Industry dynamic information
One week market review
From February 14 to February 20, the Shanghai Composite Index rose 0.8 percentage points in a single week to 3490.76; The CSI 300 index rose 1.08 percentage points in a single week. The environmental protection (Shenwan) index rose 2.74%, outperforming the CSI 300 index (up 1.08%) by 1.65 percentage points and losing the gem index (up 2.93%) by 0.19 percentage points. Since the beginning of 2022, the overall index of environmental protection engineering and service sector has performed well, with a cumulative decline of 2.59%, outperforming the Shanghai and Shenzhen 300 index by 3.26 percentage points.
Key points and investment suggestions of this week
Recently, the State Council issued the notice on carrying out the third national soil survey, and decided to carry out the third national soil survey from 2022. We believe that the third soil survey will help to improve the protection and utilization of soil resources, lay a solid foundation for holding the red line of cultivated land, and the relevant targets of soil remediation and environmental monitoring are expected to benefit. Yunnan issued the 14th five year plan for the construction of urban sewage treatment and recycling facilities in Yunnan Province. During the 14th Five Year Plan period, the sewage treatment scale of newly built, reconstructed and expanded cities and towns in the province was 2.0787 million cubic meters / day, the standard upgrading and transformation was 1.319 million cubic meters / day, and the new sludge harmless treatment scale was 2120 tons / day, The investment in urban sewage treatment and recycling facilities was 32.674 billion yuan. We believe that although China’s sewage treatment rate has been at a high level at the end of the 13th five year plan, the trend of sewage upgrading, transformation and recycling during the 14th Five Year Plan period is prominent, and the sewage treatment market space is expected to continue to open. In the field of sanitation, we recommend Infore Environment Technology Group Co.Ltd(000967) , Yutong Heavy Industries Co.Ltd(600817) and fulongma, which benefit from the trend of electrification of sanitation equipment and have the whole industrial chain of sanitation equipment manufacturing and sanitation operation; In the field of waste incineration, the waste incineration leader Grandblue Environment Co.Ltd(600323) with large capacity increment is recommended; In terms of sewage treatment, we suggest paying attention to regional sewage operation enterprises Cecep Guozhen Environmental Protection Technology Co.Ltd(300388) .
Industry highlights:
1) the “14th five year plan” for ecological and environmental protection of Anhui Province was printed and distributed;
2) the 14th five year plan for the construction of urban sewage treatment and recycling facilities in Yunnan Province was issued;
3) Guangzhou Municipal Water Affairs Bureau issued the master plan of Guangzhou sewage system (2021-2035) (Draft for public comments);
4) Xingtai municipal government office printed and distributed the “14th five year plan” for Xingtai to build Beijing Tianjin Hebei ecological environment support area;
5) the general office of Liaoning Provincial People’s government issued the “14th five year plan” for ecological environment protection of Liaoning Province.
Risk analysis: the risk of deterioration of the financial situation of the environmental protection company; The risk that the promotion and implementation of policies are less than expected; The risk that the governance demand is less than expected.
