Market review: from March 21 to March 25, the growth rates of electric power, environmental protection, gas and water sectors were – 3.60%, – 1.63%, 3.18% and – 1.23% respectively. In the same period, the Shanghai and Shenzhen 300 index fell 2.14%.
The national development and Reform Commission and the National Energy Administration officially issued the “14th five year plan” for modern energy system. The plan puts forward: 1) give full play to the supporting and regulatory role of coal power, make an overall plan for power supply, pollution reduction and carbon reduction, and reasonably build advanced coal power according to development needs; 2) Comprehensively strengthen nuclear power safety management and implement the strictest safety standards and supervision; 3) Comprehensively promote the large-scale development and high-quality development of wind power and Cecep Solar Energy Co.Ltd(000591) power generation, and actively promote the construction of hydropower bases; 4) Steadily develop urban domestic waste incineration power generation, and orderly develop agricultural and forestry biomass power generation and biogas power generation. At this stage, high parameter and large capacity coal power is still the best choice for clean and efficient utilization of coal, and it is also the ballast and stabilizer of energy supply. The huge storage capacity of large hydropower projects and the rapid start-up and stop capacity of units make them have good regulation performance, which is suitable for joint development and operation with wind and light, so as to build a clean energy delivery base.
The State Council issued the opinions on implementing the division of key work of the “government work report”. The opinions put forward: moderately advance infrastructure investment and speed up the renewal and transformation of urban gas pipelines, water supply and drainage pipelines and other pipe networks; Start rural construction and promote sewage and garbage treatment according to local conditions; We will strengthen the coordinated control of multiple atmospheric pollutants and regional coordinated governance, strengthen the governance of solid waste and new pollutants, and support the development of biomass energy. We believe that this will help: 1) promote the construction of key water conservancy projects, urban gas pipelines and water supply and drainage networks, promote the renewal of old pipe network facilities, and accelerate the construction of relevant projects; 2) Responding to the Rural Revitalization Strategy and solving the problem of rural non-point source pollution, the rural sewage treatment and water supply system is expected to be further improved. The third national soil survey will promote the release of market space for soil remediation; 3) Strengthen the construction of solid waste recycling system and improve the supporting facilities for waste classification and rural collection and transportation. As an important way of comprehensive treatment of solid waste, the waste incineration power generation and hazardous waste recycling industry may take the lead in benefiting.
Investment suggestion: from the perspective of policy context, the security and stability of energy supply is still the first priority, but the direction of green and low-carbon transformation has not changed. In the electric power industry, China Yangtze Power Co.Ltd(600900) , China National Nuclear Power Co.Ltd(601985) , Shenergy Company Limited(600642) , thermal power , and China Three Gorges Renewables (Group) Co.Ltd(600905) , green power , are recommended to pay attention to Huaneng Lancang River Hydropower Inc(600025) , Sdic Power Holdings Co.Ltd(600886) , Cgn Power Co.Ltd(003816) . The opinions on the division of key work issued by the State Council is expected to speed up the construction of gas pipeline and water supply and drainage pipe network system, improve the collection and transportation of urban and rural waste, and improve the resource utilization level of solid waste. In the environmental protection industry, we should carefully recommend Beijing Geoenviron Engineering & Technology Inc(603588) , and pay attention to Grandblue Environment Co.Ltd(600323) .
Risk tip: declining demand; Price reduction; Rising costs; Reduction of precipitation; Local financial pressure; Policy promotion lags behind.
