The importance of environmental protection is highlighted, and the demand for waste incineration and sewage treatment continues to increase. 1. On March 5, the fifth session of the 13th National People's Congress opened in the Great Hall of the people. The work report proposes to continue to strengthen the treatment of ecological environment, deepen the reform of ecological environment prevention and control, and put forward further guidance on sewage treatment, recycling, renewable energy and carbon market. The importance of environmental protection is highlighted. In terms of sewage treatment, we will strengthen the pollution control of important rivers, lakes and bays. In terms of solid waste treatment, we will strengthen solid waste treatment and promote waste classification, reduction and recycling. In terms of renewable energy, accelerate the installation of renewable energy, promote the planning and construction of large-scale wind and solar power bases and their supporting regulatory power sources, and improve the consumption capacity of the power grid for renewable energy power generation. In terms of carbon market, we will continue to standardize the carbon emission trading market. Recommended concerns: 1) hazardous waste disposal companies with rich projects in hand and strong technical barriers Zhefu Holding Group Co.Ltd(002266) ; There are many high-quality projects for hazardous waste and waste incineration, and the operation is accelerated Beijing Geoenviron Engineering & Technology Inc(603588) . 2) Renewable energy operators with clear installation planning and excellent quality. 2. On March 3, the general office of the State Council issued the implementation opinions on strengthening the supervision and administration of sewage outlets into rivers and seas. The opinion proposes to complete the investigation of sewage outlets in the main streams, important tributaries, key lakes and key bays of seven major basins such as the Yangtze River and the Yellow River by the end of 2023; We will promote the regulation of sewage outlets in the main streams and important tributaries of the Yangtze and yellow rivers and the Bohai Sea. By the end of 2025, complete the investigation of all sewage outlets in seven watersheds and coastal waters; Basically complete the regulation of sewage outlets in seven river basins, major tributaries, key lakes and key bays; Establish a relatively complete legal system, scientific technical system and efficient management system for sewage outlet supervision and management. The opinions will further clarify the subject of responsibility for sewage discharge, further standardize and strictly enforce the audit system for sewage discharge, and benefit the mature water operation 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) .
Monetary policy has officially shifted to easing. According to the view of Guosheng macro group: (1) monetary policy: wide currency is gradually landing, wide credit is on the way, and stable growth with leverage can be expected. The Q4 central bank's monetary policy report continued to set the tone of "giving full play to the dual functions of aggregate and structure; sufficient force, accurate force and forward force; effectively expanding loan lending", and reconfirmed that monetary policy has officially shifted to comprehensive easing. Since the end of last year, the one-year LPR has been reduced on December 20, the standard reserve requirement has been reduced on December 6, the interest rate has been reduced on January 17 and the LPR has been reduced again on January 20. The broad currency is gradually landing. In January, the new social finance reached 6.17 trillion yuan, the new scale in a single month hit a record high, and the six-month low growth of enterprise credit also ended, pointing to the fact that credit is on the way. In the future, with the loose and overweight real estate policy, social finance is expected to maintain a high growth, and the growth rate of social finance stock in Q1 is expected to be 10.5% - 11%. (2) Interest rate trend: looking back, the main contradiction of interest rate bonds in the future is the game between "wide currency" and "wide credit". The short-term probability is mainly volatile, which needs to be further verified by economic data.
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) Notice of the Ministry of Finance and the Ministry of ecological environment on carrying out the pilot work of black and odorous water treatment in rural areas in 2022; 2) Work plan for eliminating backward production capacity in the cement industry of the whole province.
Plate Market Review: the environmental protection sector performed generally this week, losing the market and outperforming the gem. Last week, the Shanghai Composite Index fell by - 0.11%, the gem index fell by - 3.75%, environmental protection projects and services fell by - 0.31%, underperforming the Shanghai Composite Index by 0.20% and outperforming the gem by 3.44%; Public utilities rose by 2.31%, outperforming the Shanghai Composite Index by 2.42% and the gem index by 6.06%. Monitoring (0.23%), atmosphere (1.90%), water treatment (- 0.52%), solid waste (- 0.82%), solid waste (- 0.60%), water operation (- 3.47%), energy conservation (3.82%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
