Guided by the concept of green development, China’s renewable resource recycling industry has further developed and expanded. According to the “fourteenth five year plan” for circular economy development, by 2025, China will have basically established a resource recycling industry system and a resource recycling system covering the whole society. The efficiency of resource utilization will be greatly improved, and the replacement ratio of renewable resources to primary resources will be further increased. With the rapid opening of renewable resources market space, enterprises will usher in a period of rapid growth.
Cement and glass prices continued to rise. The cement price rose slightly on a weekly basis this week, but the price showed a downward trend during the week, mainly due to the weak recovery of demand and the influence of cloudy and rainy weather. Although it has entered the traditional peak season of cement in previous years, due to the obstruction of regional transportation and other reasons, the current cement market demand recovers slowly. We believe that although the demand is delayed, it has not disappeared. We suggest paying attention to the leading enterprises in the cement area. The price of float glass has rebounded this week, but the market demand is still general, and the order improvement of downstream factories is not obvious; At present, the supply of float glass remains stable and the enterprise inventory is high. It is expected that with the steady growth of glass market demand, the price of float glass will have room for improvement. The downstream demand of glass fiber, such as wind power and new energy vehicles, is highly related to carbon neutrality. Benefiting from the expansion of downstream demand for new applications, the industry has great development space.
As of April 23, 12 listed coal enterprises have disclosed the performance forecast of the first quarter, all of which have realized the pre increase Jizhong Energy Resources Co.Ltd(000937) , Shanghai Datun Energy Resources Co.Ltd(600508) , Shanxi Lanhua Sci-Tech Venture Co.Ltd(600123) , the growth rate of net profit attributable to parent ranked among the top three in the industry, and the median growth rate of net profit attributable to parent in the first quarter was 499.5% / 303.7% and 296.8% respectively. It is estimated that during the 14th Five Year Plan period, coal consumption will still maintain a positive growth. During the 15th Five Year Plan period, with the development of clean and efficient utilization technology of coal, China’s coal has a natural price advantage in traditional fossil energy, and is expected to obtain more applications in coal power and non power fields. On the premise of steady economic growth in China, coal consumption is expected to maintain a certain positive growth.
On April 20, the National Energy Administration released the statistical data of the national power industry from January to March. In the first quarter, the installed capacity of wind power increased by 7.9gw, a year-on-year increase of more than 50%; In the first quarter, Cecep Solar Energy Co.Ltd(000591) added 13.2gw of installed capacity, with a year-on-year increase of nearly 150%, of which distributed accounts for nearly 70%. In 2022, major power generation groups and operators will increase investment in new energy, and the annual installed capacity is expected to continue the high growth trend in the first quarter.
Investment suggestion: environmental protection: recommend Jiangsu Huahong Technology Co.Ltd(002645) ( Jiangsu Huahong Technology Co.Ltd(002645) . SZ), Miracle Automation Engineering Co.Ltd(002009) ( Miracle Automation Engineering Co.Ltd(002009) . SZ), Bece Legend Group Co.Ltd(000803) ( Bece Legend Group Co.Ltd(000803) . SZ), Shandong Intco Recycling Resources Co.Ltd(688087) ( Shandong Intco Recycling Resources Co.Ltd(688087) . SH), Beijing Geoenviron Engineering & Technology Inc(603588) ( Beijing Geoenviron Engineering & Technology Inc(603588) . SH). Building materials: recommendations: building materials: building materials: building materials: building materials: building materials: building materials: building materials: recommendations: recommendations: recommendations of the Huaxin Cement Co.Ltd(600801) ( Zhuzhou Kibing Group Co.Ltd(601636) . SH), China Jushi Co.Ltd(600176) ( China Jushi Co.Ltd(600176) . SH). Coal: recommended China Shenhua Energy Company Limited(601088) ( China Shenhua Energy Company Limited(601088) . SH), Shaanxi Coal Industry Company Limited(601225) ( Shaanxi Coal Industry Company Limited(601225) . SH), Shanxi Coking Coal Energy Group Co.Ltd(000983) ( Shanxi Coking Coal Energy Group Co.Ltd(000983) . SZ). Public utilities: recommended China Three Gorges Renewables (Group) Co.Ltd(600905) ( China Three Gorges Renewables (Group) Co.Ltd(600905) . SH), Longyuan Power (001289. SZ), Jiangsu New Energy Development Co.Ltd(603693) ( Jiangsu New Energy Development Co.Ltd(603693) . SH), Cecep Solar Energy Co.Ltd(000591) ( Cecep Solar Energy Co.Ltd(000591) . SZ).
Risk warning: the risk of sharp fluctuations in raw material prices; The risk that the downstream demand is less than expected; The risk that the landing effect of production restriction is not as good as expected; The risk that the policy strength is less than expected; The risk that the new capacity of the industry exceeds the expectation; Under the pressure of coal price regulation policy.
