Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The report highlights that international oil prices have been fluctuating at high levels due to geopolitical tensions in the Middle East, particularly involving Iran and the U.S. [2][9] - Brent crude oil futures settled at $109.03 per barrel, up $7.14 (7.01%) from the previous week, while WTI crude oil futures rose to $111.54 per barrel, an increase of $17.06 (18.06%) [2][24] - The report indicates a decrease in the number of global offshore self-elevating drilling rigs to 367, while the number of floating drilling rigs increased to 138 [2][28] - U.S. crude oil production remained stable at 13.657 million barrels per day, with an increase in active drilling rigs to 411 [2][37] - U.S. crude oil inventories rose by 5.073 million barrels (0.58%) to 877 million barrels, with commercial inventories increasing by 5.451 million barrels (1.19%) [2][57] - The report notes that the global crude oil in-transit and floating inventory reached 1.21 billion barrels, an increase of 10.929 million barrels (0.90%) [2][69] Summary by Sections Oil Price Review - International oil prices have been influenced by escalating geopolitical tensions, particularly in the Middle East, leading to significant price fluctuations [2][9] Offshore Drilling Services - The number of global offshore self-elevating drilling platforms decreased to 367, while floating drilling platforms increased to 138 [2][28] U.S. Crude Oil Supply - U.S. crude oil production was stable at 13.657 million barrels per day, with active drilling rigs increasing to 411 [2][37] U.S. Crude Oil Demand - U.S. refinery crude oil processing decreased to 16.379 million barrels per day, with a refinery utilization rate of 92.10% [2][47] U.S. Crude Oil Inventory - Total U.S. crude oil inventories increased to 877 million barrels, with commercial inventories rising by 5.451 million barrels [2][57] Global Crude Oil Inventory - Global crude oil in-transit and floating inventory reached 1.21 billion barrels, reflecting a net increase [2][69] Refined Oil Products - In North America, average prices for diesel, gasoline, and jet fuel were reported, with diesel at $182.48, gasoline at $138.82, and jet fuel at $177.95 per barrel [2][77]

Summary of Conference Call for Junxin Co., Ltd. Company Overview - **Company**: Junxin Co., Ltd. - **Industry**: Waste Management and Energy Generation Key Points Financial Performance - **2025 Revenue**: 2.748 billion RMB, a year-on-year increase of 33.6% [3] - **Net Profit**: 717 million RMB, a year-on-year increase of 33.6% [3] - **Operating Cash Flow**: 1.7 billion RMB, a year-on-year increase of 75% [3] - **Electricity Generation**: 1.84 billion kWh, a year-on-year increase of 24% [2] - **Electricity per Ton of Waste**: 486 kWh, a year-on-year increase of 5.7% [2] Waste Management Operations - **Total Waste Processed**: 3.78 million tons, a year-on-year increase of 14% [3] - **Kitchen Waste Processed**: 415,700 tons due to the acquisition of Renhe Environment [3] - **Industrial Mixed Oil Sales**: 30,700 tons with an average price of 7,100 RMB/ton [3][13] Project Developments - **Changsha Phase III Project**: Selected as a key project for 2026, with a processing capacity of 4,000 tons/day [2] - **Capital Expenditure for 2026**: Estimated at 500-600 million RMB, focusing on overseas projects [2][9] - **Overseas Projects**: Expected to follow a BOO model, with no confirmation of construction revenue [4] Profitability and Growth Potential - **Profit Contribution from Renhe Environment**: 230 million RMB, with potential for price adjustments of 5-6% annually [3][15] - **Future Profit Growth**: Expected from increased processing volumes and price hikes in waste management services [15] Dividend Policy - **Dividend Payout Ratio**: Minimum of 50%, with actual payout rates exceeding 70% over the past three years [2][8] - **Share Buyback Plan**: 200-300 million RMB buyback plan nearing completion, with uncertainty on future buyback plans [8] Challenges and Risks - **Q4 2025 Net Profit Decline**: Due to maintenance shutdowns and one-time accounting adjustments related to tax incentives [6] - **Impact of Weather on Operations**: A 20% decline in leachate treatment volume due to reduced rainfall [2][16] Future Outlook - **Sustainability of Electricity Generation Growth**: Continuous internal technological upgrades and collaboration with Renhe Environment expected to maintain growth [23] - **Expansion Plans**: Potential for further capacity expansion in kitchen waste processing and exploration of biodiesel production [15] International Expansion - **Bishkek Project**: Strong performance with high capacity utilization and expected profit contribution of around 8% [17] - **Future Projects**: Plans for projects in Issyk-Kul and Osh, with expected construction starts in 2026 [19][20] Regulatory and Market Conditions - **Hong Kong Listing**: Currently awaiting approval from the China Securities Regulatory Commission [12] - **Changes in Waste Processing Metrics**: New metrics for waste processing now reflect total incineration volume, allowing for year-on-year comparisons [22] This summary encapsulates the key insights from the conference call, highlighting the company's financial performance, operational developments, future outlook, and potential risks.

Core Viewpoint - The article discusses the recent adjustments made by the Dalian Commodity Exchange to the trading contracts for soybean oil and palm oil, highlighting the impact of rising energy prices and the shift in biofuel policies globally, particularly in Indonesia and the United States [1][3]. Group 1: Dalian Commodity Exchange Adjustments - On March 31, the Dalian Commodity Exchange modified the minimum price fluctuation for soybean oil and palm oil contracts from 2 yuan/ton to 1 yuan/ton, enhancing pricing precision and facilitating market operations [1][3]. - The changes will take effect from April 10, 2026, following approval from the exchange's board [3]. Group 2: Global Biofuel Policy Shifts - High oil prices have prompted countries to reassess their biofuel policies, transitioning from a focus on carbon reduction to energy security [3]. - Indonesia plans to increase its biodiesel blending ratio from 40% to 50% this year, while the U.S. Environmental Protection Agency (EPA) aims to raise biodiesel blending to 5.61 billion gallons, a 67% year-on-year increase [1][6][9]. Group 3: Price Movements and Market Dynamics - Brent crude oil prices surged over 47% in the past month, with palm oil prices rising 18% and U.S. soybean oil increasing over 10% [1]. - The price of Malaysian palm oil futures rose 18% in March, reaching a two-year high, driven by increased demand for biodiesel [6]. Group 4: U.S. Soybean Oil Demand - The EPA's new renewable fuel standards will significantly boost the demand for soybean oil, with projections indicating a 60% increase in biodiesel and renewable diesel quotas compared to 2025 [9][10]. - The value of soybean oil used for biofuel production in the U.S. is expected to reach $31 billion by 2026, a $2 billion increase from 2025 [9]. Group 5: Market Sentiment and Investor Behavior - The price of soybean oil for May delivery has risen to $0.70 per pound, with a monthly increase of over 10% and a year-to-date increase exceeding 40% [11]. - Investor sentiment towards soybean oil is at its highest in nearly a decade, with net long positions reaching the largest scale since 2016 [11].

Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Insights - The environmental protection industry is experiencing dual growth in cash flow and performance, with an emphasis on increasing dividends and a continuous focus on the bio-oil sector due to the revaluation of oil and gas assets [1] - The report highlights the significant growth potential in waste-to-energy, emphasizing its unique position as a scarce green energy source with substantial cash flow increases and resource value [1][19] - The report suggests that the sector is poised for growth driven by policy support, operational efficiency improvements, and international expansion opportunities [19] Industry Performance - The report indicates a 34% increase in performance for Longjing Environmental in 2025, with a revenue of 6.548 billion yuan and a net profit of 2.245 billion yuan [1] - The report notes that the waste sector is expected to see a significant increase in cash flow and dividend potential, with a projected increase in the dividend payout ratio from 114% to 141% [19] - The report also mentions the strong performance of companies like Green Power and Yongxing Co., with notable increases in revenue and net profit [1] Key Recommendations - The report recommends focusing on companies such as Longjing Environmental, Green Power, and Hanhai Environmental for their strong growth potential and dividend capabilities [1] - It also suggests monitoring companies like Deyu Water and Xinyuan Environment for their potential in the water sector, which is expected to follow a similar growth trajectory as waste-to-energy [20] Bio-Oil Sector Insights - The report states that the prices of bio-jet fuel and waste oil remain stable, with bio-jet fuel prices in Europe averaging $2800 per ton and in China at $2250 per ton [26] - The report highlights the profitability of bio-diesel production, with domestic prices for first-generation bio-diesel at 8100 yuan per ton, reflecting a 1% increase [26][27] Sanitation Equipment Market - The report notes a 208.44% year-on-year increase in sales of new energy sanitation vehicles, with a penetration rate of 32.38% [41] - It emphasizes the growth potential in the sanitation equipment sector driven by policy support and technological advancements [41] Lithium Battery Recycling - The report indicates stable profitability in lithium battery recycling, with prices for lithium and carbonate showing slight fluctuations [53][54] - It highlights the importance of improving recycling rates to enhance profitability in the sector [53]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The current core contradiction in the oil and feed industry lies in the tug - of - war between macro "uncertainty" and industrial "certainty", the race between short - term supply chain "disturbance" and long - term "looseness", and the interweaving of demand "total ceiling" and "structural change" [6]. - The key to winning in the complex game is to build three abilities: identifying the main contradiction in the macro fog, managing inventory and procurement rhythm in supply chain disturbances, and transforming uncertainty into a deterministic business strategy through financial tools and innovative service models in the stock market [6]. - The overall profit space of the industry is compressed, but it provides opportunities for enterprises with professional and refined operation capabilities to build moats and achieve leap - forward development [6]. 3. Summary According to the Directory 3.1 Macro Narrative Dominates Pricing, and the Industrial Analysis Framework Needs Reconstruction - Traditional supply - demand fundamental analysis is temporarily "ineffective", and geopolitical conflicts and crude oil prices have become the core factors leading to short - term price fluctuations of oils and fats, especially palm oil and soybean oil, resulting in a "war premium" in market prices that deviates from industrial inventory and consumption data [2]. - Market sentiment has become extremely cautious, with both buyers and sellers adopting a wait - and - see attitude, leading to a decline in trading activity and a "stability - seeking" mindset. The analysis framework of physical operators needs to be upgraded to a new model of "macro trend judgment first, industrial fundamentals verification later" [2]. 3.2 Supply: Intense Game between Long - term Loose Expectations and Short - term Structural Disturbances - Although there is a consensus on the long - term supply loosening pattern brought by the bumper harvest of South American soybeans, short - term, policy - related supply chain disturbances have become the key to affecting market rhythm and profits [2]. - The normalization of customs quarantine has extended the clearance and quarantine time of Brazilian soybeans from about one week to 20 - 25 days, causing a regional and phased supply shortage in mid - early April. The market generally expects a "tight - first, loose - later" situation, with the core game point being the duration of the "tight" period rather than the adequacy of the total supply [3]. - The overall increase in logistics costs, including international sea freight, domestic road freight, and container freight, will be a new cost pressure throughout the year and may affect the efficiency of cargo turnover [3]. 3.3 Demand: Structural Opportunities and Rigid Support under the Total Ceiling - The demand side has entered the stock era, with the end of the total growth story, but internal structural changes have created new balances and opportunities [3]. - For oil consumption, domestic demand is saturated, and external demand and substitution have become new highlights. Soybean oil is squeezing the market share of other oil types, and the core growth point in the future is exports. Biodiesel policies are a long - term factor affecting global oil demand [3][4]. - Despite the continuous losses in pig farming, high inventory and slaughter weight provide rigid support for feed demand. The decline in soybean meal demand will be a slow and gradual process, providing price elasticity space for upstream supply disturbances [4]. 3.4 Industrial Evolution: Risk Management Advancement and Deep Differentiation of Business Models - The high - volatility and low - growth environment are accelerating the differentiation and evolution of each link in the industrial chain. The basis trading has become the mainstream in spot transactions, and the financialization of the industry has deepened [4]. - In the upstream crushing and trading links, the core is refined position management and arbitrage trading. In the mid - stream feed enterprises, the core strategy is to ensure stable supply and cost control. The downstream breeding industry is in a "slow bottom - grinding" stage, with slow capacity reduction and mainly quarterly rebounds driven by the fat pig slaughter rhythm [5].

Group 1: Report Industry Investment Rating - The investment rating for the industry is cautiously bullish [3] Group 2: Core View of the Report - The restart of Indonesia's B50 biodiesel policy is positive for the oil and fat prices, leading to an upward oscillation in the prices of the three major oils [2] Group 3: Market Analysis Futures - The closing price of the palm oil 2605 contract was 9,930.00 yuan/ton, with a month - on - month change of +162 yuan and a change rate of +1.66% - The closing price of the soybean oil 2605 contract was 8,714.00 yuan/ton, with a month - on - month change of +26.00 yuan and a change rate of +0.30% - The closing price of the rapeseed oil 2605 contract was 9,891.00 yuan/ton, with a month - on - month change of +14.00 yuan and a change rate of +0.14% [1] Spot - The spot price of palm oil in Guangdong was 9,670.00 yuan/ton, with a month - on - month change of +40.00 yuan and a change rate of +0.42%. The spot basis was P05 - 260.00, with a month - on - month change of - 122.00 yuan - The spot price of first - grade soybean oil in Tianjin was 8,810.00 yuan/ton, with a month - on - month change of - 40.00 yuan/ton and a change rate of - 0.45%. The spot basis was Y05 + 96.00, with a month - on - month change of - 66.00 yuan - The spot price of fourth - grade rapeseed oil in Jiangsu was 10,420.00 yuan/ton, with a month - on - month change of +10.00 yuan and a change rate of +0.10%. The spot basis was OI05 + 529.00, with a month - on - month change of - 4.00 yuan [1] Group 4: Recent Market Information Agricultural Production in Brazil - The estimated soybean production in Brazil for the 2025/26 season is 178.4 million tons, higher than the previous estimate of 178 million tons - The estimated total corn production in Brazil for the 2025/26 season is 135.7 million tons, lower than the previous estimate of 136.2 million tons - As of last Thursday, the sown area of the second - round corn in central and southern Brazil in 2026 has reached 99% of the expected area, and the harvested area of soybeans in the 2025/26 season has reached 75% of the expected area [2] Palm Oil Production in Malaysia - The estimated palm oil production in Malaysia from March 1 - 20 increased by 0.92%. Specifically, production in the Malay Peninsula decreased by 3.61%, in Sabah increased by 5.59%, in Sarawak increased by 9.87%, and in East Malaysia increased by 6.67% [2] Inventory of Rapeseed and Rapeseed Oil - As of March 27, 2026, the rapeseed inventory of major coastal oil mills was 97,000 tons, a decrease of 31,000 tons from last week - The rapeseed oil inventory was 11,000 tons, remaining the same as last week [2]

Report Industry Investment Rating - No relevant information provided Core Viewpoints - The report presents the latest data on the export inspection volume of US soybeans, the progress of soybean harvesting in Brazil, the policy adjustment of palm oil blending ratio in Indonesia, and various price and spread data of oils and fats and oilseeds [1] Summary by Related Catalogs US Soybean Export Inspection - As of the week ending March 26, 2026, the US soybean export inspection volume was 586,427 tons, falling short of the market expectation of 600,000 - 1,250,000 tons, and the previous week's revised volume was 1,114,711 tons [1] - The soybean export inspection volume to the Chinese mainland during the same week was 270,424 tons, accounting for 46.11% of the total export inspection volume [1] - As of the week ending March 27, 2025, the US soybean export inspection volume was 817,870 tons [1] - So far this crop year, the cumulative US soybean export inspection volume is 29,783,385 tons, compared with 40,774,757 tons in the same period of the previous year [1] Brazil Soybean Harvest - According to Safras & Mercado, as of March 27, the soybean harvest of Brazil's 2025/26 season has completed 71.5% of the planted area. Although the progress has advanced compared with the previous week, it is still behind the same period of previous years [1] - AgRural reported that as of last Thursday, the soybean harvest rate of Brazil's 2025/26 season was 75%, an increase of 7 percentage points from the previous week, but lower than the 82% reported in the same period last year [1] - AgRural also raised its forecast for the 2025/26 soybean production from 178 million tons to 178.4 million tons [1] Indonesia's Palm Oil Policy - Indonesian President Prabowo Subianto announced on Monday during a visit to Japan that the country will increase the palm oil blending ratio in biodiesel from 40% to 50% this year, which means the country will promote the B50 biodiesel policy [1] Price and Spread Data - The report provides data on the import profit of various oils and fats (soybean oil, palm oil, rapeseed oil), the basis of protein meals (soybean meal, rapeseed meal) and oils and fats (soybean oil, palm oil, rapeseed oil), and the price spreads of various oilseeds and oils and fats [1]

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - International oil prices continue to fluctuate at high levels, with Brent and WTI prices recorded at 105.32 and 99.64 USD per barrel respectively as of March 27, 2026 [2][9] - The oil and petrochemical sector has shown mixed performance, with the oil and gas extraction sector down by 3.81% while the refining and trading sector increased by 1.08% [13] - The U.S. crude oil production decreased slightly to 13.657 million barrels per day, while the active rig count fell to 409 [43][43] - U.S. refinery crude processing increased to 16.598 million barrels per day, with a utilization rate of 92.90% [52] - Global floating and in-transit oil inventory decreased by 7.111 million barrels to 1.199 billion barrels [76] Summary by Sections Oil Price Review - As of March 27, 2026, Brent crude futures settled at 105.32 USD per barrel, down by 1.09 USD (-1.02%), while WTI crude futures increased by 1.41 USD (+1.44%) to 99.64 USD per barrel [26] Offshore Drilling Services - The number of global offshore self-elevating drilling platforms was 368, a decrease of 1 from the previous week, while floating drilling platforms increased to 136 [30] Crude Oil Supply - U.S. crude oil production was 13.657 million barrels per day, a decrease of 11,000 barrels from the previous week [43] - The number of active drilling rigs in the U.S. was 409, down by 5 [43] Crude Oil Demand - U.S. refinery crude processing increased by 366,000 barrels per day to 16.598 million barrels per day, with a refinery utilization rate of 92.90%, up by 1.5 percentage points [52] Crude Oil Inventory - U.S. total crude oil inventory was 872 million barrels, an increase of 6.926 million barrels (+0.80%) [61] - The commercial crude oil inventory rose to 456 million barrels, up by 6.926 million barrels (+1.54%) [61] Finished Oil Products - In North America, the average price for diesel, gasoline, and jet fuel was 176.49, 128.44, and 165.02 USD per barrel respectively [82] - In Europe, the average price for diesel, gasoline, and jet fuel was 180.57, 138.05, and 210.57 USD per barrel respectively [86]

Investment Rating - The report assigns a "Buy" rating for the environmental protection industry, consistent with the previous rating [2]. Core Insights - The solid waste sector shows potential for dividend growth, with a focus on AI recycling [1]. - The report highlights the stable growth and high dividend attributes of solid waste and water service companies, with 10 out of 16 companies reporting positive earnings growth for 2025 [12]. - The report emphasizes the opportunities for growth and valuation re-evaluation in the solid waste sector, driven by synergies in slag, green gas, and electricity generation [5]. - The rise of the "AI waste" sector is supported by new regulations and the expected growth in electronic waste recycling, with a projected market size of 500 billion yuan by the end of the 14th Five-Year Plan [5]. Summary by Sections Solid Waste and Water Service Companies - As of March 27, 2026, 16 environmental companies released their 2025 annual reports, with 10 showing positive growth. Notable performances include: - **China Everbright Environment**: 2025 revenue of 27.52 billion HKD (down 9% YoY), net profit of 3.925 billion HKD (up 16% YoY), with a dividend of 0.27 HKD per share [12]. - **C&E Environmental**: 2025 revenue of 4.76 billion CNY (up 6.11% YoY), net profit of 862 million CNY (up 6.83% YoY), with a dividend of 2.09 CNY per 10 shares [14]. - **Yongxing Environmental**: 2025 revenue of 4.287 billion CNY (up 13.9% YoY), net profit of 861 million CNY (up 4.9% YoY), with a commitment to a dividend payout ratio of over 60% [15]. Growth Opportunities in Solid Waste - The report identifies growth acceleration and valuation re-evaluation opportunities in the solid waste sector, particularly through the monetization of slag and the integration of electricity generation with waste incineration [5]. - The average earnings elasticity for 12 listed waste incineration companies could reach 44% under favorable conditions, indicating significant growth potential [5]. AI Waste Recycling Sector - The introduction of new regulations for electronic waste recycling is expected to formalize the AI waste recycling market, with a projected annual recovery market of 60-76 billion CNY from 2027-2028 [5]. - Companies with qualifications for electronic waste dismantling, such as Dadi Ocean and Huaxin Environmental, are expected to benefit significantly from this trend [5]. Policy and Market Trends - The report notes that multiple regions are enhancing green electricity direct connection policies, which will benefit waste incineration projects as they provide stable and low-cost green electricity [19]. - The government's focus on "computing power and electricity synergy" as a national strategy is expected to further drive growth in the sector [19][24].

Industry Investment Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Insights - The report highlights multiple development opportunities for China's biodiesel industry under changing trade patterns, particularly focusing on sustainable aviation fuel (SAF) and biofuels for shipping as key growth drivers [4][8][36] - The European Union's advanced decarbonization policies are seen as a significant influence on the biodiesel market, with a projected global SAF demand of 15.5 million tons by 2030 and 196 million tons by 2050 [5][46] Summary by Sections 1. Opportunities in China's Biodiesel Industry - The EU's proactive decarbonization efforts, including the European Green Deal and various legislative measures, create a favorable environment for biodiesel development [15][17] - China's biodiesel production primarily utilizes waste oils, which offer significant carbon reduction advantages compared to traditional feedstocks [28] 2. Global Aviation Emission Reduction Goals - The global aviation industry aims for net-zero carbon emissions by 2050, with SAF expected to contribute approximately 65% of the carbon reduction [39] - Various countries are implementing supportive policies for SAF, with the EU setting ambitious blending targets [43][45] 3. Shipping Emission Reduction Policies - The International Maritime Organization (IMO) has established strict emission reduction targets, positioning biofuels as a critical transitional solution for the shipping industry [36] 4. Domestic Market Growth - China's biodiesel market is poised for growth due to supportive government policies and pilot projects aimed at promoting biodiesel use [38] - The National Development and Reform Commission has initiated trials for SAF, indicating a commitment to expanding the domestic market for sustainable fuels [38] 5. Investment Recommendations - The report suggests focusing on publicly listed companies with significant biodiesel production capacity, such as Zhuoyue New Energy and Jiaao Environmental Protection, as well as companies specializing in waste oil collection [8][36]