Water environmental pollution is treated in linkage, and green power is further supported by policies. 1. On April 2, the national development and Reform Commission and the National Energy Administration jointly issued a notice to speed up the development and construction of pumped storage projects during the 14th Five Year Plan period. The notice points out that it is of great significance to do a good job in the development and construction of pumped storage projects in the 14th five year plan. The development and reform commissions and energy bureaus of all provinces (autonomous regions and municipalities) should take the development and construction of pumped storage projects as an important energy work at present, speed up the approval of pumped storage projects in 2022 in accordance with the principle of making full use of energy and making full use of energy, and promote the sound, rapid, large-scale and high-quality development of pumped storage. The two departments attach great importance to the development and construction of pumped storage projects during the 14th Five Year Plan period, which is conducive to accelerating the construction of new power systems, promoting the large-scale and high-proportion development of renewable energy, and benefiting the renewable energy power operators. 2. On March 25, the national development and Reform Commission issued a notice on printing and distributing the implementation plan of the 14th five year plan for the construction of Beibu Gulf Urban Agglomeration, clarifying the direction, path, tasks and measures for the development of Beibu Gulf Urban Agglomeration. The plan puts forward the development direction of jointly protecting the clean water of one bay, and requires to promote the joint prevention and treatment of environmental pollution, improve the urban sewage treatment capacity, and the space of sewage treatment industry is expected to be improved. At the same time, the plan points out to speed up the green and low-carbon transformation, build a diversified low-carbon and clean energy system, and build an offshore wind power base in the Beibu Gulf. Wind power, photovoltaic and nuclear power projects welcome the spring breeze of policies and benefit leading water enterprises and renewable energy power operators. In terms of sewage treatment, it is recommended to pay attention to Hongcheng water industry with attractive valuation and dividend rate; In terms of electricity, it is recommended to pay attention to power operators with clear renewable energy installation plan and good quality. This week’s carbon trading market: this week (4.6-4.8) the total trading volume of the national carbon market carbon emission quota (CEA) is 135000 tons, with a total turnover of 7.7126 million yuan. The highest transaction price was 60.00 yuan / ton and the lowest transaction price was 59.00 yuan / ton. The closing price on Friday (4.8) was 59.99 yuan / ton, up 2.55% from last Friday. As of April 8, 2022, the cumulative trading volume of the national carbon market carbon emission quota (CEA) was 189 million tons, with a cumulative turnover of 8.216 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. Sinosteel New Materials Co.Ltd(002057) .
Industry news: 1) the three ministries and commissions jointly issued a notice on recommending advanced cleaner production technologies; 2) Six ministries and commissions jointly issued the guiding opinions on promoting the high-quality development of petrochemical and chemical industry in the 14th five year plan; 3) Many provinces have issued plans related to climate change, energy conservation and carbon reduction.
Review of sector Market: this week (4.6-4.8), the environmental protection sector performed generally, losing the market and outperforming the gem; Public utilities performed well, outperforming the market and the gem. The Shanghai Composite Index fell by – 0.01%, the gem index fell by – 3.37%, environmental protection projects and services fell by – 3.06%, underperformed the Shanghai Composite Index by – 3.05%, outperforming the gem by 0.31%; Public utilities rose by 1.22%, outperforming the Shanghai Composite Index by 1.23% and the gem by 4.59%. Monitoring (- 3.02%), atmosphere (- 5.13%), water treatment (- 1.02%), solid waste (- 2.64%), water operation (- 1.38%), energy saving (- 2.81%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected
