Market review: as of January 28, 2022, Shenwan environmental protection industry fell 3.93% in the week, outperforming the Shanghai and Shenzhen 300 index by 0.58 percentage points, ranking ninth among Shenwan 31 industries. Among the top ten stocks that rose in the week, Kingland Technology Co.Ltd(000711) , Shenwu Energy Saving Co.Ltd(000820) and Focused Photonics (Hangzhou) Inc(300203) ranked among the top three in Shenwan environmental protection, with increases of 51.09%, 10.16% and 3.97% respectively. Among the top ten stocks that fell in the week, Guangxi Bossco Environmental Protection Technology Co.Ltd(300422) , Beijing Sdl Technology Co.Ltd(002658) and Hangzhou Dadi Haiyang Environmental Protection Co.Ltd(301068) fell significantly, with declines of 18.42%, 13.94% and 10.79% respectively. In terms of valuation, as of January 28, 2022, the PE (TTM) of Shenwan environmental protection sector was 20.13 times.
Zhou viewpoint of environmental protection industry: Recently, the Jiangsu Provincial People's government issued the implementation plan for strengthening the supervision, utilization and disposal capacity of hazardous waste in Jiangsu Province, which proposed that the collection and disposal capacity of hazardous waste such as fly ash and waste salt from medical waste and domestic waste incineration meet the actual needs, the harmless disposal rate of medical waste in built-up areas of cities above the county level reaches 100%, and the harmless disposal rate of solid waste and hazardous waste Policies related to recycling are gradually rolled out across the country. It is suggested to pay attention to the targets related to solid and hazardous waste treatment Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645).
Risk warning: policy promotion is not as expected; The progress of the construction project is less than expected; Product price fluctuation risk, etc.
