Industry analysts believe that the introduction of the document will bring substantial benefits to the listed companies in the water conservancy industry. From the point of view of the scale of investment, the Central Rural Work Leading Group, deputy head of the Office of the Director Chen Xiwen that, according to 2010 China's water conservancy investment of 200 billion yuan, the next 10 years, the average annual investment in water conservancy society as a whole than doubled in 2010 is 400 billion yuan, the next 10 years of water conservancy investment will reach 4 trillion yuan.
From the industry and the company, the first to benefit from the water conservancy engineering construction companies, including Gezhouba, Anhui Water Conservancy, Guangdong Hydropower. 2010 Gezhouba new contract amounted to 55.61 billion yuan, an increase of 31.98%. Among them, the newly signed hydropower project contract amounted to 25.76 billion yuan, accounting for about 46% of the total newly signed contracts. Guangdong Hydropower and Anhui Water Conservancy water conservancy and hydropower engineering business accounted for the proportion of the main business is about 40% and 30% respectively. The industry generally believes that with the water conservancy project of the big investment construction cycle is coming, the future of these companies in the water conservancy construction order growth is expected to exceed expectations.
Anxin Securities believes that the water conservancy investment will not only directly promote the development of related water conservancy construction companies, will also drive the demand for all types of upstream and downstream industries, to promote the construction of engineering, piping and tubing, hydropower equipment, water conservation facilities, hydropower and sewage treatment and other industries. Specifically, including hydropower equipment production company Zhefu shares, Dongfang Electric; the production of water pipelines of the national system shares, Qinglong Pipe Industry, etc..
Anxin Securities also believes that, comparatively speaking, the hydropower equipment industry demand growth is certain, the market share is concentrated, and the prospects for future performance growth are better; pipeline suppliers' business model and business growth are also very stable, and the earnings growth rate and profit margins are more resilient.
Document No. 1 proposed that this year will actively promote water price reform, which means that Hongcheng water industry, the first shares, Chongqing Water and other sewage treatment and water supply enterprises will also benefit.
It is understood that, due to historical reasons, China's water supply and drainage prices are low, it is difficult to reflect the scarcity of water resources, and some sewage treatment enterprises even appeared in cost inversion phenomenon.
And this year's No. 1 document proposed that the industrial and service sector water to gradually implement a progressive system of excess tariffs, pulling apart the high water-consuming industries and other sectors of the water price differentials; at the same time to reasonably adjust the price of water for urban residents, and steadily promote the laddering system of water pricing; and to promote the comprehensive reform of water prices in agriculture, and to explore the implementation of the water within the quota of farmers to enjoy preferential tariffs, excessive quota of water with a progressive increase of water prices The way.
Insiders believe that the promotion of water price reform, the implementation of ladder water price, on the one hand, can use economic means to promote resource conservation; on the other hand, it will also help part of the regional water supply enterprises to improve profitability. GF Securities analyzed that, due to the current Nanchang tap water prices in the country's 36 large and medium-sized cities ranked second to last, only higher than Lhasa, residents of the proportion of water expenses accounted for the income is lower than the national average, the possibility of upward adjustment of the water price is relatively large, the Hongcheng water industry will benefit.
Central Document No. 1 benefited industries and companies
Water conservancy construction industry: Gezhouba 600068, Anhui Water Conservancy 600502, Guangdong Hydropower 002060, Qianjiang Water Conservancy 600283
Hydropower equipment manufacturing: Dongfang Electric 600875, Zhefu 002266
Pipeline supply: Qinglong Pipeline Industry 002457, Guotong shares 002205
Sewage treatment: water supply: the first shares 600008, Hongcheng water industry 600461, Qianjiang Water Conservancy 600283, entrepreneurial environmental protection 600874, Zhongshan Public Utilities 000685, Jinlong shares 000712, Wuhan Holdings 600168, South China Sea Development 600323, City Investment Holdings 600649 Chongqing Water Affairs 601158