Market review: as of February 18, 2022, Shenwan environmental protection industry rose 2.74% in the week, outperforming the Shanghai and Shenzhen 300 index by 1.65 percentage points, ranking eighth among Shenwan 31 industries; Shenwan environmental protection sector rose 8.48% in the month, outperforming the Shanghai and Shenzhen 300 index by 6.56 percentage points, ranking fifth among Shenwan 31 industries; Shenwan environmental protection sector has risen 17.52% since the beginning of 2021, outperforming the Shanghai and Shenzhen 300 index by 28.27 percentage points and ranking ninth among Shenwan 31 industries.
As of February 18, 2022, the sub boards of Shenwan environmental protection industry have increased. From the performance of the week, the environmental governance sector rose 3.01%, and the environmental protection equipment sector rose 1.07%. From the performance of the month, the environmental governance sector rose 9.16%, and the environmental protection equipment sector rose 4.52%. From the performance since the beginning of 2021, the environmental protection equipment sector increased the most, with an increase of 22.69%, and the environmental governance sector increased by 16.78%.
Among the top ten stocks that rose in the week, Bceg Environmental Remediation Co.Ltd(300958) , Henan Qingshuiyuan Technology Co.Ltd(300437) and Tus Environmental Science And Technology Development Co.Ltd(000826) ranked among the top three in Shenwan environmental protection, with increases of 25.50%, 25.48% and 21.13% respectively. Among the top ten stocks that fell in the week, Kingland Technology Co.Ltd(000711) , Guangdong Shunkong Development Co.Ltd(003039) and Jiangsu Huahong Technology Co.Ltd(002645) fell significantly, with declines of 16.10%, 8.57% and 5.67% respectively.
Valuation: as of February 18, 2022, the PE (TTM) of Shenwan environmental protection sector was 21.82 times; In terms of sub sectors, the PE (TTM) of Shenwan environmental treatment sector is 21.28 times, and the PE (TTM) of Shenwan environmental protection equipment sector is 25.86 times.
Important news: (1) the State Council decided to carry out the third national soil survey from 2022. (2) The Jiangsu provincial government recently issued the “14th five year plan” for the construction of ecological and environmental infrastructure in Jiangsu Province to promote the acceleration of the construction of ecological and environmental infrastructure and further consolidate the foundation for the modernization of ecological and environmental governance system and governance capacity.
Viewpoint of Environmental Protection Industry Week: the Jiangsu provincial government recently issued the “14th five year plan” for the construction of ecological and environmental infrastructure in Jiangsu Province to promote the acceleration of the construction of ecological and environmental infrastructure and further consolidate the modernization foundation of ecological and environmental governance system and governance capacity. The infrastructure construction of ecological environment continues to advance, and the field of sewage treatment and solid waste treatment is expected to benefit. It is suggested to pay attention to the targets of sewage treatment Chengdu Xingrong Environment Co.Ltd(000598) (000598), Beijing Originwater Technology Co.Ltd(300070) (300070), waste incineration power generation Zhejiang Weiming Environment Protection Co.Ltd(603568) (603568), Grandblue Environment Co.Ltd(600323) (600323), Chongqing Sanfeng Environment Group Corp.Ltd(601827) (601827), Dynagreen Environmental Protection Group Co.Ltd(601330) (601330), solid waste 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 construction progress of the project is less than expected; Product price fluctuation risk; The promotion of carbon emission trading was less than expected.
