Investment summary:
Talk every Monday:
In February 22nd, the CPC Central Committee and the State Council made the recommendations on the key work of Promoting Rural Revitalization in 2022, that is, the No. 1 central document issued in 2022.
Continue to implement the “five-year action for remediation and upgrading”, and environmental governance continues to extend to villages and towns. The opinions proposes to continue to implement the five-year action to improve the rural living environment, and carry out remediation and improvement in four aspects: rural sanitary toilets, sewage treatment, domestic waste and living environment.
Choose various solutions according to local conditions, centralized integration vs miniaturization and decentralized
Adjusting measures to local conditions has become the focus of policy implementation: the centralized urban-rural integration construction and the adoption of small decentralized ecological facilities are two options put forward according to local conditions according to different living density and economic development level.
Integrated treatment of rural fecal sewage vs on-site absorption and resource utilization: in view of the difference in the development level of rural toilets and domestic sewage treatment facilities, we choose to integrate the unified treatment of sewage pipe network, centralized treatment and decentralized treatment of fecal sewage, and encourage on-site agricultural absorption and comprehensive utilization of fecal sewage.
Ecological treatment technologies such as sewage treatment in urban-rural fringe and densely populated areas vs constructed wetlands: according to the differences of economic development level and regional development level, rural domestic sewage treatment schemes in concentrated areas and ecological treatment schemes such as constructed wetlands and soil infiltration are selected.
County Township Village three-level collection, transportation and disposal system vs miniaturization and decentralized treatment scheme: according to the actual local development level, select the County Township Village three-level collection and transportation integrated system or miniaturization and harmless treatment method. Encourage the coordinated resource utilization of domestic waste, toilet manure and agricultural organic waste, as well as the solution of on-site consumption of construction waste. Urban and rural development is uneven, and there is huge room for improvement.
There are great differences in the progress of urban and rural development and environmental governance, and there is broad room for improvement. China’s total wastewater discharge has exceeded 100 billion m3 / year, including 23 billion m3 / year of rural domestic sewage. According to the comprehensive water environment treatment plan of the 14th five year plan of the national development and Reform Commission, at the end of the 13th five year plan, the treatment rate of rural domestic sewage was only 25.5%, which is still at a low level compared with the treatment rate of more than 95% of urban sewage. The highly unbalanced level of urban and rural development contains huge room for improvement.
Technical challenges remain, and policies encourage miniaturization and decentralized local consumption solutions. The distribution of rural population is scattered, the regional development is unbalanced, and it is difficult to collect and deal with it centrally; The water volume fluctuates greatly, and the seasonal difference between the South and the north is also obvious. It can be judged that the rural environmental protection market, especially the rural sewage market, is still a state of coexistence of space and challenges. Compared with the centralized treatment of cities and towns, miniaturized and decentralized local consumption solutions are more encouraged in various policies. Investment strategy: it is suggested to pay attention to small-scale decentralized sewage treatment and waste treatment solution suppliers, as well as experienced environmental protection enterprises in rural sewage treatment and urban-rural sanitation integration. For example, Csd Water Service Co.Ltd(603903) , Qiaoyin City Management Co.Ltd(002973) .
Market review:
Last week, Shenwan environmental protection sector rose or fell – 1.74%, ranking 18 / 31 in Shenwan level industry.
In terms of sub sections, the four Shenwan class III sections of atmospheric governance, water and water governance, solid waste governance and comprehensive environmental governance rose or fell by 0.29%, – 2.56%, – 1.65%, – 3.72%.? In terms of specific stocks, the top three stocks with rising and falling ranges are Wuhan Xianglong Power Industry Co.Ltd(600769) (11.9%), Fujian Longking Co.Ltd(600388) (7.52%), Suntar Environmental Technology Co.Ltd(688101) (7.24%).
Risk tip: policy promotion is not as expected, project progress is not as expected, etc.
