碳市场扩容正式实施，企业环保减排需求有望增长

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the environmental sector [5]. Core Insights - The recent release of the "National Carbon Emission Trading Market Coverage Plan" by the Ministry of Ecology and Environment marks the formal implementation of the expansion of the carbon market, which is expected to increase the demand for corporate environmental protection and emission reduction [1][9]. - The plan specifies that approximately 1,500 new key emission units will be added, covering an additional 3 billion tons of carbon dioxide equivalent emissions. The allocation of carbon quotas will be based on verified actual emissions for 2024, with a balanced quota system for 2025 and 2026, and a gradual tightening of total quotas starting in 2027 [1][9]. Summary by Sections Industry Dynamics - The environmental sector index decreased by 1.98% from March 23 to March 29, underperforming the CSI 300 index, which increased by 0.01% [2][15]. - The overall index for the environmental engineering and services sector has performed well since the beginning of 2025, with a cumulative increase of 4.32%, outperforming the CSI 300 index by 4.82 percentage points [2][16]. Investment Recommendations - The "14th Five-Year Plan" is crucial for pollution prevention and ecological improvement, as well as achieving carbon peak by 2030. Investment opportunities are recommended in areas such as new energy sanitation equipment and comprehensive waste management [3][10]. - Key companies recommended include Yutong Heavy Industry, which benefits from the electrification trend in sanitation equipment, and Chengfa Environment and Hanlan Environment, which are undervalued in waste incineration operations [3][10]. Key Company Profit Forecasts - The report provides profit forecasts for key companies, including: - Yutong Heavy Industry (EPS forecast for 2025: 0.51 CNY, Buy rating) - Chengfa Environment (EPS forecast for 2025: 1.78 CNY, Buy rating) - Hanlan Environment (EPS forecast for 2025: 2.20 CNY, Buy rating) [14].