Environmental testing equipment has a broad market prospect

The Third Plenary Session of the 18th CPC Central Committee made planning and deployment of China's comprehensive deepening reforms in the next 10 years. The "Communication of the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China" and "The Decision of the CPC Central Committee on Several Major Issues Concerning the Comprehensive Deepening of Reforms The explanations of the "Decision of the Central Committee of the Communist Party on Several Major Issues Concerning the Comprehensive Deepening of Reforms" have all made a lot of explanations on the construction of the ecological environment.

Review summary:

Understand profoundly and solve the right way. The planning and deployment of the ecological environment in the Third Plenary Session of the 18th CPC Central Committee reflected that the CPC Central Committee had a profound understanding of the emergence and solution of China's eco-environmental problems. “The establishment of a systematic and complete ecological and civilized institutional system” means that China’s energy saving and environmental protection industry welcomes Great reforms and institutional dividends have come.

The "Red Line for Ecological Protection" was first proposed to reflect the determination of the Central Government. The concept of “ecological protection red line” was first proposed in the Party Central Committee’s document. We believe that this means that the Central Government has fully realized the seriousness of the current ecological environment in China.

The six key work areas for the future reform of the environmental protection management system. On November 13, the Minister of Environmental Protection, Zhou Shengxian, stated clearly at the 2013 annual meeting of the China International Cooperation Committee for Environment and Development that he is currently focusing on the reform of the management system for ecological and environmental protection.

The top-level design is overweight, focusing on follow-up specific policies. According to what we have learned, the "Opinions on Accelerating the Construction of Ecological Civilization" led by the National Development and Reform Commission has been reported and is expected to be introduced in the near future.

The direction of investment is more clearly defined and the growth rate of environmental protection is guaranteed. The "12th Five-Year Plan for Energy-saving and Environmental Protection Industry Development" proposes that the output value of energy-saving and environmental protection industries will increase by an annual average of 15%. By 2015, the total output value of energy-saving and environmental protection industries will reach 4.5 trillion yuan. We believe that reforms and institutional dividends will lead the industry. Next, there is reason to believe that energy conservation and environmental protection will become the dominant investment direction in the market. This emerging industry will also better reflect the Matthew effect. The comprehensive average annual growth rate of leading companies listed in various sub-sectors will be far greater than 15%.

We once again stressed that the environmental protection industry is "better than the market" investment rating, and actively recommend leading companies in various sub-industries and listed companies with obvious advantages in current valuation: Bishuiyuan (300070), Sangde Environment (000826), Dongjiang Environmental Protection (002672 ), Tianzhu Energy Saving (300332), Sanhe Environmental Protection (300072) and so on.

Risk Warning: The environmental protection industry is a policy-sensitive industry and has a high degree of dependence on policies. Therefore, it has the risk that the policy will not be expected. According to the public media information, the IPO resumption will gradually come to a close, and it is expected to cause greater impact on the small and medium cap stocks. Impact; The risk of shareholders lifting their bans and reducing their holdings.