Waste incineration power generation has received policy support again, and the east wind of energy storage industry has arrived. 1. On March 22, the national development and Reform Commission issued the “14th five year plan” for modern energy system. The plan points out that 1) during the 14th Five Year Plan period, we will actively and orderly promote the construction of hydropower, nuclear power and other projects. By 2025, the installed capacity of conventional hydropower is expected to reach 380 million KW and the installed capacity of nuclear power operation will reach about 70 million KW. 2) Actively promote the low-carbon transformation of energy, make diversified use of biomass energy, steadily develop urban domestic waste incineration power generation, strive to increase the proportion of non fossil energy consumption to about 20% in 2025, and renewable energy power generation will become the main power supply in 2035. The plan defines the development objectives of new energy, which is conducive to promoting the construction of new energy system and benefiting renewable energy power operators and waste incineration power generation enterprises. 2. On March 21, the national development and Reform Commission and the National Energy Administration issued a notice on printing and distributing the implementation plan for the development of new energy storage in the 14th five year plan. The plan proposes that by 2025, the new energy storage will enter the stage of large-scale development from the initial stage of commercialization, and have the conditions for large-scale commercial application; By 2030, new energy storage will be fully market-oriented. In addition, the plan points out that we should support the new power system with new energy storage, encourage different technical routes to blossom, and clarify the dominant position of the independent market of new energy storage. The plan will help promote the high-quality and large-scale development of new energy storage, promote the deep integration of “new energy + energy storage”, improve the flexibility of power system and benefit renewable energy power operators. In terms of electricity, it is recommended to pay attention to: 1) power operators with clear renewable energy installation plan and good quality; In terms of waste incineration, it is recommended to pay attention to 1) Zhejiang Weiming Environment Protection Co.Ltd(603568) , which is leading in roe industry and has sufficient orders; 2) Grandblue Environment Co.Ltd(600323) , with steady growth and obvious valuation advantages.
Carbon trading market this week: the total trading volume of the national carbon market carbon emission quota (CEA) this week is 81800 tons, with a total turnover of 4.7474 million yuan. The highest transaction price was 59.00 yuan / ton and the lowest transaction price was 58.00 yuan / ton. The closing price on Friday was 58.00 yuan / ton, the same as last Friday. As of this week, the cumulative trading volume of carbon emission quotas in the national carbon market was 189 million tons, with a cumulative turnover of 8.204 billion yuan.
Valuation bottomed out, focusing on stable operating assets and companies with reversed fundamentals. Over the past three years, the performance of the environmental protection sector has been sluggish, with valuations and positions still at a low level. The introduction of environmental protection REITs provides new equity financing tools. Pollution control operations such as urban sewage and waste treatment, solid and hazardous waste treatment are the key industries. Enterprises with strong technical advantages and high wall barrier are favored. 1. Waste incineration companies with strong growth and certainty are concerned about Zhejiang Weiming Environment Protection Co.Ltd(603568) (ROE industry leader and sufficient orders) Grandblue Environment Co.Ltd(600323) (steady growth and obvious valuation advantages); 2. Hazardous waste disposal companies with rich projects in hand, strong technology and high barriers pay attention to Zhefu Holding Group Co.Ltd(002266) (new leader of hazardous waste and layout of the whole industrial chain), Beijing Geoenviron Engineering & Technology Inc(603588) (leader of soil remediation benefiting from financing improvement); 3. Water companies whose value is expected to be revalued pay attention to Hongcheng water industry (Jiangxi sewage market has great potential, and the valuation and dividend rate are attractive). 4. Testing, parallel magnetic materials and high revenue Sinosteel New Materials Co.Ltd(002057) .
Industry news: 1) the Ministry of water resources and the national development and Reform Commission issued the notice on printing and distributing the double control objectives of total water consumption and intensity in the 14th five year plan; 2) Jiangxi Province issued the action plan for rural domestic sewage treatment in Jiangxi Province (20212025); 3) The detailed rules for the management and implementation of new energy storage grid connected operation and auxiliary services in southern China (Draft for comments) were issued.
Plate Market Review: the environmental protection sector performed generally this week, losing the market and outperforming the gem. Last week, the Shanghai Composite Index fell by – 1.19%, the gem index fell by – 2.80%, environmental protection projects and services fell by – 1.56%, underperforming the Shanghai Composite Index by – 0.36%, outperforming the gem by 1.24%; The decline of public utilities was – 2.74%, underperforming the Shanghai Composite Index by – 1.55% and outperforming the gem by 0.05%. Monitoring (- 2.91%), atmosphere (- 1.10%), water treatment (- 0.61%), solid waste (- 0.41%), water operation (- 1.01%), energy saving (- 1.26%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
