Key investment points
Market review: this week, the public utilities (Shenwan) industry index fell 0.68%, underperforming the CSI 300 index by 1.79%, and the performance of the sector was weaker than the market. The environmental protection industry and fine-grained industries showed a downward trend, and the monitoring & detection decreased significantly. Among the sub sectors of the public sector, thermal power and hydropower led the increase.
Special research: the national development and Reform Commission and other departments issued the implementation plan for promoting green consumption, proposing to improve the market mechanism of green power consumption, and the payment mechanism of green power (green certificate) consumption will be fully established to help the implementation of the “double carbon” target policy. The demand for green electricity (or green certificates) will increase significantly, and the green electricity premium is expected to increase. After clarifying the development mechanism of electricity and carbon, we can realize the effective transmission of green electricity value.
Industry dynamics: according to the data of the national energy administration, in 2021, China’s newly installed photovoltaic capacity was 53gw, showing an increasing trend. Among them, distributed PV added about 29gw, accounting for about 55% of the total newly added PV installed capacity, reflecting the rapid growth trend of distributed PV installed capacity. With the rapid growth of the installed scale of distributed photovoltaic, the superposition of the mode of “spontaneous self use and surplus power on the Internet” of distributed photovoltaic has a higher rate of return, which is optimistic about the investment opportunities of distributed photovoltaic operators.
Investment suggestion: the “14th five year plan” period is the key time window for carbon peak. The intensity of carbon emission control policy is expected to exceed expectations, and the environmental protection public utility industry will usher in development opportunities. The promotion of carbon neutralization policy has opened up new growth space and brought incremental income sources for the development of environmental protection industry, and grasped the four investment directions of low-carbon development on the supply side, electrification on the consumer side, infrastructure of carbon trading, and incremental income of CCER caused by carbon trading. It is recommended to pay attention to Pony Testing International Group Co.Ltd(300887) , China Building Material Test & Certification Group Co.Ltd(603060) , Centre Testing International Group Co.Ltd(300012) , Grandblue Environment Co.Ltd(600323) , Chongqing Sanfeng Environment Group Corp.Ltd(601827) , Shanghai Environment Group Co.Ltd(601200) , Shandong Intco Recycling Resources Co.Ltd(688087) . The implementation of the sixth national plan brings opportunities for post-processing industrial chain. It is suggested to pay attention to Wuxi Longsheng Technology Co.Ltd(300680) , Jiangsu Lopal Tech.Co.Ltd(603906) . Waste recycling brings new market opportunities. It is suggested to pay attention to Road Environment Technology Co.Ltd(688156) of rapid and large-scale recycling of organic residue. Low carbon transformation of energy structure is a key measure to achieve carbon neutrality. Fengguang new energy operation welcomes development opportunities. It is suggested to pay attention to Huaneng Power International Inc(600011) , Huadian Power International Corporation Limited(600027) , China Resources Power, and new energy power generation. It is suggested to pay attention to Fujian Funeng Co.Ltd(600483) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan power, Cecep Wind-Power Corporation(601016) , Jilin Electric Power Co.Ltd(000875) , Zhejiang Sunoren Solar Technology Co.Ltd(603105) . At the same time, the installed capacity of gas and electricity is expected to continue to increase in the future, and the demand for natural gas market will continue to improve. It is suggested to pay attention to Enn Natural Gas Co.Ltd(600803) with outstanding advantages in the integrated layout of the industrial chain and Top Resource Conservation & Environment Corp(300332) with the continuous growth of natural gas business brought about by the transformation and development of Shenan line. The operation of Shenan power line has brought Top Resource Conservation & Environment Corp(300332) for the continuous growth of natural gas business. The Hangzhou Shenhao Technology Co.Ltd(300853) , Zhiyang Innovation Technology Co.Ltd(688191) , Suwen Electric Energy Technology Co.Ltd(300982) of intelligent operation inspection standards in the power industry. Industrial temperature control expert, promising target of energy storage and heat management Guangdong Shenling Environmental Systems Co.Ltd(301018) . The power shortage and the continuous widening of the price difference between peak and valley have promoted the demand for enterprise energy consumption control. It is suggested to pay attention to the enterprise microgrid integrated energy management solution supplier Acrel Co.Ltd(300286) .
Risk warning: the project progress is not as expected; Intensified market competition; The public data used in the research report may have the risk of information lag or untimely update.
