Summary of contents: According to relevant agencies, it is expected that the wastewater treatment input for the 12th Five-Year Plan will reach 1.2 trillion yuan, accounting for 32% of the total environmental protection investment, and an increase of 31% over the 11th five-year period. Water pollution is mainly caused by three sources of pollution: agriculture, domestic sewage and industrial water. The treatment of sources of domestic pollution is the main direction of wastewater treatment. Its environmental protection investment includes: 1. Treatment of water quality; 2. Sewage treatment rate increased. The governance of agricultural pollution focuses on demonstration projects, while industrial water governance focuses on improving the efficiency of water use by enterprises.

The future investment in reclaimed water is expected to double, and there will be a vast amount of space in the future. Reclaimed water refers to the city water that has been treated to meet certain water quality standards and can be used for industrial cooling water and urban landscape irrigation. According to the data previously released by China Water Network, by the end of 2010, the average utilization rate of urban sewage treatment and reclaimed water was 8.5%. Under the forthcoming “12th Five-Year Plan” environmental protection planning framework, the plan clearly states that by 2015, the utilization rate of urban reclaimed water should reach more than 20%, which is more than 10% higher than at the end of 2010. From the perspective of investment, it is reported that the “Twelfth Five-Year National Urban Wastewater Treatment and Recycling Facilities Construction Plan” is being prepared, and the proposed new investment is about 421 billion yuan, of which the investment in sewage recycling facilities is 34.4 billion yuan. Accounting for 8%. The proportion of reclaimed water used in developed countries has reached more than 70%, and the investment space for reclaimed water in China is still vast. It has only just begun.

Some areas put forward higher requirements. It is understood that at present domestic cities including Beijing, Shanghai, Xi’an and Hangzhou have all introduced the “Twelfth Five-Year Plan” concerning the use of recycled water in the region, and Beijing proposed that in 2015, the city’s annual renewable water conservancy usage will not be less than 1 billion cubic meters. The utilization rate of reclaimed water reaches more than 70%. In addition, in the future, the lack of water cities in the north will become a key area for implementing the recycling water utilization industry.

Reclaimed water, a variety of technical routes, optimistic about the MBR technology and membrane production companies. The reclaimed water technical route includes the MBR method, advanced oxidation ditch treatment, A2/0 depth treatment, and SBR advanced treatment. The investment costs of the same-scale sewage and the first-grade A-effluent standard are shown in the table. The technical characteristics of several major technical schools are shown in the table. Membrane technology is the use of ion exchange membrane or organic polymer synthesis membrane technology, rapid development in recent years, membrane processing technology known as the 21st century water treatment technology key technology, is the best alternative to the traditional process. Membrane bioreactor (MBR) is mainly used in urban sewage treatment, reuse of reclaimed water, and industrial wastewater treatment. With its excellent treatment effect, it has been widely used in European and American countries. At present, MBR accounts for a relatively low share of China's sewage treatment market, and there is huge room for growth in the future.

Sludge treatment "Twelfth Five-Year Plan" put on the schedule "12th Five-Year" sludge treatment put on the agenda. During the "11th Five-Year Plan" period, China's sewage treatment capacity has increased significantly, while sludge production has also increased significantly. According to the “Twelfth Five-Year Plan for the preparation of major pollutants total control plan (draft)”, more attention will be paid to the safety of sludge treatment during the “Twelfth Five-Year Plan” period, and wastewater treatment at a scale of more than 100,000 tons per day will be required. All mills should carry out sludge harmless treatment. By 2015, the national sewage sludge treatment and disposal rate will reach 50%. According to the "Twelfth Five-Year Plan for the Construction of Urban Wastewater Treatment and Recycling Facilities," the harmless treatment rate for sludge in the national and provincial cities, other cities, counties and key towns in 2015 will reach 70% and 60 respectively. %, 50%, overall higher than the previous 50% treatment rate plan for the national "Twelfth Five-Year Plan for the preparation of major pollutants total control plan (draft for solicitation of opinions)".

From the perspective of the investment amount, sludge treatment for the “Twelfth Five-Year Plan” invested 36 billion yuan, accounting for 8% of the total investment. The technology path, the current method of sludge treatment mainly includes land use, landfill, incineration and sea drainage. Sludge incineration technology has the characteristics of “reduction, stabilization and harmlessness” and has gradually become the mainstream of sludge treatment.

Extend the sewage treatment industry chain and make the cake bigger. Since the sludge is a product of the WWTP, it is expected that the sludge treatment will be carried out by the relevant WWTP. The government will provide a certain amount of government subsidies according to the amount, so as to obtain a certain reasonable profit, which will be beneficial to the construction of the WWTP and the operation companies to expand the industrial chain. Increase profit sources.

Industrial sewage treatment depends on heavy investment in the "12th Five-Year Plan" for heavy industry growth. China's industrial wastewater treatment prospects are also broad. During the “Twelfth Five-Year Plan” period, the cumulative investment in wastewater treatment in China will reach 1.06 trillion yuan, of which the treatment of urban domestic sewage will reach 459 billion yuan, and the treatment of industrial wastewater will reach 435.5 billion yuan. Basically, it is equal to the investment in domestic sewage treatment.

Mainly in heavy industry. Industrial water mainly includes cooling water, heat and process water, and wash water. The industrial cooling water consumption accounts for about 80% of the total industrial water consumption, and the water withdrawal volume accounts for 30-40% of the total industrial water intake. The water intake of eight industries, including thermal power generation, iron and steel, petroleum, petrochemical, chemical industry, papermaking, textiles, non-ferrous metals, food, and fermentation, accounts for about 60% of the total industrial water withdrawal in the country (including DC cooling water for thermal power generation).

Industrial sewage discharge is stable and the treatment rate reaches 95%. From 2003-2011, the volume of industrial sewage and growth rate, basically stable. The industrial sewage treatment rate, it has reached 95.32%. The proportion of inventory processing is already very high. The incremental market for industrial wastewater treatment in the future mainly comes from incremental, while the increase depends on heavy industries in China, such as thermal power generation, steel, petroleum, petrochemical, chemical, paper, textile, non-ferrous metals, etc. The speed of growth of the secondary industry in China has been maintained at a high growth rate of over 10%, and it is expected that the industrial wastewater discharge will also maintain a stable growth rate.

The model determines the growth rate of the company. There are also construction and BOT models for industrial wastewater treatment. However, industrial wastewater is mainly constructed, and some companies have begun to implement the BOT model. The BOT model is not a one-hit trade. The subsequent use of 20-30 years will provide stable profits for related companies.

The prospects of the water treatment industry will focus on reclaimed water in the “Twelfth Five-year Plan”, and investments in this area are still expected to continue high growth. From the perspective of the securities market, the current industry average price-earnings ratio is about 25 times. Compared with other A-shares sectors, the performance of the sewage treatment enterprises operating in the BOT mode is relatively stable, while the enterprises in the cross-regional expansion are in the Twelfth Five-Year Plan period. Under the general environment, the growth is also relatively certain. Under the background of economic restructuring, the performance and growth rate of the sewage treatment industry are relatively stable, both defensive and offensive; and from a historical point of view, the industry's price-earnings ratio is also at a low level. . Optimistic about the BOT mode of urban sewage treatment across regional expansion companies, the first stock (600,008), Xingrong Investment (000,598); reclaimed water master core membrane technology company, clear water source (300070). In addition, the sewage treatment enterprises have a good relationship with the local government. At present, the state’s investment in the solid waste field is also relatively clear. Related wastewater treatment companies have entered this field and become one of the growth points, such as Capital Capital (600008), Sander Environment ( 000826).