"Green New Deal" drives the rapid development of environmental protection enterprises

Since the publication and implementation of the guide catalogue of green industry (2019 Edition), pollution control standard for hazardous waste landfill and classification mark of domestic waste in 2019, remarkable achievements have been made in the construction of ecological environment in China, and the environmental protection industry has entered the era of policy deepening. With the strict supervision of environmental protection and the acceleration of the construction process of 'waste free city', domestic environmental protection engineering enterprises are also developing rapidly.




Taking Willy, the leader of leachate treatment, as an example, after reaching strategic cooperation with Shanghai Waterway Bureau of CCCC and taking the lead in pre winning the construction waste project of RMB 585 million, the company announced on April 9 that it plans to issue RMB 917 million convertible corporate bonds to the public, and the raised funds will be invested in the main business waste treatment and organic waste recycling investment project.




When talking about the strategic consideration of the raised investment project, the relevant personnel of the company said in an interview with the Securities Daily that the raised investment project was carried out around the garbage disposal of the company's main business and the recycling of organic wastes, and complied with the major planning of the Circular Economy Promotion Law of the people's Republic of China on the development of circular economy and the 13th five year plan for ecological environment protection The requirement of consolidating the foundation of green development is conducive to promoting the treatment of organic waste and comprehensive utilization of resources.




'Policy Dongfeng' promotes high order growth




The company's main businesses listed on GEM in 2011 include kitchen kitchen waste, landfill leachate, biogas and bio natural gas, VOC oil and gas recovery. In recent years, with the tightening of waste classification and environmental protection supervision policies, the company's orders for environmental protection projects such as leachate and kitchen have maintained a rapid growth. In 2019, the newly signed orders have exceeded 3.3 billion yuan, an increase of 32% over the same period last year.




Referring to the development of the company's main business sector in recent years, the above personnel told the reporter: 'in the leachate treatment business sector, the company has mature core technologies such as MBR, anaerobic, ultrafiltration, nanofiltration and reverse osmosis. Over the past decade, the company has undertaken more than 200 leachate treatment projects across the country; in the treatment of kitchen waste, the company's process portfolio can To realize resource-based, harmless and reduction treatment of domestic waste and kitchen waste after classified collection. '




It is reported that the company has undertaken the EPC project of wet waste recycling treatment project in Songjiang District, Shanghai in 2019. With the construction and operation of the above projects, it will become a representative project with typical demonstration significance in the field of kitchen waste treatment. The company is expected to further improve its market competitiveness in the field of kitchen waste treatment.




Yang Xincheng and she Qian, analysts of Guosheng securities, also said that due to the influence of garbage classification and environmental protection supervision, the garbage percolate and kitchen waste industries are booming, and the company has benefited significantly as a leading enterprise. In addition, with the benchmark projects such as Changzhou and Shaoxing kitchen, the future orders are worth looking forward to, and the market share is expected to continue to increase.




It is worth mentioning that, with the increasingly fierce market competition in the environmental protection industry and the transformation of investment and financing mode in the environmental protection industry, the technical advantage is becoming more and more prominent in the market competition in the environmental protection industry. Having core technology and the ability of continuous innovation and research and development will become an important guarantee for the long-term and stable development of environmental protection enterprises, especially private environmental protection enterprises.




In the face of the fierce market competition environment, the above-mentioned personnel told reporters that in the future, the company will, according to its positioning of 'technology-based company in energy conservation and environmental protection industry', firmly adhere to the main business development direction of 'recycling and innocuity of organic and solid wastes', strengthen the business model of 'environmental protection technology solutions + operation services', and realize the differentiated competition of 'technology + services' Struggle.




Demand release or generate 10 billion market space




In June 2019, the Ministry of housing and urban rural development and other nine departments jointly issued the notice on comprehensively carrying out the classification of domestic waste in cities at prefecture level and above nationwide, and comprehensively launched the classification of domestic waste. The first batch of key cities, such as Beijing, Shanghai, Taiyuan and Changchun, have also successively issued regulations on the management of domestic waste, clearly including waste classification into the legal framework. With the rapid growth of domestic waste, the new garbage classification policy will accelerate the release of the demand for the treatment of kitchen waste.




According to the analysis of Soochow Securities Research Report, there is a significant capacity gap in China's kitchen waste. From 2013 to 2017, the compound growth rate of China's kitchen waste treatment capacity was 40.35%, but the resource utilization rate is still low. It is expected that the national kitchen waste treatment capacity will reach 75300 tons / day in 2025, and the resource utilization rate will be raised to 50%, corresponding to the cumulative investment market space of 28.2 billion yuan in 2019-2025.2 In 025, the operating market space can reach 5.8 billion yuan.




In terms of kitchen waste, it is expected that the investment demand will be released in 2020. From 2019 to 2025, the total market space for kitchen waste investment will reach 191.5 billion yuan, of which the market space for core equipment will reach 36.4 billion yuan. In 2025, the operating market space will reach 14.6 billion yuan. In the field of landfill leachate, it is estimated that the output of landfill leachate in China will reach 130 million tons in 2025, corresponding to 10.4 billion yuan of operation and maintenance space; in 2019-2025, the total investment space of new and reconstruction projects of landfill leachate will reach 16.8 billion yuan.




Some unnamed analysts told reporters that in the early stage of China, some waste incineration power plants were not equipped with kitchen treatment plants at the same time, which led to the increasingly serious problem of leachate drainage. In recent years, with the country's special treatment of black and smelly water, waste removal actions and other measures, the market for leachate treatment was gradually standardized. In the future, under the supervision of policies, the market space for leachate treatment will gradually expand 。


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