Source: Green Online
At the beginning of 2019, Zhu Baoliang, director and chief economist of the National Information Center, predicted that China's economic growth will stabilize and decline. The GDP growth in 2019 is expected to be around 6.2%.
Overall, the economic situation has stabilized and the investment environment has improved. On this big background, where should environmental protection investment go? This article makes a simple analysis on macroeconomic policies, market trends, and corporate dynamics, with a view to helping the majority of environmental investors to see the clouds.
Throughout the year of 2018, due to factors such as the deterioration of the financing environment, the decline in the performance of the sector, and the risk of equity pledge, the performance of the environmental protection sector industry was generally poor, with a large decline. Although there were 4 wave rebounds, there was a lot of “double boxingâ€. The helplessness of the four hands.
From a national perspective, after 2019, the benefits of environmental protection are still continuing. The "Soil Pollution Prevention and Control Law" was launched on January 1; the second round of central environmental protection inspections will be launched; the new version of the "Environmental Impact Assessment Public Participation Measures" will be implemented; the provincial environmental protection will be changed...
In addition, the signed article published by Minister of Ecology and Environment Li Ganjie clearly emphasized that the main work of the environmental protection department in 2019 will be tilted toward the seven major campaigns of pollution prevention and control. It is reported that the upcoming National Eco-Environment Work Conference will also fully deploy the environmental protection work of the new year.
At the market level, the environmental protection industry is also doing a lot better. The environmental protection industry is a capital-intensive industry. Due to credit, the net profit of water treatment and gardening sectors has declined. The net profit of solid waste and environmental monitoring enterprises has steadily increased. It can be seen that the performance of the environmental protection sector is not good, and the performance is constantly diverging and the performance is different.
The entry of state capital has injected a lot of momentum into the industry. Since the second half of 2018, many leading enterprises have introduced state-owned assets one after another. The operational pressure has been greatly reduced, which has changed the overall pattern of the environmental protection market to a certain extent. The speed of reshuffle and mergers and acquisitions has begun to accelerate. This is constantly coming from the past. M&A news can be corroborated.
According to the analysis of Everbright Securities, in the past five years, environmental protection stocks have experienced a "reincarnation", returning to the original starting point from the highest point of the day. However, in 2019, the environmental protection industry is undoubtedly a new starting point, which is completely different from the original.
A series of factors, such as the promotion of urbanization, the emergence of environmental protection “strong supervisionâ€, the loosening of monetary and credit policies, the expansion of leading enterprises, and the transformation of leverage into stable leverage, are all catalysts that cannot be underestimated.
In 2019, the economic situation has stabilized and declined, and the performance of the environmental protection industry has become more and more differentiated. The transmission mechanism of “wide currency†to “wide credit†has not been straightened out, and some environmental protection enterprises, especially environmental protection engineering enterprises, are still under pressure.
Under the guidance of multi-party financial policies such as the central and local governments, the financing environment of private environmental protection enterprises will inevitably be improved in 2019, but it will take some time for the actual implementation, so the tight financing environment will continue for some time. Some agencies expect this to be the most pronounced in the first and second quarters of 2019.
From the perspective of investment, we need to take the lead in considering the “cash flow†element. The cash flow situation is relatively good, the performance growth is relatively stable, and the environmental protection enterprise with the advantages of financing cost and high-quality operation assets and core technology will benefit most in the new round of development. Such enterprises have better defensiveness and configuration value. Also higher.
Segments with these advantages, such as soil remediation, environmental monitoring, waste incineration, hazardous waste treatment, sanitation equipment, and flue gas treatment, are all worthy of attention. Recommended targets: Yingfeng Environment, Concentration Technology, Xianhe Environmental Protection, Indigo Environment, High Energy Environment, Bishui Source, etc.
Editor in charge: Cao Yu
This article is posted on this website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description.
Article source address: http://
Tote Bag And Gym Bag,Gym Tote Bag,Sports Tote Bag,Sports Tote
GUANGZHOU KOBE LEATHER CO.,LTD , https://www.kobebags.com