Market review: this week, the public utilities (Shenwan) industry index fell 1.27%, underperforming the Shanghai and Shenzhen 300 index by 1.66%. In the environmental protection industry, water monitoring & detection and atmospheric control are among the top gainers; Among the sub sectors of the public sector, hydropower rose and the rest fell.
Special research: among the five power generation groups, the national power investment renewable energy power generation installed capacity ranks first. By 2020, the installed capacity of renewable energy power generation of State Power Investment Corporation, national energy group, China Huaneng, China Datang and China Huadian accounted for 47.93%, 25.80%, 30.19%, 34.75% and 31.18% of the total installed capacity respectively. In terms of wind power generation, the national power investment and installation scale is in the leading position. In terms of hydropower, China Huaneng ranks first in terms of installed capacity. During the 14th Five Year Plan period, the five power generation groups continued to increase the installed capacity of Fengguang new energy. According to statistics, during the 14th Five Year Plan period, the newly installed capacity of Fengguang new energy of the five power generation groups totaled 353 million KW. From the task indicators of the proportion of renewable energy installed capacity of central enterprises released by SASAC, power generation groups such as national energy group, China Huaneng, China Huadian and China Datang still need to further strengthen the construction of renewable energy installed capacity.
Industry trends: the SASAC issued the guidance on promoting the high-quality development of central enterprises and doing a good job in carbon peak and carbon neutralization. The opinions pointed out that by 2025, significant progress will be made in the adjustment and optimization of the industrial structure and energy structure of central enterprises, the energy utilization efficiency of key industries will be greatly improved, and the construction of new power systems will be accelerated, Positive progress has been made in the R & D, promotion and application of green and low-carbon technologies. The national level has once again strengthened the leading planning of green and low-carbon development, put forward requirements for enterprises’ energy conservation and carbon reduction capacity and energy transformation, and benefit environmental protection and new energy enterprises.
Investment suggestion: the “14th five year plan” period is the key time window for reaching the peak of carbon, the intensity of carbon control and emission policy is expected to exceed expectations, and the environmental protection public utility industry will usher in development opportunities. The promotion of carbon neutralization policy has opened up new growth space and brought incremental income sources for the development of environmental protection industry, and grasped the four investment directions of low-carbon development on the supply side, electrification on the consumer side, infrastructure of carbon trading, and incremental income of CCER caused by carbon trading. It is recommended to pay attention to Pony Testing International Group Co.Ltd(300887) , China Building Material Test & Certification Group Co.Ltd(603060) , Centre Testing International Group Co.Ltd(300012) , Grandblue Environment Co.Ltd(600323) , Chongqing Sanfeng Environment Group Corp.Ltd(601827) , Shanghai Environment Group Co.Ltd(601200) , Shandong Intco Recycling Resources Co.Ltd(688087) . The implementation of the sixth national plan brings opportunities for post-processing industrial chain. It is suggested to pay attention to Wuxi Longsheng Technology Co.Ltd(300680) , Jiangsu Lopal Tech.Co.Ltd(603906) . Low carbon transformation of energy structure is a key measure to achieve carbon neutrality. Fengguang new energy operation welcomes development opportunities. It is suggested to pay attention to Huaneng Power International Inc(600011) , Huadian Power International Corporation Limited(600027) , China Resources Power, and new energy power generation. It is suggested to pay attention to Fujian Funeng Co.Ltd(600483) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan power, Cecep Wind-Power Corporation(601016) , Jilin Electric Power Co.Ltd(000875) , Zhejiang Sunoren Solar Technology Co.Ltd(603105) . Meanwhile, the installed capacity of gas and electricity is expected to continue to increase in the future, and the demand for natural gas market will continue to improve. It is suggested to pay attention to Enn Natural Gas Co.Ltd(600803) with outstanding advantages in the integrated layout of the industrial chain and Top Resource Conservation & Environment Corp(300332) with the continuous growth of natural gas business brought about by the transformation and development of Shenan line. The operation of Shenan power line brings Top Resource Conservation & Environment Corp(300332) for the continuous growth of natural gas business. The Hangzhou Shenhao Technology Co.Ltd(300853) , Zhiyang Innovation Technology Co.Ltd(688191) , Suwen Electric Energy Technology Co.Ltd(300982) of intelligent operation inspection standards in the power industry. Industrial temperature control expert, promising target of energy storage and heat management Guangdong Shenling Environmental Systems Co.Ltd(301018) . The power shortage and the continuous widening of peak valley price difference promote the demand for enterprise energy consumption control. It is suggested to pay attention to the enterprise microgrid integrated energy management solution supplier Acrel Co.Ltd(300286) .
Risk warning: the project progress is not as expected; Intensified market competition; The public data used in the research report may have the risk of information lag or untimely update.
