The target of comprehensive utilization rate of domestic waste and industrial solid waste will be issued in 2025. 1. On February 9, the general office of the State Council forwarded the guiding opinions on accelerating the construction of urban environmental infrastructure issued by the national development and Reform Commission and other departments. The opinion proposes that by 2025, the new sewage treatment capacity will be 20 million m3 / day, and the harmless disposal rate of urban sludge will reach 90%; The classified collection and transportation capacity of domestic waste reaches about 700000 tons / day, and the incineration capacity of urban domestic waste reaches about 800000 tons / day; The resource utilization rate of urban domestic waste reaches about 60%. The opinion encourages the research and development of solid waste treatment technology and the deep recycling of hazardous waste treatment; Through policy support for the construction of environmental protection infrastructure, we will orderly promote environmental protection infrastructure, accelerate the specialization and centralization of environmental protection infrastructure construction, and benefit environmental protection infrastructure construction enterprises. 2. On February 10, the Ministry of industry and information technology and other eight departments recently jointly issued the implementation plan on accelerating the comprehensive utilization of industrial resources. The plan proposes that by 2025, the production intensity of industrial solid waste in key industries such as iron and steel, nonferrous metals and chemical industry will decrease, the comprehensive utilization level of bulk industrial solid waste will be significantly improved, the renewable resources industry will develop continuously and healthily, and the comprehensive utilization efficiency of industrial resources will be significantly improved. The plan points out that the comprehensive utilization rate of bulk industrial solid waste should reach 57%, and the comprehensive utilization of waste resources should be further standardized, so as to promote the development of resource-based enterprise clusters, form industrial parks and benefit the resource-based enterprises of hazardous waste. 1) In terms of domestic waste treatment, it is recommended to pay attention to Zhejiang Weiming Environment Protection Co.Ltd(603568) with outstanding roe and rapid growth of equipment sales revenue; Grandblue Environment Co.Ltd(600323) with excellent management; 2) In terms of hazardous waste recycling, it is recommended to focus on hazardous waste disposal companies with rich projects and strong technical barriers Zhefu Holding Group Co.Ltd(002266) ; There are many high-quality projects for hazardous waste and waste incineration, and the operation is accelerated. 3) In terms of sewage treatment, it is recommended to pay attention to Hongcheng water industry with low valuation and high dividend rate.
New loans exceeded expectations, and the scale of new loans in a single month hit a record high. According to the macro statistics of Guosheng, RMB loans increased by 3.98 trillion in January 2022, which is expected to be 3.77 trillion, compared with 3.58 trillion in the same period last year; Social finance increased by 6.17 trillion, expected to be 5.45 trillion, compared with 5.19 trillion in the same period last year; The growth rate of social finance stock was 10.5%, the former value was 10.3%;. Since 2022, credit social finance has significantly exceeded market expectations. Medium and long-term loans have increased year-on-year for the first time in six months. The growth rate of social finance stock has rebounded for three consecutive months, pointing to the continuous development of stable growth policy and the road of credit relief. Environmental protection enterprises have ushered in a financing market with further optimized market credit structure and warmer economic expectations.
Valuation bottomed out, focusing on stable operating assets and companies with reversed fundamentals. Over the past three years, the performance of the environmental protection sector has been sluggish, and the valuation and positions are still low. The introduction of environmental protection REITs provides new equity financing tools. Pollution control operations such as urban sewage and waste treatment, solid waste and hazardous waste treatment are key industries. Enterprises with strong technical advantages and high wall barrier are favored. 1. Waste incineration companies with strong growth and certainty, Focus on Zhejiang Weiming Environment Protection Co.Ltd(603568) (ROE industry-leading and sufficient orders), Grandblue Environment Co.Ltd(600323) (steady growth and obvious valuation advantages); 2. Hazardous waste disposal companies with rich projects in hand, strong technology and high barriers pay attention to Zhefu Holding Group Co.Ltd(002266) (new leader of hazardous waste and layout of the whole industrial chain), Beijing Geoenviron Engineering & Technology Inc(603588) (leader of soil remediation benefiting from financing improvement); 3. Water companies whose value is expected to be revalued pay attention to Hongcheng water industry (Jiangxi sewage market has great potential, and the valuation and dividend rate are attractive).
Industry news: 1) the four ministries and commissions jointly issued the construction plan of major ecological protection and restoration projects in the northern sand prevention zone (2021-2035); 2) The Ministry of industry and information technology and other three departments issued the action plan for high quality development of environmental protection equipment manufacturing industry (2022-2025).
Plate Market Review: the environmental protection sector performed well this week, outperforming the market and the gem. Last week, the Shanghai Composite Index rose by 3.02%, the gem index rose by – 5.59%, the environmental protection engineering and services (Shenwan) rose by 3.53%, outperforming the Shanghai Composite Index by 0.51% and the gem by 9.12%; Public utilities rose by 5.94%, outperforming the Shanghai Composite Index by 2.92% and the gem by 11.18%. Monitoring (0.69%), atmosphere (5.46%), water treatment (6.53%), solid waste (4.40%), water operation (7.27%), energy saving (3.82%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
