Group 1 - A new company named Baoding Jiaxiang Recycling Co., Ltd. has been established with a registered capital of 1 million RMB [1] - The legal representative of the company is Zhang Qian [1] - The company's business scope includes general projects such as recycling of renewable resources (excluding production waste metals), recycling of production waste metals, sales of renewable resources, processing of renewable resources, and sales of metal products [1] Group 2 - The company is involved in the sales of non-ferrous metal alloys, metal ores, and high-performance non-ferrous metals and alloy materials [1] - The company is permitted to conduct business activities independently according to its business license, excluding projects that require approval [1]

Group 1 - The core viewpoint emphasizes Tianfulong's commitment to transforming the polyester fiber industry by enhancing the green circularity, differentiation, high performance, and functionality of fiber materials in the context of global green low-carbon initiatives and the rapid development of the recycling industry [2] - Tianfulong's long-term strategic plan is defined as "one core, three highs, and three transformations," focusing on differentiated polyester staple fiber as the core business while aiming for high-quality development, enhanced corporate value, and efficient growth in operations [2] - The company plans to maintain a prudent operational philosophy, manage funding needs appropriately, and adopt financing methods that match its development stages to control debt levels and ensure financial health, thereby creating long-term stable returns for shareholders [2] Group 2 - As the lead underwriter and sponsor for Tianfulong's IPO, the underwriting institution has witnessed the company's impressive achievements and recognizes the management's dedication, professional capabilities, innovative spirit, and strategic vision [3] - The underwriting institution expresses confidence that Tianfulong's listing will bring new development opportunities for the company, investment opportunities for investors, and vitality to the capital market [3] - The institution commits to fulfilling its sponsorship responsibilities and continuous supervision duties, supporting Tianfulong's growth and ensuring satisfactory returns for investors [4]

Core Viewpoint - The launch of casting aluminum alloy futures and options on the Shanghai Futures Exchange marks the first futures product for recycled metals in China, filling a gap in the domestic recycled metal derivatives market [1][2]. Group 1: Market Development - The trading of casting aluminum alloy futures was active on its first day, driven by the robust development of the spot market and increasing demand for price risk management [1]. - In 2024, China's production of casting aluminum alloy is expected to exceed 10 million tons, reflecting the industry's growth and the rising need for risk management tools [1][4]. Group 2: Pricing and Influence - The introduction of aluminum alloy futures is anticipated to enhance China's pricing power in the global market, as it will work in conjunction with existing aluminum and alumina futures [2][3]. - The listing is seen as a significant step towards improving the international influence of China's aluminum industry and establishing a comprehensive risk management system [2][4]. Group 3: Risk Management Tools - The new futures and options will provide more precise risk management tools for enterprises, allowing them to implement composite hedging strategies that include both electrolytic and recycled aluminum [3][6]. - Companies can now better manage price fluctuations and operational risks, with the potential to adjust production based on market conditions [3][6]. Group 4: Circular Economy and Resource Utilization - The launch of casting aluminum alloy futures is expected to promote the development of the circular economy, as it encourages resource recycling and utilization [4][5]. - The recycled non-ferrous metal industry is crucial for ensuring resource security and facilitating a green, low-carbon transition, with recycled aluminum production already surpassing 10 million tons [4][5]. Group 5: Demand and Supply Dynamics - The growth of the new energy industry is creating a "metal hunger," with significant demand for metals like copper and aluminum, while the supply from primary mining is lagging [5]. - The recycling rate of waste metals remains low, and the industry faces challenges such as low profitability and inadequate systems, which the new futures market could help address [5][6].

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The issuance of the "Ecological Environment Protection Supervision Work Regulations" by the Central Committee of the Communist Party of China and the State Council aims to comprehensively promote the construction of a beautiful China [8] - The solid waste sector is expected to see improved cash flow and increased dividends due to reduced capital expenditures and enhanced operational efficiency [9][12] - The water service sector is experiencing stable growth and high dividends, with water price reforms expected to reshape growth and valuation [12][14] Summary by Sections Solid Waste Management - Capital expenditures are decreasing, leading to significant improvements in free cash flow and increased dividends [9] - Key companies such as Junxin Co. are projected to distribute cash dividends of 507 million yuan in 2024, a 37% increase year-on-year, with a dividend yield of 4.4% [9] - The industry is entering a mature phase, with operational efficiency being enhanced through cost reduction and collaborations in heating and IDC [9][10] Water Services - The water service sector's revenue is projected at 65.5 billion yuan in 2024, with a net profit of 11.2 billion yuan, reflecting a 27% increase [12] - Water price reforms in cities like Guangzhou and Shenzhen are expected to drive a new round of price adjustments, enhancing profitability and stability [13][14] - Companies such as Yuehai Investment are highlighted for their ability to frequently adjust prices, with an expected dividend yield of 6.9% in 2025 [14] Environmental Equipment - The penetration rate of new energy sanitation vehicles increased by 6.14 percentage points to 14.55% in the first four months of 2025, with sales of new energy sanitation vehicles rising by 73% [29] - The total sales of sanitation vehicles reached 24,542 units, with a slight year-on-year decrease of 0.2% [29] Biofuels - The prices of biodiesel and waste cooking oil have decreased, leading to negative profit margins [37][38] - The average price of biodiesel was 7,700 yuan per ton, down 5.5% week-on-week, while waste cooking oil averaged 6,018 yuan per ton, down 1.2% [37] Lithium Battery Recycling - The profitability of lithium battery recycling has slightly declined due to fluctuating metal prices and a decrease in discount coefficients [41][42] - The average unit gross profit for waste material is estimated at -0.71 million yuan per ton [41]

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company has shown significant improvement in Q1 profits, turning losses into gains, with a revenue of 5.576 billion yuan in 2024, a year-on-year decrease of 19.0%. However, excluding goodwill impairment of 334 million yuan, the operational performance has greatly improved compared to 2023 [1]. - The company is positioned as a leader in the recycling resource sector, with strong technical and business integration advantages. The recovery of rare earth prices and the subsequent capacity release are expected to drive rapid growth in performance [3]. - The rare earth industry has a promising outlook, with the company expected to produce over 12,000 tons of recycled rare earth oxides in 2024, leading the industry in capacity [2]. Financial Performance Summary - In 2024, the company achieved a gross margin of 6.6%, an increase of 2.8 percentage points year-on-year, while the net margin was -6.3%, down 3.5 percentage points [2]. - The company reported a net cash flow from operating activities of 90 million yuan in 2024, a decrease of 83.9% year-on-year, primarily due to increased procurement expenses related to the expansion of rare earth recovery and magnetic material businesses [2]. - The forecast for net profit for 2025, 2026, and 2027 is 129 million yuan, 231 million yuan, and 324 million yuan respectively, with corresponding P/E ratios of 33.0, 18.4, and 13.1 [3][4].

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company has shown significant improvement in Q1 profits, turning losses into gains, with a revenue of 5.576 billion yuan in 2024, a year-on-year decrease of 19.0%. However, excluding goodwill impairment of 334 million yuan, the operational performance has improved significantly compared to 2023 [1][2]. - The company is positioned as a leader in the recycling resource sector, with strong technical and business integration advantages. The recovery and utilization of rare earth resources present a vast market opportunity, especially as rare earth prices stabilize and production capacity is expected to be released [3][4]. Financial Performance Summary - In 2024, the company achieved a gross margin of 6.6%, an increase of 2.8 percentage points year-on-year, while the net margin was -6.3%, down 3.5 percentage points [2]. - The company reported a net cash flow from operating activities of 90 million yuan in 2024, a decrease of 83.9% year-on-year, primarily due to increased procurement expenses related to the expansion of rare earth recovery and magnetic materials businesses [2]. - For Q1 2025, the company achieved a gross margin of 9.2%, an increase of 8.7 percentage points year-on-year, and a net margin of 2.3%, up 3.7 percentage points year-on-year [2]. Earnings Forecast - The company is expected to achieve a net profit of 129 million yuan in 2025, with projected profits of 231 million yuan in 2026 and 324 million yuan in 2027, reflecting a significant recovery from previous losses [3][4]. - The estimated P/E ratios for 2025, 2026, and 2027 are 33.0, 18.4, and 13.1, respectively, indicating a potential for growth as the market stabilizes [3][4].

证券研究报告·行业跟踪周报·环保 环保行业跟踪周报 绿色动力 25Q1 业绩超预期，固废板块提分 红+提 ROE 核心逻辑验证 增持（维持） [Table_Tag] [投资要点 Table_Summary] 风险提示：政策推广不及预期，财政支出低于预期，行业竞争加剧。 2025 年 04 月 28 日 证券分析师 袁理 执业证书：S0600511080001 021-60199782 yuanl@dwzq.com.cn 证券分析师 陈孜文 执业证书：S0600523070006 chenzw@dwzq.com.cn 行业走势 -17% -13% -9% -5% -1% 3% 7% 11% 15% 19% 2024/4/29 2024/8/27 2024/12/25 2025/4/24 环保 沪深300 相关研究 《政策明确碳市场扩容节奏，持续关 注稳健运营&自主可控&再生资源主 线 》 2025-04-22 《国网发布 2025 年第 1-3 批国补清 单，持续关注稳健运营&自主可控&再 生资源主线 》 2025-04-15 东吴证券研究所 1 / 33 请务必阅读正文之后的免责声明部分 重点推荐：瀚蓝环境， ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a total revenue of 14.5 billion yuan in 2024, representing a year-on-year increase of 37.04%. However, the net profit attributable to shareholders decreased by 4.52% to 481.82 million yuan [7][8] - The growth in revenue is primarily driven by the resource utilization segment, which saw a significant increase in revenue from hazardous waste recycling [7] - The company is focusing on strategic adjustments in its environmental engineering business, shifting its client base from government to large enterprises and expanding its service model [7] Financial Performance Summary - Total revenue for 2024 is projected at 145 billion yuan, with a year-on-year growth of 37.04% [7] - Gross profit for 2024 is expected to be 2.092 billion yuan, reflecting an 8.5% increase year-on-year, with a gross margin of 14.4%, down 3.8 percentage points [7] - The resource utilization segment generated 11.137 billion yuan in revenue, a 72.2% increase year-on-year, with a gross profit of 1.018 billion yuan, up 89.8% [7] - The environmental operation services segment reported revenue of 1.729 billion yuan, a 6.3% increase, with a gross margin of 49.9% [7] - The environmental engineering segment experienced a decline in revenue to 1.633 billion yuan, down 34.3%, with a significant drop in gross profit [7] Cash Flow and Valuation - The company reported a net cash flow from operating activities of 760 million yuan in 2024, a significant improvement from -950 million yuan in the previous year [7] - The report projects a decrease in net profit forecasts for 2025 and 2026, adjusting from 930 million yuan and 1.1 billion yuan to 630 million yuan and 750 million yuan respectively [7] - The projected P/E ratios for 2025 to 2027 are 15, 13, and 11 times respectively [7]