Core Viewpoint - The article emphasizes the development of non-grain biomass resources for energy and bio-based materials, highlighting the upcoming NFUCon 2025 forum aimed at discussing commercialization paths and technological advancements in this sector [2][3]. Group 1: Forum Overview - The NFUCon 2025 forum will take place from November 27 to 29, 2025, in Hangzhou, Zhejiang, organized by DT New Materials and the National Key Laboratory of Bio-based Transportation Fuels [2][3]. - The forum will gather industry representatives and experts to explore key areas such as green pretreatment of biomass, non-grain sugars, bio-based chemicals and materials, and biomass energy [2][3]. Group 2: Supporting Institutions - The forum is supported by various institutions including Zhejiang University and its departments focused on polymer science, bio-systems engineering, and food science [4]. - The organizing committee includes prominent figures from Zhejiang University, such as Li Zhenglong and Zhang Xinghong, who are experts in bio-based fuels and chemicals [3]. Group 3: Forum Agenda - The agenda includes specialized sessions on topics like biomass green pretreatment, non-grain sugars, bio-based chemicals, and materials, as well as biomass energy sources like methanol and sustainable aviation fuel (SAF) [5][6][9]. - A special feature of the forum will be the "Technology Achievement Display and Matching" event, which aims to promote innovation and commercialization in the biomass sector [9][10]. Group 4: Industry Participation - The forum will attract a diverse range of participants, including biomass energy and chemical developers, academic researchers, and solution providers for biomass processing technologies [14]. - Key areas of focus will include the development of cellulose-based materials, non-grain industrial sugars, and high-value chemical transformations from biomass [10][14].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][7]. Core Insights - The company is a leader in waste incineration, with a significant cash flow turning point expected, leading to potential increases in dividends [6][7]. - The company has a total waste-to-energy capacity of 150,400 tons/day, ranking first in the industry, and is supported by its major shareholder, China Everbright Group, which holds 43.07% of the company [6][21]. - The report anticipates a recovery in profitability due to improved operational income, reduced impairment, and lower financial costs [6][54]. Summary by Sections Company Overview - The company has been focused on environmental protection for over 20 years, with a waste incineration capacity of 150,400 tons/day as of the end of 2024, leading the industry [17][28]. - The company operates in three main segments: Environmental Energy, Green Environmental Protection, and Water Services, with the Environmental Energy segment contributing 87% to the net profit in 2024 [6][24]. Financial Summary and Profit Forecast - The company’s revenue for 2024 is projected at HKD 30,258 million, with a year-on-year decline of 7%, and a net profit of HKD 3,377 million, down 24% year-on-year [5][54]. - The report forecasts net profits for 2025-2027 to be HKD 3,589 million, HKD 3,810 million, and HKD 4,055 million respectively, with a price-to-earnings ratio of 8x leading to a target market value of HKD 28,710 million, indicating a 23% upside potential [5][7]. Operational Improvements - The company has seen a significant reduction in capital expenditures (Capex), from HKD 22.8 billion in 2021 to HKD 5.1 billion in 2024, contributing to a positive free cash flow of HKD 4.416 billion for the first time [6][7]. - The operating cash flow is expected to improve due to accelerated national subsidies, with an adjusted operating cash flow of HKD 9.52 billion anticipated for 2024 [6][7]. Dividend Potential - The company has a current dividend yield of 6.04%, with a historical dividend payout ratio of approximately 31%, expected to increase to 42% in 2024 [6][7]. - The report suggests that with improving profits and cash flow, there is significant potential for future dividend increases [6][7]. Market Perception - The market has not fully recognized the company's potential for profit recovery and dividend increases, primarily due to the complexity of its financial statements [9][10].