3.4 trillion investment in energy conservation and emission reduction 12th environmental protection investment opportunities

Traditional industrial upgrading will become the main line of investment
According to media reports, the "Energy Conservation and Environmental Protection Industry Development Plan" (hereinafter referred to as "Planning") prepared by the National Development and Reform Commission and the Ministry of Environmental Protection and other departments has been basically completed and will be reported to the State Council in the near future.

In addition, energy conservation and environmental protection has been ranked as the first of the seven strategic emerging industries. The “Planning” will focus on six areas of high-efficiency energy-saving technologies and equipment, energy-efficient products, energy-saving service industries, advanced environmental technologies and equipment, environmental products and environmental services. It is listed as a key support object and provides policy support in terms of finance, taxation, and finance.

More crucially, in conjunction with the "Planning", on November 24, Xie Zhenhua, deputy director of the National Development and Reform Commission, introduced in the speech of the Green Expo that during the "Twelfth Five-Year Plan" period, China will significantly reduce the intensity of energy consumption and carbon dioxide. Emission intensity and total emissions of major pollutants are important binding indicators. In the specific programs introduced by it, “implement the laws and regulations such as the Energy Conservation Law and the Energy Conservation Regulations of Public Institutions, and gradually make the energy conservation from persuasion and encouragement to the mandatory requirements of legal enforcement; implement the energy conservation assessment review and environmental impact assessment of fixed assets investment projects; Studying the introduction of environmental taxes, establishing an ecological compensation mechanism, gradually establishing a carbon emissions trading market, and adopting more encouraging economic policies are regarded as key measures to promote energy conservation and emission reduction through laws and markets.

Focus on traditional industry energy conservation and emission reduction
As soon as the news came out, an agency immediately predicted that the capital investment required to complete the energy conservation and emission reduction targets during the 12th Five-Year Plan period would be about 3.4 trillion yuan. The huge "cake" to be divided immediately triggered public opinion.

In response, a number of brokers have expressed similar views that the market should pay more attention to investment opportunities brought about by the upgrading of traditional industries. Xia Qingwen, chief analyst of Founder Securities in Beijing, told the "Securities Daily" reporter that "compared with pure electric vehicles that do not have industrial basis, wind power, photovoltaic power generation, etc., which suffer from cost and stability, through energy-saving and environmental protection technologies and equipment The upgrading of traditional industries is the most authentic and reliable, with high returns and broad market demand."

An analyst who did not want to be named told reporters that “in the seven strategic emerging industries, energy conservation and environmental protection are ranked first, and in the six areas supported by the “Planning”, energy-efficient technologies and equipment are second to none. Explain that the national strategy, on the basis of focusing on the development of energy-saving and environmental protection industries, has chosen the more practical and easy-to-reach development goals of traditional industrial upgrading."

Xia Qingwen also told reporters that "the market has always paid great attention to energy-saving and emission reduction technologies represented by flue gas desulfurization and denitrification, energy conservation and water conservation, and heavy metal pollution control. The management has introduced the policy of the '12th Five-Year Plan' period. Law, market protection, can be interpreted as a long-term positive for the energy conservation and environmental protection industry."

"Twelfth Five-Year Plan" environmental investment opportunities
The reporter summed up interviews with a number of brokerage analysts. The energy-saving and environmental protection investment opportunities based on the traditional industrial upgrading should focus on environmental pharmacies: acrylamide, polyacrylamide (for water purification, pulp processing and pipelines). Research and production of inner coatings and other derivatives of Baomo (002476); research and development of desulfurization purifiers, desulfurization catalysts, other purifiers (dechlorination agents, arsenic removal agents, etc.), special catalytic materials and catalysts Sanju Environmental Protection (300072).

The environmental protection materials focus on: three-dimensional wire (300056), which is a high-performance high-temperature filter material for the core components of the main bag filter; engaged in fully enclosed and insulated medium-voltage cable branch boxes, medium-voltage cable docking boxes, low-voltage cable branch boxes and other cable branch boxes. Products such as silicone rubber cable accessories, cable plugs and other high-performance silicone rubber insulation products, electrical equipment boxes and other high-performance composite insulation products and related power distribution network equipment Shenzhen Huicheng (002168).

Environmental protection equipment focuses on: Longyuan technology (300105), which is engaged in the research and development of combustion control equipment system, with the application of plasma ignition technology; main environmental pollution prevention equipment, high-voltage silicon rectifier equipment, low-voltage supporting equipment, water conservancy and hydropower, power station Longjing Environmental Protection (600388) with high and low voltage control equipment, electrical machinery and equipment; Colin Environmental Protection (002499) for bag dust collector and bag dust removal system; Bishuiyuan (300070) engaged in sewage treatment and sewage resource technology .

Environmental protection services focus on: serving the petrochemical and coal chemical industries, engaged in three-dimensional engineering (002469) for refining and chemical engineering project design and general contracting business; providing industrial water treatment systems for large-scale projects in downstream industries such as coal chemical, petrochemical, and electric power Services, to achieve water saving, land resources, reduce the operating costs of the system Wanbangda (300055); engaged in power production, sales, development and application of environmental protection equipment, environmental engineering construction, power monitoring and control product development of Kowloon Electric (600292).

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