Market review: this week, the public utilities (Shenwan) industry index rose 5.94%, outperforming the Shanghai and Shenzhen 300 index by 5.12%, and the performance of the sector is stronger than the market. Among the fine-grained industries in the environmental protection industry, the water industry led the increase. Among the fine-grained industries in the public sector, thermal power led the increase.
Special research: according to the analysis and prediction report on the national power supply and demand situation in 2021-2022 issued by China Power Council, it is estimated that the whole society’s power consumption in 2022 will be 8.7-8.8 trillion kwh, with a year-on-year increase of 5% – 6%, and the whole society’s power consumption will continue to grow. In addition, the total installed capacity of non fossil energy power generation is expected to reach about 1.3 billion kw in 2022, which is expected to reach 50% of the total installed capacity, and the installed capacity of wind and solar renewable energy will increase significantly.
Industry trends: the guiding opinions on accelerating the construction of urban environmental infrastructure issued by the national development and Reform Commission, the Ministry of ecological environment, the Ministry of housing and urban rural development and the National Health Commission put forward that the main objectives of urban environmental infrastructure construction in 2025 include: 1) sewage treatment and resource utilization, with an additional sewage treatment capacity of 20 million m3 / day; 2) The capacity of solid waste disposal and comprehensive utilization has been significantly improved, the utilization scale has been continuously expanded, and the comprehensive utilization rate of new bulk solid waste has reached 60%. The implementation of the policy is beneficial to the sewage treatment and solid waste industry.
Investment suggestion: the low-carbon transformation of energy structure continues to advance, and the installed scale of green power is high during the 14th Five Year Plan period, with high certainty of growth. In addition, the green power pilot transaction was launched, which brought marginal benefits to green power enterprises from the price side, and carbon emission quota transaction and CCER transaction brought incremental performance sources to green power enterprises. The green power sector is expected to maintain a high outlook during the 14th Five Year Plan period. It is suggested to actively grasp the investment opportunities of the green power sector. Suggestions: 1) focus on China Three Gorges Renewables (Group) Co.Ltd(600905) , Jiangsu New Energy Development Co.Ltd(603693) , Zhongmin Energy Co.Ltd(600163) , Cecep Wind-Power Corporation(601016) , Cecep Solar Energy Co.Ltd(000591) , Jinko Power Technology Co.Ltd(601778) , Zhejiang Sunoren Solar Technology Co.Ltd(603105) dominated by scenery and clean energy; 2) China Resources Power, Huaneng Power International Inc(600011) , Jilin Electric Power Co.Ltd(000875) , Shanghai Electric Power Co.Ltd(600021) , Fujian Funeng Co.Ltd(600483) actively transforming the development of new energy. Environmental protection enterprises actively expand new increment and open the second growth curve. It is suggested to pay attention to Shengyuan Environmental Protection Co.Ltd(300867) , Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) , Wangneng Environment Co.Ltd(002034) actively promoting transformation and development. Waste recycling brings new market opportunities. It is suggested to pay attention to Road Environment Technology Co.Ltd(688156) of rapid and large-scale recycling of organic residue. During the 14th Five Year Plan period, the investment in power grid increases, and the distribution network and intellectualization are the main directions. It is suggested to pay attention to Hangzhou Shenhao Technology Co.Ltd(300853) of intelligent operation and inspection standard of power industry and Suwen Electric Energy Technology Co.Ltd(300982) of distribution network engineering construction and operation and maintenance. Industrial temperature control expert, promising target of energy storage and heat management Guangdong Shenling Environmental Systems Co.Ltd(301018) . The power shortage and the continuous widening of the price difference between peak and valley have promoted the demand for enterprise energy consumption control. It is suggested to pay attention to the enterprise microgrid integrated energy management solution supplier Acrel Co.Ltd(300286) .
Risk warning: the project progress is not as expected; Intensified market competition; The public materials used in the research report may have the risk of information lag or untimely update.
