According to Huatai Securities Research Report, UCO is a key raw material for biodiesel and sustainable aviation fuel. Huatai Securities estimates that in 2024, global UCO production will be about 7.4 million tons, 68% of which will go to the biofuel industry. Under Chinese standards, UCO includes frying oil, sump oil, gutter oil, etc. Among them, cooking waste oil collected directly from the production site must be recycled by certified waste oil collection and transportation units, and leading food and kitchen companies rely on franchises and transportation qualifications to form an important source of compliant supply. Huatai Securities believes that as the EU's UDB full-process traceability and ISCC certification requirements become stricter, compliance qualifications themselves constitute a scarce barrier — leading food companies with formal collection and transportation qualifications, full-process traceability systems, and stable oil extraction capabilities are expected to fully benefit from the UCO price increase cycle, and profit flexibility is expected to be highlighted. The proposal follows two main lines of layout: one is to focus on food waste disposal companies that have UCO's raw material resource advantages and large-scale collection and transportation capabilities and directly benefit from UCO price increases; the second is from the perspective of processing extension and certification, focusing on stabilizing waste oil sources, having continuous expansion capacity, and gradually extending to a high-value-added biofuel industry chain, and taking the lead in completing the construction of an international certification system, which is expected to enjoy higher export premiums and increased market share as overseas demand continues to expand.

According to Huatai Securities Research Report, UCO is a key raw material for biodiesel and sustainable aviation fuel. Huatai Securities estimates that in 2024, global UCO production will be about 7.4 million tons, 68% of which will go to the biofuel industry. Under Chinese standards, UCO includes frying oil, sump oil, gutter oil, etc. Among them, cooking waste oil collected directly from the production site must be recycled by certified waste oil collection and transportation units, and leading food and kitchen companies rely on franchises and transportation qualifications to form an important source of compliant supply. Huatai Securities believes that as the EU's UDB full-process traceability and ISCC certification requirements become stricter, compliance qualifications themselves constitute a scarce barrier — leading food companies with formal collection and transportation qualifications, full-process traceability systems, and stable oil extraction capabilities are expected to fully benefit from the UCO price increase cycle, and profit flexibility is expected to be highlighted. The proposal follows two main lines of layout: one is to focus on food waste disposal companies that have UCO's raw material resource advantages and large-scale collection and transportation capabilities and directly benefit from UCO price increases; the second is from the perspective of processing extension and certification, focusing on stabilizing waste oil sources, having continuous expansion capacity, and gradually extending to a high-value-added biofuel industry chain, and taking the lead in completing the construction of an international certification system, which is expected to enjoy higher export premiums and increased market share as overseas demand continues to expand.