Investment Rating - The report maintains an "Overweight" rating for the environmental protection industry [1] Core Views - The improvement of the near-consumption pricing mechanism for renewable energy will facilitate the direct connection of green electricity, benefiting waste-to-energy projects [9][10] - The price of Sustainable Aviation Fuel (SAF) has reached a new high in Europe, positively impacting UCO and SAF producers in China [11][12] - The solid waste sector has seen significant acceleration in national subsidies for recycling, leading to improved cash flow and dividend payouts [15][16] Summary by Sections Industry Trends - The environmental protection industry is experiencing a positive trend with the implementation of new pricing mechanisms for renewable energy, which will enhance the economic viability of waste-to-energy projects [9][10] - The SAF market in Europe is tightening, leading to increased prices and benefiting UCO and SAF producers in China [11][12] Solid Waste Sector - National subsidies for recycling have accelerated significantly, with a reported 2.064 billion yuan received in July-August 2025, surpassing the previous year's figures [15] - The solid waste sector is seeing improvements in return on equity (ROE) and cash flow, with a focus on operational efficiency and reduced financial costs [15][16] Water Sector - The water sector is poised for growth with expected improvements in cash flow and dividend payouts, similar to trends observed in the waste-to-energy sector [19][20] - Recent water price reforms in cities like Guangzhou and Shenzhen are anticipated to drive further growth in the sector [19] Sanitation Equipment - The sales of sanitation vehicles have increased, with a notable rise in the penetration rate of new energy sanitation vehicles, reaching 16.14% [22][23] - The market for electric sanitation vehicles is expanding rapidly, with sales growth of 77.55% in the first seven months of 2025 [22][23] Biofuel Sector - The average price of waste cooking oil has decreased, leading to an increase in profit margins for biofuel producers [32] - The biofuel market is expected to remain stable, with ongoing demand for waste oils and limited supply growth [32] Lithium Battery Recycling - The profitability of lithium battery recycling is improving as the prices of lithium carbonate and other materials decline [33][34]

金晟新能主营业务为锂电池回收及再生利用，在广东省肇庆、江西宜春和赣州设有相关项目，该公司业绩走势与行业波动呈正相关， 2022 年- 2024 年公司营收约 29 亿元、 28.9 亿元、 21.5 亿元；但仅 2022 年实现过盈利 1.51 亿元， 2023 年即转亏 4.71 亿元， 2024 年亏损缩窄至 3.44 亿元； 2025 上半年营收为 9.37 亿元，同比 2024 上半年减少约 5.8% ，亏损 1.44 亿元，同比轻微扩大。 对于接连亏损现状，金晟新能表示公司产品受市场影响对收入及毛利率产生较大波动，受碳酸锂等原材料产品价格不振影响，导致 2023 年 之后出现亏损。 该理由没有错， 2023 年之后锂电池厂多有囤货，囤货都消不干净，更别提回收。且招股书显示， 2022 年公司回收提炼出来的碳酸锂产品 还能卖到 39.63 万元 / 吨，但到 2024 下半年仅能卖出 8.58 万元 / 吨。 业绩下滑导致公司存款变少，招股书显示公司的现金及现金等价物从 2022 年的 2.11 亿元下降至如今的 0.37 亿元，可以说"兜里钱不多 了"。 但日子还是要过，今年 5 月金晟新能新开发了 ...

Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company is a leading player in the solid waste treatment industry, focusing on expanding its operations both domestically and internationally, while also exploring synergies with data centers [4][9] - The company has a strong operational foundation with a significant increase in revenue and net profit in Q1 2025, indicating a positive trend despite previous years of decline [4][16] - The company is actively pursuing innovative business models, including collaborations with data centers and international project expansions, which are expected to drive future growth [4][7] Summary by Sections Company Overview - The company, Wangen Environment, has been deeply involved in the solid waste industry for nearly two decades, with a focus on garbage incineration and kitchen waste treatment [4][9] - As of Q1 2025, the company has an operational garbage incineration capacity of 21,820 tons/day and kitchen waste capacity of 2,810 tons/day, primarily concentrated in Zhejiang Province [4][34] Financial Performance - The company experienced a revenue decline in 2023-2024 due to reduced BOT project construction income and losses in the recycling segment, but it achieved a revenue growth of 11.1% and a net profit growth of 10.62% in Q1 2025 [4][16] - The operational business (garbage incineration and kitchen waste treatment) contributed over 80% of total revenue and 104% of gross profit, highlighting its stable operational attributes [4][20] Profitability and Margins - The company's garbage incineration business has a gross margin of 48% in 2024, which is above the industry average of 43.4%, attributed to high capacity utilization and operational efficiency [4][40] - The company maintains a capacity utilization rate of around 120%, which is among the highest in the industry, supporting its profitability [4][40] Strategic Initiatives - The company is exploring a new model that combines garbage incineration with data centers, having completed the approval for the "Zero Carbon Intelligent Computing Center" in Huzhou [4][7] - The company has signed a contract with the Vietnamese government to build a 600 tons/day waste treatment project, marking a significant step in its international expansion strategy [4][7] Future Projections - Revenue projections for 2025-2027 are estimated at 3.239 billion, 3.406 billion, and 3.631 billion yuan, with corresponding net profits of 694 million, 760 million, and 809 million yuan [4][6]

Group 1 - The release of DeepSeek V3.1 signifies a breakthrough in the domestic large model and chip ecosystem, utilizing the UE8M0FP8 format specifically designed for next-generation domestic chips, addressing compatibility issues with NVIDIA's FP8 standard, and promoting the autonomy of the domestic computing power ecosystem [1] - The urgent demand for domestic computing power is driven by the discontinuation of NVIDIA's H20 chip, leading to a recommendation for the domestic computing power sector [1] - A joint statement from the US and EU on August 21, 2025, outlines a trade agreement framework covering various sectors, including agricultural products, automobiles, semiconductors, and digital trade barriers, indicating a reduction in global trade risks and a release of overseas computing power demand [1] Group 2 - The solar industry is undergoing optimization with a focus on supply and demand stimulation, as multiple ministries convened to regulate competition and promote industry self-discipline, aiming to curb low-price competition and enhance product quality [2] - The logistics and delivery sectors are also pushing for a shift from low-price competition to high-quality development, with industry associations advocating for compliance with relevant laws to prevent malicious competitive practices [2] - Current market conditions in the takeaway delivery sector remain relatively stable regarding subsidies [2] Group 3 - Key sectors to focus on include computing power, rare earths, Hong Kong securities, and the internet [3]

Core Viewpoint - The retirement of electric vehicle batteries is approaching a critical point, with annual retirement volumes expected to exceed one million tons by 2025, and potentially reach 3.5 million tons by 2030-2032, creating a market worth over 100 billion yuan [3][20]. Group 1: Industry Trends - The battery recycling industry is transitioning from small workshops to large-scale enterprises, with leading companies like Tesla, BYD, and CATL establishing extensive recycling networks that are beginning to show results [4][6]. - The number of battery recycling companies in China is around 190,000, but only 156 are recognized as compliant with industry standards, indicating a significant disparity in operational quality [5]. - The competitive landscape is shifting as large companies leverage their scale and technology to outperform smaller players, which traditionally relied on cost-cutting measures [7][11]. Group 2: Economic and Technical Developments - Leading companies have achieved cost parity with small workshops, allowing them to compete effectively while maintaining higher environmental standards [8]. - Advanced recycling technologies are being adopted, combining various methods to enhance efficiency and reduce costs, which diminishes the competitive edge of smaller operations [9]. - The establishment of regional processing centers and the integration of production and recycling processes are optimizing resource allocation and reducing operational costs [10][19]. Group 3: Regulatory and Market Changes - New regulations are tightening the operational framework for battery recycling, requiring companies to have environmental assessments and digital traceability, which further marginalizes non-compliant small workshops [11][12]. - The acceptance of recycled materials is increasing, driven by regulatory changes in the EU and China, which are pushing for higher standards in battery recycling [16]. - The formation of industry clusters is accelerating, with major players investing in local recycling facilities to create efficient, localized supply chains [17][18]. Group 4: Future Outlook - The impending wave of battery retirements is expected to catalyze a significant shift in the industry, favoring large-scale, compliant operations over smaller, less regulated ones [20]. - The collaboration between large companies and smaller workshops may evolve, allowing the latter to integrate into a more standardized ecosystem while retaining some operational flexibility [15].

Group 1 - The core point of the article is that Tianqi Co., Ltd. has decided to terminate the investment deal with Qingdao Huatie Fund regarding its wholly-owned subsidiary, Jiangxi Tianqi Jintai Ge Cobalt Co., Ltd. [1] - The decision to terminate the transaction was made after careful consideration of the current global lithium battery recycling market changes and discussions with Qingdao Huatie Fund [1] - The termination aligns with Tianqi Jintai Ge's overall strategic planning and capital operation scheme adjustments [1]

Group 1: Investment Highlights - Key recommendations include companies such as Conch Venture, Hanlan Environment, Green Power, Yongxing Co., and others, indicating a strong focus on the environmental sector [2] - Suggested companies for attention include Green Power Environmental, Deyu Water, and others, highlighting potential investment opportunities in the environmental industry [2] Group 2: Policy Tracking - The first revision of pricing regulations in 27 years aims to promote market-oriented pricing, enhancing ROE and cash flow in sectors like water, waste, and energy [3] - Strengthened environmental inspections signal a more systematic and effective regulatory approach to environmental protection in China [3] Group 3: Industry Insights - The water operations sector is expected to experience a cash flow turning point, similar to the garbage incineration sector, with significant increases in free cash flow anticipated from 2026 [4] - Price reforms are expected to reshape growth and valuation in the water sector, with potential for 2-3 times valuation increases as the market matures [4] Group 4: Company-Specific Analysis - Xingrong Environment shows a current PB of 1.16, with a projected PE of 9.8 for 2025, indicating potential for dividend increases [5] - Yuehai Investment has a PB of 1.08 and a projected PE of 10.6 for 2025, with a dividend yield of 6.2%, suggesting strong market positioning [5] - Hongcheng Environment is committed to maintaining a dividend payout of no less than 50% from 2021 to 2026, with a projected PE of 9.6 for 2025 [5] Group 5: Market Trends - The environmental sanitation equipment sector saw a 7.24% increase in new energy penetration, with a total of 38,164 sanitation vehicles sold in the first half of 2025 [5] - The average price of biodiesel remained stable, with a net profit per ton showing a significant decline [5] - In lithium battery recycling, metal prices showed mixed trends, with lithium carbonate at 71,300 (down 2.2% week-on-week) and cobalt at 276,000 (up 11.3% week-on-week) [5]

Investment Rating - The report maintains an "Increase" rating for the environmental protection industry [1] Core Views - The report highlights the collaboration between Jinko Environment and Kunheng International to issue RWA, enhancing the market value of quality assets [9] - Huanlan Environment's internal growth and acquisition performance exceeded expectations, with a significant increase in net profit [12] - The report emphasizes the decline in capital expenditure in waste incineration, leading to improved free cash flow and increased dividends, while also noting the efficiency improvements in heating and IDC that boost ROE and valuation [16] - The water service sector is positioned as the next growth area similar to waste incineration, with a focus on marketization and cash flow improvements [19] Summary by Sections Jinko Environment - Jinko Environment has reached a cooperation intention for RWA issuance with Kunheng International, aiming to enhance the market value of its quality assets through digital asset management [9][10] Huanlan Environment - Huanlan Environment reported a net profit of 9.67 billion yuan for H1 2025, a year-on-year increase of 9.00%, with a significant internal growth rate of 18% in Q2 2025 [12][14] - The integration of Yuefeng has contributed positively to the company's performance, with a monthly profit contribution exceeding previous levels [14][15] Waste Incineration - The report notes a decrease in capital expenditure in the waste incineration sector, leading to a substantial improvement in free cash flow and increased dividends for companies like Junxin and Green Power [16][17] - The sector is transitioning into a mature phase, with a focus on efficiency improvements and cost reductions to enhance ROE [16][18] Water Services - The water service sector is highlighted as a stable and low-valuation area with high dividend potential, with companies like Xingrong and Hongcheng Environment expected to see significant cash flow improvements [19][21] - The report anticipates a shift in water pricing policies that will support sustainable growth and valuation increases similar to trends observed in the US water industry [20][21] Environmental Equipment - The report indicates a 90.56% year-on-year increase in sales of new energy sanitation vehicles, with a penetration rate of 15.86% [28] - The overall sales of sanitation vehicles increased by 3.59%, indicating a positive trend in the environmental equipment sector [28][34] Biodiesel and Lithium Battery Recycling - Biodiesel prices remained stable, but profit margins have decreased, with the average profit per ton dropping to 130 yuan [42] - The lithium battery recycling sector is experiencing an upward trend in metal prices, leading to slight improvements in profitability [44]

Core Viewpoint - Jin Jing New Energy's latest financial report indicates significant progress in its transformation towards the green energy sector, showcasing a remarkable increase in revenue and a substantial reduction in losses [1][3][14]. Financial Performance - For the fiscal year 2025, Jin Jing New Energy reported revenue of approximately HKD 870 million, a year-on-year increase of 92.3%, while the loss attributable to shareholders was HKD 15.74 million, a significant reduction of 80% compared to the previous year's loss of HKD 78.86 million [1][4]. - The adjusted EBITDA for the fiscal year 2025 was HKD 44.76 million, a substantial improvement from a loss of HKD 40.06 million in 2024, indicating a turnaround in profitability [5][6]. Business Transformation - The company has successfully transitioned from traditional construction to focusing on green infrastructure, particularly in the recycling and utilization of power batteries, since its listing in 2018 [3][14]. - The revenue from reverse supply chain management and environmental services surged by 204.21% to HKD 696.19 million in 2025, accounting for nearly 80% of total revenue, highlighting the effectiveness of the company's strategic shift [4][3]. Market Trends - The global market for retired lithium batteries is expected to peak soon, driven by supportive policies from major countries, including China's new regulations on battery recycling [7][8]. - The anticipated retirement of approximately 300 GWh of batteries in China by 2030, along with similar trends in Europe and North America, presents a significant growth opportunity for Jin Jing New Energy [8][9]. Catalysts for Future Growth - The company is set to launch Hong Kong's first battery processing facility, which is expected to meet the battery processing needs outlined in Hong Kong's 2035 plan, with operations commencing in 2026 [9][10]. - Existing contracts with major clients, including leading electric vehicle manufacturers, are expected to contribute significantly to future revenue growth, with estimated disposal values exceeding HKD 30 billion [11][10]. - The establishment of a global lithium battery recycling network platform, in collaboration with other industry leaders, is anticipated to enhance the company's operational capabilities and market presence [12][13]. Market Recognition - The capital market has recognized the company's successful transformation, reflected in its stock price increase since 2022 and its inclusion in the MSCI index, indicating growing institutional interest [14].

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1]. Core Views - The report emphasizes the collaboration between Junxin Co. and Changsha Digital Group to promote the integration of waste incineration and green computing, enhancing operational efficiency and revenue growth [8]. - It highlights the trend of decreasing capital expenditures in the waste incineration sector, leading to improved free cash flow and increased dividends [12]. - The report discusses the stable growth and high dividends in the water utility sector, driven by water price reforms that reshape growth and valuation [16]. Summary by Sections Industry Trends - The environmental protection sector is experiencing a shift towards maturity, with capital expenditures declining and free cash flow turning positive in 2023, continuing to improve in 2024 [12][13]. - The report notes that the waste incineration sector is adopting new business models, including partnerships with data centers, which enhance profitability and return on equity (ROE) [14]. Key Recommendations - The report recommends several companies for investment, including Hai Luo Chuang Ye, Hanlan Environment, and Green Power, among others, based on their strong dividend potential and operational efficiency [4]. - It suggests focusing on companies with high dividend payout ratios and robust cash flow, such as Junxin Co. and Green Power, which are expected to maintain or increase their dividends significantly in 2024 [12][13]. Water Utility Sector - The water utility sector is projected to see stable growth, with a focus on water price reforms that enhance profitability and ensure reasonable returns on investment [18]. - The report highlights specific companies like Yuehai Investment and Xingrong Environment as key players benefiting from these reforms, with expected high dividend yields [18]. Environmental Equipment - The report notes a significant increase in the sales of new energy sanitation vehicles, with a year-on-year growth of 73% and an increase in market penetration [26][27]. - It emphasizes the importance of transitioning to electric sanitation vehicles as part of the industry's modernization efforts [22]. Biofuel and Lithium Battery Recycling - The report indicates a recovery in the profitability of biodiesel, with prices increasing by 7.1% week-on-week, leading to positive margins [36]. - It also discusses the challenges in lithium battery recycling, with declining metal prices impacting profitability, but notes slight improvements in margins [39][40].