Market review: as of March 11, 2022, Shenwan environmental protection industry fell by 4.31% in the week, 0.09 percentage points lower than Shanghai and Shenzhen 300 index, ranking 15th among Shenwan 31 industries; Shenwan environmental protection sector fell 5.08% in the month, outperforming the Shanghai and Shenzhen 300 index by 0.93 percentage points, ranking 16th among Shenwan 31 industries; Shenwan environmental protection sector has fallen 8.19% year to date, outperforming the CSI 300 index by 4.64 percentage points and ranking 13th among Shenwan 31 industries.
As of March 11, 2022, the sub boards of Shenwan environmental protection industry fell in that week, of which the solid waste treatment sector fell 6.22%, the environmental protection equipment sector fell 5.30%, the atmospheric treatment sector fell 5.20%, the comprehensive environmental treatment sector fell 4.46%, and the water affairs and water treatment sector fell 2.01%.
Among the top ten stocks that rose in the week, Wuhan Xianglong Power Industry Co.Ltd(600769) , Zhejiang Tuna Environmental Science & Technology Co.Ltd(603177) and Bohai Water Industry Co.Ltd(000605) ranked among the top three in Shenwan environmental protection sector, up 14.13%, 10.31% and 10.13% respectively. Among the top ten stocks that fell in the week, Qingdao Guolin Environmental Technology Co.Ltd(300786) , Tus Environmental Science And Technology Development Co.Ltd(000826) and Qiaoyin City Management Co.Ltd(002973) fell significantly, with declines of 13.85%, 11.26% and 10.94% respectively.
Valuation: as of March 11, 2022, the PE (TTM) of environmental protection sector was 20.51 times; In terms of sub sectors, the PE (TTM) of atmospheric governance sector is 37.78 times, the PE (TTM) of water affairs and water governance sector is 18.98 times, the PE (TTM) of solid waste governance sector is 16.33 times, the PE (TTM) of comprehensive environmental governance sector is 45.62 times, and the PE (TTM) of environmental protection equipment sector is 23.92 times.
Important news: (1) Tianjin Development and Reform Commission recently issued the “14th five year plan” for the development of renewable energy in Tianjin, which requires the overall layout of waste incineration power generation and improve the treatment level of waste “reduction, recycling and harmlessness”. (2) Jiangxi Provincial Development and Reform Commission recently issued the development plan of domestic waste classification and treatment facilities in Jiangxi Province during the 14th five year plan. The plan requires that the domestic waste classification and treatment capacity of Nanchang and Yichun will be further improved by the end of 2025.
Environmental protection industry weekly view: last week, Shenwan environmental protection industry index fell 4.31%, mainly due to the weakening of risk appetite in the A-share market due to the situation in Russia and Ukraine. In terms of policies, Jiangxi Provincial Development and Reform Commission recently issued the development plan for domestic waste classification and treatment facilities in Jiangxi Province during the 14th Five Year Plan period. The plan requires that by the end of 2025, the domestic waste classification and treatment capacity of Nanchang and Yichun will be further improved, and a closed-loop domestic waste classification system will be formed in other districts and downtown areas; Support townships and towns to speed up the completion of domestic waste classified collection, transportation and treatment facilities. From the guidance on accelerating the construction of urban environmental infrastructure issued by the national development and Reform Commission in February 2022 to the recent development plan of environmental infrastructure issued by local governments, the construction of national environmental infrastructure has been gradually promoted. It is suggested to pay attention to the targets of waste incineration power generation industry Zhejiang Weiming Environment Protection Co.Ltd(603568) ( Zhejiang Weiming Environment Protection Co.Ltd(603568) ), Chongqing Sanfeng Environment Group Corp.Ltd(601827) ( Chongqing Sanfeng Environment Group Corp.Ltd(601827) ), Dynagreen Environmental Protection Group Co.Ltd(601330) ( Dynagreen Environmental Protection Group Co.Ltd(601330) ).
Risk warning: policy promotion is not as expected; Economic development is less than expected; The construction progress of the project is less than expected; Product price fluctuation risk, etc. Industry weekly Securities Research
