Market review: as of April 29, 2022, the power and utility index fell by 2.31% in the week, underperforming the CSI 300 index by 2.38 percentage points, ranking 18th among the 30 industries of CITIC; The power and Utilities Index fell 5.81% in the month, 0.92 percentage points lower than the CSI 300 index, ranking ninth among CITIC’s 30 industries; The power and utilities index has fallen 18.51% year to date, outperforming the CSI 300 index by 0.19 percentage points and ranking 14th among CITIC’s 30 industries.
As of April 29, 2022, the sub sectors of electric power and public utilities had different ups and downs. Among them, thermal power and other power generation sectors rose by 0.57% and 0.44% respectively. The other five sectors all fell, hydropower sector fell by 2.99%, environmental protection and water sector fell by 4.29%, power grid sector fell by 4.45%, gas sector fell by 4.46% and heating or other sectors fell by 10.89%.
Among the top ten stocks that rose in the week, Hunan Development Group Co.Ltd(000722) , aibulu and Top Energy Company Ltd.Shanxi(600780) ranked among the top three in power and public utilities, up 61.09%, 13.76% and 10.47% respectively. Among the top ten stocks that fell in the week, Qingyan environment, Gad Environmental Technology Co.Ltd(300854) and Shenzhen Fountain Corporation(000005) fell significantly, with declines of 32.70%, 21.77% and 19.48% respectively.
In terms of Valuation: as of April 29, 2022, the PE (TTM) of power and utilities sector was 19.19 times; In terms of sub sectors, thermal power sector PE (TTM) is 21.54 times, hydropower sector PE (TTM) is 19.81 times, other power generation sector PE (TTM) is 22.94 times, power grid sector PE (TTM) is 29.32 times, gas sector PE (TTM) is 16.33 times, heating or other sector PE (TTM) is 14.71 times, and environmental protection and water sector PE (TTM) is 15.51 times.
Important news: on April 26, the 11th meeting of the central financial and Economic Commission pointed out to strengthen the construction of urban flood control and drainage, sewage and garbage collection and treatment systems; Strengthen the construction of rural sewage and garbage collection and treatment facilities, and promote agricultural and rural modernization with infrastructure modernization.
Industry Week view: Recently, the 11th meeting of the central financial and Economic Commission pointed out that we should strengthen the construction of urban flood control and drainage, sewage and garbage collection and treatment systems; Strengthen the construction of rural sewage and garbage collection and treatment facilities, and promote agricultural and rural modernization with infrastructure modernization. Combined with relevant policies and news, we believe that the focus of the environmental protection industry in the future is mainly water treatment and waste treatment. In addition, the Ministry of ecological environment, the Supreme People’s Procuratorate and the Ministry of Public Security jointly issued a notice to continue to carry out a nationwide special action to crack down on environmental violations and crimes of hazardous waste and fraud of automatic monitoring data of key pollutant discharge units, and make comprehensive arrangements for the work priorities, tasks and safeguard measures of the special action. The supervision of hazardous waste treatment continues to be strengthened, which is expected to improve the disposal demand of waste production units and promote the development of hazardous waste disposal industry. It is suggested to pay attention to the targets of sewage treatment Chengdu Xingrong Environment Co.Ltd(000598) ( Chengdu Xingrong Environment Co.Ltd(000598) ), waste incineration power generation Zhejiang Weiming Environment Protection Co.Ltd(603568) ( Zhejiang Weiming Environment Protection Co.Ltd(603568) ), Chongqing Sanfeng Environment Group Corp.Ltd(601827) ( Chongqing Sanfeng Environment Group Corp.Ltd(601827) ), Dynagreen Environmental Protection Group Co.Ltd(601330) ( Dynagreen Environmental Protection Group Co.Ltd(601330) ), hazardous waste disposal Zhefu Holding Group Co.Ltd(002266) ( Zhefu Holding Group Co.Ltd(002266) ), Beijing Geoenviron Engineering & Technology Inc(603588) ( Beijing Geoenviron Engineering & Technology Inc(603588) ).
Risk warning: policy promotion is not as expected; Economic development is less than expected; The construction progress of the project is less than expected; Product price fluctuation risk, etc.
