The introduction of policies has greatly increased investment opportunities in energy-saving and environmental protection sectors

The "12th Five-Year Plan for Energy-saving and Emission Reduction Comprehensive Work Program" recently announced proposes that by 2015, the added value of service industries and strategic emerging industries will account for 47% and 8% of the gross domestic product respectively. The relevant departments will Focus on supporting energy-saving equipment technology and enterprise development in the field of environmental protection. People in the industry believe that with the introduction of relevant policies in succession, the energy saving and environmental protection sector will show more investment opportunities.

Since the second half of last year, favorable policies have been introduced frequently, relevant departments have successively introduced a series of policies to support the development of energy-saving and environmental protection industries. The "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries" issued in September last year not only explicitly proposed that the energy-saving and environmental protection industry should be supported as one of the seven strategic emerging industries, but also emphasized the development and promotion of high-efficiency energy-saving. Technical equipment and products, improve the level of comprehensive utilization of resources and industrialization of remanufacturing, demonstration and promotion of advanced environmental protection technologies, equipment and products.

Two months later, the State Council issued the “Energy-saving and Environmental Protection Industry Development Plan”, re-emphasizing the importance of energy-saving and environmental protection industries. The "Planning" emphasizes the promotion of rare earth permanent magnet ironless core motors and a new type of combined heat and power combined heating technology based on absorption heat transfer, focusing on the development and demonstration of new energy-efficient automobiles and supporting systems with independent intellectual property rights. In the environmental protection industry, the "Planning" emphasizes the focus on R&D and promotion of model membrane materials, high-performance anti-seepage materials, denitration catalysts, solid waste treatment curing agents and stabilizers. In terms of the industrialization of resource recycling, the "Planning" pointed out that it will focus on the development of altogether associated mineral resources, the comprehensive utilization of bulk industrial solid waste, the remanufacturing of auto parts and mechanical and electrical products, the recycling of renewable resources, and the disposal of kitchen waste, and construction waste. The utilization of resources, etc., will focus on solving the demonstration and promotion of common key technologies.

Since the beginning of this year, the policies for the development of energy-saving and environmental protection industries have been further strengthened. At the National Environmental Protection Working Conference held in January this year, Minister of Environmental Protection Zhou Shengxian stated that the “Eleventh Five-Year Plan” environmental protection plan implementation assessment was successfully completed and will be completed on the basis of summing up the implementation of the “Eleventh Five-Year Plan” environmental protection plan. It also issued the "Twelfth Five-Year Plan" environmental protection plan.

In the outline of the "Twelfth Five-Year Plan" released in March, the energy-saving and environmental protection industry was once again defined as one of the seven strategic emerging industries. The "Planning Outline" emphasizes that the next five years will focus on the development of key technologies, equipment, products and services for energy-efficient, advanced environmental protection, and resource recycling, and will give financial, tax, and financial support.

At the same time, all localities are actively planning and guiding energy conservation and environmental protection. For example, Beijing formulated a plan for energy development during the “12th Five-Year Plan” period, and put forward five goals: total control, structural adjustment, energy conservation and emission reduction, facility capacity, and energy for the people. Sun Xudong, a financial analyst at Yinteng Forward, said that Beijing's support and encouragement measures will provide opportunities for the Beijing section to invest in related sectors such as energy conservation, environmental protection, natural gas, and power equipment.

Listed companies are actively planning under the guidance of favorable policies. In the past two months, relevant listed companies have also actively taken relevant measures to increase their potential for greater growth.

In mid-August, Colin Environmental Protection Equipment Co., Ltd. announced that the company will receive a special subsidy of 47.432 million yuan for project construction, and will be deferred into the corresponding period of profit and loss. As the leader of the bag dust removal industry, Colin Environmental Protection is positioning high-end products and its products cover many industries such as metallurgy, electric power, grain processing, and building materials. It is reported that Colin Environmental Protection is investing in 400,000 square meters of large-scale bag type dust removal equipment, which is expected to reach production by the beginning of 2012. However, industry insiders stated that in the short term, the performance of the company is constrained by the rapid expansion of production capacity, and the profitability is still uncertain.

At the beginning of September, Shenzhen Greentech (002340) High-tech Co., Ltd. announced that it will cooperate with Sichuan Changhong (600839) Electric Co., Ltd. in the direction of recycling industry on "industry alliance, raw material protection, market development, technical services" and other aspects. Long-term cooperation. As the domestic large-scale enterprise that uses waste resources to recycle ultra-fine cobalt nickel powder, Greenmite has been committed to the research and industrialization of recycling and recycling products such as electronic waste and used batteries. UBS Securities said that if the cooperation progresses smoothly, GEM will hopefully establish a cooperative relationship with more production companies to effectively solve the problem of raw material supply and improve the efficiency of the use of electronic waste.

In addition, in mid-September, Jiangsu Weierli (300190) Environmental Protection Technology Co., Ltd. won the bid for the procurement of auxiliary equipment for the expansion and expansion of the leachate treatment plant at the Hongmiaoling Garbage Comprehensive Treatment Plant in Fuzhou. The bid amount was 75.39 million yuan. As a landfill leachate treatment engineering enterprise, Welley mainly provides leachate treatment system comprehensive solutions for customers by focusing on the leachate quality, changes in the leachate treatment project, and the scale of treatment. It is worth mentioning that in the second half of the year, the company proposed to use the advantages of leachate treatment technology to extend the industry chain of comprehensive treatment of kitchen waste and promote the optimization and upgrading of the company's business.

The industry believes that with the implementation of relevant policies further in place, the listed companies in the fourth quarter of energy-saving and environmental protection will continue to show good momentum.

Many factors affect the trend of energy-saving environmental protection sector, the industry is holding different views. Most analysts believe that under the stimulation of national policies, the development of energy-saving and environmental protection industries will have a broad space and the demand growth will be guaranteed. The listed companies in the energy conservation and environmental protection industry will usher in major opportunities.

Ping An Securities analyst Dou Zeyun believes that from the perspective of the past three years, the listed company's solid waste operation and engineering, desulfurization and denitrification business grew fastest. It is expected that under the influence of the new environmental protection policy, the waste electrical appliance operation, domestic garbage comprehensive treatment project and MBR project will be the three industry segments with the fastest growth rate of the environmental protection industry in the next five years, and the sulfur and nitrogen treatment project is the most explosive of the environmental protection industry. Sex sub-sectors. Dou Zeyun said that the energy-saving and environmental protection industry is expected to usher in rapid development in the next 5 to 10 years, the overall growth rate is expected to remain at 15% to 20% per year, and the annual growth rate of key industry leaders is expected to increase to 30%.

Shen Yinuoguo analyst Tan Fei said that during the “12th Five-Year Plan” period, energy-saving and emission-reduction will be fully promoted in the four areas of industry, transportation, construction and life, and an accountability system will be implemented. Related measures will enable energy conservation during the “12th Five-Year Plan” period. The environmental protection industry has achieved rapid development.

However, some analysts believe that the effectiveness of policies needs time to verify, and the overall market for energy-saving and environmental protection industries still needs to be treated with caution. The relevant securities institute issued the environmental protection industry monthly report at the end of September, saying that in September, the environmental protection sector underperformed the broader market by 3%, but outperformed the broader market by 3.3% in the past six months. In October, it should guard against the overall downward adjustment of valuation risks. It is recommended to focus on the relatively stable growth. Enterprises with relatively reasonable valuations.

Investment Discipline Environmental Protection Industry researcher Pan Yuhong believes that due to the high degree of enthusiasm of the capital market for energy saving and emission reduction in recent years, the price-earnings ratio of some companies exceeds the normal level, and the substantive benefits of the “12th Five-Year” energy-saving emission reduction will not Obviously, investors should not blindly expect good policies, but should select individual stocks one by one.

Pan Yuhong suggested that the industrial sector associated with the energy-saving and emission reduction plan can be selected, for example, it can give preference to parts and components companies with independent technological R&D capabilities and wider industrial chain involvement. Pan Yuhong said that at present, the energy conservation and environmental protection industry is still in its infancy in China. Whether the energy saving and environmental protection sector can grow stronger in the long term depends on whether it can continue to be supported by policies in terms of finance, taxation, and finance.