Chinas sixth emission standard is about to be implemented, two major directions of industrial chain benefit (with shares)

category:Finance
 Chinas sixth emission standard is about to be implemented, two major directions of industrial chain benefit (with shares)


Crude oil futures continued to rise. The main contract of WTI crude oil futures rose 4.06% to close at US $44.81/barrel, the highest level since the outbreak of the new outbreak. Affected by this, U.S. energy stocks rose sharply, Chevron rose 4.3%, ExxonMobil rose 6.66%.

Large technology stocks showed a general trend of rise, such as apple, Google, Microsoft, Netflix all increased by more than 1%.

On the face of the news, the reason for the sharp rise in US stocks is that in addition to the smooth progress of the vaccine, which is expected to start vaccination in mid December, investors have high hopes that Yellen may become U.S. Treasury Secretary, and the rebound of energy stocks also played an important support for the index.

The cut-off date of transition period of national automobile emission standard

Specifically, on May 14, the Ministry of ecology and environment, the Ministry of industry and information technology and other four departments jointly issued the announcement on the adjustment of relevant requirements for the implementation of national VI emission standard for light vehicles

It is proposed to increase the sales transition period of six months for light-duty vehicles manufactured before July 1, 2020 (upload date of motor vehicle certificate) and import (date of arrival of goods in the bookmark of goods import certificate). Before January 1, 2021, it is allowed to carry out the national VI emission standard in the regions (Liaoning, Jilin, Heilongjiang, Fujian, Jiangxi, Hubei, Hunan and Guangxi) All areas of Guizhou, Yunnan, Tibet, Gansu, Qinghai, Ningxia, Xinjiang and other provinces, as well as Shanxi, Inner Mongolia, Sichuan, Shaanxi and other provinces have announced that they have implemented the national six emission standards) sales and registration. The six emission standard particulate matter quantity (PN limit) of light vehicle country is 6 x 1012 / km transition deadline, adjusted from July 1, 2020 to January 1, 2021. From January 1, 2021, the PN limit of all light-duty vehicles manufactured and imported according to the national sixth emission standard shall meet the requirements of 6.0 u00d7 1011 vehicles / km.

As early as 2016, China has issued the national VI emission standard for light vehicles, which requires that from July 1, 2020, all light vehicles sold and registered in all regions of the country must meet the requirements of national standard 6. After that, the national VI emission standard for diesel vehicles issued in 2018 requires that all heavy-duty diesel vehicles manufactured, imported, sold and registered shall meet the requirements of the standard from July 1, 2021.

The sixth national standard, i.e. the sixth national motor vehicle emission standard, is a significant upgrade on the national five standard. It has more stringent requirements on carbon monoxide, nitrogen oxide and carbon hydride. The purpose is to reduce and prevent the environmental pollution caused by automobile exhaust and protect the ecological environment, including the emission limits and measurement methods of light vehicle pollutants (phase 6 of China) and emission limits and measurement methods for heavy duty diesel vehicles (phase 6).

The national sixth standard is divided into two stages, i.e. national 6a and guoliub. The original plan will be implemented on July 1, 2020 (which has been postponed to January 1, 2021) and July 1, 2023 respectively. The national six emission standard mentioned above refers to the national 6A standard. The environmental protection standard of country 6b is more stringent than that of state 6a, and some indicators even surpass those of Europe.

Chart source: emission limits and measurement methods for heavy duty diesel vehicles (phase 6 of China), partial implementation time has been delayed.

In fact, in order to cope with the improvement of environmental protection standards in advance, automobile manufacturers have already taken actions. For example, the Ministry of ecology and environment introduced in April this year that more than 97% of the newly produced light vehicles in the market were already state-6 vehicles. Some provinces and cities have even greatly advanced the implementation date of the national sixth B emission standard. For example, Beijing requires that the implementation date of the PN limit of 6.0 u00d7 1011 vehicles / km produced and imported by Beijing is January 1, 2021.

The industrial chain of tail gas treatment benefits, with an annual increment of nearly 100 billion yuan

With the national sixth emission standard being launched nationwide, the domestic tail gas treatment industry chain will undoubtedly usher in a good opportunity for development, and the income and profit of relevant companies will be greatly increased.

The industrial chain of tail gas treatment mainly includes exhaust gas treatment system and vehicle urea. Southwest Securities pointed out that the growth of market scale of the former relies on the increase of single vehicle value of post-treatment system and the change of production and sales volume of national sixth automobile, while the latter relies on the increase of single vehicle consumption of diesel truck urea and the increase of market share of national sixth automobile.

According to the calculation of Southwest Securities, in the six years from 2020 to 2025, the incremental market brought by the national six standards will be achieved. The gasoline engine exhaust treatment system will reach 196.3 billion yuan, the diesel truck exhaust treatment system will reach 248.4 billion yuan, and the vehicle urea market will reach 101.6 billion yuan. The total of the three is 546.3 billion yuan, with an average annual increase of 91 billion yuan.

National six concept stocks are coming

The most rated times are Wanrun shares. According to the companys introduction, ZB series zeolite environmental protection materials are mainly used in the field of diesel vehicle exhaust treatment in Euro 6, guoliu and the same or above standards.

Next is yinlun Co., Ltd. in February, the company said on the interactive platform that 80% of the heavy duty truck diesel engines in the sixth phase of the country need to be equipped with EGR (the light truck engine is mainly equipped in the National Phase V phase), and the company occupies the main market share of the diesel heavy truck engine EGR. It is expected that the market increment of the sixth stage EGR will last for 2-3 years.

In fact, in the first half of this year, Chinas six emission standard concept stocks have experienced a boom. As of the end of November 24, aikelan, Longpan technology, Longsheng technology, Guiyan platinum industry, guoci materials and aofu environmental protection all increased by more than 60% in the year.

Akolan was listed on the gem at the beginning of this year, and is the leader of SCR tail gas treatment system for domestic light trucks. The market share of SCR light diesel, the companys main product, will reach 12.3% in 2019. SCR, fully known as selective catalytic reduction technology, is a way of diesel engine exhaust treatment.

Longpan technologys main products are divided into lubricating oil, vehicle urea and antifreeze. The company is the leader of domestic automobile urea. In the third quarter, the sales volume of vehicle urea was 102000 tons, with a year-on-year increase of 59.35%. In recent two years, it began to lay out lithium batteries and hydrogen fuel cells. Domestic leading enterprises of EGR (engine exhaust gas recirculation) include yinlun Co., Ltd. and Longsheng Technology Co., Ltd. (Wu Qi, databao)

Statement: all information in data bank does not constitute investment advice. Stock market is risky and investment should be cautious. Source: Securities Times editor in charge: Yang Bin_ NF4368

Statement: all information in data bank does not constitute investment advice. Stock market is risky and investment should be cautious.