The first quarter of environmental protection industry is growing rapidly, focusing on the industry of high prosperity.

Wind statistics show that 29 of the 49 listed companies in the environmental concept board achieved growth in the first quarter, 20 of which increased by more than 20% and 8 by more than 50%. Industry insiders said that with the second half of the "soil 10" and other related policies, environmental protection plate is expected to further develop.

Performance growth rate differentiation

In the first quarter, the listed companies of the environmental protection sector achieved net profit of 1 billion 260 million yuan, up 15.7% over the same period last year. From the perspective of sub sectors, the growth rate is energy saving, solid waste, air, sewage and monitoring. In the energy-saving sector, Shenwu environmental protection revenue of 290 million yuan in the first quarter, an increase of 67.41%; net profit of 98.3 million yuan, an increase of 801.95%.

In solid waste plate, except Shengyun environmental loss, the other companies have achieved growth, showing the high prosperity of the plate. According to the announcement, Shengyun achieved revenue of 223.134 million yuan in the first quarter, a decrease of 40.64%, net profit of 67.644 million yuan, a drop of 83.33%.

Atmospheric plate performance grew by only 6.2%, down from 28.9% in the same period last year. Yangtze Securities Research believes that the growth rate of the atmospheric plate declined year-on-year because the industry is difficult to sustain high growth after the peak period of desulfurization and denitrification. Taking into account the joint issue of the Ministry of Environmental Protection, the State Development and Reform Commission and the State Energy Administration of the "Comprehensive Implementation of the ultra-low emission and energy-saving coal-fired power plant transformation work programme", it is expected that by 2020, 60-90 billion yuan of new transformation space will be added. In addition, VOCs prevention and control market will also gradually open.

Overall, the performance of the environmental protection sector is clearly differentiated, leading industry performance is significantly better than other companies. The announcement showed that in the first quarter of the year, revenue of 630 million yuan, an increase of 54.15%, net profit of 0.35 billion yuan, an increase of 80.45%, mainly due to the accelerated landing of PPP orders.

In the first quarter of this year, the company achieved revenue of 267 million yuan, an increase of 22.87%, net profit of 110 million yuan, an increase of 101%.

In the field of solid waste management, Hanlan Science and Technology achieved revenue of 825 million yuan in the first quarter, an increase of 5.81 percent over the same period of the year; net profit of 106 million yuan, an increase of 30.66 percent over the same period of the year; solid waste and gas business is the main driving force for performance improvement.

Pay attention to the boom industry

During the 13th Five-Year Plan period, ecological environment management will shift from "quantity" to "quality" and energy conservation and environmental protection will become a pillar industry.

Analysts pointed out that the opening of new ideas will bring a broader space for the development of the environmental protection industry, with technical and management advantages of enterprises are expected to stand out. From the perspective of order release and policy expectations, the second quarter and the second half of the year can focus on black and odorous water treatment, VOCs treatment, soil remediation and other sub-areas.

According to the Changjiang Securities Research Paper, waste incineration has entered the performance release period, with an annual construction scale of 20-30 billion yuan between 2015 and 2018, and an annual operation market of 22 billion yuan after 2018. Meanwhile, the rate of hazardous waste disposal is low. If the disposal price of 3000 yuan per ton is set at 60 million tons per year, the output value will reach 200 billion yuan per year. Yuan. At present, the annual disposal capacity is only about 30 million tons, and the industry will enter a period of rapid release.

In addition, the kitchen and sludge are in the introduction stage, and there will be great potential for development in the future.

China Merchants Securities Research believes that in the field of water treatment, recycling and sludge treatment technology breakthroughs are two important development directions in the future. In the field of garbage disposal, recycling technology is a long-term direction, and the technology of domestic garbage disposal needs to be broken through urgently. It is recommended to focus on the leading enterprises in solid waste treatment industry.

However, CICC Research believes that the current level of plate valuation is not low, whether from the subject matter or valuation repair, lack of overall investment opportunities, it is proposed to focus on their own changes, valuation is not high M&A transformation companies. In addition, soil remediation, VOCs control and other industries are at an early stage of development, but also the "13th Five-Year" period of pollution control focus. With the expected warming of the policy in the second half of the year, the relevant topic opportunities deserve our attention.