Investment summary:
Talk every Monday:
Recently, four ministries and commissions, including the Ministry of housing and urban rural development and the Ministry of ecological environment, issued the implementation plan for deepening the battle for the treatment of urban black and smelly water bodies. The plan proposes that by the end of June 2022, the county-level city government will complete the investigation of black and odorous water bodies in the built-up areas and formulate the urban black and odorous water treatment plan. By 2025, the proportion of black and odorous water bodies in the built-up areas of county-level cities will reach 90%, and Beijing Tianjin Hebei, Yangtze River Delta and Pearl River Delta will strive to be completed one year ahead of schedule. Based on the 2018 plan, the implementation plan will further sink the treatment of black and odorous water bodies from prefecture level and above cities to county-level cities, and put forward corresponding improvement requirements from the perspective of municipal, industrial and agricultural source treatment. In addition to improving the sewage collection rate through making up the shortcomings in the municipal field, it also strengthens the requirements for improving the collection quality. In addition to reiterating the new target of 70% centralized collection rate of urban domestic sewage in 2025 in the 14th five year plan, the implementation plan again emphasizes the requirements for improving the concentration of aquatic oxygen demand (BOD) in the three-year action plan for improving the quality and efficiency of urban sewage treatment (20192021), and emphasizes that the improvement of pipe network conditions should be emphasized rather than blind upgrading and reconstruction.
The implementation plan points out that cities with an inlet BOD concentration of less than 100mg / L in the existing sewage treatment plant should formulate a systematic treatment plan, clarify measures such as pipe network investigation and transformation, clean-up and sewage diversion, industrial wastewater and engineering drainage return, traceability and law enforcement, and should not blindly improve the effluent standard of the sewage treatment plant and expand the sewage treatment plant. By 2025, the scale of urban domestic sewage treatment plants with inlet BOD concentration higher than 100mg / l will account for more than 90%.
The industrial sector is expected to continue to strengthen the supervision based on sewage outlets and sewage permits, releasing a lot of demand. In the implementation plan, in addition to the relevant requirements for the recycling level of industrial wastewater and the centralized treatment of sewage in industrial gathering areas, it further emphasizes the supervision mode of industrial sewage and agricultural livestock breeding wastewater based on sewage outlets and sewage permits. A series of emission related policies released recently also further clarify the industrial emission supervision mode based on the emission outlet, environmental assessment and emission permit system in the new era.
The Ministry of ecology and environment recently issued the implementation plan for environmental impact assessment and pollutant discharge permit in the 14th five year plan, which proposes to further consolidate the core system of pollutant discharge permit and improve the chain of environmental assessment and pollutant discharge permit management. Industrial parks, petrochemical bases, energy bases, ports and coal mining areas will become the focus of attention.
The implementation opinions of the general office of the State Council on strengthening the supervision and management of sewage outlets into rivers and seas issued in early March established a close relationship between the supervision of the discharge of fixed source pollutants and the management of sewage outlets. Through the investigation, regulation, merger and supervision of the sewage outlet, it will further force the upstream sewage discharge management based on the sewage discharge license.
Investment strategy: the logic of municipal sewage improvement board remains unchanged, and the improvement of sewage collection rate is expected to bring water volume growth to operating enterprises. Continue to pay attention to Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) , the leading enterprise of water operation, and Chongqing Water Group Co.Ltd(601158) , which has just completed the integration of sewage projects in Chongqing; For example, Beite has accumulated experience in industrial sewage discharge and centralized sewage discharge system, which will help Beite pay more attention to industrial sewage discharge and industrial sewage discharge. Risk tips: industrial wastewater market competition intensifies, policy promotion is less than expected, and the impact of repeated epidemics on water volume, etc.
Market review:
Last week, Shenwan environmental protection sector rose or fell – 4.77%, ranking 20 / 31 in Shenwan level industry.
In terms of sub sections, the five Shenwan III sections of environmental protection equipment, solid waste treatment, water and water treatment, comprehensive environmental treatment and atmospheric treatment rose or fell by – 3.4%, – 3.52%, – 4.55%, – 5.18% and – 11.16%.
In terms of specific stocks, Tianyuan environmental protection (7.82%), Tus Environmental Science And Technology Development Co.Ltd(000826) (7.44%), Shanghai Emperor Of Cleaning Hi-Tech Co.Ltd(603200) (6.92%) rose higher Beijing Sanju Environmental Protection & New Materials Co.Ltd(300072) (- 17.57%), Tongxing Environmental Protection Technology Co.Ltd(003027) (- 20.84%), Xinjiang Guotong Pipeline Co.Ltd(002205) (- 28.62%) decreased significantly.
