Guotai Haitong: Solid waste cash flow improves, resource recovery profit elasticity released.

Guotai Haitong released a research report stating that, in terms of environmental protection dividend plays, leading solid waste and water services companies have delivered steady performance and improved free cash flow, supporting high dividend payouts; accelerated recovery of national subsidies and contraction in capital expenditure are jointly driving higher dividends. In terms of renewable resources, the release of hazardous and solid waste metal resource recovery capacity is resonating with the upward trend in metals, with both volume and price rising in the resource recovery business, while demand for biodiesel and SAF remains strong and the industry continues to enjoy high prosperity. In 2026H1, the environmental protection industry's overall performance continued to grow, with profit increments concentrated in hazardous waste and renewable resources.