Talk every Monday:
As of April 30, 2022, all companies in the environmental protection industry have disclosed the annual report of 2021 and the first quarterly report of 2022. Since 2021, the overall performance of the environmental protection sector has shown a rapid recovery after the epidemic, followed by a steady and slow increase.
The sector performed well after recovering from the epidemic in 2021. In 2021, the environmental protection sector rose or fell by 20.6%, outperforming the Shanghai and Shenzhen 300 index by 25.8pct, showing a good recovery trend after the impact of the epidemic in 2020, ranking 7 / 31 among 31 shenwanyi industries.
In 2022, the rise and fall of the environmental protection industry basically converge with the trend of the market. Since the beginning of 2022, the environmental protection sector has increased or decreased by – 25.9%, which is lower than the increase or decrease of 7.2pct in Shanghai and Shenzhen 300, ranking 23 / 31 in Shenwan industry.
In 2022, the high growth trend recovered after the epidemic fell back, and the overall industry performance remained stable. The total revenue of 2021q4 and 2022q1 environmental protection sectors increased by about 3.6% year-on-year, in a low range. Since 2021q1’s revenue recovered strongly from the impact of the epidemic and achieved a high growth performance of 42.9%, the growth rate of revenue in subsequent quarters continued to decline.
In terms of fine molecule sector, among the main board of water solid waste, except that industrial wastewater still maintained a high growth trend and soil remediation achieved 20% revenue growth under the condition of favorable policies stimulating the high growth of projects, the performance level of other sectors in the past two quarters was relatively stable.
The field of traditional water solid waste has gradually entered the official sub stage, and the performance development is gradually stable. All enterprises are looking for new growth tracks. A number of leading environmental protection enterprises seek to layout the emerging subdivision tracks within the environmental protection sector, or extend to new energy, energy storage and other hot fields under the dual carbon background, and seek the second growth curve.
Investment strategy: in the field of water affairs, it is suggested to pay attention to the leading enterprises in the subdivided field of environmental protection that “gradually open” through the “ecological +” strategy Beijing Capital Eco-Environment Protection Group Co.Ltd(600008) ; At the same time, pay attention to enterprises with certain technology accumulation in the field of industrial wastewater and resource utilization, which are in the range of rapid revenue growth, such as Beijing Water Business Doctor Co.Ltd(300055) , Bgt Group Co.Ltd(300774) , etc; In the field of solid waste, it is suggested to pay attention to the leading waste incineration enterprise Zhejiang Weiming Environment Protection Co.Ltd(603568) , which has developed a potential second growth curve in the field of new energy batteries.
Risk warning: market competition intensifies risks, and policy promotion is less than expected risks
Market review:
Shenwan environmental protection sector rose or fell – 4.55%, ranking 27 / 31 in Shenwan level industry.
In terms of sub sectors, the five Shenwan III sectors of solid waste treatment, environmental protection equipment, water affairs and water treatment, comprehensive environmental treatment and atmospheric treatment rose or fell by -3.23%, – 3.44%, – 5.38%, – 6.01%, – 6.08%.
In terms of specific stocks, Xinjiang Guotong Pipeline Co.Ltd(002205) (21.28%), Guangxi Nanning Waterworks Co.Ltd(601368) (9.04%), Academy Of Environmental Planning&Design Co.Ltd.Nanjing University(300864) (6.02%) rose ahead; Tianyuan environmental protection (- 18.98%), Shenzhen Fountain Corporation(000005) (- 19.48%), Gad Environmental Technology Co.Ltd(300854) (- 21.77%) decreased significantly.
