Establish the primary goal of energy security and stable supply, and promote the benign substitution of renewable energy. 1. On March 29, the National Energy Administration issued the guiding opinions on energy work in 2022, pointing out that ensuring the safe and stable supply of energy is the primary task of energy work in 2022. Steadily promote the transformation of energy structure, strive to improve the quality and efficiency of transformation, and reduce the proportion of coal consumption. The proportion of non fossil energy in the total energy consumption has increased to about 17.3%, and the proportion of wind power and photovoltaic power generation in the total electricity consumption of the whole society has reached 12.2%. In terms of energy storage and transportation, strengthen energy storage and transportation capacity, and promote the construction of hydropower peak shaving projects, coal-fired power unit transformation and energy storage projects of wind power photovoltaic base. On the demand side, improve the response capacity of energy demand side, improve the electricity price mechanism, support the diversified development of user side energy storage, and guide power users to participate in virtual power plants, peak shifting and valley filling, and demand response. The opinions highlights the importance of energy security and stable supply, and emphasizes improving the quality and efficiency of energy transformation, which is conducive to promoting the transformation of coal-fired power enterprises and the further integration of renewable energy into the energy system, and benefiting power operators and energy transformation infrastructure construction enterprises. 2. On March 24, the national development and Reform Commission, the energy administration and the Ministry of Finance jointly issued the notice on carrying out self inspection of subsidies for renewable energy power generation, requiring power grid enterprises and power generation enterprises to carry out self inspection in six aspects: Project compliance, scale, electricity quantity, electricity price, subsidy funds and environmental protection. Subsidy verification is an important work to standardize the use and management of subsidy funds, which is conducive to further finding out the subsidy base, Improve the use efficiency of subsidy funds, provide a strong foundation for formulating more efficient industrial subsidy policies in the future, and promote the scientific and healthy development of the industry. Recommended concerns: 1) renewable energy operators with clear installation plan and excellent quality; 2) Thermal power operators with clean coal units and high utilization efficiency.
This week’s carbon trading market: this week (3.28-4.1) the total trading volume of the national carbon market carbon emission quota (CEA) is 69600 tons, with a total turnover of 4.0761 million yuan. The highest transaction price was 58.70 yuan / ton and the lowest transaction price was 58.00 yuan / ton. The closing price on Friday (4.1) was 58.50 yuan / ton, up 0.86% from last Friday (3.25). As of April 1, 2022, the cumulative trading volume of carbon emission quotas in the national carbon market was 189 million tons, with a cumulative turnover of 8.208 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 housing and urban rural development issued the notice on comprehensively accelerating the construction of urban operation management service platform; 2) The national development and Reform Commission issued the notice on Further Doing a good job in the docking of social capital investment and financing cooperation; 3) The Ministry of environment issued the work plan for “one city, one policy” site tracking research (phase II) for the protection and restoration of the ecological environment of the Yangtze River
Plate Market Review: this week (3.28-4.1) the environmental protection sector performed poorly, losing the market and the gem; The performance of public utilities is average, losing the market and outperforming the gem. The Shanghai Composite Index rose by 2.19%, the gem index rose by 1.10%, environmental protection projects and services fell by – 1.95%, underperforming the Shanghai Composite Index by – 4.14% and the gem by – 3.05%; Public utilities rose by 1.92%, underperforming the Shanghai Composite Index by – 0.28% and outperforming the gem by 0.82%. Monitoring (- 0.64%), atmosphere (2.72%), water treatment (- 1.23%), solid waste (0.12%), water operation (4.99%), energy conservation (- 2.02%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
