The policy is very strong, making energy conservation and environmental protection the first of seven strategic emerging industries. The capital market is "to give face", so that the concept of energy conservation and environmental protection can always "surge", dozens of listed companies of A shares is considered to have entered the "golden decade."
In spite of this, under the backdrop of the “prosperity†of the industry's development, there are still many problems in the industry, such as small scale, excessive dependence on government subsidies, and single technology. The concepts related to energy saving and environmental protection in the capital market include the concepts of smart grid, LED lighting, clean coal technology, and industrial energy conservation. Then, for investors, how should they be grasped?
“In the 30 years of China's economic development, the consumption of the environment has reached its limit, and resources have already formed a bottleneck-type constraint on economic growth. Energy conservation and environmental protection are the inevitable result of China’s economic transformation.†December 21st, deepening the field of energy conservation and environmental protection Zhang Jian, chairman of Jibang Consulting Co., Ltd., who was studied, said in an interview with the reporter of the "Financial Business" of the First Financial Daily.
Under the policy of “giving strengthâ€, the outlook for the energy-saving and environmental protection industry is naturally quite optimistic. The research report issued by Shenyin Wanguo stated that it is conservatively estimated that the average annual growth rate of environmental protection industry investment from 2011 to 2015 will be about 18%, and the average annual growth rate from 2016 to 2020 will be 15%.
Hou Yuxuan, a researcher in the investment advisory industry environmental protection industry, said that energy conservation and environmental protection has always been a "hot concept." All listed companies that are under this aura can always be favored by capital in the capital market, and unlisted companies can always have high P/E ratios.
“Energy conservation and environmental protection are mentioned at a strategic height. Both the starting point and the logic are correct. But the capital market in China is too fickle. Everyone is telling stories and wants to make quick money. Even ten years of patience to wear a sword is not. "Zhang Hao said.
The reporter learned that, under the brilliant aura of energy saving and environmental protection, related companies still have many problems, such as small scale, excessive dependence on policy support, and single technology.
According to statistics, the number of enterprises specializing in energy-saving services in China has grown from 60 in 2004 to more than 400. Despite the alarming speed, most of them are small and medium-sized enterprises, and they lack a strong flagship company.
In addition, apart from the problems of small scale, long investment cycle, and difficult financing, most companies in the environmental protection industry in China rely to a large extent on policy support and financial subsidies, and even some companies accept substantial subsidies. Still in a state of low profit or loss, once it loses subsidies, it will have a great impact on these companies.
"From the point of view of the company's life cycle, most energy conservation and environmental protection companies are start-up companies, and the entrepreneurial companies will die. Of course, the probability that the listed companies will die is slightly lower. "Zhang Jian said.
In fact, the general scale of energy conservation and environmental protection companies has caused a low degree of industrial concentration. For example, in the domestic water industry, more than 1,500 sewage treatment plants nationwide are scattered in nearly 1,000 operating entities. The industry concentration rate is only 6%, which is far below 40% in developed countries.
“There are still many opportunities for market integration and mergers and acquisitions in the future, but the premise is that companies must have healthy models and financial strength.†Zhang Hao believes.
Although the domestic energy conservation and environmental protection industry still has many problems, it is undeniable that under the strong support of the policy, there are still many investment opportunities in the sector.
In the capital market, energy saving and environmental protection is a grand concept, and related "subdividing concepts" mainly include the four concepts of smart grid, LED lighting, clean coal technology and industrial energy conservation.
During the period from 2011 to 2015, the smart grid construction stage will initially form a smart grid operation control and interactive service system. From 2016 to 2020, it will lead the upgrade phase and build a unified “strong smart gridâ€.
According to the previous plan of the State Grid, by 2020, the total investment of the smart grid will be close to 4 trillion yuan.
Investors who pay attention to the capital market must be familiar with the concept of LED. It is understood that LED has the characteristics of energy saving and environmental protection, low power consumption, long life, rich colors, and strong controllability. It is considered to be an incandescent lamp, a fluorescent lamp, and an energy-saving device. The fourth human illumination method after the lamp**.
“The green lighting of the LED plate is nearing the starting point. Due to the large demand in the lighting market, in the short term, green lighting is a potential area with greater potential,†said Hou Yuxuan.
As for the so-called clean coal technology, it refers to the general term of new technologies such as processing, combustion, conversion, and pollution control that aim at reducing pollution emissions and improving the utilization efficiency during the entire process of development and utilization of coal. It mainly includes a series of processes such as coal gasification, combustion and recycling.
Since the beginning of this year, with the increase in coal prices, if more efficient use of coal has become more important, it can be predicted that with the increase in energy prices and increasing pressure for environmental protection and energy conservation, the development and application of clean coal technology will also become increasingly important.
"China's energy structure determines that in the short term it will not be able to change its strong reliance on coal resources. The development of other new energy sources can only be developed as a complementary measure. However, the current environmental protection pressure has shown a linear rise. The only solution to this conflict is The method is how to use coal resources cleanly and efficiently,†said Hou Yuxuan.
The reason why industrial energy conservation has received widespread attention is related to China’s national conditions. "China's environmental pollution is largely caused by industrial production companies." Zhang Hao believes.
Data show that industrial energy consumption accounts for 71.6% of the total energy consumption. During the “Eleventh Five-Year Plan†period, China increased its industrial capacity. By the first half of 2009, energy consumption per unit of GDP had fallen by 13% compared to 2005. %. As China's industrial economy is very large, there is still much room for energy conservation in the industrial sector.
In spite of this, under the backdrop of the “prosperity†of the industry's development, there are still many problems in the industry, such as small scale, excessive dependence on government subsidies, and single technology. The concepts related to energy saving and environmental protection in the capital market include the concepts of smart grid, LED lighting, clean coal technology, and industrial energy conservation. Then, for investors, how should they be grasped?
“In the 30 years of China's economic development, the consumption of the environment has reached its limit, and resources have already formed a bottleneck-type constraint on economic growth. Energy conservation and environmental protection are the inevitable result of China’s economic transformation.†December 21st, deepening the field of energy conservation and environmental protection Zhang Jian, chairman of Jibang Consulting Co., Ltd., who was studied, said in an interview with the reporter of the "Financial Business" of the First Financial Daily.
Under the policy of “giving strengthâ€, the outlook for the energy-saving and environmental protection industry is naturally quite optimistic. The research report issued by Shenyin Wanguo stated that it is conservatively estimated that the average annual growth rate of environmental protection industry investment from 2011 to 2015 will be about 18%, and the average annual growth rate from 2016 to 2020 will be 15%.
Hou Yuxuan, a researcher in the investment advisory industry environmental protection industry, said that energy conservation and environmental protection has always been a "hot concept." All listed companies that are under this aura can always be favored by capital in the capital market, and unlisted companies can always have high P/E ratios.
“Energy conservation and environmental protection are mentioned at a strategic height. Both the starting point and the logic are correct. But the capital market in China is too fickle. Everyone is telling stories and wants to make quick money. Even ten years of patience to wear a sword is not. "Zhang Hao said.
The reporter learned that, under the brilliant aura of energy saving and environmental protection, related companies still have many problems, such as small scale, excessive dependence on policy support, and single technology.
According to statistics, the number of enterprises specializing in energy-saving services in China has grown from 60 in 2004 to more than 400. Despite the alarming speed, most of them are small and medium-sized enterprises, and they lack a strong flagship company.
In addition, apart from the problems of small scale, long investment cycle, and difficult financing, most companies in the environmental protection industry in China rely to a large extent on policy support and financial subsidies, and even some companies accept substantial subsidies. Still in a state of low profit or loss, once it loses subsidies, it will have a great impact on these companies.
"From the point of view of the company's life cycle, most energy conservation and environmental protection companies are start-up companies, and the entrepreneurial companies will die. Of course, the probability that the listed companies will die is slightly lower. "Zhang Jian said.
In fact, the general scale of energy conservation and environmental protection companies has caused a low degree of industrial concentration. For example, in the domestic water industry, more than 1,500 sewage treatment plants nationwide are scattered in nearly 1,000 operating entities. The industry concentration rate is only 6%, which is far below 40% in developed countries.
“There are still many opportunities for market integration and mergers and acquisitions in the future, but the premise is that companies must have healthy models and financial strength.†Zhang Hao believes.
Although the domestic energy conservation and environmental protection industry still has many problems, it is undeniable that under the strong support of the policy, there are still many investment opportunities in the sector.
In the capital market, energy saving and environmental protection is a grand concept, and related "subdividing concepts" mainly include the four concepts of smart grid, LED lighting, clean coal technology and industrial energy conservation.
During the period from 2011 to 2015, the smart grid construction stage will initially form a smart grid operation control and interactive service system. From 2016 to 2020, it will lead the upgrade phase and build a unified “strong smart gridâ€.
According to the previous plan of the State Grid, by 2020, the total investment of the smart grid will be close to 4 trillion yuan.
Investors who pay attention to the capital market must be familiar with the concept of LED. It is understood that LED has the characteristics of energy saving and environmental protection, low power consumption, long life, rich colors, and strong controllability. It is considered to be an incandescent lamp, a fluorescent lamp, and an energy-saving device. The fourth human illumination method after the lamp**.
“The green lighting of the LED plate is nearing the starting point. Due to the large demand in the lighting market, in the short term, green lighting is a potential area with greater potential,†said Hou Yuxuan.
As for the so-called clean coal technology, it refers to the general term of new technologies such as processing, combustion, conversion, and pollution control that aim at reducing pollution emissions and improving the utilization efficiency during the entire process of development and utilization of coal. It mainly includes a series of processes such as coal gasification, combustion and recycling.
Since the beginning of this year, with the increase in coal prices, if more efficient use of coal has become more important, it can be predicted that with the increase in energy prices and increasing pressure for environmental protection and energy conservation, the development and application of clean coal technology will also become increasingly important.
"China's energy structure determines that in the short term it will not be able to change its strong reliance on coal resources. The development of other new energy sources can only be developed as a complementary measure. However, the current environmental protection pressure has shown a linear rise. The only solution to this conflict is The method is how to use coal resources cleanly and efficiently,†said Hou Yuxuan.
The reason why industrial energy conservation has received widespread attention is related to China’s national conditions. "China's environmental pollution is largely caused by industrial production companies." Zhang Hao believes.
Data show that industrial energy consumption accounts for 71.6% of the total energy consumption. During the “Eleventh Five-Year Plan†period, China increased its industrial capacity. By the first half of 2009, energy consumption per unit of GDP had fallen by 13% compared to 2005. %. As China's industrial economy is very large, there is still much room for energy conservation in the industrial sector.