Industry's main listed companies: Everbright Environmental (00257), the first environmental protection (600008), the North Control Water Group (00371), China Tianying (000035), HANLAN Environmental (600323), Yingfeng Environmental (000967), Bishuiyuan (300070), Chongqing Water ( 601158) and so on
The core data of this article: environmental protection industry classification, traditional environmental protection, modern environmental protection, environmental protection listed companies revenue, environmental protection industry competition pattern
Industry Overview
1, the definition
The definition of the environmental protection industry in China has a narrow and broad definition.
Narrowly, China basically follows the definition proposed by the Organization for Economic Cooperation and Development (OECD), that is, "the environmental protection industry is the environmental pollution control and emission reduction, pollution cleanup, as well as waste disposal and other aspects of the industry to provide equipment and services."
Broadly speaking, the environmental protection industry refers to the technology development, product production, commercial circulation, resource utilization, information services, engineering contracting, nature conservation and development activities for the purpose of preventing environmental pollution, improving ecological environment and protecting natural resources. The environmental protection industry in the broad sense not only includes the content of the environmental protection industry in the narrow sense, but also adds clean technology, clean products and ecological environment construction and other parts. In this paper, the environmental protection industry mainly includes environmental protection product production and environmental protection services.
According to the classification of energy-saving and environmental protection industry in Strategic Emerging Industries (2018), the environmental protection industry can be divided into three major aspects.
2, industry chain analysis: the industry chain involves a number of links
The upstream of the environmental protection industry is mainly the raw material suppliers, including steel, chemical, electric power, electronics and non-ferrous metals, which provide raw materials for the production of environmental protection products and the implementation of the project, and the fluctuation of their prices directly affects the cost of the environmental protection industry, which in turn has an impact on the The profitability of the industry segment has an impact.
The downstream of the environmental protection industry mainly includes municipal as well as water pollution prevention and control, air pollution prevention and control, solid waste treatment, soil remediation, noise and vibration control and environmental testing and other industries. The government sector is an important demand side of environmental protection treatment, which is because the environmental protection industry has strong public welfare attributes, and changes in its demand depend largely on industrial policy.
From the environmental protection industry chain of participating enterprises, the upstream participating enterprises are mainly Baosteel, Jianye shares, Aluminum Corporation of China and Huaneng International, etc.; midstream environmental protection equipment, engineering and service providers mainly include Yingfeng Environment, Sanfeng Environment and Shouchuang Environmental Protection, etc.; downstream applications mainly include Longjing Environmental Protection, Everbright Environmental Protection, Sente shares and Zhongding shares, etc..
Industry development history: the rise of the time earlier
After nearly 60 years of development, China's environmental protection industry has begun to take shape. The rapid development of industrialization and urbanization, promoting the enhancement of environmental awareness of our residents and the development of environmental protection industry. Especially since the "Tenth Five-Year Plan", the state has increased the power, cement, iron and steel, chemical industry, light industry and other heavy pollution control efforts to strengthen the urban sewage, garbage and hazardous waste centralized disposal of environmental protection infrastructure construction investment, a strong pull on the environmental protection industry, market demand, the overall scale of the industry is rapidly expanding, the field of The overall scale of the industry has been expanding rapidly, the field has been expanding, the structure has been gradually adjusted, the overall level has been greatly improved, and the operation quality and efficiency have been further improved. China's environmental protection industry has developed from the early stage of the "three wastes management" as the main, including environmental protection products, environmental services, clean products, waste recycling, cross-industry, cross-region, industry categories basically complete industrial system.
Industry policy background: policy support, rapid development of the industry
Currently, China's environmental protection industry has basically formed the pattern of large-scale regulation, the new pattern of the environmental protection industry from the policy of seeding era into a comprehensive policy of deep cultivation of the era, involving water, soil, gas, solid waste treatment of a full range of policies and regulations are increasingly perfect. The "14th Five-Year Plan" period, entered the carbon reduction as the key strategic direction, promote the reduction of pollution and carbon synergies, promote economic and social development of the overall green transformation, to achieve ecological and environmental quality improvement from quantitative to qualitative changes in the critical period. Accordingly, the relevant departments have launched a number of policies, such as the "National Carbon Emission Trading Market", the "Battle for the Blue Sky", the "Special Action on Environmental Protection for the Remediation of Black-smelling Water Bodies" and the "Waste-free City". "Waste-Free Cities", etc., which comprehensively support ecological environmental protection and promote the overall green transformation of economic and social development. As of November 9, 2022, the key development policies of China's environmental protection industry are summarized as follows:
Industry Development Status
1, the environmental protection industry profitability scale analysis
2020 included in the statistics of 15,556 enterprises total operating profit 179.42 billion yuan, an increase of 7.1%. Operating income of more than 100 million yuan enterprises contribute nearly 94% of industrial profits. Specifically, it seems that 93.9% of the operating profit is concentrated in 1,414 enterprises with annual operating revenues of more than 100 million yuan, and the operating profit of enterprises with operating revenues of less than 20 million yuan accounts for only 0.3%. The average profit margin of the above enterprises was 9.2%.
Note: The Report on the Development Status of China's Environmental Protection Industry (2021) was released on January 17, 2022, and as of November 10, 2022, the Report on the Development Status of China's Environmental Protection Industry (2022) has not yet been released, so the 2020 data is used here as an example for reference only.
2, environmental protection industry profitability analysis
In 2020, the average profit margin of environmental protection enterprises surveyed was 8.8%. Among them, solid waste treatment and disposal and resource utilization, noise and vibration control, environmental monitoring field enterprise profitability is higher than the average value, profitability level is outstanding; other areas of enterprise profitability is lower than the average value, of which the profitability of soil remediation field enterprises less than 5%.
Note: The Report on the Development Status of China's Environmental Protection Industry (2021) was released on January 17, 2022, and as of August 1, 2022, the Report on the Development Status of China's Environmental Protection Industry (2022) has not yet been released, so the 2020 data is used here as an example for reference only.
3, China's environmental protection industry market size measurement
The 19th CPC National Congress put forward a series of new concepts, new requirements, new goals and new deployments for the construction of ecological civilization, and explicitly called for the promotion of green development, efforts to solve outstanding environmental problems, and increase ecosystem protection, as well as the "growth of environmental protection industry" as a way to promote green development. Environmental protection industry" as an important hand to promote green development. With the implementation of the battle against pollution and the continuous improvement of policies and measures conducive to the development of environmental protection industry, China's environmental protection industry market demand for the further release of industrial scale and capacity level has been effectively enhanced. Although affected by the new crown epidemic, 2020, the first and second quarter of the environmental protection industry by a greater impact, but with the epidemic gradually get effective control, environmental protection enterprises actively resume production, the overall operation of the industry gradually recovered.
"China's environmental protection industry development status report (2021)" data show that in 2020, the national environmental protection industry revenue of about 195.58 billion yuan, an increase of about 7.3% compared with 2019.2021 first half of the year, the environmental protection industry related to the "Fourteenth Five-Year Plan" plan was released, the "Fourteenth Five-Year Plan" plan. "In the first half of 2021, the overall revenue of the environmental protection industry showed vindictive growth, and operating profit increased steadily. From the second quarter, the environmental protection industry revenue growth rate fell back, new orders continue to increase, the labor situation is generally stable. Data from the Report on the Development Status of China's Environmental Protection Industry (2021) shows that the total revenue of the environmental protection industry in the first half of 2021 will be about 763 billion yuan, an increase of about 4.4% over the same period of 2019, an increase of about 16.14% over the same period of 2020, and an increase of about 9.9% over the average of the same period of the two years of 2019 and 2020. Foresight, based on the current status of the development of China's environmental protection industry in recent years and the current state of development, preliminary statistics to get the operating income of China's environmental protection industry in 2021 is about 2233.6 billion yuan.
Note: The Report on the Development Status of China's Environmental Protection Industry (2021) was released on January 17, 2022, and only the operating income of China's environmental protection industry in 2020 and the first half of 2021 was announced in the report; as of September 1, 2022, the Report on the Development Status of China's Environmental Protection Industry (2022) has not yet been released, and the data on the operating income of China's environmental protection industry in 2021 are forward-looking measurement data, for reference only.
4, China's environmental protection industry economic contribution analysis
Environmental protection industry's contribution to the national economy in general shows a trend of gradual increase, in 2020, environmental protection industry business revenue to gross domestic product (GDP) ratio of 1.9%, an increase of 0.08 percentage points from 2019, an increase of 1.5 percentage points from 2004. The direct contribution of the environmental protection industry to the national economy1 was 4.5%, up 1.2 percentage points from 2019 and 4.2 percentage points from 2004. The overall contribution of the environmental protection industry to the national economy shows a trend of gradual increase.
The outlook compares the operating revenue of China's environmental protection industry with China's overall GDP in 2021 to obtain a contribution rate of 2.1% for the environmental protection industry in 2021, and a ratio of the environmental protection industry to GDP of approximately 1.6%.
Note: The industry contribution ratio is calculated as the percentage of the industry's incremental revenue for the year to the incremental GDP for the year.
Industry Competition Pattern
1, regional competition pattern: mainly distributed in the bad Bohai Sea region mainly in Beijing, Shanxi Province and Shandong Province
From the point of view of China's environmental protection industry industry chain enterprise regional distribution, the environmental protection industry enterprises are mainly distributed in Shandong Province, Jiangsu Province, Fujian Province and Guangdong Province, mainly in the southeastern coastal region, as well as Hebei Province, Shanxi Province and Liaoning Province, mainly in the bad Bohai Sea area; at the same time, Henan Province, Hunan Province and Sichuan Province, there are also a larger number of environmental protection industry enterprises distribution.
From the regional distribution of competitors in China's environmental protection industry, China's environmental protection enterprises are mainly concentrated in Anhui Province, Guangdong Province and Zhejiang Province. In addition, Fujian Province, Beijing and Shandong Province also have more environmental protection industry competitors distribution, such as the first environmental protection, ST Longjing and so on.
2, the enterprise competition pattern: mainstream enterprises to accelerate the expansion of the layout
As China's largest environmental enterprises, Asia's environmental protection leader, the world's largest garbage power generation investment operators and the world-renowned environmental group, Everbright Environmental occupies a major market share in China's environmental protection industry; the company with higher domestic revenue Beikong Water, the first Environmental protection and China Tianying and other *** with the formation of China's environmental protection industry competition in the first echelon; is located in the second echelon of the green beauty, Yingfeng environment, Hantian environment and Longjing environmental protection enterprises, they after a long period of technological accumulation, cultivated a competitive representative of the environmental protection business and products; Bishuiyuan and Chongqing Water and other revenue scale of less than 10 billion yuan of enterprises led China's environmental protection industry, the third competitive Echelon.
Note: the first echelon of enterprises for 2021 operating income of more than 20 billion yuan of enterprises; the second echelon of enterprises for 2021 operating income between 10-20 billion yuan of enterprises; the third echelon of enterprises for 2021 operating income of less than 10 billion yuan of enterprises.
Industry Development Prospects and Trends Forecast
1, environmental protection industry development prospects: 2027 China's environmental protection industry operating income scale is expected to exceed 4,400 billion yuan
In recent years, the market scale of China's environmental protection industry is constantly expanding, the market space to accelerate the Release.2022 June 15, in the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment and other departments of the guidance and support, the China Environmental Protection Industry Association officially released "accelerate the high-quality development of ecological and environmental protection industry
Deeply fight the battle of pollution prevention and control
Every effort to support the carbon to reach the peak of the carbon-neutral Action Outline (2021-2030)" (hereinafter referred to as "the Outline of Action"). The Outline for Action defines development goals around five dimensions: industrial structure and layout, technology level, standardization level, competitiveness of market players, and integrated development system. The Outline of Action makes it clear that by 2025, the compound annual growth rate of the business income of the ecological and environmental protection industry will not be less than 10%; cultivate "ten hundred and one thousand" enterprises, form 50 large-scale enterprise groups with systematic solutions to regional ecological and environmental problems, one hundred specialized backbone enterprises with strong comprehensive service capacity, one thousand "specialized, special and new" enterprises, and one thousand "specialized, special and new enterprises" enterprises. "specialized, special and new" small and medium-sized enterprises. By 2030, a modern eco-environmental industry system that adapts to the prevention and control of environmental pollution, ecological protection and restoration, efficient recycling of resources, carbon peaks, and the promotion of economic and social development to meet the needs of a comprehensive green transformation is basically established.
Foresight according to the current situation and development trend of China's environmental protection industry in recent years, combined with the "Outline of the Action" put forward in the environmental protection industry development goals, preliminary forecasts for the period of 2022-2027 China's environmental protection industry revenue compound annual growth rate of 12%, to the end of 2027, China's environmental protection industry is expected to exceed 4,400 billion yuan of business income scale.
2, China's environmental protection industry overall development direction: accelerate the integration of the industry, sustained high-quality transformation and development
Environmental protection industry is the construction of ecological civilization and pollution prevention and control of the backbone of the war, is the integration of high-quality economic development and ecological environment and high level of protection, and strive to solve the outstanding environmental problems, to achieve the development of green transformation of an important support. support.
In recent years, China's environmental protection industry is facing a lot of difficulties, but still in a promising period of strategic opportunity. In particular, the current environmental protection "inspectors high-pressure" into the normalization of environmental protection industry market demand is gradually released; macro policy counter-cyclical adjustment, boosting increased investment in environmental protection industry, reduce environmental protection enterprises operating costs; state-owned enterprises to reform and then set off, have the layout of the environmental protection industry, accelerating the integration of the industry, the environmental protection industry is to the quality of the centralized transformation and upgrading.
(1) the direction of development in the field of water pollution prevention and control
In the field of water pollution prevention and control, in recent years, sewage treatment quality and efficiency has become an important demand for the development of urban sewage treatment industry, from the initial upgrading of wastewater treatment plants to the pipeline network, pumping stations, plants and stations, such as the quality of the whole system of the efficiency to carry on the transformation; to the management of black smelly water bodies and Sewage quality and efficiency as a hand, from sewage treatment to discharge to water environment improvement, water ecological restoration goals; from the overall governance needs of the urban water environment system, reasonable sewage treatment plant upgrading, targeted determination of sewage treatment plant upgrading of the effluent standard.
At present, the water environment management project has begun to extend to the pipe network, sewage treatment plant, river, shoreline landscape, etc. composed of watershed environmental unit of the "system model". With the information technology industry integration and development, digital, networked, intelligent, water environmental management industry has become a new opportunity to increase the quality of development.
Future, with the innovation of environmental governance model, ecological environmental governance and ecotourism, eco-agriculture, forest economy, urban development and other industries to achieve integrated development, the lack of public welfare environmental protection projects to solve the return on investment mechanism and other outstanding issues, the environmental protection industry is expected to achieve quantum growth.
(2) air pollution prevention and control field development direction
At present, iron and steel, coking, cement and other non-electricity industry in a large number of enterprises are still unable to complete the ultra-low emission transformation or do not meet the requirements of the new special emission limits, non-electricity flue gas treatment and transformation of the demand for continued to heat up, the environmental protection market space demand continues to release. Organized upgrading, unorganized control, intelligent monitoring and supervision, cleaner transportation and other transformation projects will create more project opportunities for environmental protection management enterprises. Coal-fired power plant liquid ammonia tanks urea replacement upgrading is expected to speed up significantly.
VoCs as an important precursor to the formation of O3, the Ministry of Ecology and Environment has been VOCs governance attack as an important task to win the battle to defend the blue sky finale, accompanied by the gradual improvement of China's VOCs-related policies and standards management system, VOCs emission reduction and control industry will continue to continue the refinement, standardization of the direction of the development of the key industries as a focus, the implementation of key industries VOCs governance and industrial parks comprehensive remediation work, and gradually improve the supervision of pollution sources and supervisory monitoring capacity building, to reduce the total amount of VOCs emissions.
In terms of mobile source management, in the future, we will enhance the means of remote online monitoring of mobile source emissions, adopt various methods such as big data comparison and scenario collection and comparison to improve the compliance and accuracy of inspection operations, and continue to promote and carry out the emission management of in-use high-emission machinery and ships to reduce the pollution caused by high-emission mobile pollution sources.
(3) Solid Waste Disposal and Resource Utilization Development Direction
In the field of solid waste pollution prevention and control, we will continue to push forward the construction of "Waste-Free Cities" and carry out the evaluation of the effectiveness of the construction of "Waste-Free Cities", as well as accelerate the construction of "Waste-Free Cities" and "Waste-Free Cities".
In the field of solid waste pollution prevention and control, we will continue to promote the construction of "waste-free cities" in the future, carry out the "waste-free city" construction effectiveness assessment, and accelerate the "waste-free city" construction process.
At the same time, we will continue to promote the classification of urban and rural household garbage, accelerate the construction of garbage classification facilities, form a collection and transportation treatment system compatible with the classification of household garbage, and basically build a system for the classification and treatment of household garbage. Promote the comprehensive treatment of domestic waste incineration fly ash, waste lead storage batteries, waste plastics, medical waste and other pollutants.
Strengthening pollution prevention, control and emission reduction in heavy metal-related industries. Strengthen the environmental risk assessment of chemicals and environmental risk control of high-risk chemical substances. Increase investment in solid waste management and R&D, introduce advanced equipment and technology, upgrade the level of equipment and technology for the resourceful utilization of solid waste, and improve the comprehensive utilization rate. Promote the construction of a standard system for solid waste treatment and utilization.
For more research and analysis of this industry, please refer to China Environmental Protection Industry Development Outlook and Investment Forecast Analysis Report by Prospect Industry Research Institute.