Group 1 - The core viewpoint emphasizes the importance of ecological protection in the Yangtze River upstream region, advocating for a strategy of "coordinated protection without large-scale development" to safeguard water quality [1] - The city of Yibin has made significant progress in water management over the past three years, achieving a 100% excellent water quality rate at 22 national and provincial assessment sections and successfully restoring natural spawning grounds for the Yangtze sturgeon [2][6] - Yibin's urban sewage treatment capacity has improved, with daily sewage generation at approximately 300,000 cubic meters and treatment capacity exceeding 400,000 cubic meters, indicating a focus on enhancing both the quantity and quality of sewage treatment [3] Group 2 - The city has implemented a "factory-network integration" model for sewage treatment, consolidating operations under a single entity to improve efficiency and streamline processes [4] - Collaborative efforts among various departments have been established to address pollution sources effectively, with a focus on small river basin management, which is crucial for maintaining water quality in densely populated areas [5][6] - Over the past three years, Yibin has invested 14.25 billion yuan in small river basin governance, constructing or renovating 15 sewage treatment plants and 696 kilometers of sewage pipelines, resulting in a reduction of approximately 29 million tons of sewage discharge annually [6]

Investment Rating - The report maintains an "Outperform" rating for the company, projecting a target price of RMB 8.55 based on a 19x PE for 2025 [4][9]. Core Insights - The company's 2024 revenue was RMB 9.27 billion, a decrease of 2.5% year-over-year (YOY), with a net profit attributable to shareholders of RMB 250 million, down 42.3% YOY due to increased credit loss provisions [4][9]. - For Q1 2025, the company reported revenue of RMB 2.21 billion, a decline of 3.1% YOY, but a net profit of RMB 180 million, reflecting a 22.8% increase YOY [4][9]. - Anticipated cost improvements in 2025 include a slight reduction in electricity prices and a potential decrease in coal prices, which could enhance profitability [4][9]. Financial Summary - The company’s projected financials for 2025-2027 include: - Revenue: RMB 9.57 billion in 2025, RMB 10.05 billion in 2026, and RMB 10.55 billion in 2027, with growth rates of 3.2%, 5.0%, and 5.0% respectively [3][5]. - Net profit attributable to shareholders: RMB 618 million in 2025, RMB 706 million in 2026, and RMB 831 million in 2027, with growth rates of 148.7%, 14.3%, and 17.6% respectively [3][5]. - Earnings per share (EPS): projected at RMB 0.45 for 2025, RMB 0.51 for 2026, and RMB 0.60 for 2027 [4][9]. Operational Developments - By the end of 2024, the company had an operational capacity of 4.06 million kW, with plans to add 1.3 million kW in 2025 [4][9]. - The company completed a power supply of 21.23 billion kWh in 2024, an increase of 1.42 billion kWh YOY, attributed to enhanced cooperation with the Seventh Division grid [4][9].