Key investment points:
Market review: as of December 31, 2021, Shenwan environmental protection industry rose 1.90% in the week, outperforming the Shanghai and Shenzhen 300 index by 1.51 percentage points, ranking 15th among Shenwan 31 industries. Among the top ten stocks that rose in the week, Vontron Technology Co.Ltd(000920) , Bgt Group Co.Ltd(300774) and Qianjiang Water Resources Development Co; Ltd(600283) ranked among the top three in Shenwan environmental protection, up 15.13%, 12.94% and 12.24% respectively. Among the top ten stocks that fell in the week, Focused Photonics (Hangzhou) Inc(300203) , Infore Environment Technology Group Co.Ltd(000967) and Beijing Zeho Waterfront Ecological Environment Treatment Co.Ltd(605069) fell significantly, with declines of 10.14%, 8.03% and 7.15% respectively. In terms of valuation, as of December 31, 2021, the PE (TTM) of Shenwan environmental protection sector was 22.36 times.
Zhou viewpoint of environmental protection industry: Recently, the Ministry of ecology and environment issued the guidelines for the development of general industrial solid waste management accounts (for Trial Implementation), requiring the general industrial solid waste management accounts to implement hierarchical management. In addition, it issued seven guidelines for the environmental management of hazardous waste, such as guidelines for the environmental management of hazardous waste and onshore oil and gas exploitation, The intensive policy release shows that the state attaches importance to environmental protection and solid waste disposal. It is recommended to pay attention to the targets related to solid waste treatment Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645). In addition, it is recommended to pay attention to the targets of waste incineration benefiting from carbon neutralization Zhejiang Weiming Environment Protection Co.Ltd(603568) (603568), Grandblue Environment Co.Ltd(600323) (600323), Chongqing Sanfeng Environment Group Corp.Ltd(601827) (601827), Dynagreen Environmental Protection Group Co.Ltd(601330) (601330), The subject of new energy sanitation equipment is Yutong Heavy Industries Co.Ltd(600817) (600817), and the subject of sewage treatment is Beijing Originwater Technology Co.Ltd(300070) (300070).
Risk warning: policy promotion is not as expected; The progress of the construction project is less than expected; Product price fluctuation risk; The promotion of carbon emission trading was less than expected.
