Energy-saving and environmental protection industry has a bright future

According to recent news, the three rounds of solicitation procedures for the “Energy Conservation and Environmental Protection Industry Development Plan” have all been completed and are expected to be introduced before the end of December. China has entered the middle and late industrialization period. From the perspective of foreign experience, the government’s emphasis on large-scale energy-saving and environmental protection has generally occurred in the late industrialization period. "Energy-saving and environmental protection industry development plan" is a major policy for the development of energy-saving and environmental protection industries. Related companies will receive double support in terms of policies and funds in the future.

The energy saving and environmental protection industry has a promising future. It is estimated that the total output value will reach 2.8 trillion yuan by 2012, and by 2020 it will probably exceed 5 trillion yuan, becoming one of the pillar industries of the national economy. In energy conservation and environmental protection, energy conservation mainly refers to industrial energy conservation and building energy conservation. Environmental protection is mainly wastewater treatment, solid waste treatment, desulfurization, denitrification, and dust removal. In terms of investment, it should be laid ahead of the policy before the favorable policy is introduced, and it is optimistic about the leading investment opportunities in the sub-industry.

Wide space for energy saving development 1. Industrial energy conservation In the entire society, about 70% of the energy consumption is spent in the industrial sector, while the industrial motor consumes 70% of the electricity in the entire industrial sector. Therefore, through the energy-saving transformation of industrial motors, the energy consumption of the entire society can be greatly reduced. Calculated according to the effect of 30% energy-saving transformation, if the energy-saving transformation of all industrial motors, the entire society will reduce the annual electricity consumption by 15%, with great economic and social benefits. It can be seen that there is a huge potential for energy-saving motors, and improving the efficiency of motor operation will be the main means of industrial energy-saving.

To improve the efficiency of motor operation can be mainly through two channels, one is through the inverter speed, improve the operating efficiency of the AC motor; the second is the use of high-efficiency motor. Relying on frequency converters is the main method in the field of industrial energy conservation. The energy-saving efficiency of frequency converters is generally above 30%, and even 40%-50% in some industries. At present, the proportion of high-efficiency motors in the market is still low, but with the support of minimum energy efficiency standards and subsidies, the market share of high-efficiency motors in the future will increase significantly. For individual stocks, we recommend focusing on Hekang's frequency conversion in the field of high-voltage inverters.

2. Building energy efficiency China's building energy-saving potential is huge. From the perspective of policy orientation, building energy-saving products are driven by policies and various kinds of products have been given different levels of support to help protect the market for building energy-saving products. From the perspective of profitability, building energy-saving products as a new product to replace the original non-energy-saving products, in the stage of market development, with a higher gross margin. At present, the market determination and its own competitiveness are determined in order of low-e glass, thermal insulation wall materials, gypsum board, energy-saving curtain wall. Comparing the gross margins of several products, the gross profit rate of low-e glass is the highest, followed by photovoltaic buildings and gypsum board. In the next 2 months, we are optimistic about the investment opportunities of CSG A and Beixin Building Materials.

CSG A's low-e glass accounted for more than 50% of the market share of high-end market, plans to increase production capacity to 24.15 million square meters, the solar integration industry chain contributes profit this year, solar product revenue in the first half of 2010 increased by 313%, float Glass faces a declining economy. Beixin Building Materials' gypsum board covers the high-end and mid-end markets, accounting for 30% of the entire plasterboard market. In 2009, the company's gypsum board's gross margin reached 37%.

Environmental protection equipment is most worthwhile. The environmental protection industry belongs to public utilities. Government funding and policy support are the main driving forces for the development of the environmental protection industry. During the “12th Five-Year Plan” period, China’s environmental protection investment will reach more than RMB 3 trillion. By 2015, it will reach 7%-8% of GDP. The compound growth rate of the industry in the next 15-20 years will reach 15%-20%.

In the treatment of waste water, waste gas and solid waste, wastewater treatment is at the forefront and the industry has entered a relatively stable development stage. Waste gas treatment is currently mainly concentrated in the field of dust removal and flue gas desulphurization. In the future, with the introduction of the denitrification policy, this field is expected to show explosive growth. China's solid waste treatment, especially waste incineration treatment, has not yet been released on a large scale. With the official introduction of the “Twelfth Five-Year Plan”, the waste incineration business will develop rapidly in the next five years.