption: steam, electricity, and circulating water consumption decreased by 13%, 6%, and 36% respectively [2]. - The implementation of a zero-discharge cooling water project is projected to reduce wastewater discharge by 800,000 cubic meters annually and chemical oxygen demand by 12 tons [2]. Group 3: Smart Technology Integration - The company is enhancing operational efficiency through variable frequency drive modifications, achieving energy savings of 15% to 20% [2]. - The replacement of a 200 kW high-pressure motor with a 160 kW low-pressure motor is expected to generate annual electricity savings exceeding 2 million yuan [2]. - The deployment of a QR code system for equipment management is anticipated to improve management efficiency by 50% [2].

Economic Growth and Development - China's economy demonstrated resilience with a GDP growth rate of 5.3% in the first half of the year, continuing a trend of recovery and high-quality development [3] - The "14th Five-Year Plan" is entering a decisive phase, with a focus on achieving economic and social development goals [3] - The emphasis on high-quality development is reiterated as a fundamental principle for building a modernized strong nation [8] Industrial Transformation - The visit to Yangquan Valve Co., Ltd. highlights the company's focus on smart manufacturing and innovation, having applied for 72 patents and obtained 63 [10] - The company contributes to energy security and green transformation by producing efficient and environmentally friendly hydrogen valve components [10] - The transformation of Shanxi Province from a coal-dominated economy to a diversified industrial structure is a key focus, with directives to enhance energy transition and industrial upgrading [11] Urbanization and City Development - The Central Urban Work Conference emphasizes the need to shift from extensive urban expansion to a more refined and efficient model of urban development [15] - The goal is to achieve coordinated economic, environmental, and social development, promoting high-quality urban growth [15] Disaster Management and Safety - The government is actively preparing for flood prevention and disaster relief, with significant financial allocations for emergency response [17] - A total of 3.5 billion yuan has been allocated for disaster relief efforts across nine provinces [17] International Relations - The ongoing dialogue between China and the EU is highlighted, with trade between the two regions exceeding 1 billion yuan per minute in the first quarter of this year [21] - The emphasis on mutual respect, open cooperation, and multilateralism is crucial for the future development of China-EU relations [22]