Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance relative to the market index [3]. Core Views - The UCO market is characterized by a clear supply-demand logic, with long-term scarcity locked in by fundamentals. The theoretical potential for supply is significant, but actual utilization is limited due to collection and processing constraints [2]. - Demand for UCO is expected to grow significantly due to policy drivers, particularly in the EU, where SAF demand is projected to reach 264 million tons by 2030 and 825 million tons by 2035, translating to UCO demand of approximately 245 million tons and 766 million tons respectively [2]. - The company has reported record high earnings for the first three quarters of 2025, with revenue of 1.386 billion yuan and a net profit of 249 million yuan, reflecting a year-on-year increase of 0.17% and 28.89% respectively [2]. Summary by Sections Market Overview - The price of UCO has seen a slight increase, with the price range for UCO in China reaching 7500-7600 yuan per ton, up by approximately 50 yuan per ton week-on-week [1]. - The average spot price for UCO-based HVO recorded at 2642.55 USD per ton, reflecting a 1.90% increase [1]. Supply and Demand Analysis - The theoretical total amount of waste oil in China is about 11 million tons, but only around 3 million tons are utilized due to various constraints [2]. - The company is actively expanding its UCO production capacity, with projects in major cities like Beijing and Guangzhou, which are expected to enhance its supply capabilities [5]. Financial Projections - Revenue projections for the company are estimated at 1.931 billion yuan in 2025, 2.222 billion yuan in 2026, and 2.562 billion yuan in 2027, with corresponding net profits of 289 million yuan, 357 million yuan, and 437 million yuan [6][7]. - The expected EPS for the years 2025, 2026, and 2027 are 1.20 yuan, 1.48 yuan, and 1.81 yuan respectively, with P/E ratios of 22.43, 18.13, and 14.82 [6][7].