Market review: as of January 7, 2022, Shenwan environmental protection industry fell by 0.84% in the week, outperforming the Shanghai and Shenzhen 300 index by 1.55 percentage points and ranking 15th among Shenwan 31 industries. Among the top ten stocks that rose in the week, Beijing Zeho Waterfront Ecological Environment Treatment Co.Ltd(605069) , Xiamen Zhongchuang Environmental Technology Co.Ltd(300056) and Wangneng Environment Co.Ltd(002034) ranked among the top three in Shenwan environmental protection, up 46.41%, 16.44% and 13.49% respectively. Among the top ten stocks that fell in the week, China Resourcesand Environment Co.Ltd(600217) , Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) and Suzhou Shijing Environmental Technology Co.Ltd(301030) fell significantly, down 13.34%, 10.59% and 9.84% respectively. In terms of valuation, as of January 7, 2022, the PE (TTM) of Shenwan environmental protection sector was 22.17 times.
Zhou viewpoint of environmental protection industry: Recently, the Ministry of ecology and environment and other four ministries and commissions issued the pilot implementation plan for regional reclaimed water recycling. Regional reclaimed water recycling is to build engineering facilities such as constructed wetland water purification according to local conditions at key nodes such as downstream of key sewage outlets, river inlets (SEA) and tributaries into the main stream, After further purification and improvement of the drainage after the treatment meets the standard, the sewage resource utilization mode for production, ecology and life shall be coordinated in a certain area. This mode is conducive to the synergy of pollution reduction and carbon reduction, and promote the realization of carbon peak and carbon neutralization. In addition, the “14th five year plan” for urban and rural domestic sewage treatment in Zhuhai was issued. By the end of the 14th five year plan, Zhuhai plans to build and expand 12 water purification plants, build and reconstruct a sewage pipe network with a length of 915.63km, and increase the centralized collection rate of urban domestic sewage to 75%. A series of plans and schemes of the central government and local governments are expected to promote the development of the sewage treatment industry. It is recommended to pay attention to the sewage treatment targets Beijing Originwater Technology Co.Ltd(300070) (300070), Chengdu Xingrong Environment Co.Ltd(000598) (000598), in addition, it is recommended to pay attention to the solid waste treatment related targets Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645), and the carbon neutral waste incineration targets Zhejiang Weiming Environment Protection Co.Ltd(603568) (603568) Grandblue Environment Co.Ltd(600323) (600323), Chongqing Sanfeng Environment Group Corp.Ltd(601827) (601827), Dynagreen Environmental Protection Group Co.Ltd(601330) (601330), the subject of new energy environmental sanitation equipment Yutong Heavy Industries Co.Ltd(600817) (600817).
Risk warning: policy promotion is not as expected; The progress of the construction project is less than expected; Product price fluctuation risk; The promotion of carbon emission trading was less than expected.
