The pilot of hazardous waste and sewage treatment policies were accelerated. 1. On February 24, the Ministry of ecology and environment issued a notice on the pilot collection of hazardous waste by small and micro enterprises. The notice puts forward that the relevant ecological and environmental departments need to strictly examine the collection units; Focus on small and micro enterprises with an annual total of less than 10 tons of hazardous waste in the administrative area as the focus of collection services, while taking into account government institutions, scientific research institutions, schools and other units and social sources; Strengthen the supervision of the whole process of hazardous waste collection, storage and transfer; Guide the construction of an integrated hazardous waste treatment mechanism. The gradual implementation of the pilot is expected to further open the demand space for hazardous waste recycling and benefit the leading enterprises of hazardous waste. Recommended concerns: 1) hazardous waste disposal companies with rich projects in hand and strong technical barriers Zhefu Holding Group Co.Ltd(002266) ; 2) There are many high-quality projects for hazardous waste and waste incineration, and the operation is accelerated Beijing Geoenviron Engineering & Technology Inc(603588) . 2. Many provinces and cities have issued water treatment policies to benefit sewage recycling enterprises. All provinces and cities have issued policies to support sewage treatment and put forward the construction objectives of sewage treatment facilities. Inner Mongolia: strengthen the sewage treatment level of the Yellow River Basin; Jiangxi Province: ecological assessment of Poyang Lake; Hunan Province: coordinate the construction of urban and rural centralized sewage treatment facilities and supporting pipe networks to ensure normal operation and improve urban and rural sewage collection and treatment capacity; Chongqing: it is estimated that during the 14th Five Year Plan period, 15 new disposal projects will be expanded and the new disposal capacity will be 3170 tons / day. The harmless disposal capacity of the whole city will reach 9007 tons / day, meeting the harmless disposal capacity of 6710 tons / day. With strong policy support, the sewage treatment space is expected to meet the continuous growth and benefit the leading water enterprises. It is recommended to pay attention to 1) Hongcheng water industry with attractive valuation and dividend yield; 2) World class membrane equipment manufacturer and supplier Beijing Originwater Technology Co.Ltd(300070) .
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, Pay attention to 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) Henan Province’s “14th five year plan” modern energy system and carbon peak carbon neutralization plan; 2) Opinions of the CPC Central Committee and the State Council on doing a good job in the key work of comprehensively promoting rural revitalization in 2022.
Plate Market Review: the environmental protection sector performed generally this week, outperforming the market and losing the gem. Last week, the Shanghai Composite Index rose by – 1.13%, the gem index rose by 1.03%, and environmental protection projects and services fell by – 1.12%, outperforming the Shanghai Composite Index by 0.01% and losing the gem by 2.15%; Public utilities rose by 1.96%, outperforming the Shanghai Composite Index by 3.09% and the gem index by 0.93%. Monitoring (- 1.69%), atmosphere (2.29%), water treatment (- 1.75%), solid waste (- 0.60%), water operation (- 3.47%), energy saving (3.82%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
