Business Overview - The company integrates three main sectors: environmental water services, solid waste management, and new energy, creating a "strong chain, supplementary chain, and resource-sharing" ecological service system [3] - The water sector has achieved a unified management process, resulting in scale effects and regional advantages [3] - The solid waste sector focuses on local market development and cross-regional expansion, forming a closed-loop resource cycle [3] - The new energy sector leverages distributed photovoltaic systems and capital operations to support project funding [3] Business Growth - Revenue growth: - Water sector: increased by 7.43% year-on-year - Solid waste sector: increased by 32.00% year-on-year - New energy sector: increased by 77.13% year-on-year [3] - Future plans include enhancing water safety systems, upgrading supply networks, and expanding industrial wastewater treatment projects [3] Strategic Focus - The company aims to optimize its business structure through strategic acquisitions, particularly in solid waste and new energy sectors [4] - Future profit growth will focus on: - Water sector: improving operational efficiency and expanding into industrial wastewater treatment - Solid waste sector: enhancing service capabilities in urban services and recycling [4] - New energy sector: developing zero-carbon industrial parks and smart energy management systems [4] Value Management - The company emphasizes value management and shareholder returns by improving operational quality and efficiency [5] - A special dividend of 514 million CNY was distributed to enhance investor satisfaction [5] - Governance improvements include forming a diversified and professional board to enhance decision-making [5] ESG Initiatives - The company actively addresses climate change and promotes green values through its core business areas [5] - Recognized for its social responsibility, the company has received multiple awards and high ratings in ESG performance [5] - It has maintained a leading position in water service responsibility for ten consecutive years, demonstrating its commitment to public service and social value [5]

Core Viewpoint - The company is focusing on strategic growth areas in the waste management sector, emphasizing value creation through resource utilization, energy efficiency, asset optimization, and international expansion [2]. Group 1: Business Strategy - The company is avoiding bidding for new projects in the high-investment, low-margin central and western regions, adhering to a prudent and practical development strategy [2]. - The company has established a strict project evaluation system to maintain a value investment approach, avoiding blind pursuit of scale expansion [2]. Group 2: Value Growth Points - Resource Utilization Upgrade: The company has achieved net profit from its slag resource utilization project and plans to add six new resource utilization projects in 2024, expected to generate significant incremental profits [2]. - Steam Supply Optimization: The steam supply business, priced at 150-200 RMB per ton, significantly enhances energy efficiency and yields higher returns compared to traditional power generation [2]. - Asset Revitalization: The company is actively participating in green certificate trading and VCS emission reduction project development, aligning with the "dual carbon" strategy to enhance its green low-carbon value and market competitiveness [2]. - Overseas Market Expansion: The company has established a foothold in Thailand and Vietnam, with plans to deepen its presence in Southeast Asia along the "Belt and Road" initiative [2].

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental protection sector, including Huicheng Environmental, Gaoneng Environment, and Hongcheng Environment [4]. Core Insights - The environmental protection industry faced pressure in 2024, with overall revenue declining by 3.3% year-on-year to CNY 348.96 billion, and net profit dropping by 37.7% to CNY 13.8 billion, attributed to difficulties in accounts receivable collection and increased impairment losses [1][13]. - In Q1 2025, the industry showed signs of recovery with revenue at CNY 78.83 billion, a slight decline of 1.8% year-on-year, while net profit increased by 4.1% to CNY 7.25 billion, driven by reduced production costs and increased investment income [1][16]. - The report highlights a divergence in performance among sub-sectors, with solid waste management showing growth while energy-saving and atmospheric governance sectors faced significant challenges [3][19]. Summary by Sections Overview - The environmental protection industry is categorized into six sub-sectors: water services, water treatment, solid waste management, atmospheric governance, monitoring, and energy-saving [11]. Sub-Industry Analysis - **Solid Waste Management**: Revenue increased by 6.2% to CNY 162.26 billion, but net profit fell by 12.3% to CNY 7.28 billion due to increased credit impairment losses [41][45]. - **Water Services**: Revenue remained stable at CNY 76.72 billion, with a slight decline of 0.4%, while net profit rose by 24.7% to CNY 12.11 billion, benefiting from operational efficiencies [49][54]. - **Monitoring**: Revenue decreased by 1.7% to CNY 10.28 billion, with net profit showing a significant decline of 109.5% to -CNY 0.45 billion due to increased impairment losses [60]. Financial Performance - The overall net profit margin for the environmental sector decreased to 4.6%, down 2.1 percentage points year-on-year, influenced by rising asset impairment losses and increased expense ratios [23]. - Operating cash flow for the industry grew by 10.9% to CNY 48.3 billion, primarily due to reduced procurement and improved collection [28]. Investment Recommendations - The report recommends focusing on high-growth areas such as resource recycling and public utility platforms, particularly companies like Gaoneng Environment and Huicheng Environmental, which are expected to benefit from carbon neutrality initiatives [3][4].

Group 1: Financial Performance - The company's 2024 operating revenue increased by 17.60%, while net profit decreased by 45.10% due to rising costs and slow accounts receivable recovery [4][5] - The gross profit margin for the main business in 2024 was 37.62%, indicating a good profitability level [4] - The net cash flow from operating activities increased by 121.62% year-on-year, reflecting improved cash flow management [4] Group 2: Business Strategy and Market Position - The company aims to enhance its market share in water environment governance through technological innovation and project management [3][6] - In the waste incineration and solid waste resource recovery sector, revenue grew by 15.07%, with strategies to broaden waste sources and improve operational efficiency [3][4] - The company plans to optimize its debt structure and reduce financial costs by replacing high-interest loans with lower-rate options [5] Group 3: Research and Development - In 2024, the company invested CNY 22.11 million in R&D, a year-on-year increase of 18.95%, to strengthen its competitive edge [6] - The company focuses on integrating modern information technology with core environmental technologies to provide comprehensive pollution control solutions [3][6] Group 4: Industry Outlook and Challenges - The environmental protection industry is expected to face greater opportunities and challenges as China accelerates the development of a green, low-carbon economy [5][6] - The company is committed to maintaining a stable growth trajectory in its dual main businesses of water and solid waste management [4][5]

Summary of Conference Call Records Industry Overview - The conference call discusses the solid waste management industry, particularly focusing on the integration of waste incineration and IDC (Internet Data Center) projects, emphasizing the potential for efficiency improvements and enhanced return on equity (ROE) through market reforms and pricing adjustments [1][2]. Key Points and Arguments - **Market Valuation and ROE Potential**: The solid waste management sector, particularly through IDC initiatives, has the potential to double its ROE, with reference to international leaders like Waste Management (WM) achieving ROE of over 30%, a price-to-earnings (PE) ratio of 33x, and a price-to-book (PB) ratio of 11x [1]. - **Zero Carbon Projects**: The combination of waste incineration and IDC is positioned as a solution for ultra-low Power Usage Effectiveness (PUE) zero carbon projects, highlighting advantages such as cleanliness, efficiency, stability, and economic viability, especially in urban centers [1]. - **Profitability Models**: Different operational models (pure energy supply, energy supply with cabinet leasing, and energy supply with computing power leasing) show significant profitability elasticity, with potential increases in ROE from 12% to 16%, 15%, and 18% respectively [1]. - **Operational Scale and Location**: Companies like Yongxing, Junxin, and others have a high percentage of their operations meeting the scale and location requirements for effective waste management and IDC integration [1]. Financial Highlights - **Increased Cash Flow and Dividends**: The industry is entering a mature phase with declining capital expenditures, leading to positive free cash flow in 2023 and continued growth in 2024. Companies are significantly increasing their dividends, with notable examples including: - Green Power: Cash dividend of 418 million yuan (+100%), dividend payout ratio of 71.45% [2]. - Hanlan Environment: Dividend of 0.8 yuan per share (+67%), payout ratio of 39.20% [2]. - Junxin Co.: Dividend payout ratio of 95% (+23%) with a commitment to maintain a minimum of 50% [2]. - Yongxing Co.: Cash dividend of 540 million yuan (+15%), payout ratio of 65.81% [2]. - Other companies also reported significant increases in dividends and payout ratios, indicating a strong trend towards returning value to shareholders [2]. Additional Insights - **Policy Impact**: The push for metered charging in waste management is expected to streamline commercial models and improve cash flow, further supporting the financial health of companies in the sector [2]. - **Long-term Dividend Commitments**: Several companies have made long-term commitments to maintain or increase dividend payouts, indicating confidence in future cash flows and profitability [2]. This summary encapsulates the key insights from the conference call, highlighting the solid waste management industry's growth potential, financial performance, and strategic direction.

Group 1: Financial Performance - In 2024, the company achieved a revenue of CNY 3.173 billion and a net profit of CNY 561 million, with a net profit margin of 17.66% despite a slight year-on-year decline due to receivables and asset impairments [2] - The net asset scale increased to CNY 6.682 billion, with a return on equity of 8.47% and operating cash flow of CNY 1.596 billion, reflecting healthy cash flow [2] - In Q1 2025, the company reported a revenue of CNY 874 million, a year-on-year increase of 11.12%, and a net profit of CNY 200 million, up 10.62% [2] Group 2: Business Strategy and Development - The company has shifted focus from scale expansion to high-quality operations and innovation, targeting four key areas: resource high-value utilization, green electricity value enhancement, light asset transformation, and international expansion [3] - The company is cautiously adjusting its strategy for battery recycling due to a sluggish market, with potential exit measures for underperforming segments [4] - The rubber recycling business saw a revenue of CNY 187 million in 2024, a growth of 81.45%, with plans to enhance sales, reduce costs, and improve technology [6] Group 3: Project Updates and Future Plans - The South Taihu Zero Carbon Calculation Center project was approved on March 4, 2025, laying the groundwork for future construction [7] - The company is expanding its kitchen waste processing capacity by 300-400 tons annually, aiming for a stable revenue and profit growth of around 20% [9] - The company is actively pursuing a share repurchase plan, having repurchased approximately CNY 140 million worth of shares, nearing the CNY 200 million limit [9] Group 4: Shareholder Returns and Capital Expenditure - The cash dividend and share repurchase totaled CNY 263 million in 2024, representing 46.82% of the net profit attributable to shareholders [2] - The company maintains a strong commitment to shareholder returns, with a focus on high-return investments and maintaining a healthy cash flow for future growth [8] - The heating business experienced a 30% growth in Q1, with pricing strategies in place to maximize profitability [9]

证券研究报告·公司点评报告·环保 绿色动力（601330） 2025 一季报点评：归母同增 33%超预期，提 质增效成果显著 买入（维持） | [Table_EPS] 盈利预测与估值 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 3,956 | 3,399 | 3,593 | 3,765 | 3,910 | | 同比（%） | (13.39) | (14.08) | 5.71 | 4.79 | 3.85 | | 归母净利润（百万元） | 629.28 | 585.08 | 649.61 | 717.62 | 760.30 | | 同比（%） | (15.51) | (7.02) | 11.03 | 10.47 | 5.95 | | EPS-最新摊薄（元/股） | 0.45 | 0.42 | 0.47 | 0.51 | 0.55 | | P/E（现价&最新摊薄） | 16.65 | 17.91 | 16.13 | 14.60 | 13.78 | [Table_Tag] ...

一、主要会计数据和财务指标 | 报告期指标 | 2024年年报 | 2023年年报 | 本年比上年增减(%) | 2022年年报 | | --- | --- | --- | --- | --- | | 基本每股收益（元） | 0.1200 | 0.1400 | -14.29 | 0.0500 | | 每股净资产（元） | 4.3 | 4.22 | 1.9 | 4.08 | | 每股公积金(元) | 3.22 | 3.24 | -0.62 | 3.29 | | 每股未分配利润(元) | 1.38 | 1.28 | 7.81 | 1.16 | | 每股经营现金流(元) | - | - | - | - | | 营业收入(亿元) | 56.67 | 53.24 | 6.44 | 67.07 | | 净利润(亿元) | 2.8 | 3.37 | -16.91 | 1.23 | | 净资产收益率(%) | 2.60 | 3.22 | -19.25 | 1.15 | 数据四舍五入，查看更多财务数据>> 二、前10名无限售条件股东持股情况 前十大流通股东累计持有： 105444.55万股，累计占流通股比： 43.49%，较上 ...

Core Viewpoint - The company,节能环境, reported significant growth in its 2024 annual results, with a revenue of 5.919 billion yuan and a net profit of 605 million yuan, reflecting a year-on-year increase of 166.65% in net profit [1][4]. Business Segments Waste-to-Energy Business - The company focuses on providing comprehensive waste management services, aligning with national ecological and environmental strategies, and has developed a profitable model centered on waste treatment and electricity generation [1][4]. - The company is expanding its services to include the treatment of kitchen waste, sludge, and the harmless disposal of dead livestock, enhancing economic efficiency [1]. Environmental Equipment Business - The subsidiary, 中节能兆盛环保有限公司, is a leading manufacturer in the wastewater treatment equipment sector, involved in the design, research, manufacturing, and sales of various environmental equipment [2]. - The company has engaged in research for small-scale waste incineration technology and has completed prototype manufacturing for this equipment [2]. Electrical Equipment Business - The subsidiary, 中节能西安启源机电装备有限公司, produces various electrical equipment and is advancing towards smart manufacturing solutions [3]. - The company has supplied over 2,600 units of equipment to nearly 500 enterprises, maintaining a leading market share and exporting to over 50 countries [3]. Financial Performance - In 2024, the company achieved a total solid waste treatment volume of 20.1587 million tons and generated 5.365 billion kWh of electricity [4]. - The company plans to distribute a total cash dividend of 372 million yuan for the year [1]. Innovation and R&D - The company increased its R&D investment to 169 million yuan, with a research intensity of 2.86% [5]. - It has received multiple national and provincial-level recognitions for its technological advancements and has filed 216 patents, including 58 invention patents [5]. Future Development Strategy - The company has established a business development framework centered on waste incineration, supported by multi-source waste treatment and equipment manufacturing [6]. - It aims to enhance its core competitiveness in waste management while adhering to green and low-carbon development principles [6].

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The solid waste sector is expected to enhance dividends and return on equity (ROE), supported by decreasing capital expenditures and improving free cash flow as the industry matures [9][10] - The report emphasizes the importance of stable growth, price reforms, and increased dividends, suggesting a comprehensive allocation strategy focusing on domestic demand-driven assets [11][13] Summary by Sections Industry Trends - The solid waste sector is entering a mature phase, leading to improved free cash flow and higher dividends. The report highlights that the free cash flow turned positive in 2023 and is expected to continue increasing in 2024 [9] - The report tracks the performance of various companies, noting significant increases in dividends for firms like Junxin Co. and Green Power, with cash dividends of 5.07 billion CNY (+37%) and 4.18 billion CNY (+100%) respectively for 2024 [9][10] Company Tracking - Green Power reported a 33% increase in net profit for Q1 2025, driven by reduced costs and increased heating supply, with a significant rise in free cash flow [9] - Junxin Co. achieved a revenue of 24.31 billion CNY (+31%) for 2024, with a net profit of 5.36 billion CNY (+4%) [9] - The report also highlights the performance of other companies like Jingjin Equipment and Yongxing Co., noting their dividend plans and revenue growth [9] Policy Tracking - The Ministry of Finance allocated over 13.5 billion CNY for energy-saving and emission-reduction subsidies in 2025, indicating government support for the industry [9] - The report discusses the impact of new policies on the solid waste sector, including the push for garbage treatment fee measurement and the promotion of commercial models [9] Market Performance - The report notes a 51% year-on-year increase in sales of new energy sanitation vehicles in the first quarter of 2025, with a penetration rate of 14.36% [27] - The average price of biodiesel remained stable, while the price of waste cooking oil showed a slight increase, reflecting market dynamics [37] Investment Recommendations - The report recommends focusing on companies with strong dividend growth and stable cash flows, such as Huanlan Environment, Green Power, and Yongxing Co. [11][13] - It suggests monitoring companies involved in resource recycling and those benefiting from price reforms and domestic demand [11][13]