As of the close of this Friday (April 1), the environmental protection sector rose or fell by 0.53%, the Shanghai index rose or fell by 2.19%, the Shenzhen Component Index rose or fell by 1.29%, and the gem index rose or fell by 1.10%. The environmental protection sector has lost its previous weak trend. Four stocks rose by the limit, but they still lost slightly to the market.
In terms of individual stocks, according to the relevant data of Hithink Royalflush Information Network Co.Ltd(300033) , the reporter of Huaxia times found that a total of 65 stocks in the environmental protection sector rose this week, among which Xinjiang Guotong Pipeline Co.Ltd(002205) (28.35%), AVIC TEDA (19.77%) and Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) (10.43%), and 5 stocks rose more than 10%; Two stocks were flat; A total of 59 stocks fell, with a small overall decline, namely Hynar Water Group Co.Ltd(300961) (- 11.26%), Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) (- 9.17%) and Xingyuan Environment Technology Co.Ltd(300266) (- 8.41%).
This week, the trend of leading environmental protection stocks was positive, and the top ten environmental protection stocks with market value remained upward as a whole. Among them, the growth rates of Chongqing Water Group Co.Ltd(601158) and Grandblue Environment Co.Ltd(600323) were higher, reaching 8.26% and 4.83% respectively; Only Zhejiang Weiming Environment Protection Co.Ltd(603568) and Jingjin equipment went down, with a decrease of 0.10% and 3.26% respectively during the week; The average increase of the top ten environmental protection stocks in market value reached 2.56%, which was significantly higher than the downward trend last week.
In terms of policy, the executive meeting of the State Council held on March 30 proposed to start a number of new water conservancy projects with mature conditions to improve the ability of water resources protection and disaster prevention and reduction, including major water diversion and transfer projects such as the follow-up project of the South-to-North Water Transfer, backbone flood control and disaster reduction, danger removal and reinforcement of dangerous reservoirs, construction and transformation of irrigation areas, etc.
water conservancy sector welcomes favorable policies
On March 30, the executive meeting of the State Council pointed out that water conservancy projects are livelihood projects, development projects and safety projects. This year, another batch of projects that have been included in the plan and have mature conditions will be started, including major water diversion and transfer projects such as the follow-up project of the South-to-North Water Transfer, backbone flood control and disaster reduction, danger removal and reinforcement of dangerous reservoirs, construction and transformation of irrigation areas, etc. These projects, together with other water conservancy projects, can complete an investment of about 800 billion yuan in the whole year. According to the requirements of the meeting, ensure the project quality and ensure the safe operation of the project.
Guotai Junan Securities Co.Ltd(601211) believes that the economic work in 2022 will focus on steady growth. As one of the important infrastructure construction fields, water conservancy has the characteristics of strong social benefits, large investment absorption and long industrial chain. The development of water conservancy is expected to fully boost demand, create employment and make an important contribution to achieving the goal of steady growth. In combination with the work deployment of the central government and the Ministry of water resources, water conservancy will focus on the construction of major projects such as national water network and watershed flood control and the improvement of smart water conservancy in 2022. In terms of medium and long-term planning, during the 14th Five Year Plan period, water conservancy construction will achieve high-quality development from the four investment directions of flood control, water supply, intelligent water conservancy and ecological restoration. Its investment growth rate is expected to enter a new round of growth period driven by the accelerated implementation of 150 major water conservancy projects.
Due to the favorable policy news, several stocks in the water conservancy sector performed well this week, of which Xinjiang Guotong Pipeline Co.Ltd(002205) rose or fell by 28.35% in the week, and hit the daily limit on March 31 and April 1 for two consecutive working days Xinjiang Guotong Pipeline Co.Ltd(002205) has increased the limit twice in the past year.
It is understood that Xinjiang Guotong Pipeline Co.Ltd(002205) is mainly engaged in the manufacture and transportation of cement products such as prestressed steel cylinder concrete pipe (PCCP), various water pipelines and their special-shaped pipe fittings and accessories, subway shield ring, and related technology development and consulting services and PPP projects.
Xinjiang Guotong Pipeline Co.Ltd(002205) is committed to the construction, operation and maintenance of municipal water conservancy facilities. It has successively participated in many major water conservancy and municipal projects such as Beijing South-to-North Water Transfer Project, Guangzhou Xijiang water diversion project and Harbin subway. There are more than 30 high-end concrete product production lines in China, and the production bases and products cover northwest, northeast, southwest, South China, North China, central China and East China.
Chongqing Water Group Co.Ltd(601158) revenue and net profit increased steadily
During this week, Chongqing Water Group Co.Ltd(601158) the largest integrated water supply and drainage enterprise in Chongqing rose or fell by 8.26%, and maintained a continuous upward trend for five working days. At present, Chongqing Water Group Co.Ltd(601158) ranks second in the total market value of the environmental protection sector.
In fact, Chongqing Water Group Co.Ltd(601158) has had a lot of heavy news this week.
On March 29, Tianjin Motimo Membrane Technology Co.Ltd(300334) and Chongqing Water Group Co.Ltd(601158) signed the cooperation framework agreement. Based on the synergy between the two sides in the market and business in the field of water affairs, the two sides intend to establish a long-term and strategic business cooperation relationship in the field of sewage treatment services, so as to realize equality and mutual benefit, complementary advantages, sharing and win-win results and promote the common development of businesses of all parties through equity, construction, operation or management cooperation of environmental protection water projects, membrane products and overall membrane solutions.
On April 1, Chongqing Water Group Co.Ltd(601158) released the annual report of 2021, in which the revenue and net profit increased steadily. The company achieved an operating revenue of 7.252 billion yuan in 2021, a year-on-year increase of 14.22%; The net profit attributable to the parent company was 2.078 billion yuan, a year-on-year increase of 17.13%; The net profit after deducting non profit was 1.751 billion yuan, an increase of 4.71%, and the earnings per share was 0.43 yuan.
From the perspective of revenue composition, sewage treatment service revenue is the main support of Chongqing Water Group Co.Ltd(601158) revenue, contributing a total of 4.180 billion yuan, accounting for 57.64% of the company’s total operating revenue; The sales revenue of tap water was 1.697 billion yuan, accounting for 23.40% of the company’s total operating revenue; The revenue from sludge treatment and disposal was 222 million yuan, accounting for 3.06% of the company’s total operating revenue; The revenue from engineering construction and other businesses reached 1.153 billion yuan, accounting for 15.90% of the company’s total operating revenue.
By the end of 2021, Chongqing Water Group Co.Ltd(601158) daily water supply capacity totaled 3025500 cubic meters, with an increase of 581000 cubic meters; The daily sewage treatment capacity totaled 4.2486 million cubic meters, with an increase of 679100 cubic meters. For the future development, Chongqing Water Group Co.Ltd(601158) said that by the end of 2025, the asset scale will reach 50 billion yuan, the revenue will exceed 10 billion yuan, the total scale of water supply and drainage will reach more than 9.3 million cubic meters / day, and the daily sludge treatment and disposal capacity will reach 4680 tons.
