Market review: as of December 10, 2021, Shenwan public utility industry rose 0.01% in the week, underperformed the CSI 300 index by 3.13 percentage points, and ranked 20th among Shenwan’s 28 industries. Among the top ten stocks that rose in the week, Jiangsu Jiangnan Water Co.Ltd(601199) , Huadian Power International Corporation Limited(600027) and Guangzhou Hengyun Enterprises Holdings Ltd(000531) ranked among the top three in Shenwan public utilities, with increases of 20.79%, 17.51% and 16.14% respectively. Among the top ten stocks that fell in the week, Top Resource Conservation & Environment Corp(300332) , Beijing Water Business Doctor Co.Ltd(300055) and Zhejiang Sunoren Solar Technology Co.Ltd(603105) fell significantly, with declines of 10.73%, 8.61% and 8.59% respectively. In terms of valuation, as of December 10, 2021, the PE (TTM) of Shenwan public utilities sector was 20.98 times.
Zhou viewpoint of the public utility industry: in the early stage, the Ministry of ecology and environment issued documents such as the measures for the management of hazardous waste transfer; Recently, the Department of ecological environment of Jilin Province proposed to continuously strengthen the construction of hazardous waste supervision capacity and comprehensively improve the level of hazardous waste environmental supervision. The central and local governments are continuously increasing their attention to hazardous waste treatment, and the corresponding links in the industrial chain are expected to benefit, It is recommended to continue to pay attention to Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645) related subjects of solid waste treatment. In addition, it is recommended to pay attention to 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) subjects of waste incineration benefiting from carbon emission right trading.
Risk warning: policy promotion is not as expected; The progress of the construction project is less than expected; Product price fluctuation risk; The promotion of carbon emission trading was less than expected.
