Key recommendations: Miracle Automation Engineering Co.Ltd(002009) , Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) , Shandong Intco Recycling Resources Co.Ltd(688087) , Beijing Geoenviron Engineering & Technology Inc(603588) , Suzhou Shijing Environmental Technology Co.Ltd(301030) , Yutong Heavy Industries Co.Ltd(600817) , Everbright environment, Dynagreen Environmental Protection Group Co.Ltd(601330) , Grandblue Environment Co.Ltd(600323) , China water, Jiangxi Hongcheng Environment Co.Ltd(600461) , Henan Bccy Environmental Energy Co.Ltd(300614) , Fujian Longma Environmental Sanitation Equipment Co.Ltd(603686) , China Resourcesand Environment Co.Ltd(600217)
Suggestions: Zhejiang Weiming Environment Protection Co.Ltd(603568) , Chongqing Sanfeng Environment Group Corp.Ltd(601827) , China Tianying Inc(000035) , conch entrepreneurship, Jiangxi Jovo Energy Co.Ltd(605090)
The national development and Reform Commission printed and distributed the plan for comprehensive treatment of water environment in key river basins in the 14th five year plan to promote coordinated management of the Yangtze River Basin & Ecological co governance of the Yangtze River Delta. 1) Planning Objective: by 2025, a relatively complete urban water pollution prevention and control system will be basically formed, the centralized collection rate of urban domestic sewage will strive to reach more than 70%, and the urban black and smelly water bodies will be basically eliminated. The safety assurance level of centralized drinking water sources continues to improve, the total discharge of main water pollutants continues to decrease, and the proportion of urban centralized drinking water sources reaching or better than Class III is not less than 93%. 2) Action measures: focus on important lakes and promote protection and governance; Promote the comprehensive management of major rivers; Promote the construction of key projects. It is proposed to take the protection and restoration of the ecological environment of the Yangtze River as the primary goal, promote the coordinated management of the upper, middle and lower reaches of the Yangtze River, rivers, lakes, reservoirs, left and right banks, trunk and tributaries, promote the joint protection and governance of the ecological environment of the Yangtze River Delta, and consolidate the ecological background of green development.
Zhejiang formulated the implementation plan for strict energy efficiency constraints and promoting energy conservation and carbon reduction in key areas to accelerate the full spread of carbon neutralization to non electric industries. The plan proposes to strive to reach the benchmark level of energy efficiency in key areas by 2023, and the proportion of production capacity will reach 100%. By 2025, strive to reach the benchmark level of energy efficiency in key areas, and the proportion of production capacity will reach 50%, higher than the national goal. We will carry out strict energy efficiency constraints and promote energy conservation and carbon reduction actions for five key industries and data centers in the province, including petroleum, coal and other fuel processing industry, chemical raw materials and chemical products manufacturing industry, non-metallic mineral products industry (including photovoltaic glass), ferrous metal smelting and rolling processing industry, non-ferrous metal smelting and rolling processing industry.
Benchmarking the EU to see the development of China’s carbon market: the two core mechanisms are taking shape, the carbon price is rising for a long time, and CCER is bullish for a short time. To resume the EU carbon market, the total amount control and MSR mechanism are the key to carbon price balance. The development of China’s carbon market is similar to that of the EU. It already has the prototype of total amount control market regulation mechanism. At present, the transaction scale and covering industries have large room to improve, the carbon price is far lower than overseas, the double carbon target time is tight, the task is heavy, the total amount tightening drives the long-term upward trend of carbon price, and the carbon market releases the demand of CCER, Previously, the recorded emission reduction of CCER in China totaled more than 50 million tons, which lasted for 4 years. We expect to basically perform the contract, and the approval policy is expected to restart. We expect the supply scarcity price of CCER to rise in the near future.
Carbon neutralization investment framework and environmental protection industry mapping: build an investment framework from front-end energy substitution, middle-end energy conservation and emission reduction and back-end recycling, and provide effective institutional support for carbon trading. From the perspective of environmental protection, 1) energy substitution: adjust the front-end energy structure, and pay attention to the substitution demand for sanitation new energy equipment and renewable energy (waste incineration, etc.). 2) Energy conservation and emission reduction: promote industrial transformation in the middle end and pay attention to energy conservation management & Application of emission reduction equipment. 3) Recycling: promote the recycling of renewable resources such as waste classification, waste household appliances / cars and hazardous waste recycling. 4) Environmental consultation: the improvement of environmental management promotes the expansion of the demand for environmental consultation. 5) Carbon trading: encourage the development of CCER projects such as renewable energy (waste incineration / biomass utilization), methane utilization (sewage treatment / biogas utilization), forestry carbon sequestration, etc.
Focus on clean energy, circular economy and methane emission reduction under the China US cooperation framework and the deployment of double carbon action. 1) Deepen clean energy: [photovoltaic treatment] the prosperity of photovoltaic is upward, and the demand for process pollution treatment equipment is released: it is recommended to pay attention to Suzhou Shijing Environmental Technology Co.Ltd(301030) ; [sanitation electrification] sanitation new energy helps to reach the peak of carbon, and Yutong’s share increases & profit leading verification advantage: it is recommended to pay attention to Yutong Heavy Industries Co.Ltd(600817) ; [waste incineration] the leader of waste incineration is always strong, the cash flow & profit is improved, the value is revalued, and Everbright environment is recommended; Excellent integration ability helps share expansion, and the cost reduction and efficiency increase expansion of large solid waste comprehensive industrial park can be expected: key recommendations: Grandblue Environment Co.Ltd(600323) ; It is recommended to pay attention to Zhejiang Weiming Environment Protection Co.Ltd(603568) , Dynagreen Environmental Protection Group Co.Ltd(601330) , Chongqing Sanfeng Environment Group Corp.Ltd(601827) . 2) Circular economy development: [hazardous waste recycling] recycling high-quality tob track, copying Yuhong’s advantages and recycling the leader of recycling, with emphasis on Beijing Geoenviron Engineering & Technology Inc(603588) ; [battery regeneration] power battery regeneration welcomes the long cycle and high boom, and the leading players in the automotive aftermarket actively layout and enter the site, with emphasis on Miracle Automation Engineering Co.Ltd(002009) ; [recycled plastics] it is the leader in the scarcity of recycled plastics, the whole industrial chain & global layout, technical advantages, and explore the blue ocean of plastic recycling, with emphasis on Shandong Intco Recycling Resources Co.Ltd(688087) ; It is suggested to pay attention to conch cement kiln for collaborative disposal of solid and hazardous wastes; 3) Increase the target of methane carbon reduction: [methane utilization] landfill gas is mainly composed of methane. The company is the leader of landfill gas power generation. The installed capacity will account for 20% in 2020. The profit elasticity of carbon emission reduction is large, and Henan Bccy Environmental Energy Co.Ltd(300614) is mainly recommended; Pioneer in biogas production and utilization of organic waste, with emphasis on Welle Environmental Group Co.Ltd(300190) . [water revaluation] high dividend & accelerated growth, revaluation of the value of comprehensive public utility platform, with emphasis on Jiangxi Hongcheng Environment Co.Ltd(600461) ; It is suggested to pay attention to China’s water affairs.
Latest research: Sanlian HONGPU: 490 million yuan nylon integrated large single landing, recycled nylon through fiber level application; Comments on the performance forecast of high energy environmental protection in 2021: the performance is expected to increase by 31% ~ 45%, focusing on the recycling of solid and hazardous wastes; Global perspective: origin, rating system and investment status of ESG investment.
Risk tip: the policy promotion is less than expected, the interest rate is higher than expected, and the financial expenditure is lower than expected.
