The two sessions ended with favorable policies for waste incineration, sewage treatment and soil remediation. 1. From March 4 to March 11, the two sessions were held in Beijing. On behalf of the members, they put forward a number of proposals on the environmental protection industry. In terms of watershed management, we will strengthen ecological protection and management in the Yellow River and Yangtze river basins. In terms of waste treatment, it is suggested to formulate the "no burning catalogue" of waste incineration industry; Further optimize and standardize the treatment of kitchen waste; Improve the construction of waste treatment and terminal disposal facilities. In terms of sewage treatment, it is suggested to strengthen the treatment of rural domestic sewage; Revise the regulations on urban drainage and sewage treatment; Comprehensively evaluate the actual effect and risk of sludge disposal to prevent the transfer of pollutants between solid, gas and water. The proposal is expected to further improve the demand space of environmental protection projects and benefit the head sewage treatment and waste incineration enterprises. 2. On March 10, Shanghai Municipal Bureau of ecological environment issued a notice on printing and distributing the 14th five year plan for the prevention and control of soil and groundwater pollution in Shanghai. The plan proposes that during the 14th Five Year Plan period, the main tasks of strengthening the prevention and control of industrial pollution sources and deepening scientific and technological innovation will be guaranteed by increasing capital investment and expanding financing guarantee channels. The plan will promote the investigation and remediation of pollution sources, improve the fine and scientific level of soil and groundwater pollution prevention and control, and improve the risk control and remediation supervision system, which is expected to open the demand space for soil monitoring and sewage treatment. 1) In terms of waste disposal, it is recommended to pay attention to Zhejiang Weiming Environment Protection Co.Ltd(603568) , which is leading in roe industry and has sufficient orders; Excellent management Grandblue Environment Co.Ltd(600323) . 2) In terms of sewage treatment, it is recommended to pay attention to Hongcheng water industry with attractive valuation and dividend rate; World class membrane equipment manufacturer and supplier Beijing Originwater Technology Co.Ltd(300070) . 3) In terms of soil remediation and testing, it is recommended to pay attention to: it has the testing leader of the national soil pollution detailed survey and testing laboratory Centre Testing International Group Co.Ltd(300012) ; The market share of soil remediation business is Beijing Geoenviron Engineering & Technology Inc(603588) .
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 corporate credit has 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) the total trading volume of the national carbon market carbon emission quota (CEA) this week was 1860 tons, with a total turnover of 10633600 yuan. The weekly trading volume of the listing agreement was 1860 tons, with a weekly turnover of 10633600 yuan. The highest trading price was 58.00 yuan / ton, and the lowest trading price was 57.00 yuan / ton. The closing price on Friday was 57.60 yuan / ton, down 0.52% from last Friday; 2) The plan for the prevention and control of environmental pollution by industrial solid waste in Hainan Province (20222025) (Draft for comments) was issued.
Plate Market Review: the environmental protection sector performed well this week, outperforming the market and the gem. Last week, the Shanghai Composite Index fell by - 4.00%, the gem index fell by - 3.03%, environmental protection projects and services fell by - 2.60%, outperforming the Shanghai Composite Index by 1.40% and the gem by 0.43%; Public utilities fell by - 4.48%, underperforming the Shanghai Composite Index by - 0.48% and underperforming the gem by - 1.46%. Monitoring (- 5.32%), atmosphere (- 4.25%), water treatment (- 3.34%), solid waste (- 6.67%), water operation (- 1.56%), energy saving (- 2.06%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
