The hottest sewage treatment feast opens, vcpe inv

Sewage treatment feast opens, vc/pe investment soared 7 times in 2011

on March 15, the latest list of companies applying for initial public offerings released by the CSRC shows that Bosch environmental protection, Guozhen environmental protection, membrane membrane membrane shares and other sewage treatment related enterprises intend to be listed on the A-share market. Several enterprises have vc/pe backgrounds, and Dachen venture capital and CSC capital are expected to exit

in recent years, the domestic PE industry has been enthusiastic about investment in sewage treatment enterprises. According to the statistics of cvsource, a financial data product of ChinaVenture investment group, the vc/pe investment in China's sewage treatment industry soared significantly in 2011, reaching US $560 million, a seven fold increase from US $71 million in 2010

in March 2011, CDH acquired Singapore Xinda Technology Group, with an investment of US $258million, which is the largest transaction case in the water sector in recent years

in addition, United Environmental Technology Co., Ltd., a Chinese water treatment and recycling solution provider listed in Singapore, has also attracted the attention of PE Institutions. In August 2011, KKR invested US $114 million to purchase its issued convertible bonds

the main reason why sewage treatment enterprises are favored by vc/pe capital is the rapid growth of sewage treatment industry brought about by the demand for sustainable development of water resources

by the end of 2010, 2832 urban sewage treatment plants had been built in cities and counties across the country. China's urban sewage treatment capacity reached 125 million tons/day, and the sewage treatment rate reached 75%

in the capital market, the annual report of bishuiyuan () a listed company applying MBR technology and Engineering in the sewage treatment industry shows that the net profit in 2011 was 345 million yuan, an increase of 94.68% over the same period last year; The net profit of the listed sewage treatment operation company Xingrong investment () in 2011 was 588 million yuan, an increase of 40.24% over the same period last year

1025 achievements in the new material industry in terms of policies. At the end of last year, the 12th Five Year Plan for national environmental protection issued by the State Council clearly pointed out that by 2015, about 160000 kilometers of new urban sewage pipes will be added across the country, with a daily sewage treatment capacity of 42million tons. Basically, all counties and key built-up towns will have sewage treatment capacity, the load rate of sewage treatment facilities will be increased to more than 80%, and the urban sewage treatment rate will reach 85%

therefore, driven by the pressure of environmental protection and national policies, there is a broad market space in the sewage treatment industry

China is a country with a lack of water resources per capita. Although the total amount of water resources reached 3trillion cubic meters in 2010, the per capita amount of water resources is only one quarter of the world's per capita level

at the same time, with the acceleration of industrialization and urbanization and the continuous growth of population, China's total sewage discharge has continued to rise. In 2010, the total sewage discharge reached 61.7 billion cubic meters, accounting for 10% of the water consumption of 602.2 billion cubic meters

if the 61.7 billion cubic meters of sewage can not be treated well, it will pollute 3 trillion cubic meters of water resources, so the water consumption can not be guaranteed. Therefore, realizing the recycling of sewage is the fundamental countermeasure to realize the sustainable development of water resources and solve China's water problems

although the sewage treatment industry has a bright future, its threshold in terms of policy, capital, region and so on has become higher and higher

in terms of policies, the sewage treatment industry is more controlled by national policies and local governments. For example, the fixture of sewage configuration related experimental software can be used to test the change intensity and angle of various materials. The change of water treatment fee price will have a great impact on the profitability of sewage treatment operation enterprises

in terms of capital, the sewage treatment industry is a capital intensive industry with strong asset specificity and significant sunk cost characteristics

in terms of regions, due to the high transmission cost of sewage and strong regional characteristics, most sewage treatment projects are generally directly allocated to local enterprises, and it is difficult for foreign or foreign investors to obtain relevant projects

therefore, while the sewage treatment industry has a broad prospect, there are also certain barriers to entry. Only enterprises with cost and technical advantages can be invincible in the tide of the continuous development of the industry.

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