CITIC Securities: Undervalued waste-to-energy companies expected to be reappraised

According to the research report of CITIC Securities, the revenue decline of the waste incineration power generation industry in the first half of 2025 has narrowed, performance has stabilized and rebounded, and both the operational and non-operational ends have shown a trend of continuous improvement. From the data of green electricity companies such as solar energy, the subsidy funds for renewable energy in January-August 2025 have reached a high point since 2020. It is speculated that the stubborn problem of mismatch between profits and cash flow of waste-to-energy companies may be resolved, and undervalued waste-to-energy companies may be revalued. In the first half of 2025, the industry's dividend signal has shifted towards positivity, and the industry's return strength is expected to increase.