On the 16th, the relevant responsible person of the Ministry of Water Resources revealed that last year the national water conservancy investment reached 345.2 billion yuan. It is expected that this year's water conservancy investment will exceed last year's, and the central water conservancy investment will exceed 140 billion yuan. The news made the capital market buoyed. The relevant sectors and individual stocks all rebounded in the afternoon. What investment opportunities have been hidden by related stocks in the current context? The reporter interviewed relevant analysts.

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The central government invested 140 billion yuan in water conservancy this year

Zhou Xuewen, chief Planner and planning director of the Ministry of Water Resources, said yesterday that according to the Central Document No. 1 and the Central Water Conservancy Work Conference held last year, the country’s water investment will reach 4 trillion yuan in the next 10 years. During the period, water investment in the country was 1.8 trillion. Last year, the national water conservancy investment reached 345.2 billion yuan, of which the central government's investment reached 114.1 billion yuan, a substantial increase over the previous year. With the implementation of various policies of the Central Document No. 1, this year's water conservancy investment is expected to exceed last year, in which the central water conservancy investment will exceed 140 billion yuan.

The reporter was informed that relevant departments are stepping up efforts to formulate a nationwide water price reform program, and water prices may increase. This also means that the water resource fees collected from the water price in the future will increase accordingly. Therefore, the safeguard funds used to ensure the implementation of the strictest water resource management system are also expected to increase.

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Water Conservancy stocks rebound in the afternoon Jedi

On the 16th, the A-shares finished weakly and began to fluctuate after midday. Eventually both the Shanghai and Shenzhen stocks closed lower. However, the water utility suddenly surged after noon, and the water business of Guozhong led the gains. It once rose nearly 8% during the session, and Daxuan water-saving suddenly increased in the afternoon, and at the close of the day it rushed out the highest price of 11.39 yuan. At the same time, Qianjiang Water Resources and Jiangnan Waterworks also rose, and most of the stocks in the water conservancy sector gained dividends.

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Water conservancy construction water treatment will benefit

In an interview with the reporter, Pan Yuhong, a researcher with the China Investment Advisor Environmental Protection Industry Co., Ltd., said that due to a series of positive effects of a total investment of 1.8 trillion yuan in water conservancy construction during the “12th Five-Year Plan” period and restructuring of the hydroelectric auxiliary industry, the valuation of the water conservancy sector is very high. With large room for growth, the government has a strong policy on water conservancy, clear thinking, and the water sector is in a rising channel. At present, it is most optimistic about the construction of water conservancy projects. With the large-scale development of hydropower, large-scale reconstruction of farmland water conservancy will effectively stimulate this step into the fast-developing expressway.

Yang Juanrong, an analyst at Guohai Securities, said that the “State Council’s Opinions on Implementing the Most Stringent Water Resources Management System” has raised water conservation and improved water environment to an unprecedented historical height. With the increase in the demand for reclaimed water by enterprises and residents, the demand for the construction of reclaimed water treatment facilities will also increase, which will promote the development of sewage treatment facilities construction enterprises.

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Mid-to-long-term tracking of water conservancy construction

According to the “Twelfth Five-Year Plan for Water Conservancy Development,” China’s water conservancy investment will reach a scale of RMB 4 trillion over the next 10 years, far exceeding the sum of water conservancy investments during the “Eleventh Five-Year” and “Twelfth Five-Year Plan” periods. Datong Securities Investment Consultant Fu Yongxuan believes that the main task of the previous years is to improve the construction of water conservancy facilities and water conservancy projects, and the subsequent years of water-saving and sewage treatment will fully benefit. For the construction of water conservancy projects, we are optimistic about Gezhouba Dam; in the field of water saving in farmland, we are optimistic about Dagu water-saving; in the area of ​​water supply pipes, we are optimistic about the Qinglong Pipe Industry; in respect of drainage and sewage pipes, we are optimistic about Nachuan Co., Ltd., which is based in the high-end market. Investors are advised to follow the attention from the midline.

Wang Xiaoyong, an analyst at Minsheng Securities, said that the current investment intensity of water conservancy backbone projects is relatively insufficient, and the investment gap is larger than the construction tasks determined by the completion of the plan. For the water conservancy project plate, we recommend China's hydropower, and at the same time, we suggest to pay attention to the industrial investment opportunities of Guangdong Hydro and Gezhouba. China's hydropower is the leader of the water conservancy and hydropower project sector. With the gradual increase in investment in major water projects, the company will benefit significantly.

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Low return on water conservancy construction

Pan Yuhong reminded investors that affected by the overall weak economic development, the water sector has also been affected, and many water conservancy construction projects have lagging investment cycles, affecting the operating performance of related listed companies. And the direct return of water conservancy construction is not high, whether the local government can actively fulfill the central policy, and vigorously promote the development of the water conservancy industry, there are also variables.