Compared to other areas of environmental protection industry, China's water treatment industry more fully and in-depth development. Since 2012, China's water market is unusually active, investment heat continued to improve. After years of accumulation, the domestic water companies in technology research and development, brand, project accumulation, and so has a more solid strength. In this process, the listing, mergers and acquisitions continue to emerge, the future, the domestic water market development will be how the differentiation? What kind of business can be listed? Enterprise deep plowing industry opportunities? What are the core competencies needed to deal with more difficult and demanding industrial wastewater treatment?
New market demand for space?
China's industrial wastewater discharge was stable or even downward trend, business growth is reflected in the processing quality and deepen the industrial chain. "Can be expected, 'second five' period of China's total sewage growth will be mainly reflected in the growth of urban domestic sewage, and industrial wastewater treatment is mainly reflected in the increase in the quality of treatment and industrial chain deepening. Wang Yu, senior consultant of the analysis that since 2005, China's industrial wastewater discharge was stable or even downward trend, while the urban sewage discharge sustained rapid growth. In 2010, China's urban sewage discharge is 1.6 times the industrial wastewater discharge, accounting for 62% of the total, industrial waste water emissions accounted for down to 38%.
From the industry segments, paper, chemicals, textiles, agricultural and sideline products processing, electricity, ferrous metal smelting, coal mining is the main industrial wastewater discharge industry, industrial water treatment industry is the focus of the object. Therefore, China's industrial economic development situation will have a direct impact on the industrial wastewater treatment industry.
According to CCID statistics, since 2010, the total number of water treatment projects under construction and the average size of construction in progress showed a double downward trend. According to the "12th Five-Year Plan", the sewage treatment capacity of the average annual growth of 10.8%, lower than the "Eleventh Five-Year" period of 16.9%; from the construction point of view, the new sewage treatment capacity will focus on the eastern cities and major cities And gradually to the central and western regions and the eastern county, town tilt. As a result, the average size of new sewage treatment facilities has shrunk accordingly.
How competitive differentiation trend?
Domestic enterprises are relatively weak scientific research capabilities, operational aspects of intense competition, financing capacity is the key to business success
From 2008 to 2012, the overall scale of China's industrial water treatment industry increased from 76.81 billion yuan to 102.52 billion yuan, the average annual growth rate of 7%. China's industrial water treatment industry is mainly composed of equipment production and sales, engineering design and construction, facilities operation services and other services. According to CCID statistics, in 2012 the production and sales of equipment manufacturing industry accounted for 40% of the overall scale, showing a basic stable state; engineering construction value accounted for 30% of the total, a slow decline in the proportion of facilities operating services accounted for 24% With the industrial water service model is expected to gradually spread, this part of the output value will continue to increase; other services accounted for 6% of output value.
Report analysis, in the industrial water treatment industry chain upstream of the equipment manufacturing industry, multinational corporations monopolize the water quality monitoring, aeration, blowers and other high-end precision instrument manufacturing, grille, valves, pipe fittings and other low value-added manufacturing has been basic To achieve localization, domestic manufacturers in the membrane component membrane components R & D, manufacturing also has strong technical innovation.
Wang Yu reminded multinational companies in this field R & D capability is very strong, this gap in the short term is difficult to cross, and domestic enterprises in the transformation and upgrading to pay attention to cost-effective. "Enterprises and research institutes in the process of combining production and research, we should pay attention to the continuity of capital investment, because it determines whether the final form of research and development research results, while also evaluating the cost of investment, because technology introduction involves opportunity costs, Policy time Qiangdian and other factors.
Downstream operations are in the most competitive period, has entered the "big fish to eat small fish" stage, the financing capacity is the key to business success. In 2012, Beijiao Water, the first environmental protection, energy saving and other enterprises with huge capital and policy advantages to accelerate the regional promotion and business expansion.
From the total operating point of view, in 2012 China's water business market further concentrated, Veolia, the first shares, the North Water and other enterprises of the daily processing capacity of 10 million-ton.However, from the new operating capacity, The company is far ahead, in which the North control water to achieve the scale of daily processing capacity of nearly 300 million tons of growth in contrast to foreign water, water law in 2012, Veolia and other multinational companies to increase the daily processing capacity of only 590,000 tons, only For the North Water Affairs 1/5, followed by fatigue. "Wang said. Enterprise development, how many weakness?
The scale of business is too small, the type of business over-centralized, narrow financing channels and other issues, the industrial park will become the focus of the Nuggets direction, but the industry lacks critical business model.
The report pointed out that our current focus on industrial water treatment professional operating company is relatively weak, industrial water treatment industry generally show small-scale enterprises, the type of business over-concentration, narrow financing channels and other issues, the fundamental reason is that the industry critical business operations Pattern missing.
"Because the BOT model, driven by the municipal water treatment field in the past 10 years there has been a flourishing scene, but the field of industrial water treatment model is not yet mature.Currently, Suez, Veolia and other foreign companies began to test the water contract environmental services CES). "This model is similar to the EMC model in the field of energy efficiency, which is characterized by the choice of a third party to provide external environmental governance services and to account for poor environmental performance before and after the service. Specific can be divided into two ways: First, pollution enterprises through contract services to reduce pollution costs and pollution control enterprises to share, and second, government procurement by the environmental service providers to provide environmental management services.
Now, the industrial park is increasingly becoming a gathering place for industrial enterprises. As of December 2012, the Ministry of Commerce approved the establishment of the provincial and above development zones to more than 1,700, municipal and below the number of industrial concentration in more than 5000. Industrial Park has a total discharge of water treatment, business comprehensive requirements of high, complex wastewater composition, capital investment and other characteristics. "Twelfth Five-Year" period, the industrial park will become the focus of industrial water treatment business Denver direction.
As the industrial park water treatment market is difficult to deal with the characteristics of high technical content, while the domestic industrial water treatment in the professional operating company is relatively small scale, multinational corporations such as Suez, Veolia, Sembcorp, etc. in the domestic industrial park water treatment The market occupies half of the country.
For example, in 2012, Singapore Sembcorp for the Nanjing Chemical Industrial Park, Zhangjiagang Free Trade Zone, Shanghai Chemical Industry Park to provide integrated industrial water treatment integrated services. In recent years, Suez in the domestic chemical industry park environmental services sector participation rising, the Sino-French Water has mastered, including Shanghai, Chongqing, Dalian, Changshu, Wuhan, five industrial park water contract, Veolia also Strengthen the strategic cooperation with Shanghai Michelin, Jianghuai Automobile, Chengde Iron and Steel and other industrial enterprises.
From the business management model, Suez, Veolia and other enterprises in the industrial water pollution control of the park's specialized operations has formed industrial water contract environmental management model, and successfully applied to Veolia Yanshan Petrochemical Wastewater Project, Suez Shanghai Chemical Industry Park water reuse projects. For example, in 2012, Singapore Sembcorp for the Nanjing Chemical Industrial Park, Zhangjiagang Free Trade Zone, Shanghai Chemical Industry Park to provide integrated industrial water treatment integrated services. In recent years, Suez in the domestic chemical industry park environmental services sector participation rising, the Sino-French Water has mastered, including Shanghai, Chongqing, Dalian, Changshu, Wuhan, five industrial park water contract, Veolia also Strengthen the strategic cooperation with Shanghai Michelin, Jianghuai Automobile, Chengde Iron and Steel and other industrial enterprises.
Transformation and upgrading of the direction?
The transformation model of three kinds of industrial water treatment enterprises has become more and more mature with four-wheel drive, regional type, water comprehensive type and environmental protection service type with "policy, capital, technology and mode".
Wang Yu believes that the industrial water treatment market and the system is in a deepening and run-in stage, transformation and upgrading is the next one of the key words in the field of development. For the development of this industry, Wang Yu proposed the "policy, capital, technology, model" four-wheel drive factors.
Industrial wastewater treatment industry is a typical policy to promote the industry, depending on the government from top to bottom to promote energy-saving emission reduction binding targets increase, the relevant policy changes will have a great impact on the industry. "Twelfth Five-Year" period, ammonia and chemical requirements of the same as a binding target, a number of industries to further tighten the wastewater discharge standards, which are on the industrial wastewater treatment proposed standard transformation requirements.
Wang Yu said that industrial wastewater treatment is a heavy industry, regardless of equipment purchase or construction requires a lot of capital investment in the operation of the basic end to BOT, OM and other models, the capital investment with 1: 3 or 1: 4 leverage Pry action. Therefore, the capital factor in the industrial water treatment enterprises in the process of transformation should always be concerned about. Technology driven for private enterprises is more important, Sander International, Yongqing environmental protection with outstanding technological innovation ability in the industrial water treatment market place.
CCID believes that the current industrial water treatment industry has entered the stage of comprehensive service transformation, and regional, water comprehensive and environmental service-oriented three kinds of industrial water treatment business transformation model matures, this trend in the "second five" Will become the mainstream development model.
Regional service providers refer to water enterprises, which include industrial wastewater treatment business for specific area customers. This has become the main way for regional water resources group to transform to environmental service mode with the background of state-owned assets. At present, including the water, Fuzhou, Shenyang Water, Hangzhou, water, etc., the traditional regional water companies have successfully completed restructuring and reorganization, and further consolidate their respective regional dominant position.
Integrated water treatment service provider is a comprehensive industrial water treatment capacity of the service business, the scope of business involving industrial water supply, wastewater treatment, reuse of recycled water, etc., and industrial parks become industrial water treatment business transformation of the "natural harbor."
Integrated environmental services model refers to the integrated water treatment business extended to solid waste treatment, soil remediation, new energy and other environmental protection business integrated business enterprises. At present, large-scale transnational water enterprises have completed the global strategic layout of solid waste disposal, new energy, municipal water supply and drainage, industrial wastewater treatment and reuse and other environmental protection integrated business through large-scale M & A and restructuring. 2011, the domestic large-scale water companies began to enter the field of solid waste, accelerate the transformation of environmental protection service model.
Listed to accelerate the pace of mergers and acquisitions
Enterprises make full use of the capital market bigger and stronger
"Twelve Five" period, the transformation and upgrading of industrial water treatment industry as a key word for many companies, this is bigger and stronger opportunities. CCID Consulting senior adviser by Wang reminded enterprises in the transformation and upgrading process, we should pay attention to the cultivation of capital operation awareness, and to focus on the use of capital costs. "Listing is the key to broaden the financing channels for enterprises to make the water industry to make full use of the capital market, thereby reducing investment and financing costs, increase capital output, optimize investment and financing structure, improve investment and financing efficiency, and then promote enterprise transformation and upgrading.
As of December 2012, China's water industry, a total of 23 companies successfully listed, of which 17 water companies involved in the business scope of industrial water treatment business, raising a total of 11.631 billion yuan of funds. Among them, Sander International is a listed company in Singapore and Hong Kong. In the H-share sector, it is listed on the NYSE by the leading domestic water company, Bei Kong Water, Diversified Water and Dinglian Holdings. "Overseas listing has provided Chinese water companies with a broader international capital market platform, which has greatly improved the capital, technology, brand, business channels and sensitivity to emerging markets," said Wang Yu.
"The industrial water treatment market is essentially a stock market rather than an incremental market, and there will be a consolidation trend at a certain stage," said Wang Yu. "M & A in the water market has started since 2008." Reduce the water market has been out of the staking new market development stage, the stock market has set off a wave of mergers and acquisitions, companies have to accelerate the pace of mergers and acquisitions, but also to speed up the pace of transformation.
September 2012, CLP environmental protection to 139 million yuan to raise funds over the acquisition of national energy environmental protection, the completion of sludge disposal, waste gas treatment business of the industrial chain extension. In addition, the State Water purchased high concentration of wastewater treatment company Beijing Heaven and Earth Company 10% stake in Xingrong Group acquired Chengdu Xingrong renewable energy company 100% stake, which enter the landfill leachate field.
More domestic enterprises to enter the international water market through mergers and acquisitions. For example, the consortium led by the Yangtze infrastructure to spend 4.8 billion pounds to buy the UK listed water company Norhumbrian Water; CIC and the French gas Suez Group in natural gas, electricity, water, waste disposal and energy services in areas such as depth cooperation. In short, mergers and acquisitions to promote the horizontal chain of water industry enterprises to expand.