Industry trend: this week, the public utilities and environmental protection index fell 4.14%, and the Shanghai Composite Index fell 1.77%. Among the environmental protection sectors, the atmospheric governance sector fell by 5.14%, and the environmental monitoring sector fell by 3.61%; Among the utilities sector, the gas sector fell 6.28% and the clean energy sector fell 5.04%.
Key points of this week:
1) public utilities perspective:
Actively and steadily promote carbon peak and carbon neutralization in 2022. Recently, the report on the implementation of the national economic and social development plan in 2021 and the draft national economic and social development plan in 2022 was released. The report puts forward the key work of actively and steadily promoting carbon peak and carbon neutralization in 2022. In 2022, China will further promote the construction of large-scale wind power and photovoltaic base projects, actively develop distributed new energy, promote the cluster development of offshore wind power, steadily promote the construction of large-scale hydropower bases in Southwest China and other places, vigorously develop pumped storage, and actively and orderly develop nuclear power on the premise of ensuring absolute safety. The production of renewable energy and nuclear power will continue to advance steadily in 2022. At the same time, the report proposes to improve coal production capacity and reserves, increase a number of advanced coal production capacity in an orderly manner, form a government adjustable coal reserve capacity equivalent to 5% of local consumption as soon as possible, and continuously improve the policy of increasing coal production and ensuring supply.
Promote the release of renewable energy subsidies and local budgets to address the gap. Recently, the Ministry of Finance issued the report on the implementation of the central and local budgets in 2021 and the draft central and local budgets in 2022. The report points out that it is necessary to study and issue opinions on financial support for carbon peak and carbon neutralization, support the development of green and low-carbon industries and technology research and development, promote energy conservation and emission reduction in industries such as industry, transportation and steel, building materials and other industries, promote the optimization of energy structure, improve clean energy support policies, vigorously develop renewable energy, and promote the settlement of the funding gap of renewable energy power generation subsidies. In 2022, the budget expenditure of central government funds was 807134 billion yuan, an increase of 406803 billion yuan over last year.
From January to February, the power consumption of the whole society increased steadily. The National Energy Administration recently released data on the electricity consumption of the whole society in February. In February, the power consumption of the whole society reached 623.5 billion kwh, with a year-on-year increase of 16.9%. Among them, the growth rate of power consumption in the primary, secondary and tertiary industries exceeded 10%, and the domestic power consumption of urban and rural residents increased by 24.8% year-on-year. From January to February, the total electricity consumption of the whole society was 1346.7 billion kwh, a year-on-year increase of 5.8%. Among them, the power consumption of the primary industry increased by 12.8% year-on-year; The secondary industry increased by 3.4% year-on-year; The tertiary industry increased by 7.2% year-on-year; The domestic electricity consumption of urban and rural residents increased by 13.1% year-on-year. With the steady growth policy, China’s production demand rebounded, driving the steady increase of power consumption.
Under the background of uncertain international situation and steady growth, it is suggested to focus on the public utility sector with defensive attributes. The public sector mainly recommends nuclear power + new energy two wheel drive. Both business sectors have the space for both volume and price to rise [ China National Nuclear Power Co.Ltd(601985) ], and the number of projects under construction is high. In 2021, offshore wind power projects under construction account for a large proportion, and the target [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] [ Huaneng Power International Inc(600011) ] with both short-term performance growth and certainty. The gas sector recommends asset injection [ Enn Natural Gas Co.Ltd(600803) ] to build the whole natural gas industry chain and actively layout comprehensive energy.
2) viewpoint of environmental protection:
Further strengthen the prevention and control of heavy metal pollution: Recently, the Ministry of ecology and environment issued the opinions on Further Strengthening the prevention and control of heavy metal pollution, proposing to focus on the prevention and control of several heavy metal pollutants such as lead, mercury, cadmium, chromium, thallium and antimony, and implement the total amount control of lead, mercury, cadmium, chromium and arsenic. It is required that by 2025, the emission of key heavy metal pollutants in China’s key industries will be reduced by 5% compared with that in 2020, By 2035, the heavy metal pollution prevention and control system and long-term mechanism will be established, the heavy metal pollution control ability, environmental risk prevention and control ability and environmental supervision ability will be comprehensively improved, and the environmental risks of heavy metals will be comprehensively and effectively controlled. It is suggested to pay attention to [ Beijing Geoenviron Engineering & Technology Inc(603588) ] of hazardous waste subject matter
Jiangsu province promotes coordinated control of pollution and carbon reduction. Recently, Jiangsu Provincial Department of ecological environment issued the work plan of Jiangsu Provincial Department of ecological environment to promote carbon peak and carbon neutralization in 2022. The plan points out that: 1) promote joint and coordinated control in the field of air pollution prevention and control. We will explore and carry out pilot projects for the transformation and upgrading of “dual control” of air pollutants and carbon emissions. 2) Promote collaborative control in the field of water environment governance. Explore and carry out carbon emission assessment of sewage treatment and sludge resource utilization, and encourage self built sewage treatment plants Cecep Solar Energy Co.Ltd(000591) power generation facilities. 3) Promote coordinated control in the field of soil pollution control. Reasonably plan the land use of contaminated plots, encourage the planning of moderately and severely polluted lands in pesticide and chemical industries for garden green space, and reduce the energy consumption of restoration. 4) Promote collaborative control in the field of solid waste disposal. Vigorously promote the comprehensive utilization of bulk solid waste in combination with the construction of “waste free city”; Combined with the construction of organic waste comprehensive utilization demonstration area in Taihu Lake Basin, actively promote the energy and resource utilization of kitchen waste and straw organic waste.
The environmental protection sector recommends the main business of waste incineration power generation, enter the [ Wangneng Environment Co.Ltd(002034) ] of new energy lithium battery recycling, open up performance growth space, and actively transform and layout the target of resource utilization of distiller’s grains based on the disposal of high water content waste
\u3000\u3 Guocheng Mining Co.Ltd(000688) 156。
Market information tracking:
1) carbon market tracking: this week, the total turnover of the national carbon market carbon emission quota (CEA) was 355000 tons, with a total turnover of RMB 197229 million. The weekly trading volume of the listing agreement is 14000 tons, the weekly turnover is 816500 yuan, the highest transaction price is 58.00 yuan / ton, and the lowest transaction price is 57.00 yuan / ton. The closing price on Friday is 58.00 yuan / ton, up 0.69% from last Friday. The weekly volume of block agreement trading is 340700 tons and the weekly turnover is 189064 million yuan. As of this week, the cumulative trading volume of the national carbon market carbon emission quota (CEA) was 188.9 million tons, with a cumulative turnover of 8.2 billion yuan.
2) natural gas price tracking: China’s LNG average price was adjusted in a narrow range this week: according to the data released by Zhuo Chuang information, the national LNG ex factory transaction average price this week was 792928 yuan / ton, up 3.29 yuan / ton month on month, or 0.04%; Among them, the weekly average ex factory price of the terminal was 871688 yuan / ton, with a month on month increase of 34.38 yuan / ton, or 0.4%; The average weekly ex factory price of the factory was 727171 yuan / ton, a month on month decrease of 78.94 yuan / ton, or 1.07%.
3) coal market price tracking: the price of origin rose this week: according to the data released by the coal resources network, the cci5500 comprehensive price index this week was 792 yuan / ton. From the point of origin, Yulin 5800 kcal index this week was 980 yuan, up 70 yuan on a weekly basis 6 Hitevision Co.Ltd(002955) 500 kcal index was 928 yuan, up 60 yuan on a weekly basis; Datong 5500 kcal index was 1025 yuan, up 40 yuan on a weekly basis.
Portfolio
\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 985+ China Three Gorges Renewables (Group) Co.Ltd(600905) + Huaneng Power International Inc(600011) + Road Environment Technology Co.Ltd(688156) + Wangneng Environment Co.Ltd(002034) + Enn Natural Gas Co.Ltd(600803)
Risk tip: the policy promotion is less than expected, the project operation progress is less than expected, the power coal price rises, the water supply of hydropower is less than expected, and the electricity price is at risk of reduction.
