Key investment points:
Market review: as of April 1, 2022, Shenwan environmental protection industry rose 0.66% in the week, underperforming the CSI 300 index by 1.78 percentage points, ranking 18th among Shenwan 31 industries; Shenwan environmental protection sector fell 9.65% in the same month, 2.98 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 22nd among Shenwan 31 industries; Shenwan environmental protection sector has fallen 12.62% year to date, outperforming the Shanghai and Shenzhen 300 index by 0.83 percentage points and ranking 18th among Shenwan 31 industries.
As of April 1, 2022, the sub sectors of Shenwan environmental protection industry in that week had mixed gains and losses, including the atmospheric treatment sector rose by 2.96%, the water affairs and water treatment sector rose by 0.67%, the comprehensive environmental treatment sector rose by 0.57%, the solid waste treatment sector rose by 0.40% and the environmental protection equipment sector fell by 0.38%.
Among the top ten stocks that rose in the week, Xinjiang Guotong Pipeline Co.Ltd(002205) , Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) and Tianjin Capital Environmental Protection Group Company Limited(600874) ranked among the top three in Shenwan environmental protection sector, up 28.35%, 10.43% and 10.25% respectively. Among the top ten stocks that fell in the week, Tianjin Motimo Membrane Technology Co.Ltd(300334) , Hynar Water Group Co.Ltd(300961) and Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) fell significantly, with declines of 12.24%, 11.26% and 9.17% respectively.
Valuation: as of April 1, 2022, the PE (TTM) of environmental protection sector is 19.45 times; In terms of sub sectors, PE (TTM) in the atmospheric governance sector is 36.66 times, PE (TTM) in the water affairs and water governance sector is 17.69 times, PE (TTM) in the solid waste governance sector is 15.48 times, PE (TTM) in the comprehensive environmental governance sector is 43.57 times, and PE (TTM) in the environmental protection equipment sector is 23.54 times.
One belt, one road, one belt, one road, and the other is the world’s major development. The important news is that the national development and Reform Commission issued the “opinions on promoting green development along the belt”. The main goal is to build a “one belt and one road” international environmental and environmental change and exchange cooperation, and the concept of green silk road is recognized by all sides. The practical cooperation in the fields of green infrastructure, green energy, green transportation and green finance will be promoted in a solid way in 2025.
Zhou’s view of the environmental protection industry: in the 2022 government work report, it is proposed to adhere to the principle of stability, seek progress while stability, and put steady growth in a more prominent position. Since this year, the state has accelerated the construction of environmental and water conservancy infrastructure. In terms of environmental infrastructure, in February 2022, the State Council issued the guiding opinions on accelerating the construction of urban environmental infrastructure, which requires that the supply capacity and level of urban environmental infrastructure will be significantly improved by 2025. In terms of water conservancy infrastructure, the executive meeting of the State Council last week pointed out that a number of projects that have been included in the planning and mature conditions will be started in 2022, 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, irrigation area construction and transformation, etc. As countries accelerate environmental and water infrastructure infrastructure, and as countries accelerate environmental and water infrastructure infrastructure, the demands of related industries are expected to increase, and the demands of related industries are expected to increase. It’s suggested to focus on the subject of waste incineration: the Zhejiang Weiming Environment Protection Co.Ltd(603568) ( Beijing Originwater Technology Co.Ltd(300070) ).
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.
