Key investment points:
Market review: this week, the public utility industry index rose 0.92%, and the environmental protection industry index rose 0.66%. Among the environmental protection sectors, water affairs and air control increased significantly, up 4.66% and 2.63% respectively; Among public utilities, hydropower and gas increased significantly, up 3.30% and 1.45% respectively, while thermal power decreased significantly, down 1.85%.
Industry trends:
Environmental protection:
1) all localities have issued implementation plans for energy conservation and emission reduction, and the energy conservation and environmental protection industry is expected to usher in high-quality development. Recently, Shandong, Guizhou, Heilongjiang and other places have issued implementation plans for energy conservation and emission reduction. Among them, the notice on the implementation opinions on accelerating the high-quality development of energy conservation and environmental protection industry issued by Shandong Province proposes that by 2023, the technology, equipment and service level of energy conservation and environmental protection will be significantly improved, and the output value of energy conservation and environmental protection industry will increase by more than 10% annually. By 2025, the development quality and efficiency of energy conservation and environmental protection industry in the province will be significantly improved, The energy conservation and environmental protection industry has achieved large-scale, high-end, green and intelligent development, and has become an important strategic emerging industry in Shandong Province. Its development level has reached the forefront of the country and some fields have reached the international advanced level; The people's Government of Heilongjiang Province has issued the comprehensive implementation plan for energy conservation and emission reduction in the 14th five year plan of Heilongjiang Province, which proposes that by 2025, the treatment rate of rural domestic sewage will reach 40%, the comprehensive utilization rate of straw will reach 95%, the use of pesticides will be reduced by 5%, the utilization rate of chemical fertilizer for main crops will reach 43%, the comprehensive utilization rate of livestock and poultry manure will reach 85%, the recovery rate of waste agricultural film will reach 88%, and the coverage rates of green prevention and control and unified prevention and control will reach 60% respectively 65%, etc. All localities continue to promote energy conservation and emission reduction, and put forward clear indicators for energy conservation and carbon reduction and improving resource utilization efficiency. It is suggested to pay attention to: [ Moon Environment Technology Co.Ltd(000811) ] the leader of cold chain compressor and actively layout the new driving force of performance growth brought by CCUs and hydrogen energy industry; Ozone generator industry leader, semiconductor cleaning domestic alternative [ Qingdao Guolin Environmental Technology Co.Ltd(300786) ]; Recycled plastic quality target [ Shandong Intco Recycling Resources Co.Ltd(688087) ].
2) strengthen the prevention and control of solid waste pollution and the treatment of new pollutants, and pay attention to the construction progress of "waste free city". Recently, the Ministry of ecology and environment held a regular press conference in March to clarify the full launch of the second round of the Sixth Batch of central ecological and environmental protection inspectors. At the same time, the "14th five year plan" for ecological protection supervision released earlier shows that two focuses are highlighted, one is the treatment of new pollutants and the other is the construction of "waste free city". In addition, the general office of Hebei provincial government issued the work plan for the construction of "waste free cities" in Hebei Province during the 14th Five Year Plan period, which mentioned that all cities started the construction of "waste free cities" at the same time, and put forward that during the 14th Five Year Plan Period, the comprehensive utilization level of bulk solid waste in the province continued to improve, and the environmental risks of tailings depots were effectively controlled; Solid wastes from domestic and agricultural sources are fully utilized as resources, and the concept of green and low-carbon "no waste" is generally formed; The solid waste treatment system and treatment capacity have been significantly improved. It is suggested to pay attention to: the solid waste leader arranges new energy, and the energy storage progress exceeds the expected [ China Tianying Inc(000035) ]; Hazardous waste metal recycling leader [ Beijing Geoenviron Engineering & Technology Inc(603588) ]; Waste incineration faucet, high nickel matte starts [ Zhejiang Weiming Environment Protection Co.Ltd(603568) ] of the second growth curve; Expansion of the main business of waste power generation + layout of lithium battery recycling [ Wangneng Environment Co.Ltd(002034) ]. Public:
1) vigorously develop wind power photovoltaic and steadily promote the transformation of energy structure. Recently, the National Energy Administration issued the guiding opinions on energy work in 2022. The opinions clearly set the goal that the total national energy production will reach about 4.41 billion tons of standard coal, about 200 million tons of crude oil and about 214 billion cubic meters of natural gas; We will ensure an adequate supply of electricity, with an installed capacity of 2.6 billion kilowatts, a power generation capacity of about 907 trillion hours, a new peak power generation capacity of more than 80 million hours, and a transmission capacity of about 290 million hours. At the same time, it is proposed that the proportion of coal consumption has decreased steadily, the proportion of non fossil energy in the total energy consumption has increased to about 17.3%, the replacement power of new electric energy is about 180 billion hours, and the proportion of wind power and photovoltaic power generation in the power consumption of the whole society has reached about 12.2%. In addition, it also proposes to vigorously develop wind power photovoltaic and orderly promote the construction of major hydropower and nuclear power projects; Accelerate the construction of a number of pumped storage power stations; Implement the implementation plan for the development of new energy storage in the 14th five year plan. The implementation of the opinions will continue to promote the vigorous development of wind power and photovoltaic, the orderly promotion of hydropower and nuclear power, and the pumped storage and energy storage will enter the fast lane of development. It is suggested to pay attention to [ China National Nuclear Power Co.Ltd(601985) ] driven by nuclear power + wind solar dual core; [ Huaneng Power International Inc(600011) ] [ Shanghai Electric Power Co.Ltd(600021) ] [China power] for thermal power to new energy; New energy leader [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] [Longyuan Power]; The project reserves are sufficient, and the increment of photovoltaic and energy storage projects can be [ Jiangsu Linyang Energy Co.Ltd(601222) ].
Special topic of this week: the production and sales of new energy vehicles have increased greatly, and the power battery is recycled into the air outlet. In 2021, the production and sales of new energy vehicles increased significantly, driving the attention and prosperity of the power battery recycling industry. In recent years, the state has issued a large number of policies to escort the battery recycling industry. At the same time, the price of nickel, lithium and other metals continues to rise under the imbalance between supply and demand, and the power battery industry is expected to grow into a high growth track in the future. According to the white paper on the development of China's waste lithium-ion battery recycling, dismantling and echelon utilization industry (2022), the theoretical waste lithium-ion battery recycling in China will reach 591000 tons in 2021, and it is expected that the theoretical waste lithium-ion battery recycling in China will reach 2312000 tons in 2026; At the same time, it predicts that the theoretical market scale of waste lithium-ion battery recycling in China will reach 94.32 billion yuan by 2026.
Investment suggestions: during the 14th Five Year Plan period, the state has put forward more requirements for environmental quality and industrial green and low-carbon development. Energy conservation, environmental protection and resource recycling are expected to maintain a high outlook. It is suggested to actively grasp the investment opportunities in energy conservation, environmental protection and renewable resources. It is suggested to pay attention to: Moon Environment Technology Co.Ltd(000811) , Qingdao Guolin Environmental Technology Co.Ltd(300786) , Beijing Geoenviron Engineering & Technology Inc(603588) , Zhejiang Weiming Environment Protection Co.Ltd(603568) , Wangneng Environment Co.Ltd(002034) , Jiangsu Huahong Technology Co.Ltd(002645) (mechanical coverage), China Tianying Inc(000035) , Hanwei Electronics Group Corporation(300007) . During the 14th Five Year Plan period, the low-carbon transformation of energy structure will continue to advance, the installed capacity of wind power and photovoltaic will still maintain rapid growth, hydropower and nuclear power will be promoted in an orderly manner, and energy storage, hydrogen energy and pumped storage will also enter a stage of rapid development. It is suggested to pay attention to: China National Nuclear Power Co.Ltd(601985) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan Power, Jiangsu Linyang Energy Co.Ltd(601222) , Huaneng Power International Inc(600011) , Shanghai Electric Power Co.Ltd(600021) .
Risk warning: the project progress is not as expected; Intensified market competition; Changes in the international political situation; Policy promotion is less than expected; Risk of price reduction.
