The recent entry into the annual report forecast disclosure period, from the performance forecast to see the environmental protection stocks performance growth rate differentiation is still more obvious, sanitation and solid waste performance, waste incineration enterprises benefited from the release of production capacity, the operation of the project to contribute to the stable cash flow, the sanitation plate benefited from the industry sanitation market order volume and new energy equipment penetration rate to enhance the incremental space, continue to look forward to the growth of the solid waste plate.
Organizations pointed out that the "14th Five-Year Plan" in the environmental protection is still one of the important tasks, the current valuation of the environmental protection plate is close to the five-year history of the lowest, the margin of safety is higher. Infrastructure REITs fund to promote, is conducive to accelerate the transformation of the industry light assets, optimistic about the future demand release of environmental protection industry performance improvement, policy continues to promote the upward trend of investment opportunities.
Core Logic
1. The second round of the second batch of central ecological environmental protection inspectors side of the work of solid progress. Approved by the Party Central Committee and the State Council, the second round of the second batch of central ecological environmental protection inspections was successfully completed from August 30 to October 1, 2020, for three provinces (municipalities), including Beijing, Tianjin and Zhejiang, and two central enterprises, Aluminum Corporation of China Ltd. and China National Building Material Group Ltd. as well as two departments, namely, the National Energy Administration and the National Forestry and Grassland Administration, to Carrying out pilot inspections. As of January 25, 2021, 8,766 cases have been closed, 1,792 cases have been closed in stages, 5,442 cases have been ordered to be rectified, 2,204 cases have been filed and investigated, with penalties amounting to about 182,133,300 yuan, 131 cases have been filed and investigated, 130 people have been administratively detained, 113 people have been criminally detained, 872 people have been interviewed, and 283 people have been held accountable.Beginning in July 2019, the new round of central environmental protection inspections will be be fully launched, and it is planned to spend another four years to carry out the second round of central ecological and environmental protection inspections. It is planned that the first three years will be regular comprehensive inspections, and the last year will be a "look back". In the environmental protection inspections and a series of strict supervision of the catalyst, industry space, demand is expected to gradually release.
2. Accelerate the work of waste classification around the world. A few days ago, many places in China have introduced local policies to accelerate the work of waste classification. Jiaxing City, Zhejiang Province, issued a "detailed classification catalog of household garbage in Jiaxing City" to standardize the configuration of household garbage classification collection containers, improve the effectiveness of classification and placement, and issued a "standard of household garbage classification facilities and equipment in Jiaxing City". Chengdu City recently published "Opinions on Accelerating the Classification of Domestic Waste to Help Promote the Construction of a Park City Demonstration Area Practicing the New Development Concept", which universally implements a system of classification of domestic waste and resource utilization, aims at the reduction, resourcing and harmlessness of domestic waste, accelerates the work of classification of domestic waste, speeds up the construction of a high-quality living and livable place, and helps promote the construction of a park city demonstration area practicing the new development concept. Bengbu City, Anhui Province, announced the "Bengbu City, urban household waste management regulations", the source of household waste reduction, put, collection, transportation, disposal and its supervision and management of activities to make provisions.
3. The trend of marketization of sanitation services remains unchanged. 2020 new sanitation market-oriented annual service amounted to more than 67 billion yuan, an increase of 27.1% year-on-year, hitting a record high. In the past five years, the national sanitation marketization increasing trend unabated, the transaction annualized amount also showed a higher trend year by year, the next few years is expected to continue to break through. According to statistics, the number of sanitation projects with annual service amount below 5 million accounts for 78% of the whole, but the annualized service amount only accounts for 25% of the total market share, and the situation of small and scattered sanitation remains unchanged. With the increasing number of participants in the market, the share of leading companies is expected to further increase in the future.
4. The state of the water pollution control new regulations. Water pollution control, the party and the state attaches great importance to the management of sewage licenses, Premier Li Keqiang recently signed a State Council order, announced the "sewage licensing regulations", and will be March 1, 2021 shall come into force. The regulations regulate the management of sewage discharge permits by clarifying the scope and management categories of sewage discharge permits, standardizing the procedures for applying for and approving sewage discharge permits, strengthening the management of sewage discharges, strictly supervising and inspecting, and reinforcing legal responsibilities. Local governments also continue to attach great importance to water environment protection, and on January 28, Jining City, Shandong Province, approved and published the "Jining City Water Environment Protection Regulations", which will come into effect on March 1, 2021, and is expected to be implemented in the near future. Follow the protection priority, prevention and control, ecological compensation, damage to the principle of responsibility, the water environment protection funds into the budget, the development of annual plans and the implementation of incentive systems, while strengthening public awareness and education work. Recently, Zibo City issued a "Zibo City sewage fee collection and use of management and implementation measures" to regulate the sewage fee collection and use of management, safeguard the operation and maintenance of urban sewage treatment facilities and construction, from March 1 onwards.
5. The growth rate of newly signed solid waste treatment projects has slowed down. 2020 national **** counted the release of all kinds of solid waste projects 206, construction investment totaled more than 54.8 billion yuan, down 25.6% year-on-year, the new project to kitchen waste treatment and domestic waste incineration-based. Among them, kitchen waste treatment project dispersion is high, east and central China as the main release area; waste incineration project growth slowed down, new projects are designed to handle the capacity of 600-1200 tons / day; construction waste resource project steady growth, three, four, five cities released the number of projects accounted for more than 70%. Solid waste new order growth slowdown, to a certain extent, confirms the industry from the centralized construction period to the stability of the operating period to change the point of view, it is expected that in the next few years with sufficient operational projects and rich experience in the operation of garbage incineration companies are expected to fully benefit.
6. Urban wastewater treatment, solid and hazardous waste treatment and other environmental projects are the key areas of support for infrastructure REITs pilot. The next step, the Shanghai and Shenzhen exchanges will actively promote the resolution of the pilot project on the tax policy, the transfer of state capital and other issues, to ensure that the first batch of pilot products smooth landing. The promotion of public REITs is expected to revitalize the stock of assets in the field of water and solid waste, optimize the financing structure, and form a virtuous investment cycle.
7. Financing picks up, demand increases, and the value of the environmental configuration is highlighted. 2019 since the decline in interest rates, the state capital into the Lord, environmental protection enterprises debt financing improvement is obvious, and refinancing new rules introduced to solve the difficulties of corporate equity financing, suppression of the plate PE the most important factors eliminated. 2020 since the total volume of environmental protection special debt expansion, the proportion of the increase:
Total volume expansion: 2019 environmental protection special debt total 54.6 billion, 2020 As of 12/31***232.4 billion;
Proportion tilt: 2019 environmental protection special debt accounted for 2.5%, 2020 to enhance to 6.3%.
The Fifth Plenary Session of the 19th Central Committee insisted on the unswerving construction of ecological civilization, the goal of the "14th Five-Year Plan" period to achieve a new progress in ecological environment, 2035 to achieve a fundamental turnaround of the ecological environment, and the Yangtze River and Yellow River Basin protection, garbage classification, and other catalysts in the industry itself has a wide space for growth.
Favorable company
Dongxing Securities pointed out that, environmental protection, solid waste operating companies such as waste incineration and sanitation industry, industry boom is high, waste incineration due to the environmental emissions tend to be more stringent + national subsidy policy backslope, sanitation services industry due to the project large-scale, electrification trend, leading companies will benefit from the increase in industry concentration, recommending the The standard Hanlan environment, city hair environment, Longma sanitation.