Core Insights - GP Certified has established GP Laboratory, the first and only dedicated plastic testing facility in Sri Lanka, aimed at supporting the growing plastic recycling and polymer manufacturing sectors [1] - The laboratory addresses the lack of scientific validation for recycled plastics in Sri Lanka, which is crucial as plastic waste and sustainability become global priorities [1] - GP Laboratory will conduct comprehensive testing on both recycled and virgin plastics, enabling recyclers, manufacturers, and consumer brands to ensure their products meet the highest standards of quality, safety, and environmental compliance [1] - In addition to plastic testing services, the laboratory will also offer environmental monitoring services [1]

Investment Rating - The report maintains a "Buy" rating for key companies in the environmental protection sector, including Huicheng Environmental and GaoNeng Environment [5][31]. Core Insights - The report highlights the acceleration of urban renewal through new infrastructure, with a focus on air pollution control and the transition to cleaner energy sources. It emphasizes the positive impact of recent government policies on environmental monitoring and VOCs management [1][29]. - The macroeconomic environment is characterized by historically low interest rates, which favors high-dividend and growth-oriented assets in the environmental sector [2][31]. Summary by Sections Investment Views - The Ministry of Housing and Urban-Rural Development and other departments issued an action plan to enhance urban infrastructure resilience through digital and intelligent upgrades, benefiting environmental monitoring sectors [1][9]. - Jiangsu Province's 2025 air pollution prevention plan aims to eliminate high-emission equipment and promote clean energy, positively impacting VOCs management and environmental monitoring industries [17][29]. - The environmental sector is currently at a historical low in terms of institutional holdings and valuations, suggesting a potential for sustained rebounds [31]. Market Performance - The environmental sector underperformed the broader market, with a weekly decline of 2.45%, while the Shanghai Composite Index fell by 1.47% [34]. - The top-performing stocks in the environmental sector included Shuangliang Energy and Tianhao Energy, while the worst performers were Changqing Group and Hanwei Technology [34]. Industry News - The Ministry of Industry and Information Technology launched a major innovation initiative for environmental technology, focusing on key areas such as air and water pollution control [43]. - Guangdong Province introduced measures to accelerate technological upgrades in industrial enterprises, aiming to support over 9,000 companies annually [44]. - Chongqing released a compliance guide for enterprises to manage environmental risks throughout their lifecycle [45]. Key Companies - GaoNeng Environment focuses on hazardous waste resource utilization and environmental operation services, with a strong order pipeline due to regulatory changes [33]. - Huicheng Environmental is advancing in hazardous waste projects and has made significant progress in waste plastic recycling technology, indicating strong growth potential [33].