Key investment points:
Market review: as of March 18, 2022, Shenwan environmental protection industry fell by 3.95% in the week, 3.01 percentage points lower than Shanghai and Shenzhen 300 index, ranking 29th among Shenwan 31 industries; Shenwan environmental protection sector fell 8.83% in the same month, 1.94 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 22nd among Shenwan 31 industries; Shenwan environmental protection sector has fallen 11.83% year to date, outperforming the Shanghai and Shenzhen 300 index by 1.83 percentage points and ranking 15th among Shenwan 31 industries.
As of March 18, 2022, the sub boards of the environmental protection industry of Shenwan fell in that week, including solid waste treatment sector fell by 4.43%, atmospheric treatment sector fell by 4.43%, water and water treatment sector fell by 4.41%, comprehensive environmental treatment sector fell by 3.59% and environmental protection equipment sector fell by 1.52%.
Among the top ten stocks that rose in the week, Anhui Huaqi Environmental Protection&Technology Co.Ltd(300929) , Jiangsu Jiangnan Water Co.Ltd(601199) and Anshan Senyuan Road & Bridge Co.Ltd(300210) ranked among the top three in Shenwan environmental protection sector, up 11.57%, 7.48% and 6.21% respectively. Among the top ten stocks that fell in the week, Bceg Environmental Remediation Co.Ltd(300958) , Zhejiang Tuna Environmental Science & Technology Co.Ltd(603177) and Wuhan Xianglong Power Industry Co.Ltd(600769) fell significantly, with declines of 16.09%, 14.09% and 11.44% respectively.
In terms of Valuation: as of March 18, 2022, the PE (TTM) of environmental protection sector was 19.77 times; In terms of sub sectors, PE (TTM) in the atmospheric treatment sector is 36.10 times, PE (TTM) in the water affairs and water treatment sector is 18.30 times, PE (TTM) in the solid waste treatment sector is 15.60 times, PE (TTM) in the comprehensive environmental treatment sector is 43.98 times, and PE (TTM) in the environmental protection equipment sector is 23.66 times.
Important news: on March 17, the national development and Reform Commission issued the key tasks for the development of new urbanization and urban-rural integration in 2022, which called for promoting green and low-carbon development, actively and steadily promoting the classification of domestic waste, and accelerating the filling of the gap in urban sewage treatment capacity.
View of Environmental Protection Industry Week: Shenwan environmental protection industry fell 3.95% last week, narrowed from 4.31% last week. In terms of industrial policies, the Ministry of ecology and environment issued the notice on the key work related to the management of enterprise greenhouse gas emission reports in 2022, requiring to strengthen the management of enterprise greenhouse gas emission data, strengthen the supervision and management of data quality, and the government to continue to promote the “double carbon” work. The national development and Reform Commission issued the key tasks for the development of new urbanization and urban-rural integration in 2022, which requires promoting green and low-carbon development, actively and steadily promoting the classification of domestic waste, and accelerating the filling of the gap in urban sewage treatment capacity. In terms of the company’s disclosure, last week Wuhan Sanzhen Industry Holding Co.Ltd(600168) and Shanghai Sheng Jian Environment Technology Co.Ltd(603324) disclosed the annual report of 2021, and the net profit attributable to the parent company achieved good growth Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) and Shanghai Sheng Jian Environment Technology Co.Ltd(603324) companies have announced the relevant situation of institutional research and have confidence in their own competitiveness. Some key companies in the environmental protection industry performed well in 2021. Driven by the relevant policies of “double carbon”, the solid waste treatment and sewage treatment industry is worth looking forward to. It is suggested to pay attention to the targets of sewage treatment industry Beijing Originwater Technology Co.Ltd(300070) ( Beijing Originwater Technology Co.Ltd(300070) ), Chengdu Xingrong Environment Co.Ltd(000598) ( Chengdu Xingrong Environment Co.Ltd(000598) ), 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.
