Environmental protection perspective: the United Nations Environment Conference is scheduled to be held, and the global plastic recycling rate is expected to increase
The resumed fifth session of the United Nations Environment assembly will be held from February 28 to March 2, 2022. Governments around the world will discuss the formulation of the first global treaty to deal with plastic pollution. 1) The global plastic pollution is serious, and the ocean has become a serious disaster area. The United Nations Environment Conference has paid special attention to it. The value of marine plastics is estimated to be $580 billion in 2020, compared with the global natural capital market. 2) At present, China’s waste plastic recycling system is not perfect, and most areas still rely mainly on individual recyclers, with low recycling efficiency. In 2020, China produced about 60 million tons of waste plastics, with only about 16 million tons recovered, and the overall recovery rate of waste plastics was only 26.7%. 3) Policies encourage to improve the processing and utilization level of renewable resources. According to the opinions on Further Strengthening the treatment of plastic pollution, by 2022, the consumption of disposable plastic products will be significantly reduced, alternative products will be promoted, and the proportion of plastic waste recycling and energy utilization will be greatly increased. 4) The global amount of plastic waste is huge, the recycling rate is low, and the environmental impact is great. Since 2015, the global output of plastic waste has continued to increase, exceeding 300 million tons per year. At present, only 9% of the disposable plastic products produced in the world can be recycled. According to the United Nations Environment Programme, if no action is taken, the greenhouse gas emissions from the production, recycling and incineration of plastics may account for 19% of the total emissions allowed by the Paris Agreement in 2040. 5) The threshold of plastic recycling and disposal is raised, which benefits the head enterprises. In 2015, the Ministry of industry and information technology issued the industrial standard conditions for comprehensive utilization of waste plastics, which pointed out that: (1) pet recycled bottle and chip Enterprises: the annual waste plastic treatment capacity of new enterprises shall not be less than 30000 tons; The annual waste plastic treatment capacity of established enterprises shall not be less than 20000 tons. (2) Waste plastic crushing, cleaning and sorting Enterprises: the annual waste plastic treatment capacity of new enterprises shall not be less than 30000 tons; The annual waste plastic treatment capacity of established enterprises shall not be less than 20000 tons. (3) Plastic recycling and granulation Enterprises: the annual waste plastic treatment capacity of newly-built enterprises shall not be less than 5000 tons; The annual waste plastic treatment capacity of established enterprises shall not be less than 3000 tons. Since then, the Ministry of industry and information technology has publicized 38 enterprises that meet the standards and conditions of the plastic comprehensive utilization industry, further raising the industry threshold. With the gradual improvement of the recycling system, leading enterprises are expected to benefit from the tide of global plastic governance. It is suggested to pay attention to: Shandong Intco Recycling Resources Co.Ltd(688087) , Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) , Kingfa Sci.& Tech.Co.Ltd(600143) , etc.
Expertise and innovation viewpoint: the 10 billion award subsidy supports the cultivation of “expertise and innovation” enterprises, and pays attention to the two investment main lines of domestic substitution and “carbon neutralization”
The Ministry of Finance and the Ministry of industry and information technology jointly issued the notice on supporting the high-quality development of “specialized, special and new” small and medium-sized enterprises, which made it clear that from 2021 to 2025, the central government will arrange more than 10 billion reward and subsidy funds in three batches (each batch shall not exceed three years) to focus on supporting the high-quality development of more than 1000 national specialized, special and new “little giant” enterprises, At the same time, we will guide local governments to improve their support policies and public service system, and drive about 10000 small and medium-sized enterprises to grow into national specialized and new “little giant” enterprises. Considering the strength of policy support and the urgency of demand, it is suggested to pay attention to two main investment lines: 1) domestic substitution: there is a problem of high import dependence in some “neck” areas of manufacturing industry. Under the background of trade friction, the demand for domestic substitutes such as core parts is becoming stronger and stronger. Made in China 2025 proposes that 70% of core basic parts and key basic materials will be independently guaranteed by 2025. With the encouragement of policies, the R & D process of alternative products with core competitiveness is expected to accelerate and drive the rapid growth of relevant enterprises. 2) “Carbon neutralization”: the 30 / 60 target is determined. It is expected that during the 14th Five Year Plan period, the installed scale of photovoltaic and wind power and the penetration rate of new energy vehicles are expected to accelerate, driving the rapid growth of the demand for components and equipment in the whole industry chain.
Industry rating and investment strategy: the short-term and medium-term demand of some segments of the environmental protection industry has increased, and the overall valuation of the industry is slightly higher than the average value of recent one year, which can be arranged on bargain hunting; There is an urgent need for the cultivation of “specialized, special and new” enterprises and strong policy support, which is conducive to the rapid development of enterprises in the industry. Based on this, we maintain the “recommended” rating of environmental protection & specialized, special and new industries.
Suggestions for attention this week: Pony Testing International Group Co.Ltd(300887) (buy), Gcl Energy Technology Co.Ltd(002015) , Shenzhen Yanmade Technology Inc(688312) , Guangdong Huatie Tongda High-Speed Railway Equipment Corporation(000976)
Risk warning: the progress of policy implementation is less than expected; The order growth rate of listed companies was lower than expected; Changes in tax preference system; The progress of M & A is less than expected; Repeated impact of the epidemic; Focus on the company’s performance less than expected.
