In recent years, the intensification of air pollution and the deterioration of water pollution in the environmental protection industry have made people more and more nostalgic for the era of blue water and clean water. The deterioration of living conditions has brought more than just PM25. There are also a range of chronic diseases. The promulgation of the "Ten Articles of Soil" and "Ten Articles of Water" has not only constrained manufacturing and production enterprises, but also given birth to the emerging concept of environmental protection industry.
Investors are more optimistic about the development prospects of the environmental protection industry, and its high return on investment for many years has become the most powerful factor to attract investors.
In the context of slowing economic growth and declining manufacturing profits, capital has poured into the environmental protection industry, but it has brought more uncertainty to the situation of the environmental protection industry.
At present, there are more than 50,000 enterprises engaged in the environmental protection industry in China, and many enterprises cannot talk about the scale at all. Moreover, there are only 59 relatively large environmental protection enterprises listed on the A-share market, basically accounting for only one-thousandth of the total number of environmental protection enterprises. And, judging from the financial reports of these listed companies, the profitability does not seem to be very optimistic. Compared with the market size of trillions of yuan mentioned in some research reports, the average revenue of these environmental protection companies in 2015 was only about 1 billion yuan.
At present, enterprises in the environmental protection industry are mainly distributed in the fields of water affairs, atmosphere, water affairs, and environmental testing and monitoring. Since the environmental protection industry belongs to the field of public services, it is difficult for those environmental protection enterprises with no relationship background to occupy an advantage in the process of project bidding. At the same time, some large state-owned enterprises and central enterprises have also taken a fancy to the brilliant prospects of the environmental protection industry, and actively layout in the field of environmental protection.
For the operators of the existing environmental protection industry, in addition to the plundering of state-owned enterprises, central enterprises and other official background enterprises in the market, some new enterprises are to take the project and adopt a low-price strategy, vicious competition makes many environmental protection enterprises miserable.
People have high hopes for the environmental protection industry, but the current environmental protection industry is chaotic and needs to be integrated urgently. The next step is to reconstruct the order of the industry and standardize the development of the industry, and mergers and acquisitions will become the only solution. For enterprises, survival is the only purpose, not only to get rid of the bad luck of being merged, but also to maintain a good cash flow in the fierce market competition.
According to statistics, in the subdivision of the environmental protection industry, the largest increase in revenue is the environmental testing and monitoring business, which reached 45% year-on-year, and the solid waste treatment field, the year-on-year increase is more than 50%. These sectors are currently the fastest-growing areas of the environmental protection industry.
It is reported that there are almost 7 million fixed pollution sources in the country, even if it is calculated according to the detection and monitoring cost of 150,000 yuan per place, this is also a trillion market space. Therefore, there is no need to be pessimistic, in the environmental protection service industry spawned by environmental reform, it is only now the beginning.
For existing environmental protection enterprises, core technology is the key to enterprise development and avoiding acquisition. To provide customers with integrated production and design solutions, it is also a treasure that is currently a prominent encirclement of environmental protection enterprises. In addition, as the environmental protection industry will gradually tend to refine services, this aspect of business is not good at large-scale enterprises such as central enterprises and state-owned enterprises. Therefore, even if the environmental protection industry is now in a stalemate, it will definitely rain and the sky will be clear.
According to the statistics of the "China Environmental Protection Industry Report" of the Prospective Industry Research Institute, the output value of China's environmental protection industry has exceeded one trillion yuan and will continue to expand in the future.