The implementation of the guidelines for the warehousing of ecological and environmental protection financial support project reserves is conducive to the financing of pollution prevention and control projects. 1. On April 11, the Ministry of ecology and environment issued the guidelines for the warehousing of ecological and environmental protection financial support project reserves (for Trial Implementation). The guidelines cover eight areas: air pollution prevention, water ecological environment protection, comprehensive treatment of key sea areas, soil pollution prevention, agricultural and rural pollution control, solid waste treatment and disposal and comprehensive utilization of resources, ecological protection and restoration, and other environmental treatment, It is emphasized that warehousing projects should be suitable for financial support, including projects with corporate governance responsibility, projects with eco-environment oriented development (EOD) mode, government social capital cooperation (PPP) mode and other market-oriented operation modes. On the one hand, the guide helps to promote the financing of pollution prevention and control projects, on the other hand, it standardizes the financing process and benefits all kinds of enterprises participating in the construction of major engineering projects in the battle of pollution prevention and control. 2. On April 11, the Ministry of ecological environment held a policy briefing on the newly issued guidance on strengthening the law enforcement and supervision of pollutant discharge permits to explain the characteristics and future trends of the new regulations to the public. The meeting clarified the responsibilities of local governments, relevant departments and pollutant discharge units in the law enforcement and supervision of pollutant discharge permits, and improved the linkage mechanism of law enforcement and supervision through standardizing processes, strengthening tracking supervision, carrying out checklist law enforcement inspection, strengthening law enforcement monitoring, and improving law enforcement and supervision Severely punish illegal acts and strengthen the connection between administrative law enforcement and criminal justice “1) in terms of waste treatment, it is recommended to pay attention to Zhejiang Weiming Environment Protection Co.Ltd(603568) , which is leading in the roe industry and has sufficient orders; Grandblue Environment Co.Ltd(600323) , which has excellent management. 2) in terms of sewage treatment, it is recommended to pay attention to Hongcheng water industry with attractive valuation and dividend rate; 3) in terms of soil remediation and testing, it is recommended to pay attention to: the testing leader with national soil pollution detailed investigation and testing laboratory Centre Testing International Group Co.Ltd(300012) ; and the market share of soil remediation business is leading in the industry Beijing Geoenviron Engineering & Technology Inc(603588) 。
This week’s carbon trading market: this week (April 11-april 15), the total trading volume of the national carbon market carbon emission quota (CEA) is 376000 tons, with a total turnover of 214806 million yuan. The highest and lowest transaction prices were 60.00 yuan / ton, and the closing price on Friday (4.15) was 60.00 yuan / ton, up 0.02% from last Friday (4.8). As of April 15, 2022, the cumulative trading volume of carbon emission quotas in the national carbon market was 190 million tons, with a cumulative turnover of 8.238 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. Testing, parallel magnetic materials and high revenue Sinosteel New Materials Co.Ltd(002057) .
Industry news: 1) the four departments issued the “implementation plan on printing and distributing the key battle for the treatment of urban black and smelly water bodies”; 2) The Ministry of ecology and environment issued the administrative measures for the prevention and control of environmental pollution from tailings; 3) The three departments jointly issued the implementation opinions on accelerating the recycling of waste textiles
Plate Market Review: this week (4.11-4.15), the environmental protection sector performed poorly, losing the market and the gem; The public utilities sector performed well, outperforming the market and the gem. The Shanghai Composite Index fell by – 0.99%, the gem index fell by – 4.26%, environmental protection projects and services fell by – 5.17%, underperforming the Shanghai Composite Index by – 3.92% and the gem by – 0.91%; The decline of public utilities was – 1.23%, outperforming the Shanghai Composite Index by 0.02% and the gem by 3.04%. Monitoring (- 4.39%), atmosphere (- 4.34%), water treatment (- 6.98%), solid waste (- 5.91%), water operation (- 1.74%), energy saving (- 5.28%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected
