Industry dynamic information
One week market review
From March 5 to March 11, the Shanghai Composite Index fell 4 percentage points in a single week to 330975; The CSI 300 index fell 4.22 percentage points in a single week. The environmental protection (Shenwan) index fell 4.31%, 0.09 percentage points lower than the CSI 300 index (down 4.22%) and 1.29 percentage points lower than the gem index (down 3.03%). Since the beginning of 2022, the overall index of environmental protection engineering and service sector has performed well, with a cumulative decline of 8.19%, outperforming the Shanghai and Shenzhen 300 index by 4.64 percentage points.
Key points and investment suggestions of this week
Recently, the Ministry of housing and urban rural development issued the “14th five year plan” for building energy conservation and green building development, which proposed that by 2025, the energy-saving transformation area of existing buildings should be completed by more than 350 million square meters, the construction of ultra-low energy consumption and near zero energy consumption buildings should be more than 50 million square meters, and the proportion of prefabricated buildings in new urban buildings in that year should reach 30%, The installed capacity of Cecep Solar Energy Co.Ltd(000591) photovoltaic in new buildings nationwide is more than 50 million KW, the building application area of geothermal energy is more than 100 million square meters, the replacement rate of renewable energy in urban buildings is 8%, and the proportion of power consumption in building energy consumption is more than 55%. We believe that China State Construction Engineering Corporation Limited(601668) energy consumption will be gradually optimized, the growth trend of building energy consumption and carbon emission will be effectively controlled, and a green, low-carbon and circular construction and development mode will be gradually formed in the future. At the same time, due to the pollution of soil, groundwater and air, potential safety hazards and impact on the image of the city, construction waste has been gradually included in the recycling management and the process of sustainable development economic cycle in recent years. During the 14th Five Year Plan period, China will continue to adhere to the principles of environmental protection and high-quality development, pay close attention to the 3060 carbon policy, accelerate the development of green circular economy, and suggest paying attention to investment opportunities in new energy, sanitation equipment, energy conservation and emission reduction. In the field of sanitation, we recommend Infore Environment Technology Group Co.Ltd(000967) , Yutong Heavy Industries Co.Ltd(600817) and fulongma, which benefit from the trend of electrification of sanitation equipment and have the whole industrial chain of sanitation equipment manufacturing and sanitation operation; In the field of waste incineration, the waste incineration leader with large capacity increment is recommended Grandblue Environment Co.Ltd(600323) ; In terms of sewage treatment, we suggest paying attention to regional sewage operation enterprises Cecep Guozhen Environmental Protection Technology Co.Ltd(300388) .
Industry highlights:
1) government work report: continuously improve the ecological environment and promote green and low-carbon development;
2) implementation opinions on strengthening ecological and environmental protection and fighting a tough battle of pollution prevention and control in Jiangxi Province;
3) Ministry of environment: learn from the experience and practice of solving the case of “cod remover” interfering with online monitoring data in Huzhou, Zhejiang Province;
4) development plan of domestic waste classification and treatment facilities in Jiangxi Province during the 14th five year plan;
5) the 14th five year plan for the prevention and control of soil and groundwater pollution in Shanghai.
Risk analysis: the risk of deterioration of the financial situation of the environmental protection company; The risk that the promotion and implementation of policies are less than expected; The risk that the governance demand is less than expected.
