(1) development trend
the water supply market space is close to saturation, and the sewage market space will continue to expand. under the guidance of policies, the water environment management market will become a key development area of the industry.
water supply growth is expected to be limited in the future as water shortages, environmental and water-saving policies continue. with the growth of economic level and the progress of urbanization, the sewage treatment market is still in great demand. however, considering the adjustment of industrial structure and elimination of backward production capacity, the growth of sewage market will slow down in the future. with the implementation of the new policy, water environment management, including rural water environment management and comprehensive river basin management, will become a key development area of water resources industry in the future.
technology and scale advantage water utilities will speed up regional layout, industry competition will intensify, industry concentration will increase
as the policy on river basin comprehensive treatment, the rural environment management, etc., the market demand release, in order to further occupation and consolidate market share, technology and scale advantage prominent water companies to speed up the regional layout, through market competition, in other area sewage treatment business and stepped up efforts to expand new business market, thus forming the integration of water supply and sewage treatment business pattern. future water industry entrants increase, competition will further intensified, because the water industry scale effect obviously, part of the strength of the enterprise through fast growth, mergers and acquisitions, industry concentration will increase.
the overall credit level of the water sector remains good, and china's macro economy is running steadily. driven by industrial policies, the water market needs to expand continuously and the external development environment of the industry is good. the public welfare of water industry is strong. meanwhile, water enterprises have the characteristics of strong external support and strong ability of operating and receiving cash. in the short term, the water companies credit quality won't appear obvious differentiation, but as the industry constantly promoting marketization process, increased competition, outstanding, with professional and technical advantages, environmental protection industry status and diversified process more thorough enterprise credit quality will be improved, expansion capital pressure caused by larger rising rapidly, and heavy pollution industry park for the wastewater treatment of the foundation of the enterprise risk weakening of credit quality.
2. concern
dibiao increase pressure, part of the enterprise technology upgrading and operation control ability test preliminary meet demand urban sewage treatment capacity, but exists the problem of low wastewater discharge standard, to strengthen government supervision, improve the industry norms and standards will become one of the main work of the government for the water sector monitoring, with the improvement of sewage discharge standard, water companies dibiao synergistic technology transformation and upgrading of pressure, the water industry concentration is low, part of the lack of professional technology and low operating efficiency of local water companies facing technology upgrade and operation control ability test, cost, profit pressures, even may face the risk on the m&a.
the investment scale of water project increases, the investment payback period lengthens, some enterprises capital pressure increases
benefit from the industry policy, supporting pipe network project and water environment comprehensive treatment project requirements will be rapid growth, investment scale of the project more traditional waterworks construction growth, investment payback period lengthen, in addition, the expansion of business in the ppp mode of enterprises, the project payback period is longer, in the face of tighter financing environment, the enterprise fund pressure increase, need to focus on the liquidity risk.
