They can be done in two fields. One is the industry, with complicated techniques and fragmented entities. The other is municipal administration, mainly focused on sewage disposal and waste disposal. Projects are carried out in the forms of PPP and franchise with a high concentration rate. Environmental protection in municipal administration requires large amounts of capital and long time with small but stable returns. Therefore, it typically results in capital accumulation and stable returns.
It is estimated that in 2016, total income of the environmental protection engineering and service industry exceeded CNY 1 trillion. Major sources of income were water pollution control, dangerous waste and environmental protection monitoring.
Pollution in China has worsened in recent years. To improve the environment, the Chinese government issued Action Plan for Air Pollution Prevention and Control, Action Plan for Water Pollution Prevention and Control and Action Plan for Soil Pollution Prevention and Control. Meanwhile, the government also began to purchase environmental protection services and promote PPP projects to support the environmental protection service industry.
In this report, 33 environmental protection engineering and service enterprises listed in A-share market in China are analyzed.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
2. Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
3. Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders' Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
4. Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)
- Zhongzai Resource and Environment Co., Ltd. (600217.SH)
- Spic Yuanda Environmental-Protection Co., Ltd. (600292.SH)
- Sinoma Energy Conservation Ltd. (603126.SH)
- Zhejiang Tuna Environmental Science & Technology Co., Ltd. (603177.SH)
- Zhejiang Weiming Environment Protection Co., Ltd. (603568.SH)
- Beijing Geoenviron Engineering & Technology, Inc. (603588.SH)
- Poten Environment Group Co., Ltd. (603603.SH)
- China Tianying Inc. (000035.SZ)
- Shenwu Energy Saving Co., Ltd. (000820.SZ)
- Tus-Sound Environmental Resources Co., Ltd. (000826.SZ)
- Shenzhen Selen Science & Technology Co., Ltd. (002341.SZ)
- Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ)
- Beijing Spc Environment Protection Tech Co., Ltd. (002573.SZ)
- Dongjiang Environmental Protection Co., Ltd. (002672.SZ)
- Beijing Water Business Doctor Co., Ltd. (300055.SZ)
- Xiamen Savings Environmental Co., Ltd. (300056.SZ)
- Beijing Originwater Technology Co., Ltd. (300070.SZ)
- Anhui Shengyun Environment-Protection Group Co., Ltd. (300090.SZ)
- Dalian East New Energy Development Co., Ltd. (300125.SZ)
- Hebei Sailhero Environmental Protection High-Tech Co., Ltd. (300137.SZ)
- Xuzhou Kerong Environmental Resources Co., Ltd. (300152.SZ)
- Shenwu Environmental Technology Co., Ltd. (300156.SZ)
- Cec Environmental Protection Co., Ltd. (300172.SZ)
- Yonker Environmental Protection Co., Ltd. (300187.SZ)
- Jiangsu Welle Environmental Co., Ltd. (300190.SZ)
- Focused Photonics (Hangzhou), Inc. (300203.SZ)
- Shanghai Safbon Water Service Co., Ltd. (300262.SZ)
- Top Resource Conservation & Environment Corp. (300332.SZ)
- Tianjin Motimo Membrane Technology Co., Ltd. (300334.SZ)
- Guangzhou Devotion Thermal Technology Co., Ltd. (300335.SZ)
- Inner Mongolia M-Grass Ecology and Environment Group Co., Ltd. (300355.SZ)
- Guangxi Bossco Environmental Protection Technology Co., Ltd. (300422.SZ)
- Scimee Sci. & Tech. Co., Ltd. (300425.SZ)
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.