Wetland protection started the stage of legalization, and the favorable policies of green electricity continued to increase. 1. Many provinces and cities have successively issued the 14th five year plan for energy development, emphasizing accelerating the construction of new power systems, vigorously developing photovoltaic, wind power and nuclear power projects, and promoting the development of energy systems in a clean, low-carbon, safe and efficient direction. Shanghai strives to promote five transformations and continuously optimize the energy structure; Hubei Province expects that the total installed capacity of photovoltaic and wind power generation will reach 32 million KW and that of hydropower will reach 38 million kW in 2025; Jiangxi Province strives to increase the installed capacity of photovoltaic power generation by more than 16 million KW and wind power by more than 2 million KW; Zhejiang Province plans to actively, safely and orderly develop nuclear power, vigorously develop eco-friendly non-aqueous renewable energy, and reasonably and orderly develop hydropower. Frequent local policies are conducive to accelerating the construction of a diversified energy supply system, further opening up the market space of wind power, photovoltaic, hydropower and nuclear power, and benefiting renewable energy power operators. Recommended attention: power operators with clear renewable energy installation plan and good quality. 2. The wetland protection law of the people’s Republic of China, the first regulation in the field of wetland protection, will be officially implemented on June 1, 2022, marking the legalization of wetland protection in China and playing an important role in the construction of ecological civilization in China. The wetland protection law adheres to the principles of protection priority, strict management, systematic governance, scientific restoration and rational utilization, defines the definition of wetland and the management system of overall coordination and sub sector management, establishes inter departmental wetland protection cooperation and information notification mechanism, and realizes a historic breakthrough. The wetland protection law also makes specific provisions on wetland protection and utilization and wetland restoration, which is conducive to the scientific and reasonable protection, restoration and conservation of wetlands according to law, creating a good ecological environment, and taking treatment and restoration measures such as water system connection, dredging, water source conservation and water and soil conservation according to local conditions. The promulgation of laws and policies and the tightening of industry supervision are conducive to improving the demand space of wetland soil remediation industry and benefiting leading soil remediation enterprises. Recommended concern: the market share of soil remediation business is Beijing Geoenviron Engineering & Technology Inc(603588) .
This week’s carbon trading market: this week (5.16-5.20), the total trading volume of the national carbon market carbon emission quota (CEA) is 200100 tons, with a total turnover of 122029 million yuan. The highest transaction price is 58.00 yuan / ton and the lowest transaction price is 58.00 yuan / ton. The closing price of this Friday (5.20) is 58.00 yuan / ton, which is the same as that of last Friday. As of May 20, 2022, the cumulative trading volume of the national carbon market carbon emission quota (CEA) was 192 million tons, with a cumulative turnover of 8.356 billion yuan.
Valuation bottomed out, focusing on stable operating assets and companies with reversed fundamentals. Over the past three years, the performance of the environmental protection sector has been sluggish, with valuations and positions still at a low level. The introduction of environmental protection REITs provides new equity financing tools. Pollution control operations such as urban sewage and waste treatment, solid and hazardous waste treatment are the key industries. Enterprises with strong technical advantages and high wall barrier are favored. 1. Waste incineration companies with strong growth and certainty are concerned about Zhejiang Weiming Environment Protection Co.Ltd(603568) (ROE industry leader and sufficient orders) Grandblue Environment Co.Ltd(600323) (steady growth and obvious valuation advantages); 2. Hazardous waste disposal companies with rich projects in hand, strong technology and high barriers pay attention to Zhefu Holding Group Co.Ltd(002266) (new leader of hazardous waste and layout of the whole industrial chain), Beijing Geoenviron Engineering & Technology Inc(603588) (leader of soil remediation benefiting from financing improvement); 3. Water companies whose value is expected to be revalued pay attention to Hongcheng water industry (Jiangxi sewage market has great potential, and the valuation and dividend rate are attractive). 4. Testing, parallel magnetic materials and high revenue Sinosteel New Materials Co.Ltd(002057) .
Industry news: 1) the Ministry of ecological environment and other 14 departments jointly issued the regulations on the administration of ecological environment damage compensation; 2) Medium and long term plan of Sichuan Province for domestic waste incineration power generation (revised in 2022); 3) The “comprehensive air quality improvement plan for the 14th five year plan” of Guangxi Zhuang Autonomous Region was printed and distributed.
Plate Market Review: this week (5.16-5.20), the environmental protection sector performed poorly, losing the market and the gem; The performance of public utilities is poor, losing the market and the gem. The Shanghai Composite Index rose by 3.00%, the gem index rose by 2.81%, environmental protection projects and services rose by 1.70%, underperforming the Shanghai Composite Index by 1.30% and the gem by 1.11%; Public utilities rose by 2.50%, underperforming the Shanghai Composite Index by 0.50% and the gem by 0.31%. Monitoring (5.72%), atmosphere (6.91%), water treatment (1.51%), solid waste (2.40%), water operation (0.46%), energy saving (3.99%).
Risk tip: the environmental protection policy and supervision are less than expected, and the industry demand is less than expected.
