Investment summary:
Talk every Monday:
The 2021 annual reports of major environmental protection enterprises were intensively released this week and last week. Five enterprises in the water affairs and water treatment sector issued 2021 annual reports, including Chongqing Water Group Co.Ltd(601158) , Central Plains Environment Protection Co.Ltd(000544) , Tianjin Capital Environmental Protection Group Company Limited(600874) ; In the solid waste sector, 10 enterprises including China Tianying Inc(000035) , Grandblue Environment Co.Ltd(600323) , Shanghai Environment Group Co.Ltd(601200) , etc. released their annual reports for 2021.
Water affairs and water treatment
Chongqing Water Group Co.Ltd(601158) : during the reporting period, the company acquired 19 sewage treatment plants under Chongqing water conservancy investment group and several other sewage treatment plants in Chongqing, realizing the full coverage of sewage treatment projects in all districts and counties of the city; Develop a new direction of water supply by quality and pipe network operation.
Chengdu Xingrong Environment Co.Ltd(000598) : the incremental release of the company's sewage treatment and waste incineration sector, and the completion of Chengdu Zhonghe sewage treatment plant phase II and Wanxing environmental protection power plant phase II; The prices of sewage treatment services and landfill leachate treatment in the city center have also increased.
Beijing Water Business Doctor Co.Ltd(300055) : the company transferred 16% equity of Huizhou ISCO and successfully controlled it. It has expanded to the field of new chemical materials, with a revenue of 1.545 billion yuan, accounting for 77% of the company's revenue this year; Jintai potash increased its capital and signed a 200 million yuan lithium carbonate production line construction, operation and technical service contract with its subsidiaries. The company continued to develop upstream and downstream projects relying on its own lithium extraction technology.
Henan Qingshuiyuan Technology Co.Ltd(300437) : during the reporting period, the company's water treatment agent project with an annual output of 180000 tons was completed, the production capacity increased significantly, the company increased market development, and the production and sales volume increased compared with the same period last year; At the same time, due to the rise in the price of raw materials, the price of the company's products has increased. During the reporting period, the company's revenue from water treatment agents and derivatives increased by 86% to 1.2 billion yuan, accounting for 73% of the company's annual revenue.
Solid waste sector
China Tianying Inc(000035) : in this year, the company completed the delivery of 100% equity of urbaser, the asset liability ratio of the company decreased from 75.2% to 54.5%, the goodwill decreased from 5.6 billion yuan to 66 million yuan, the net profit margin deducted increased from 2.89% to 3.53%, and the roe increased from 5.59% to 6.67%; The company actively laid out wind power and energy storage tracks and officially set foot in the new energy industry.
Grandblue Environment Co.Ltd(600323) : at the end of the reporting period, the total scale of incineration projects put into operation by the company exceeded 25000 tons / day, and the total scale of orders in hand exceeded 34000 tons / day, of which 16600 tons / day was included in the list of state subsidies; In 2022, a hydrogen production project with a design scale of about 2200 tons of hydrogen per year will be started in Nanhai, Foshan, forming an integrated mode of hydrogen production, hydrogenation and utilization.
Dynagreen Environmental Protection Group Co.Ltd(601330) : during the reporting period, the company's waste incineration capacity increased by 7500 tons / day and more than 6000 tons for three consecutive years.
Investment strategy:
The business of enterprises in the water affairs and water treatment sector will maintain steady growth according to the logic of volume and price, and the layout direction of the future pipe network operation and maintenance and operation improvement in the sector will be gradually clarified. It is recommended to pay attention to Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) , the leader of the water industry, and Chongqing Water Group Co.Ltd(601158) , complete the full coverage of municipal sewage business, and lay out the development of differentiated water supply and pipe network maintenance;
Incineration is still the main core of the solid waste business, and the layout of new energy track has been opened one after another. It is recommended to have sufficient incineration reserves and accelerate the layout of new energy China Tianying Inc(000035) .
Risk tip: policy promotion is less than expected, project development is less than expected, etc.
Market review:
Last week, Shenwan environmental protection sector rose or fell by 0.66%, ranking 18 / 31 in Shenwan industry.
In terms of sub sections, the five Shenwan class III sections of air governance, water and water governance, comprehensive environmental governance, solid waste governance and environmental protection equipment decreased by 2.96%, 0.67%, 0.57%, 0.4% and - 0.38%.
In terms of water-saving industry breakdown (- 4.04%) and environmental protection industry breakdown (- 1.04%) of the Yangtze River, respectively; The industries with large decline include biomass (- 3.15%), energy saving (- 3.32%) and industrial wastewater (- 4.44%).
