Key investment points
Carbon market tracking: China: from April 11 to April 15, the trading volume of the national carbon market carbon emission quota (CEA) listing agreement was 376000 tons, up 736120% on a weekly basis. On April 15, 2022, the transaction of carbon emission quota (CEA) in the national carbon market was 275900 tons, with an opening price of 60.00 yuan / ton and a closing price of 60.00 yuan / ton. The closing price was the same as the previous day, with a weekly increase of 0.02%. From April 6 to April 8, the total trading volume of carbon emission quotas in eight pilot cities in China was 164300 tons, with a week-on-week ratio of – 77.92%; The average transaction price of quota was 45.07 yuan / ton, with a week-on-week increase of + 97.41%; The trading volume of CCER was 135400 tons, with a week on week ratio of – 35.30%. EU: from April 11 to April 15, the trading volume of EU carbon emission quota futures totaled 59.34 million tons, with a weekly change of 56.525 million tons, a week on week decrease of – 48.79%; The average transaction price was 77.92 euros / ton, with a year-on-year increase of + 103.93%. The weekly change value decreased by 0.63 euros / ton, with a week-on-week decrease of -0.80%.
This week’s portfolio: Zhejiang Weiming Environment Protection Co.Ltd(603568) + Beijing Geoenviron Engineering & Technology Inc(603588) + Shanghai Sheng Jian Environment Technology Co.Ltd(603324) + Shengyuan Environmental Protection Co.Ltd(300867) + Jiangxi Hongcheng Environment Co.Ltd(600461) current market (4.11-4.15): the Shanghai Composite Index fell 1.25%, the Shenzhen composite index fell 2.60% and the gem index fell 4.26%. The A-share environmental protection sector index fell 4.72%, and the rise and fall of solid waste treatment, sanitation, environmental monitoring, water affairs and water treatment were – 5.33%, – 5.40%, – 6.46% and – 3.99% respectively. The H-share environmental protection sector index rose 0.57%. At present, the TTM valuation of A-share environmental protection sector is 16 times.
Industry highlights: the CPC Central Committee and the State Council issued the opinions on accelerating the construction of a national unified market. The opinions provided a program of action for the construction of a national unified market in the coming period from the overall and strategic perspective, which proposed to accelerate the development of a unified capital market. The Opinions also proposed to cultivate and develop a national unified ecological environment market. Relying on the public resource trading platform, build a unified national carbon emission rights and water rights trading market, and implement unified and standardized industry standards and trading supervision mechanism. Promote the market-oriented trading of emission rights and energy use rights, and explore the establishment of systems such as initial distribution, paid use, market trading, dispute resolution and supporting services. Promote the construction of green product certification and labeling system, and promote green production and consumption.
Investment suggestions:
Environmental protection enterprises outline the second growth curve. The company is expected to join hands with Qingshan group to shape the second stage of high-quality investment and environmental protection in Indonesia. It is suggested to pay attention to Zhejiang Weiming Environment Protection Co.Ltd(603568) , Shengyuan Environmental Protection Co.Ltd(300867) .
Focus on steady operation environmental protection enterprises and high dividend assets. Operational environmental protection has two characteristics: rigid demand in weak economic cycle and stable return under franchise mode. At present, the leading companies can contribute to the performance growth in the next 2-3 years on the one hand, and are expected to increase the profit space through fine management on the other hand. At the same time, under the background of “stable growth”, the investment value of high dividend assets is expected to be revalued. It is suggested to pay attention to Beijing Geoenviron Engineering & Technology Inc(603588) , Jiangxi Hongcheng Environment Co.Ltd(600461) .
Pay attention to the development opportunities in the field of high prosperity and subdivided environmental protection. Environmental protection subdivisions, such as waste gas treatment in the pan semiconductor field and biodiesel, are boosted by the investment acceleration or recycling trend of relevant industries. It is suggested to pay attention to the relevant high-quality targets in the high boom subdivisions of environmental protection. It is suggested to pay attention to Shanghai Sheng Jian Environment Technology Co.Ltd(603324) .
Risk tips: the implementation risk of environmental protection policies and the progress risk of construction projects.
