Market review: as of March 25, 2022, Shenwan environmental protection industry fell by 1.55% in the week, outperforming the Shanghai and Shenzhen 300 index by 0.59 percentage points, ranking 20th among Shenwan 31 industries; Shenwan environmental protection sector fell by 10.24% in the same month, 1.36 percentage points lower than Shanghai and Shenzhen 300 index, ranking 22nd among Shenwan 31 industries; Shenwan environmental protection sector has fallen 13.19% year to date, outperforming the Shanghai and Shenzhen 300 index by 2.31 percentage points and ranking 16th among Shenwan 31 industries.
As of March 25, 2022, the sub boards of Shenwan environmental protection industry fell in that week, including water affairs and water treatment sector, environmental protection equipment sector, atmospheric treatment sector, comprehensive environmental treatment sector and solid waste treatment sector, which fell by 0.94%, 1.13%, 1.17%, 1.50% and 2.60%.
Among the top ten stocks that rose in the week, Suzhou Shijing Environmental Technology Co.Ltd(301030) , Wuhan Xianglong Power Industry Co.Ltd(600769) and Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) ranked among the top three in Shenwan environmental protection sector, up 11.15%, 8.77% and 7.97% respectively. Among the top ten stocks that fell in the week, Kingland Technology Co.Ltd(000711) , Bgt Group Co.Ltd(300774) and Beijing Geoenviron Engineering & Technology Inc(603588) fell significantly, with declines of 7.56%, 6.88% and 6.67% respectively.
In terms of Valuation: as of March 25, 2022, the PE (TTM) of environmental protection sector was 19.14 times; In terms of sub sectors, the PE (TTM) of the atmospheric treatment sector is 35.68 times, the PE (TTM) of the water affairs and water treatment sector is 17.45 times, the PE (TTM) of the solid waste treatment sector is 15.17 times, the PE (TTM) of the comprehensive environmental treatment sector is 43.32 times, and the PE (TTM) of the environmental protection equipment sector is 23.33 times.
Important news: (1) the national development and Reform Commission issued the modern energy system plan for the 14th five year plan, which proposed to promote the diversified utilization of biomass energy, steadily develop urban domestic waste incineration power generation, orderly develop agricultural and forestry biomass power generation and biogas power generation, and develop biomass energy clean heating according to local conditions. (2) The State Council issued the opinions of the State Council on the division of key work in the implementation of the government work report, pointing out that we should continue to improve the ecological environment and promote green and low-carbon development, and the national development and Reform Commission should take the lead in implementing the carbon peak action plan.
Viewpoint of Environmental Protection Industry Week: last week, the State Council issued the opinions of the State Council on the division of key work in the implementation of the government work report, proposing that the national development and Reform Commission take the lead in the implementation of the action plan of carbon peak. Previously, the action plan for reaching the carbon peak by 2030 issued by the State Council pointed out that one of the goals is to reduce carbon dioxide emissions per unit of China’s GDP by 18% by 2025 compared with 2020. Therefore, the government may further promote carbon reduction actions in 2022, and the fields of Carbon Monitoring and carbon emission reduction are expected to benefit. In the field of carbon monitoring, the demand of the government and enterprises for carbon dioxide monitoring products is expected to increase. It is suggested to pay attention to Beijing Sdl Technology Co.Ltd(002658) ( Beijing Sdl Technology Co.Ltd(002658) ) with carbon monitoring product reserves. In the field of carbon emission reduction, the 14th five year plan for modern energy system proposes to promote the diversified utilization of biomass energy, steadily develop urban domestic waste incineration power generation, and orderly develop agricultural and forestry biomass power generation and biogas power generation. With the support of policies, biomass power generation industry with emission reduction effect is expected to usher in development prospects. It is suggested to pay attention to the targets of waste incineration power generation industry Zhejiang Weiming Environment Protection Co.Ltd(603568) ( Zhejiang Weiming Environment Protection Co.Ltd(603568) ), Dynagreen Environmental Protection Group Co.Ltd(601330) ( Dynagreen Environmental Protection Group Co.Ltd(601330) ), Chongqing Sanfeng Environment Group Corp.Ltd(601827) ( Chongqing Sanfeng Environment Group Corp.Ltd(601827) ).
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.
