Heguo Mining Co., Ltd. was invited to participate in the "2018 China (Hefei) Summit Forum on Promoting High Quality Development"

Heokuang Co., Ltd. was invited to participate in the "20th Meeting of the Soil Environment Professional Committee of the Chinese Soil Society" and "Symposium on Farmland Soil Pollution and Remediation"

Learning from President Xi's Ecological Outlook on Development and Steadily Promoting the Green Strategy of Hecco

Anhui HeMine Environmental Technology Co., Ltd. undertook the successful completion of the soil remediation project of Sanmen County Chemical Co., Ltd.

To the 19th National Congress of the Communist Party of China, China's first independent research and development of "soil remediation integration equipment" press conference was successfully held

China's first "soil remediation integration equipment" press conference

Economic transformation to help trillions of industries, two types of enterprises to lead the tide of environmental investment

Release time:

2018-08-20

The strategic position of the environmental protection industry has been greatly improved, the ecological environment has been significantly improved, and the business model has been gradually optimized. It can be said that the environmental protection industry has entered a new stage of development, and the environmental protection industry is expected to continue to grow at a high speed in the next five years. Many people in the industry pointed out that in the investment process, the selection of individual stocks is very important, and the two types of enterprises are worthy of everyone's attention.

After more than 30 years of rapid development, China's economy is now facing the dual constraints of resources and environment. The traditional economic growth mode is no longer sustainable, and the urgency of economic structure transformation and upgrading is becoming more and more prominent. As the main starting point to promote economic transformation and upgrading, the importance of environmental protection has gradually been recognized by everyone, and more and more industrial capital and financial capital have begun to enter the environmental protection industry.

On the other hand, in the-share market, the China Securities Environmental Protection Index has fallen by 15.59 this year, ranking low in various industries. Although there are fundamental and valuation factors, industry insiders believe that it is more related to investors' understanding of the environmental protection industry. Perception is related. Many investors believe that the environmental protection industry is a thematic investment, and some investors have criticized the B2G business model of the environmental protection industry.

First of all, the strategic position of the environmental protection industry has been greatly improved. As a new pillar industry of the national economy during the 13th Five-Year Plan period, the status of the environmental protection industry has risen to the height of the national strategy. With the increasing public awareness and concept of environmental protection, the government's attention and investment in the environmental protection industry is also increasing. The promulgation and implementation of the "New Environmental Protection Law" in 2015 marked the beginning of a new stage of development for China's environmental protection industry.

With the intensive introduction and strict implementation of a series of environmental protection policies such as "Water Ten Measures" and "Earth Ten Measures", China's environmental pollution control needs have been quickly stimulated. At the same time, the investment in the environmental protection industry will continue to increase. It is estimated that the total investment in the environmental protection industry during the 13th Five-Year Plan period is expected to exceed 17 trillion yuan, and the annual growth rate of the industry is expected to exceed 20%, making it one of the industries with the best growth in the next five years.

Secondly, the ecological environment of the environmental protection industry has improved significantly. In the past, the government's assessment of environmental protection focused on quantitative indicators, more on whether there is environmental protection equipment, and little attention to the effect of governance, resulting in the industry into rent-seeking and price war of vicious competition, resulting in the environmental protection industry has always been in low technology, low profit and low concentration of poor industry ecology. After the implementation of the New Environmental Protection Law, the government's assessment of environmental protection has changed from quantitative indicators to quality goals, and severely punishes subjects who fail to meet environmental protection quality standards. This measure has greatly improved the ecological environment of the environmental protection industry and is conducive to high-quality environmental protection. Enterprises continue to grow bigger and stronger. The performance of environmental protection listed companies began to improve significantly in 2015, and their profitability and growth have been significantly improved.

At the same time, more and more large state-owned enterprises begin to enter the field of environmental protection through mergers and acquisitions. They have the advantages of resources, capital and technology, which will greatly enhance the international competitiveness of China's environmental protection industry and significantly improve the ecological environment of the environmental protection industry.

Finally, the business model of the environmental protection industry is gradually optimized. In the past, environmental protection companies mainly did environmental protection projects for local governments. B2G's business model led to higher and higher asset-liability ratios of environmental protection companies and deteriorating cash flow. Now the government is actively promoting the PPP model and third-party governance of environmental pollution in the field of environmental protection. Through the innovation of project operation mode and investment return mechanism, the investment and financing channels of environmental protection enterprises have been greatly broadened, the financing costs of enterprises have been greatly reduced, and the business model of environmental protection industry has been gradually optimized. At the same time, with the continuous increase of environmental protection supervision and law enforcement, the demand for governance in the field of industrial pollution has been effectively released, and the proportion of B2B business model in the environmental protection industry will be greatly increased in the future.

Of course, environmental protection companies themselves are constantly exploring the optimization and innovation of business models, including the business model of "Internet sanitation", as well as the new business models that may be generated after the application of the Internet of Things and big data in the field of environmental monitoring. The author thinks that they are all worth looking forward.

To sum up, many people in the industry believe that the environmental protection industry has entered a new stage of development, and the environmental protection industry is expected to continue to grow at a high speed in the next five years. Therefore, investing in environmental protection stocks is no longer a simple theme investment, but a real growth stock investment. How to share the dividends brought about by the growth of the environmental protection industry, the market generally believes that the selection of individual stocks is very important, the following two types of enterprises deserve everyone's attention: is expected to become China's environmental integrated service provider platform enterprises. In the next five years, China's environmental protection enterprises will usher in a market opportunity of 10 trillion yuan, so there will be several environmental protection enterprises with a market value of 100 billion yuan.

Second, a leading enterprise in the field of environmental protection with core competitiveness. There are many segments of the environmental protection industry, and each segment is expected to exceed 100 billion in size in the future, so the leading enterprises in the segments with core competitiveness will benefit the most.

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Economic transformation to help trillions of industries, two types of enterprises to lead the tide of environmental investment

强盛