Market review: the environmental protection and public utilities sector continued to rise this week, with the public utilities index rising 1.57%, the environmental protection index rising 2.36% and the Shanghai composite index rising 2.02%. In the environmental protection sector, gardens and testing increased significantly, up 7.88% and 5.56% respectively. In public utilities, new energy power generation and energy-saving utilization increased significantly, up 3.92% and 3.81% respectively,
Industry trends:
Environmental protection:
(1) implement multi domain natural resources standards and improve the standardized barrier of green development. Recently, the Ministry of natural resources of the people’s Republic of China issued the key points of natural resources standardization in 2022, which clearly defined the support for continuously enhancing the standardization of carbon neutralization at the peak of carbon and continuously promoting the development of approved standards such as carbon capture, utilization and storage and marine blue carbon; Promote the development of standards for the economical and intensive use of natural resources, continue to strengthen the supporting role of standardization in the control of land and space use, the economical and intensive use of natural resources and the management of assets and interests, and vigorously promote the standardization of green exploration and development of energy resources; Three key points are to strengthen land spatial planning and the development of ecological protection and restoration standards. Focus on the implementation of the standard plan in 18 areas such as geology and minerals, ecological protection and restoration, seawater desalination and comprehensive utilization. It is suggested to pay attention to: actively layout [ Moon Environment Technology Co.Ltd(000811) ] of CCUs and hydrogen energy industry.
(2) multi Industry joint efforts to promote the green transformation of urban and rural construction. Recently, the China Banking and Insurance Regulatory Commission issued the guiding opinions on the banking and insurance industry supporting urban construction and governance, emphasizing that the banking and insurance industry should guide the comprehensive green transformation of urban development, and enhance the momentum of urban development by focusing on serving small and micro enterprises, characteristic industries, new citizens, urban-rural integration and scientific and technological innovation. The opinions clearly states that we should focus on people’s needs for material culture, health and safety, rights and interests protection, strengthen targeted work measures, and improve people’s sense of gain, happiness and security; We should support the improvement of urban functions and ecological restoration, help the green and intelligent development of cities, and improve the level of urban construction and governance. It is suggested to pay attention to: [ Beijing Geoenviron Engineering & Technology Inc(603588) ] with sufficient orders for soil remediation and deep cultivation of hazardous waste metals; The main business of domestic waste incineration grew steadily, and lithium battery recycling was arranged to create [ Wangneng Environment Co.Ltd(002034) ] of the second growth curve; [ Cscec Scimee Sci.&Tech.Co.Ltd(300425) ] committed to restoring the ecological environment of rivers and lakes; [ Zhejiang Heda Technology Co.Ltd(688296) ] focusing on the construction of smart water.
Public:
(1) the overall output of China’s energy industry maintained growth, and the installed capacity of new energy power generation increased steadily. Recently, the national development and Reform Commission and the Information Office of the State Council held a press conference in May respectively. At the conference, it was pointed out that since this year, China’s energy and other basic industries have maintained growth, increased production and supply, and the rapid growth of major energy products. Due to the high proportion of oil and natural gas, the rising price of international energy products has had an import impact on some industries, but generally speaking, China’s energy system is dominated by coal, Strong production capacity. Therefore, China should take coal as the “anchor” to do a good job in stabilizing the price of energy supply, stabilize the electricity price through stabilizing the coal price and stabilize the overall energy consumption cost. In addition, according to the national power industry statistics released by the National Energy Administration from January to April, China’s installed power generation increased by 7.9% year-on-year, including 17.7% year-on-year increase in wind power and 23.6% year-on-year increase in Cecep Solar Energy Co.Ltd(000591) power generation. Key recommendation: [ China National Nuclear Power Co.Ltd(601985) ] driven by nuclear power + wind solar dual core; It is suggested to pay attention to: [ Huaneng Power International Inc(600011) ] [ Shanghai Electric Power Co.Ltd(600021) ] [ Gd Power Development Co.Ltd(600795) ] [ Gd Power Development Co.Ltd(600795) ] [China electric power] the profit of thermal power is expected to be repaired and the steady development of new energy.
(2) European overweight photovoltaic program, the return of the king of new energy. On May 18, the European Commission announced an energy plan called “REpower EU” to rapidly promote the transformation of green energy. It is planned to double Cecep Solar Energy Co.Ltd(000591) photovoltaic power generation capacity by 2025 and install 600gw by 2030; By 2030, 10 million tons of renewable hydrogen will be produced and 10 million tons will be imported to replace natural gas, coal and oil used by industries and transportation sectors that are difficult to reduce carbon. In the case of energy security crisis, EU photovoltaic module imports will accept a higher premium, and Chinese photovoltaic module manufacturers are expected to benefit. In addition, Zhejiang, Hubei and Shanghai have recently released the energy development plan for the 14th five year plan, all of which put forward specific construction objectives for new energy power generation projects. Zhejiang Province requires that during the 14th Five Year Plan period, the province’s new offshore wind power and photovoltaic installed capacity should be doubled, and the increment should be ensured to reach 17 million kilowatts, striving to reach 20 million kilowatts; Hubei Province proposes that by 2025, the installed capacity of photovoltaic power generation and wind power will reach 22 million KW and 10 million KW respectively; Shanghai has implemented the “photovoltaic +” special project, combined with land and roof resources, to promote photovoltaic development by industry and field, and strive to increase the scale of photovoltaic by 2.7 million KW. It can be seen from the provincial planning that the new energy built around the photovoltaic manufacturing industry has become the key development direction of many provinces during the 14th Five Year Plan period. Key recommendation: the project reserves are sufficient, and the increment of photovoltaic and energy storage projects is [ Jiangsu Linyang Energy Co.Ltd(601222) ]. It is suggested to pay attention to: new energy leader [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] [Longyuan Power].
This week’s topic: biomass power generation is a clean and environmentally friendly energy, mainly including agricultural and forestry biomass, waste incineration and biogas power generation. In 2020, the cumulative installed capacity of biomass power generation in China reached 29.52 million KW, ranking first in the world. Biodiesel is an important form of biomass energy utilization. China mainly uses waste oil as raw material for production, but overall, the popularity and industry standardization of biodiesel in China still need to be improved. At present, only a few cities have begun to try to popularize biodiesel. Europe is the world’s largest consumer and importer of biodiesel. It began to popularize biodiesel as early as the 1990s. In 2021, it will further increase the overall target share of renewable energy in the total final energy consumption of the EU from 32% to 40%. Compared with China, it has a long way to go to systematically improve the energy supply structure and strengthen the construction of standards in the field of biodiesel.
Investment suggestions: during the 14th Five Year Plan period, the state has put forward more requirements for environmental quality and industrial green and low-carbon development. Energy conservation, environmental protection and resource recycling are expected to maintain a high outlook. It is suggested to actively grasp the investment opportunities in energy conservation, environmental protection and renewable resources. It is suggested to pay attention to: Moon Environment Technology Co.Ltd(000811) , Qingdao Guolin Environmental Technology Co.Ltd(300786) , Beijing Geoenviron Engineering & Technology Inc(603588) , Zhejiang Weiming Environment Protection Co.Ltd(603568) , Wangneng Environment Co.Ltd(002034) , Jiangsu Huahong Technology Co.Ltd(002645) (mechanical coverage), China Tianying Inc(000035) , Hanwei Electronics Group Corporation(300007) . During the 14th Five Year Plan period, the low-carbon transformation of energy structure will continue to advance, the installed capacity of wind power and photovoltaic will still maintain rapid growth, hydropower and nuclear power will be promoted in an orderly manner, and energy storage, hydrogen energy and pumped storage will also enter a stage of rapid development. It is suggested to pay attention to: China National Nuclear Power Co.Ltd(601985) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan electric power, Jiangsu Linyang Energy Co.Ltd(601222) , Jiangxi Jovo Energy Co.Ltd(605090) , Enn Natural Gas Co.Ltd(600803) , 60011 , Gd Power Development Co.Ltd(600795) .
Risk warning: the project progress is not as expected; Intensified market competition; Changes in the international political situation; Policy promotion is less than expected; Risk of price reduction.
