Market review: as of January 14, 2022, Shenwan environmental protection industry fell by 2.46% in the week, 0.47 percentage points lower than Shanghai and Shenzhen 300 index, and ranked 21st among Shenwan 31 industries. Among the top ten stocks that rose in the week, Zhejiang Tuna Environmental Science & Technology Co.Ltd(603177) , Jiangsu Jiangnan Water Co.Ltd(601199) and Qianjiang Water Resources Development Co; Ltd(600283) ranked among the top three in Shenwan environmental protection, up 19.26%, 9.88% and 8.44% respectively. Among the top ten stocks that fell in the week, Beijing Zeho Waterfront Ecological Environment Treatment Co.Ltd(605069) , Anhui Chaoyue Environmental Protection Technology Co.Ltd(301049) and Focused Photonics (Hangzhou) Inc(300203) fell significantly, with declines of 18.41%, 12.06% and 11.48% respectively. In terms of valuation, as of January 14, 2022, the PE (TTM) of Shenwan environmental protection sector was 21.64 times.
Zhou viewpoint of environmental protection industry: Recently, the national development and Reform Commission issued the comprehensive treatment plan for water environment in key river basins in the 14th five year plan. By 2025, a relatively perfect 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 black and smelly water bodies in the city will be basically eliminated. The water quality compliance rate in the water functional areas of important rivers and lakes has been continuously improved, the water environment quality of key river basins has been continuously improved, the seriously polluted water bodies have been basically eliminated, and the surface water inferior to class V water bodies have been basically eliminated, effectively supporting the coordinated development of Beijing, Tianjin and Hebei, the development of the Yangtze River economic belt, the construction of Guangdong, Hong Kong and Macao Bay area, and the integrated development of the Yangtze River Delta The implementation of major regional strategies such as ecological protection and high-quality development in the Yellow River Basin. 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%. Sewage treatment engineering enterprises and water treatment equipment manufacturers are expected to benefit. It is suggested to pay attention to the sewage treatment targets Chengdu Xingrong Environment Co.Ltd(000598) (000598) and Beijing Originwater Technology Co.Ltd(300070) (300070). In addition, it is recommended to pay attention to Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645) related to solid waste treatment, and Zhejiang Weiming Environment Protection Co.Ltd(603568) (603568), Grandblue Environment Co.Ltd(600323) (600323), Chongqing Sanfeng Environment Group Corp.Ltd(601827) (601827), Dynagreen Environmental Protection Group Co.Ltd(601330) (601330), and Yutong Heavy Industries Co.Ltd(600817) (600817) related to new energy sanitation equipment.
Risk warning: policy promotion is not as expected; The progress of the construction project is less than expected; Product price fluctuation risk; The promotion of carbon emission trading was less than expected.
