Market review: as of April 8, 2022, Shenwan environmental protection industry fell by 1.54% in the week, 0.47 percentage points lower than Shanghai and Shenzhen 300 index, ranking 18th among Shenwan 31 industries; The Shenzhen environmental protection index fell by 3.85 million percentage points, ranking 1st in the Shanghai and Shenzhen environmental protection industry; Shenwan environmental protection sector has fallen 13.96% year to date, outperforming the Shanghai and Shenzhen 300 index by 0.40 percentage points and ranking 16th among Shenwan 31 industries.
As of April 8, 2022, the sub boards of Shenwan environmental protection industry fell in that week, including water affairs and water treatment sector, solid waste treatment sector, environmental protection equipment sector, comprehensive environmental treatment sector and atmospheric treatment sector, which fell by 0.36%, 1.27%, 2.03%, 2.10% and 5.69%.
Among the top ten stocks that rose in the week, Xinjiang Guotong Pipeline Co.Ltd(002205) , Shenwu Energy Saving Co.Ltd(000820) and Bohai Water Industry Co.Ltd(000605) ranked among the top three in Shenwan environmental protection sector, up 33.13%, 10.39% and 6.87% respectively. Among the top ten stocks that fell in the week, Tianjin Motimo Membrane Technology Co.Ltd(300334) , Focused Photonics (Hangzhou) Inc(300203) and Chongqing Water Group Co.Ltd(601158) fell significantly, with declines of 9.81%, 8.79% and 8.72% respectively.
Valuation: as of April 8, 2022, the PE (TTM) of environmental protection sector was 19.59 times; In terms of sub sectors, the PE (TTM) of the atmospheric treatment sector is 34.57 times, the PE (TTM) of the water affairs and water treatment sector is 18.59 times, the PE (TTM) of the solid waste treatment sector is 15.29 times, the PE (TTM) of the comprehensive environmental treatment sector is 42.66 times, and the PE (TTM) of the environmental protection equipment sector is 23.15 times.
Important news: the Ministry of industry and information technology and other six departments jointly issued the guiding opinions on promoting the high-quality development of the petrochemical and chemical industry in the 14th five year plan, which proposed that by 2025, the petrochemical and chemical industry will basically form a high-quality development pattern with strong independent innovation ability, reasonable structural layout, green, safe and low-carbon, greatly improve the guarantee ability of high-end products, and significantly enhance its core competitiveness, Solid steps have been taken to achieve high-level self-reliance and self-improvement.
Viewpoint of Environmental Protection Industry Week: on April 7, the first public offering REITs project in 2022 – Huaxia China Communications Construction Company Limited(601800) reit (code 508018) was put on sale. On April 8, Huaxia Fund announced that as of April 7, 2022, the cumulative effective subscription scale of public investors of the fund had exceeded the upper limit of the initial offering scale of public investors, and decided to end the offering of public investors in advance. REIT is a kind of financial instrument, which issues income certificates, collects investors’ funds, gives them to professional investment institutions for investment, operation and management of real estate, and distributes the investment income to investors in time. At present, the issued REITs of environmental protection industry include AVIC Shougang biomass REIT and Fuguo water REIT. REIT issuance is expected to help sewage treatment and solid waste treatment enterprises revitalize stock assets and focus on project operation. Under the background that REIT is recognized by the market and its issuance is advancing steadily, it is suggested to pay attention to the subject matter of waste incineration power generation Zhejiang Weiming Environment Protection Co.Ltd(603568) ( Zhejiang Weiming Environment Protection Co.Ltd(603568) ), Dynagreen Environmental Protection Group Co.Ltd(601330) ( Dynagreen Environmental Protection Group Co.Ltd(601330) ), Chongqing Sanfeng Environment Group Corp.Ltd(601827) ( Chongqing Sanfeng Environment Group Corp.Ltd(601827) ), the subject matter of hazardous waste disposal Zhefu Holding Group Co.Ltd(002266) ( Zhefu Holding Group Co.Ltd(002266) ), Beijing Geoenviron Engineering & Technology Inc(603588) ( Beijing Geoenviron Engineering & Technology Inc(603588) ), and the subject matter of sewage treatment Chengdu Xingrong Environment Co.Ltd(000598) ( Chengdu Xingrong Environment Co.Ltd(000598) ).
Risk warning: policy promotion is not as expected; Economic development is less than expected; The project construction progress is less than expected; Product price fluctuation risk, etc.
