Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][7]. Core Views - The report highlights the ongoing pilot projects for hydrogen energy initiated by the National Energy Administration, focusing on large-scale hydrogen production integrated with renewable energy sources [2][14]. - The waste incineration industry is entering a mature phase, with a significant increase in cash flow for listed companies, indicating a positive trend in financial health [15][22]. - The report emphasizes the importance of carbon neutrality, recommending investments in the new energy industry chain and comprehensive energy management [25][26]. Summary by Sections Market Review - The Shanghai Composite Index fell by 0.25%, while the public utility index rose by 0.26%, and the environmental index dropped by 1.19% [1][13]. - Among the 31 primary industry sectors, public utilities and environmental sectors ranked 10th and 22nd in terms of performance [1][27]. Important Events - The National Energy Administration has launched pilot projects in the hydrogen energy sector, focusing on large-scale hydrogen production in areas rich in wind, solar, hydro, nuclear, and biomass resources [2][14]. Specialized Research - The report analyzes the free cash flow of 15 major A-share listed companies in the waste incineration sector, noting that many have achieved positive cash flow by 2024 [15][22]. Investment Strategy - Recommendations include major thermal power companies like Huadian International and regional power companies like Shanghai Electric due to stable profitability [3][25]. - The report suggests investing in leading new energy companies such as Longyuan Power and Three Gorges Energy, as well as high-dividend hydroelectric stocks like Yangtze Power [3][25]. - In the environmental sector, it recommends companies like China Science Instruments and Shandong High Energy Environmental for their growth potential [26]. Company Profit Forecasts and Investment Ratings - A detailed table lists various companies with their investment ratings, market capitalization, earnings per share (EPS), and price-to-earnings (PE) ratios, indicating a generally positive outlook for the sector [7][23].

Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][7]. Core Views - The report highlights the ongoing pilot projects for hydrogen energy initiated by the National Energy Administration, focusing on large-scale hydrogen production integrated with renewable energy sources [2][14]. - The waste incineration industry is entering a mature phase, with a significant increase in cash flow for listed companies, indicating a positive trend in financial health [15][22]. - The report emphasizes the importance of carbon neutrality, recommending investments in the new energy industry chain and comprehensive energy management [25][26]. Summary by Sections Market Review - The Shanghai Composite Index fell by 0.25%, while the public utility index rose by 0.26%, and the environmental index dropped by 1.19% [1][13]. - Among the 31 first-level industry classifications, public utilities and environmental sectors ranked 10th and 22nd in terms of growth [1][27]. Important Events - The National Energy Administration has launched pilot projects in the hydrogen energy sector, focusing on large-scale hydrogen production in areas rich in wind, solar, hydro, nuclear, and biomass resources [2][14]. Specialized Research - The report analyzes the free cash flow of 15 major A-share listed companies in the waste incineration sector, noting that many have achieved positive cash flow by 2024 [15][22]. Investment Strategy - Recommendations include major thermal power companies like Huadian International and regional power companies like Shanghai Electric due to stable profitability [3][25]. - The report suggests investing in leading new energy companies such as Longyuan Power and Three Gorges Energy, as well as high-dividend hydroelectric stocks like Yangtze Power [3][25]. - In the environmental sector, it recommends companies like China Science Instruments and Shandong High Energy for their growth potential [26]. Company Profit Forecasts and Investment Ratings - A detailed table lists various companies with their investment ratings, market capitalization, earnings per share (EPS), and price-to-earnings (PE) ratios, indicating a generally positive outlook for the sector [7][23].

Core Points - Jiangnan Water Co., Ltd. announced a cash dividend of CNY 0.11 per share for its A-shares, totaling CNY 102,873,132.12 to be distributed to shareholders [1][2][5] - The dividend distribution was approved at the annual general meeting held on May 15, 2025, and the key dates for the dividend process include the record date on June 20, 2025, and the ex-dividend date on June 23, 2025 [1][2] - The company will not implement any differential dividend distribution or capital increase through bonus shares [1] Dividend Distribution Details - The cash dividend will be distributed based on a total share capital of 935,210,292 shares, with the payment being made to shareholders registered with China Securities Depository and Clearing Corporation Limited, Shanghai Branch [1][2] - For individual shareholders holding shares for more than one year, the cash dividend is exempt from personal income tax, while those holding for one year or less will have tax withheld upon stock transfer [2][3] - For qualified foreign institutional investors (QFIIs), a 10% corporate income tax will be withheld, resulting in a net cash dividend of CNY 0.099 per share [4] Taxation Information - Shareholders holding shares for less than one month will incur a 20% tax on their dividend income, while those holding for one month to one year will have a 10% tax [3][4] - Hong Kong investors will also receive a net cash dividend of CNY 0.099 per share after a 10% tax withholding, with provisions for tax treaty benefits available [4]

Investment Rating - The report maintains a "Positive" investment rating for the municipal environmental protection sector [4]. Core Viewpoints - The industry is entering a period of stock operation with significant capital expenditure reduction, leading to positive free cash flow for companies. By the end of 2023, the national urban domestic waste harmless treatment rate reached 99.98%, and the water supply coverage rates for cities, counties, and rural areas were 99.4%, 98.3%, and 87.5% respectively, indicating a balanced urban water supply capacity [5][4]. - The decline in Hong Kong interest rates is expected to lead to a revaluation of dividend assets, particularly in public utilities such as electricity and municipal environmental protection [5][4]. - The report suggests focusing on public utility assets based on cash flow improvement expectations, dividend performance, and dividend yield as screening criteria, recommending companies such as China Everbright International, Tianjin Chuangye Environmental Protection, and others [5][4]. Summary by Sections Industry Performance - The report highlights the stable profitability of waste incineration power generation and water companies, which follow a permitted return model. The average reasonable profit level for water supply companies has been set at a net asset return rate of 8-10% since 1998 [5][4]. Cash Flow and Dividend Insights - Companies in the waste incineration and water sectors are expected to see improved cash flow as they transition to positive free cash flow. The report notes that historical issues with high accounts receivable are being addressed, with local government debt resolution expected to accelerate accounts receivable collection in 2024 [5][4]. Recommendations - The report recommends several companies based on their dividend rates and expected yields for 2025, including: - China Everbright International: projected dividend yield of 5.9% - Green Power Environmental: projected H-share dividend yield of 8.4% - Beikong Water Group: projected dividend yield of 6.8% - Guangdong Investment: projected dividend yield of 6.4% - Tianjin Chuangye Environmental Protection: projected H-share dividend yield of 5.6% [5][4].

Core Viewpoint - The company has announced a change in accounting estimates regarding the depreciation period of certain fixed assets, which is expected to positively impact its financial results for the year 2025 [1][2]. Summary by Sections Accounting Estimate Change - The company has decided to change the depreciation period for pipeline and trench assets from 30 years to 35 years to better reflect their actual usage and lifespan [2][3]. - This change will take effect from April 1, 2025, and has been approved by the board of directors without the need for a shareholders' meeting [1][2]. Reasons for Change - The adjustment is based on the company's recent operational practices and maintenance improvements, which have enhanced the performance and longevity of the pipeline and trench assets [2][3]. - The assets meet national and industry standards, with a design lifespan of 50 years, and the actual usage has shown that some assets have exceeded the current depreciation period [3]. Financial Impact - The estimated reduction in fixed asset depreciation expenses for 2025 is approximately 21.52 million yuan, leading to an increase in total profit by the same amount and an increase in net assets attributable to shareholders by approximately 18.29 million yuan [3][4]. - A hypothetical application of this accounting estimate over the past three years would have shown significant increases in profit and net assets for those years as well [4]. Opinions from Supervisory Bodies - The supervisory board and the accounting firm have both reviewed and approved the accounting estimate change, confirming that the decision-making process complies with relevant laws and regulations and does not harm the interests of the company or its shareholders [5].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - In the context of a volatile bond market and a passive widening of credit spreads, investors should prioritize high - coupon assets for certain returns and prepare in advance for the spread compression market driven by the seasonal inflow of wealth management funds in July [1][5]. - The current core contradiction in the credit bond market is the co - existence of weakening allocation demand and a passive widening of spreads in a volatile environment. Investors should seize pricing deviation opportunities under the protection of coupon safety cushions [5]. - The volatile market pattern caused by the interplay of multiple factors will continue, providing tactical opportunities for layout during market adjustments [6]. - The coupon strategy is the optimal solution in a volatile market, and portfolios should be constructed in a stratified manner according to the characteristics of liabilities [7]. - Investors should "pre - position" for the seasonal spread compression market in July and seize structural opportunities in specific bond varieties [8]. 3. Summary by Relevant Catalog 3.1 Yield and Spread Overview 3.1.1 Yields and Changes of Each Tenor - Yields of various types of bonds at different tenors are presented, along with their weekly changes and historical percentiles. For example, the 0.5 - year Treasury yield is 1.41%, down 4.0bp from last week, with a historical percentile of 8.4% [14]. 3.1.2 Spreads and Changes of Each Tenor - Credit spreads of various types of bonds at different tenors are shown, including their weekly changes and historical percentiles. For instance, the 0.5 - year credit spread of public non - perpetual urban investment bonds is 25bp, up 2.1bp from last week, with a historical percentile of 12.7% [16]. 3.2 Yields and Spreads of Credit Bonds by Category (Hermite Algorithm) 3.2.1 Yields and Spreads of Urban Investment Bonds by Region - **Yields and Changes of Each Tenor**: Yields of public non - perpetual urban investment bonds in different provinces at key tenors, their weekly changes, and historical percentiles are provided. For example, the 0.5 - year yield of Anhui's public non - perpetual urban investment bonds is 1.77%, up 2.6bp from last week, with a historical percentile of 1.1% [19]. - **Spreads and Changes of Each Tenor**: Credit spreads of public non - perpetual urban investment bonds in different provinces at key tenors, their weekly changes, and historical percentiles are given. For example, the 0.5 - year credit spread of Anhui's public non - perpetual urban investment bonds is 30.41bp, up 4.6bp from last week, with a historical percentile of 7.2% [22]. - **Yields and Changes of Each Implied Rating**: Yields of public non - perpetual urban investment bonds in different provinces for each implied rating, their weekly changes, and historical percentiles are presented. For example, the AAA - rated yield of Anhui's public non - perpetual urban investment bonds is 1.80%, up 3.8bp from last week, with a historical percentile of 5.1% [26]. - **Spreads and Changes of Each Implied Rating**: Credit spreads of public non - perpetual urban investment bonds in different provinces for each implied rating, their weekly changes, and historical percentiles are shown. For example, the AAA - rated credit spread of Anhui's public non - perpetual urban investment bonds is 28.96bp, up 4.8bp from last week, with a historical percentile of 32.2% [31]. - **Yields and Changes of Each Administrative Level**: Yields of public non - perpetual urban investment bonds in different provinces at each administrative level, their weekly changes, and historical percentiles are provided. For example, the provincial - level yield of Anhui's public non - perpetual urban investment bonds is 1.80%, up 3.5bp from last week, with a historical percentile of 3.7% [35].

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].

Investment Rating - The report maintains an "Outperform" rating for the public utility sector [1][5][7] Core Views - The report highlights the ongoing pilot projects for the new power system initiated by the National Energy Administration, focusing on innovative technologies and models [2][14] - It emphasizes the growth in exports of industrial-grade mixed oil (UCO) in April 2025, with a year-on-year increase of 7.46% in volume and a 21.01% increase in average price [3][15] - The report suggests that coal and electricity prices are declining simultaneously, which may help maintain reasonable profitability for thermal power [3][18] Summary by Sections Market Review - The Shanghai Composite Index rose by 0.88%, while the public utility index fell by 0.13% and the environmental index increased by 0.46% [1][19] - Within the electricity sector, thermal power decreased by 0.97%, hydropower by 1.47%, and new energy generation by 0.45% [1][19] Important Events - The National Energy Administration is conducting pilot projects for a new power system, focusing on advanced technologies and models [2][14] Special Research - In April 2025, China exported 228,148 tons of industrial-grade mixed oil (UCO), with an average export price of $1,069.34 per ton [3][15] Investment Strategy - Recommendations include major thermal power companies like Huadian International and Shanghai Electric, as well as leading new energy firms such as Longyuan Power and Three Gorges Energy [3][18] - The report also suggests focusing on water and waste incineration sectors, which are entering a mature phase with improved cash flow [3][18] Key Company Earnings Forecasts and Investment Ratings - Several companies are rated "Outperform," including Huadian International, Shanghai Electric, Longyuan Power, and China Nuclear Power [7][18] Industry Dynamics - The report notes that the overall electricity generation in April 2025 was 711.1 billion kWh, with a year-on-year growth of 0.9% [45] - The total installed power generation capacity reached 3.49 billion kW, a year-on-year increase of 15.9% [76]

Core Viewpoint - The report from Cinda Securities highlights the increasing demands for environmental quality and low-carbon industrial development during the 14th Five-Year Plan, indicating that energy conservation, environmental protection, and resource recycling are expected to maintain high prosperity levels [1] Group 1: Market Performance - As of June 6, the environmental protection sector rose by 0.46%, underperforming the broader market; the water governance sector increased by 1.38%, while the waste incineration sector declined by 0.31% [2] - The air governance sector saw an increase of 1.01%, while the solid waste sanitation sector dropped by 6.55% [2] Group 2: Industry Dynamics - The Ministry of Ecology and Environment released the "2024 China Ecological Environment Status Bulletin," indicating continuous improvement in national ecological environment quality, with an increase in the proportion of days with good air quality and a decrease in heavy pollution days [2] - A joint implementation plan for ecological protection compensation mechanisms along major rivers was announced, aiming for a stable operation by 2027 and comprehensive coverage by 2035 [2] Group 3: Policy Developments - The National Development and Reform Commission and the National Energy Administration issued a notice promoting the development of green electricity direct connection, which supports the integration of renewable energy production and consumption [3] - This policy is expected to optimize grid allocation and facilitate collaboration between waste incineration power generation and data centers, with several environmental companies actively exploring this new model [3] Group 4: Recommended Companies - Key recommendations include: Huanlan Environment (600323.SH), Xingrong Environment (000598.SZ), and Hongcheng Environment (600461.SH) for their stable profitability and positive cash flow [1] - Companies to watch include: Wangneng Environment (002034.SZ), Junxin Co., Ltd. (301109.SZ), Wuhan Holdings (600168.SH), and others [1]

Investment Rating - The report maintains an "Outperform" rating for the industry [6] Core Insights - The National Energy Administration has initiated the first batch of pilot projects for the construction of a new power system, focusing on seven key directions to enhance the integration and consumption capacity of renewable energy [3][19][20] - Zhejiang Province has released a demand-side management plan for summer peak electricity demand in 2025, aiming to reduce peak load by over 1GW through various measures including time-of-use pricing and encouraging user-side energy storage participation [4][27][28] Summary by Sections Market Review - From June 3 to June 6, the gas and water sectors increased by 1.15% and 0.64% respectively, while the environmental and power sectors decreased by 0.07% and 0.60%, with the Shanghai and Shenzhen 300 Index rising by 0.88% during the same period [12][10] Industry Perspectives - The pilot projects for the new power system will explore new technologies and models, addressing bottlenecks in renewable energy development and enhancing the reliability of power supply [3][19][20] - The pilot focuses on seven areas: grid-structured technology, system-friendly renewable power plants, smart microgrids, collaboration between computing power and electricity, virtual power plants, large-scale high-proportion renewable energy delivery, and new-generation coal power [19][20][24] Investment Recommendations - The report recommends specific companies within various sectors: - For thermal power: Jiangsu Guoxin is recommended, while Sheneng Co. and Zhejiang Energy Power are given cautious recommendations [4] - For nuclear power: China National Nuclear Power and China General Nuclear Power are cautiously recommended [4] - For hydropower: Changjiang Power is recommended, with cautious recommendations for Huaneng Hydropower and Qianyuan Power [4] - For green energy: Attention is suggested for Three Gorges Energy and Jiangsu New Energy, with cautious recommendations for Longyuan Power and Zhejiang New Energy [4] - For environmental protection: Yongxing Co., Huaguang Huaneng, and Xuedilong are recommended, with cautious recommendations for United Water and attention for Fuzhi Environmental Protection and Dayu Water Saving [4]