Solid waste utilization industry: a resource that is never exhausted

Guide

State solid waste industry continues to generate an infinite loop is an inexhaustible gold mine. During the “Thirteenth” and five-year period, it is estimated that the total investment will be 2-4 trillion, with an annual growth rate of 30%. Such an industry will have a big bull in the next five years.

Solid waste incineration plant

The state of continuous production of the solid waste industry is an inexhaustible gold mine. During the “Thirteenth” and five-year period, it is estimated that the total investment will be 2-4 trillion, with an annual growth rate of 30%. Such an industry will have a big bull in the next five years.

First, the status quo of solid waste industry

Solid waste refers to solid waste. The transportation, disposal and conversion work around solid waste is the general description of the solid waste industry. According to the industrial classification of the State Council, in the large-scale environmental protection industry, there are two major businesses of waste gas treatment and sewage treatment corresponding to the solid waste industry.

Since the country listed the energy conservation and environmental protection industry as the first of the seven emerging industries in 2009, the development of the entire environmental protection industry has accelerated a lot. Some brokers expect that by the end of 2015, the investment in environmental protection industry will reach 3.1 trillion in more than five years. The key environmental protection investment projects involve solid waste treatment, desulfurization and denitrification, municipal sewage, sludge, industrial wastewater and many other aspects. However, if classified according to the three sectors of gas, water and solid, the development of solid waste industry is the most lagging. Even in the period of the leap forward in the environmental protection industry in 2009, the investment in solid waste industry accounted for only 25% of the total investment of 3.1 trillion yuan. To 800 billion. The reason for this is that the urgency of governance is not as urgent as the exhaust gas and sewage.

With the passage of time and economic development, the diversification and poisoning of solid waste materials have made the solid waste industry highly valued. According to the “2013-2017 China Solid Waste Treatment Industry Market Prospect and Investment Strategic Planning Analysis Report” The compound annual growth rate of industrial investment is about 30%, which is twice the growth rate of the overall investment in environmental protection industry. Driven by the policy, China's solid waste industry will usher in a more optimistic growth space, and sub-sectors such as solid waste treatment engineering, equipment and solid waste facilities operations will enter a high-speed growth period.

Second, the four characteristics of the solid waste industry

1, a wide variety. According to the Classification of Solid Waste Pollution Prevention and Control Act, solid waste is divided into municipal solid waste, industrial solid waste and hazardous waste. This classification does not cover the vast rural solid waste. However, if you classify them according to the nature of solid waste, there are at least 1,000 categories. If you sort by product type, you should exceed 10,000.

2. The processing process is the most complicated. Regarding the treatment of solid waste, roughly speaking, it can be divided into landfill, crushing, sorting, incineration, composting, secondary utilization, biological treatment and the like. If the solid waste industry only stays at the level of landfill and incineration, it will suffice to discuss it, but the real environment can no longer afford simple landfill and burnt. In the past few years, there has been tungsten pollution after landfill. Radiation pollution, as well as news of human health damage caused by waste-to-energy plants, are not uncommon. It is inevitable to adopt different process routes according to different attributes and categories. Taking medical waste as an example, the “Administrative Measures for Medical Wastes in Medical and Health Institutions” has seven chapters and 48 regulations, and its process requirements are complicated.

3. The market value is the largest. There is an essential difference between solid waste treatment and waste gas wastewater treatment, which is the market value. In the exhaust gas industry chain, only the input has no final product output, the treatment is over, and the whole industry is over; the wastewater is basically the same, but in industrial wastewater treatment, about 30% of the treated sewage can be reused as water, and the solid waste treatment Different, in theory, the solid waste recovery rate can reach more than 95%. In order to promote solid waste recycling, the EU has required 50% recycling of all household waste since 2008, 70% of industrial enterprises recycle; the United States has already proposed waste recycling in 2010 (including direct recycling, comprehensive utilization, composting, roads). 50% of the classified collection, etc.), 40% of landfill, 10% of incineration (including incineration and bio-energy); and China has not announced relevant targets so far, the actual recycling rate should be less than 20%, and incineration and landfill are still the main the way.

Regarding the value of solid waste recycling, we take Japan's mobile phone recycling as an example: Research conducted by Yokohama Metal Co., Ltd. in Japan shows that each ton of ore mined from gold mines can only extract about 5 grams of gold on average; and one ton of discarded mobile phones. It can extract at least 150 grams of gold, 100 kilograms of copper and 3 kilograms of silver . Japan's "Ecosystem" recycling company produces 200 kilograms to 300 kilograms of gold bars per month, with a purity of 99.99% and a value of about 4.7 million to 7.05 million dollars, equivalent to the production of a small gold mine.

The Ecosystem recycling company also recycles spent storage chips, cables and even black inks containing silver and palladium to extract useful metals. The value of solid waste recycling can be seen.

4. Derivatization. Due to the recyclability of solid waste and the gradual implementation of forced recycling, the solid waste industry has produced many extensions. For example, as of 2015, there are more than 900 waste incineration power plants in China, and the overall incineration capacity exceeds 300,000 tons/day. The recycling of scrap metal and waste plastics is still in a state of small scattered, but the total recycling scale is also quite Astonishing. The above examples only stay at the extension of the industrial chain. The real change comes from derivation: through the implementation of electronic monitoring of waste classification, analysis of consumer life trends, providing big data for the consumer market; providing trends for material developers through the types of waste treatment Reporting; measuring consumption habits and hobbies through different types of garbage; depending on the value of garbage, setting up garbage banks with high-value items, exempting garbage disposal fees, etc., will eventually appear and eventually change the existing pattern of the normal solid waste industry. .

Third, the three major trends in the development of solid waste industry

1. The market potential is unlimited. Three aspects, one is huge stock. The accumulated storage of municipal solid waste has reached 7 billion tons. Nearly two-thirds of the city is surrounded by garbage belts. The total storage of garbage accounts for more than 750,000 mu, and one-fourth of the cities have no suitable place to stack garbage. It is estimated that the annual losses caused by garbage in the country are as high as 30 billion yuan. Taking Shanghai as an example, Shanghai produces a total of 25,900 tons of live garbage per day, and more than 500 temporary garbage dumps occupy an area of ​​several thousand mu. The annual transportation of these garbage will consume 680 million yuan. Second, the growth rate is fast. China's annual garbage production has reached 250 million tons, accounting for 1/4 of the world total. With the process of urbanization, for a long period of time, it will grow at a rate of 8%-10% (Shanghai 15%-20%), exceeding the growth rate of 6%-10% of European and American municipal waste. The third is the infinite loop. The characteristics of the solid waste industry determine that solid waste products will be produced continuously and infinitely.

In addition, according to the relevant data of the Ministry of Environmental Protection, during the “Thirteenth Five-Year Plan” period, the total investment of the environmental protection industry was about 10 trillion yuan, and the growth rate of solid waste industry investment was twice as high as that of the industry. The solid waste investment accounted for 30,000-30,000. Billion. Such a large market, the capital market is impossible to reflect, the listed companies in the future, and with the promotion of IPO and registration system, listed companies involved in environmental protection, solid waste industry will appear in batches.

2. The circular industrial park model is popular. With the environmental protection upgrade and competition intensified, the environmental protection and solid waste disposal industry itself is also facing environmental pressure. In the past, the recycling and smelting of single varieties and small workshops will no longer be economical. Instead, it will be a recycling industry with multiple varieties of combined recycling and industrial synergy. Garden mode. The emergence of the circular industrial park model can effectively avoid the problem of unfixed solid waste varieties, miscellaneous, chaotic and source, quantity, quality, etc., and can play the synergistic effect of upstream and downstream industries and inter-regional economies.

For example, in the Sande Lake Hunan Changzhutan Vein Industrial Park project with a total investment of 5 billion yuan in 2013, we will design a processing scale of more than 3,000 tons per day, and we will build a Changsha, Zhuzhou and Tan solid waste treatment center, and then bio-resources and remanufactured products. Production and trading center, circular economy enterprise incubation center, environmental protection and circular economy technology research and development center, circular economy and "two-type society" demonstration base, environmental education and training base, etc.; this centralized, large-scale and systematic recycling industrial park Mode, the aggregation effect is very obvious. Similarly, the Nanhai Solid Waste Industrial Park in the indigo environment, the PPP cooperation construction project of the comprehensive demonstration city of Liaocheng Energy Conservation and Emission Reduction Fiscal Policy, which was newly awarded the bid of 7.25 billion yuan in May 2015.

3. Large specialized operators have emerged. As the solid waste industry enters the late stage, the performance period has basically passed. If everyone thinks that the solid waste industry only stays at the level of waste-to-energy, waste recycling, then the solid waste industry should be classified as a traditional industry and cannot be called emerging. industry. The real competition in the solid waste industry has just begun, and the market development of the solid waste industry will determine the height of the enterprise. At present, we can see that the Sander environment and Grimme, which have deep understanding of this in China, have already opened websites such as “easy regeneration” and “recycling brother”, layout sanitation recycling, set out to prepare smart garbage cans, develop “environmental clouds”, etc. A series of post-market actions, with the deepening of the layout and the success of the card position, in the near future, we can see the emergence of professional garbage operators like telecom operators.

Through garbage, they will understand the consumption levels, living habits, behavioral tendencies of residents in various regions, and organize them into data to create truly useful big data.

Fourth, invest in the four major points of the solid waste industry

1. See who has money in hand. In general, the solid waste industry is still in the stage of burning money in the staking area. Whoever has more cash to take over the PPP big orders launched by the governments at all levels will seize the opportunity; the competition here is the strength of the major shareholders. Financing ability.

2. See who has many projects. At present, the solid waste project basically begins to enter the stage of performance redemption. On the one hand, the project has more cash flow on the one hand, and on the other hand, it can increase the pledge rate. In the final analysis, it still solves the financing problem.

3. See who is focused. In order to achieve Evergreen, enterprises must focus on a certain field, focus on their main business, and maintain the strength of sustainable development so that they can win in long-distance running. Any company that fails to stand in the segment of the industry and develops other strategies will need to be cautious.

4. See who has the complete layout and the card position is early. Investing in the solid waste industry must not only focus on the situation of each company's staking, but depends on its layout and card position in the market after solid waste treatment. The ability to achieve a chain layout is the foundation. It is the future to develop big data applications and cross-industry cooperation in advance while the industry chain is laid out.

5. Three major risks that cannot be ignored

1. Programmatic policies have been delayed. Ten air and ten waters have already been introduced, but the ten items that are widely expected have been pushed and pushed again, and have not been announced.

This aspect shows that in the current critical period of economic transformation and development, the government is studying the possibility of giving environmental protection, especially the solid waste industry, alternative infrastructure, and other original investment entities. On the other hand, it also shows that the whole industry can see and predict the cake too. Big, how should we cut, the various stakeholders will not fight, the Ministry of Land, the Ministry of Environmental Protection, the National Development and Reform Commission and even the local government are eyeing. Without the introduction of programmatic guidance, enterprises, especially private enterprises, will inevitably bear many economic and even political risks. There is no way to do this. Therefore, the delay in the introduction of policies is the biggest risk.

2. The corporate debt ratio has increased significantly. The solid waste industry is currently the main application area of ​​the PPP model promoted by the government. The initial funds are almost entirely borne by the enterprises themselves. It is necessary to recover the investment in the future operation and maintenance, which has caused the debt ratio of listed companies to remain high. As for the risk, as a whole industry-wide government act, at a predictable time, the overall risk is controllable.

3. The capital recovery cycle is too long. At present, the investment and operation cycle of mainstream solid waste PPP projects is basically 20 to 30 years, while the open rate of return is basically maintained at 8%/year, the rate of return is not high, and the capital recovery period is longer. Moreover, with the development of social economy, there will be many changes in its operation and development, and the increase in costs and risks cannot be ignored.

A number of excellent solid waste treatment companies

1. Sander Environment: The company recently completed the transfer of equity of major shareholders, and the major shareholder changed to Tsinghua Department and changed its name to Enlighten Sander. The company has advanced ideas in the layout of environmental protection such as sanitation, solid waste treatment, waste recycling network and sanitation cloud, and the card position is better. As the company completes the equity transfer after the funds are in place, the company will have more actions to follow in the future.

2. GEM: GEM is the National Recycling Economy Education Demonstration Base and the National Urban Mineral Demonstration Base. It is mainly engaged in three major businesses: e-waste, battery materials and cobalt- nickel- tungsten. The current e-waste processing capacity is around 10 million units. With the addition of 90% cobalt-nickel battery material capacity, the company has also launched the “Recycling Brother” O2O project, which will have a substantial expansion in its production capacity throughout 2015. The company will also work with BYD on battery projects and work on the graphene concept.

3. Indigo environment: The company is a leader in nationwide comprehensive environmental services. Its projects in the Nanhai Solid Waste Environmental Protection Industrial Park operate normally and have a demonstration role. In 2015, it completed the M&A and financial consolidation of Chuangguan China, and invested 150 million yuan to cooperate with Fosun to invest in the large solid waste field. The company's pace in the expansion of different places is expected to further accelerate.

4. Weili: The company is a leading enterprise in the domestic landfill leachate treatment field. Since its listing in 2011, it has been transformed from a single landfill leachate treatment project supplier to a municipal solid waste disposal facility and sewage treatment facility. Integrated service providers for investment, construction, operations, and professional technology R&D applications. At present, it is pushing a plan to increase 1.2 billion, and orders are also on the rise.