The new environmental protection law implements the steel industry to increase speed again

On January 1, 2015, the new environmental protection law will be formally implemented. With the stimulation of multiple favorable policies, the environmental protection industry will usher in rapid development.

At the 2014 China Environmental Protection Listed Company Summit hosted by the National Industry and Commerce Industry Chamber of Commerce on December 26, Wu Xiaoqing, Vice Minister of the Ministry of Environmental Protection, stated that in order to protect the effective implementation of the new law, the Ministry of Environmental Protection will soon issue a series of punishments, seizures and seizures on a daily basis. A series of supporting management methods including on-site production rectification, information disclosure, etc. were on-site. Pollution control according to law and strict enforcement of laws have become the new norm, and the market demand for the environmental protection industry will be further released.

It is worth noting that, in addition to the new environmental protection law, emissions trading is gradually improving, environmental taxes are looming out, and new business models such as third-party governance of the PPP model are being implemented, and industry mechanisms and models are undergoing fundamental changes.

Wu Xiaoqing also stated that after the introduction of the Air Pollution Action Plan, the current water pollution prevention action plan has been basically completed and the soil pollution prevention action plan is being accelerated. Experts predict that the environmental protection investment involved in the above three action plans will exceed 6 trillion yuan, and the environmental protection industry will experience large-scale growth.

With the continuous deepening of governance, the acceleration of energy structure adjustment, the increase of national environmental protection investment, and the increase in corporate environmental protection investment after strict enforcement of laws, the environmental protection industry will be in a highly booming period.

Wen Yibo, chairman of the Environmental Chamber of Commerce and chairman of the Sande Group, also told the "Securities Daily" reporter that the current popular PPP model introduces social capital in the public service sector, and in fact it is also forcing reform of the environmental protection industry.

Everbright Securities analyst Chen Junpeng believes that the integration trend of the environmental protection industry has begun to appear in 2013 and accelerated in 2014. According to the statistics on the integration of environmental assets of listed companies, there were 47 M&A projects in the environmental protection industry in 2014 with a total capital of over RMB 19 billion (as of the end of November). For this, in 2012 and 2013, the number of M&A projects involving environmental companies was 17 and 39, respectively; the scale of funds was 1.2 billion yuan and 15.5 billion yuan respectively; industry mergers and acquisitions are accelerating and the market is gathering. From the perspective of mergers and acquisitions, this year is still dominated by more mature water and solid waste, reaching 53% of the total funds; cross-border acquisitions of non-environmental companies have reached 25% of the total capital.

In his view, the current valuation of the environmental protection sector is at a historically low level, and the overall performance of the industry in the next 2 years to 3 years will maintain high growth of more than 30% (including merger and acquisition expectations).

Executive Director of the Minsheng Securities Research Institute, Mr. Guan Qingyou, also pointed out that industry acquisitions still dominate, but the trend of non-environmental companies cross-border acquisition of environmental protection assets has become increasingly apparent. Cross-border acquisitions have accounted for about 25%.

On October 24, the China Securities Regulatory Commission released the "Measures for the Administration of Major Assets Restructuring of Listed Companies on Major Assets Restructuring Assets of Listed Companies" and the revised purchase management measures. Deregulation strengthens supervision and simplifies merger and reorganization of administrative licenses.

"After the administrative controls are relaxed, the M&A market will become even more exciting in 2015." Guan Qingyou believes.

It is worth noting that according to the latest statistical data released by the Environmental Chamber of Commerce, the market value of 77 listed companies in China's environmental protection industry can be divided into three echelons based on the *** market value of December 12, 2014: more than 200 billion yuan. 8 homes, 14 from 10 billion yuan to 20 billion yuan, and 55 from 10 billion yuan. The environmental protection industry has formed a relatively complete industrial system and an industrial cluster that has begun to take shape.