Environmental protection policy ushered in policy
The battle for water, gas, and soil is the highlight of the “13th Five-Year Plan”on environmental protection. As the first year of implementation of the“Thirteenth Five-Year Plan,” the bill on environmental protection issues will be highly popular in the upcoming 2016 National “Two Conferences”. Investor attention. In addition to the “Ten Articles of the Atmosphere” and “Water Ten Articles” that have been launched before, the latest news says that “Tokuji Ten” is expected to be launched during the year.
During the “Thirteenth Five-Year Plan” period, China will implement three major action plans for air, water, and soil pollution prevention. Sub-sectors such as soil pollution prevention, VOCs (Volatile Organic Compounds), black and odor water bodies, and environmental monitoring are expected to become new hot spots in the environmental protection industry in 2016.
The policy is even better for the environmental protection industry
In recent years, the state has attached great importance to the environmental protection industry. Especially since the party’s 18th National Congress, the state has placed environmental protection in a more important position, accelerated the establishment and completion of policies and regulations, and vigorously promoted pollution control. The successive release of "10 Atmospheres" and "10 Water Rules" has triggered the pollution control in the atmosphere and water environment. The accelerated formulation and forthcoming launch of the "Tokuji" will open up a whole new situation for soil pollution prevention and control.
Judging from the recent release of national policies and actions, in addition to the relevant ministries and commissions actively promulgating the multi-benefit policy, local governments are also taking active actions. For example, on February 18 this year, the State Council issued a national list of black odor rivers and related policies for soil remediation. It shows that the country attaches great importance to the environmental protection industry. In addition, the National Development and Reform Commission also proposed to plan a series of national engineering laboratories for atmospheric, water, soil, and solid waste pollution in the next 2 to 3 years, focusing on advanced environmental monitoring, pollution control, resource recycling, and environmental restoration. . In terms of local government, Guizhou Province launched the "Provincial Action Program for Environmental Protection (2016-2017)" on February 16th, focusing on the improvement of environmental quality and making every effort to fight water, air, and soil pollution. , And Chongqing, Zhejiang and other places have also issued local "Water Pollution Prevention Action Plan."
“Currently, national policies have unprecedented support for the environmental protection industry. In the next five years or even further, the environmental protection industry will gain the support of the policy. During the “Thirteenth Five-Year Plan” period, China will implement in depth three major aspects of air, water, and soil pollution prevention and control. Action plan: Sub-sectors such as soil pollution control, VOCs, black and odor water bodies, and environmental monitoring are expected to become new hot spots in the environmental protection industry in 2016.” Researchers believe that the energy saving and environmental protection industry is expected to achieve an annual growth rate of over 20%, and environmental protection investment will Increased to about 2 trillion yuan each year, the total social investment is expected to exceed 17 trillion yuan. To grasp the timing of investment, usually before and after the "two sessions" is the introduction of environmental protection policy time window, during which the environmental protection sector as a whole will have a certain excess return.
Environmental monitoring benefits bear the brunt
In the war of environmental protection in water, gas and earth, atmospheric governance has been highly valued in recent years. The state has also issued a number of governance policies and measures, such as the guidance on promoting joint prevention and control of air pollution and improving regional air quality. Opinions, Law on the Prevention and Control of Atmospheric Pollution, etc. From the perspective of governance effects, the effectiveness is not obvious. According to the 74 key cities monitored by the Ministry of Environmental Protection in the third quarter of 2015, cities that accounted for more than 20% of the days for which the air quality exceeded the limit accounted for 43.3% of the total, and the percentage exceeding the standard exceeds 50% by 6.8%. The persistence of haze has seriously affected people’s lives.
From the perspective of the discharge of major atmospheric pollutants, the emissions of sulfur dioxide and nitrogen oxides in 2014 alone were 1.74 million tons and 20.78 million tons, respectively, and the emission of important precursor volatile organic compounds (VOCs) formed by PM2.5 and O3. It is estimated that it is also more than 20 million tons. In order to completely solve the air pollution problem, in addition to the full implementation of ultra-low emissions and energy-saving transformation of coal-fired power plants, the management of volatile organic compounds (VOCs) must also continue to be strengthened. In this regard, during the period from May 2010 to June 2015, the state successively issued 12 regulations and policies to ensure effective control of VOCs. Even so, because of the incompleteness of policies, regulations, monitoring standards, and system management systems, the development of VOCs in China has been slow, and the output value of VOCs treatment market is still less than 4 billion yuan per year, compared to the estimated market space of 110 billion yuan. There is a large gap, and if we consider that the future emission standards will increase and the supervision industry and regions will expand, the VOCs governance market capacity will increase further. This means that the VOCs governance market has a large investment imagination.
“The management of VOCs will bring investment opportunities in the environmental monitoring sector. In the future, there will be more flowering plate effects. The average growth rate of the monitoring industry is expected to reach 31%.” The researchers interviewed by the reporter believe that in the field of VOCs governance, environmental protection, Companies with inspection capabilities, such as Hanwei Electronics, Concentrating Technology, and Snow Diron, will be the first to benefit. From the perspective of listed companies, Concentrating Technology is moving from monitoring to water environmental governance and building an environmental monitoring platform called “monitoring-big data-governance”. In 2015, the company signed a new PPP order (with a certain amount) of RMB 700 million. Plus the relevant successful bid information, it is expected that the total amount of new orders in 2015 will exceed RMB 2.2 billion. Xianhe Environmental Protection is a leading enterprise in domestic high-end environmental monitoring instrumentation and is the first company in China that has all the products required by the state's planned environmental monitoring network and pollution reduction monitoring system. Last year, the company's subsidiary, Hebei Xianhe Zhengyuan Environmental Treatment Technology Co., Ltd. and the Xiongxian County People's Government of Hebei Province signed the "Framework Cooperation Agreement for VOCs Pollution Third-Party Governance and Resource Utilization Projects in the Xiong County Packaging and Printing Industry." The two sides will invest about RMB 1.8 billion in overall PPP cooperation. Combining the advantages of environmental monitoring and VOCs governance to enhance the company's core competitiveness and industry influence.
Soil remediation battle
Compared with other domestic environmental protection industries, the development of soil remediation is still lagging far behind the early rise of air pollution prevention, sewage treatment, and waste treatment, and is currently a hot industry. Compared with the investment in pollution control such as industrial wastewater and industrial waste gas, the investment in soil remediation is far behind and the output value is far behind these environmental protection industries. According to statistics, the national soil exceeding the standard rate was 16.1%. From the point of view of pollution distribution, soil pollution in the south is more important than in the north, and soil pollution problems in some regions such as the Yangtze River Delta, the Pearl River Delta, and the old industrial base in northeast China are more prominent. Soils in the southwest and south-central regions have a greater range of excessive heavy metals. The state of the soil environment in the country is not optimistic and the work of soil remediation cannot be delayed.
In order to improve the soil environment, the state has successively introduced a series of policies to support the development of the soil remediation industry. The issuing units include the State Council, the National Development and Reform Commission, the Ministry of Environmental Protection, the Ministry of Finance, and the Ministry of Land and Resources. The intensive introduction of policies has highlighted the country's efforts to rehabilitate the soil. The importance attached. A few days ago, the "Soil Pollution Prevention Action Plan" (also known as "Tokuji Ten") has been submitted to the State Council by the Ministry of Environmental Protection. The overall goal of the plan is to ensure that the deteriorating trend of soil pollution is curbed by 2020; the soil of agricultural land is effectively protected; the soil safety of construction land is basically guaranteed; the soil pollution prevention and control demonstration has achieved significant results; and the soil environmental management system mechanism is basically sound.
For the entire soil remediation industry market, it is conservatively estimated that there will be 383 million acres of soil pollution to be restored in China, and the soil remediation market will be more than 6 trillion yuan. The agency predicts that the investment demand for agricultural arable land for soil remediation is more than RMB 3 trillion, the demand for urban soil remediation investment is more than RMB 1 trillion, and the soil in mining areas is nearly 2 trillion yuan.
“The preferred regional monopoly has significant features, and it is preferable to have location and technical superiority.” Minsheng Securities believes that during the “13th Five-Year Plan” period, the soil remediation industry will usher in a golden period of development. In specific companies, Yongqing Environmental Protection, High Energy Environment, and Boschke are highly recommended by organizations. Among them, Yongqing Environmental Protection has successfully implemented heavy metal soil remediation cases in the Xiangjiang River Basin and other places in recent years, and its technology has consistently maintained the leading domestic level. In July this year, the company completed the acquisition of a 51% stake in American IST. With this acquisition, the company has become an international leader in soil remediation. Hunan Province, where the company is located, is known as the “Colored Township” and is the main battlefield for the nation’s soil pollution control. In July, the Ministry of Environmental Protection issued a special fund of about RMB 2.8 billion to support 30 cities to accelerate the comprehensive prevention and control of heavy metal pollution. There are 11 Hunan provinces, and the company has a geographical advantage in soil remediation. "Tokuji" is expected to drive more than 6 trillion yuan of investment, and the company takes up multiple advantages in technology, market and policy.
The high-energy environment is one of the few scarce targets in the A-share market for the successful repair of large-scale soil remediation projects. Based on the traditional industrial papermaking wastewater treatment business, the company actively developed front-end water treatment, municipal engineering, soil remediation and other businesses, and seized several large-scale PPP orders. In 2015, the company's new orders were nearly 1 billion yuan, and full orders provided strong support for the company's performance improvement and business expansion.
Black smelly river governance is expected to become a hot spot for the whole year
In an interview with reporters, the researcher also highlighted the issue of governance of the black and smelly river, which is expected to become a hot spot throughout the year for the environmental protection industry in 2016. With the Ministry of Housing and Urban-Rural Development and the Ministry of Environmental Protection jointly promulgated the "Circular on Announcement of the Investigation of the City's Black and Smelly Water Body," the government requested that information on the completion date of black stinky water remediation be completed by the end of February. The governance of black and odor bodies in cities has also ushered in policy policies.
In fact, as early as May 2015, when the “Water Pollution Prevention and Control Action Plan” was promulgated, it officially proposed the governance of urban black-and-odor water bodies and proposed the overall goal of “phase improvement in 2020 + overall improvement in 2030”. In August 2015, the Ministry of Housing and Urban-Rural Development and the Ministry of Environmental Protection issued the "Guide to the Management of Urban Black and Odorous Waters," and provided specific guidance on the work objectives and work content of black and odor bodies. On February 18, 2016, the Ministry of Housing and Construction and the Ministry of Environmental Protection announced the results of black and odorless water inspections. More than 70% of the cities across the country had detected black and odorous bodies of water, of which 60% were located in the southeastern coastal areas and were relatively economically developed. After the completion of the black and odor water body, the need for treatment of black and odor bodies began to be released.
From the survey results, as of now, 295 cities above prefecture-level have identified 1,861 black-odor rivers. It is assumed that each river will invest 200 million to 300 million yuan, corresponding to a market space of 372.2 billion yuan to 558.3 billion yuan. According to the forecast of CITIC Securities, in order to realize the target of black-and-odor water body management in 2030, the corresponding investment demand may exceed 700 billion yuan. From this point of view, in the treatment of black and stench water, pipe network construction, sludge treatment, water treatment, and environmental restoration will all benefit from this. The specific targets of benefit include the Central Energy Technology (black and odor water treatment equipment) and Baan. Water (river harnessing), Oriental gardening (water ecological restoration), Tianxiang environment (sludge disposal), etc.
Among them, Huaneng Technology's magnetic separation water treatment equipment can be widely used in the treatment of black and smelly rivers, and it is expected to benefit from the rapid growth of industrial order release in the future. Oriental Garden acquired Shenneng Environmental Protection and Wuzhong Solid Waste, and used the threshold of hazardous waste industry to expand hazardous waste business. In addition, the company also acquired Zhongshan Environmental Protection and Shanghai Liyuan, and proposed the concept of “three-in-one” integrated water ecology management to enter the water environment. In the field of comprehensive governance, it is expected that more PPP orders will be obtained in the black smelly river management and sponge city areas, and the company’s performance will be improved. From the perspective of orders, in 2015, the total investment amount for the project that the company had won was as high as 39.149 billion yuan. Baan Water, this year will enter the intensive delivery of orders. At present, projects with large volumes, such as Guizhou Liupanshui Phase II, Jinzhou Project, and Quzhou Seawater Desalination Project, are expected to be completed and delivered in 2016; in addition, the scale of the company's current project orders are all over 100 million yuan. This will provide a strong guarantee for the company's future performance growth。