Key investment points:
Market review: as of January 21, 2022, Shenwan environmental protection industry fell by 3.36% in the week, 4.48 percentage points lower than Shanghai and Shenzhen 300 index, and ranked 25th among Shenwan 31 industries. Among the top ten stocks that rose in the week, Kingland Technology Co.Ltd(000711) , Beijing Sdl Technology Co.Ltd(002658) and Zhejiang Feida Enviromental Science & Technology Co.Ltd(600526) ranked among the top three in Shenwan environmental protection, with increases of 14.64%, 2.47% and 1.99% respectively. Among the top ten stocks that fell in the week, Poten Environment Group Co.Ltd(603603) , Jiangsu Huahong Technology Co.Ltd(002645) and Henan Qingshuiyuan Technology Co.Ltd(300437) fell significantly, with declines of 16.22%, 13.08% and 12.24% respectively. In terms of valuation, as of January 21, 2022, the PE (TTM) of Shenwan environmental protection sector was 20.95 times.
Zhou viewpoint of environmental protection industry: Recently, the Ministry of ecology and environment issued the notice on further promoting the informatization of hazardous waste environmental management (Exposure Draft) and the guiding opinions on accelerating the construction of waste material recycling system. It is suggested to pay attention to the targets related to solid waste treatment Zhefu Holding Group Co.Ltd(002266) (002266), Beijing Geoenviron Engineering & Technology Inc(603588) (603588), Jiangsu Huahong Technology Co.Ltd(002645) (002645), and, The Ministry of ecology and environment has issued the action plan for high quality development of environmental protection equipment manufacturing industry (2022-2025). It is suggested to pay attention to Yutong Heavy Industries Co.Ltd(600817) (600817) of new energy environmental sanitation equipment. In addition, it is suggested to pay attention to Chengdu Xingrong Environment Co.Ltd(000598) (000598), Beijing Originwater Technology Co.Ltd(300070) (300070) of sewage treatment, and Zhejiang Weiming Environment Protection Co.Ltd(603568) (603568), Grandblue Environment Co.Ltd(600323) (600323) of waste incineration benefiting from carbon neutralization Chongqing Sanfeng Environment Group Corp.Ltd(601827) （601827）、 Dynagreen Environmental Protection Group Co.Ltd(601330) （601330）。
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.
