Market review: this week, the public utility index fell 4.14%, the environmental protection index fell 3.95%, and the Shanghai Composite Index fell 1.77%. In the environmental protection sector, environmental remediation and water decreased significantly, down 6.23% and 5.37% respectively. In public utilities, gas, energy conservation and utilization and thermal power decreased significantly, down 5.97%, 4.93% and 4.82% respectively.
Industry trends:
Environmental protection:
1) the prevention and control of heavy metal pollution has been paid attention to, and the utilization of renewable resources during the 14th five year plan may open up new growth space: Recently, the Ministry of ecological 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 and arsenic, and implement total amount control for some heavy metals. It covers heavy non-ferrous ore mining and dressing industry, smelting industry, lead-acid battery manufacturing industry, electroplating industry, chemical raw materials and chemical products manufacturing industry, leather tanning processing industry and other industries. It is proposed that by 2025, the emission of key heavy metal pollutants in key industries in China will be reduced by 5% compared with that in 2020, the green development level of key industries will be rapidly improved, and the environmental management capacity of heavy metals will be further enhanced; By 2035, establish and improve the heavy metal pollution prevention and control system and long-term mechanism, comprehensively improve the ability of heavy metal pollution control, environmental risk prevention and control and environmental supervision, and comprehensively and effectively control the environmental risks of heavy metals. It is suggested to pay attention to: the leader of hazardous waste metal recycling [ Beijing Geoenviron Engineering & Technology Inc(603588) ], and the layout of hazardous waste deep processing [ Zhefu Holding Group Co.Ltd(002266) ].
2) the development plan of urban agglomeration in the middle reaches of the Yangtze River was issued, and the policy of “sewage treatment + environmental treatment” was added: on March 15, the national development and Reform Commission issued the notice on printing and distributing the implementation plan of the 14th five year plan for the development of urban agglomeration in the middle reaches of the Yangtze River. The plan proposes to promote the green transformation of key industries, carry out benchmarking and improvement of resource efficiency of key industries and key products, promote the circular transformation of the park, and resolutely curb the blind development of “two high” projects; We will accelerate the development of cold chain logistics and build a national backbone cold chain logistics base in relevant cities. It is suggested to pay attention to: waste incineration is the leading point, and high nickel matte starts [ Zhejiang Weiming Environment Protection Co.Ltd(603568) ] of the second growth curve; High quality waste incineration operation company [ Wangneng Environment Co.Ltd(002034) ] with power battery recycling opening up growth space; Cold chain compressor leader, actively layout CCUs and hydrogen energy industry, bring new momentum of performance growth [ Moon Environment Technology Co.Ltd(000811) ].
Public:
1) the construction of renewable energy system continues to advance, and energy storage is expected to solve the problem of “abandoning wind and light”. Recently, the Hunan Provincial Department of industry and information technology issued the opinions on the implementation of carbon peak and carbon neutralization, proposing to plan and construct a number of new energy storage power stations and pumped storage power stations. Build a new power system with new energy as the main body, and improve the power grid’s ability to absorb and regulate a high proportion of renewable energy. The operation guidelines for promoting the construction of large-scale wind power photovoltaic bases in Xinjiang Uygur Autonomous Region (version 1.0) issued by the development and Reform Commission of Xinjiang Uygur Autonomous Region makes it clear that enterprises that build energy storage projects with a duration of more than 4 hours are allowed to build wind power photovoltaic power generation projects with an energy storage scale of 4 times. At present, more than 20 provinces (autonomous regions and municipalities) across the country have issued policies related to the construction and storage of new energy, requiring new energy projects to be equipped with energy storage projects of 5% – 20% and 1-2 hours. It is suggested to pay attention to: the solid waste leader arranges new energy, and the energy storage progress exceeds the expected [ China Tianying Inc(000035) ],
2) the National Energy Administration released the electricity consumption data in February. In February, China’s economy continued to recover steadily, and the power consumption of the whole society continued to grow, reaching 623.5 billion kwh, a year-on-year increase of 16.9%. By industry, the power consumption of the primary industry was 7.7 billion kwh, a year-on-year increase of 15.4%; The electricity consumption of the secondary industry was 375.6 billion kwh, a year-on-year increase of 14.5%; The electricity consumption of the tertiary industry was 118.2 billion kwh, a year-on-year increase of 17.4%; The domestic electricity consumption of urban and rural residents was 122 billion kwh, a year-on-year increase of 24.8%. It is suggested to pay attention to [ China National Nuclear Power Co.Ltd(601985) ] driven by nuclear power + wind and scenery dual core, [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] as the leader of new energy, [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] and the green power generation Star [ Harbin Jiuzhou Group Co.Ltd(300040) ] with the development of biomass + wind and scenery.
This week’s topic: gravity energy storage is based on Pumped Storage physics and mechanical engineering. It gets rid of the limitations of topography and geology, uses customized composite blocks to replace water, realizes energy storage and release, and maintains the balance between energy transmission and energy consumption. Low cost, high scalability, safety and efficiency make it gradually become a high-level alternative to traditional energy storage. At present, due to the lack of demonstration projects in the world, major manufacturers are on the sidelines. In the future, with the advance of the first demonstration project, gravity energy storage may become the cornerstone of promoting the whole energy storage industry.
Investment suggestions: the circular economy development plan of the 14th five year plan has been implemented, and a clear plan has been made for the utilization or use of crop straw, bulk solid waste, construction waste, waste paper, scrap steel and non-ferrous metals. The resource regeneration sector is expected to maintain a high outlook during the 14th Five Year Plan period. It is suggested to actively grasp the investment opportunities of the renewable resources sector. It is suggested to pay attention to: Beijing Geoenviron Engineering & Technology Inc(603588) , Zhefu Holding Group Co.Ltd(002266) , Zhejiang Weiming Environment Protection Co.Ltd(603568) , Wangneng Environment Co.Ltd(002034) . During the 14th Five Year Plan period, the low-carbon transformation of energy structure continued to advance, and the installed capacity of wind power and photovoltaic still maintained a rapid growth rate. At the same time, energy storage and hydrogen energy also developed actively and orderly. It is suggested to pay attention to China National Nuclear Power Co.Ltd(601985) , China Three Gorges Renewables (Group) Co.Ltd(600905) , China Tianying Inc(000035) , Moon Environment Technology Co.Ltd(000811) .
Risk warning: the project progress is not as expected; Intensified market competition; Changes in the international political situation; The promotion of new technology is less than expected; Risk of price reduction.
