The environmental protection industry has set off a wave of mergers and acquisitions. The advantages of listed companies are obv
Recently, mergers and acquisitions in the environmental protection industry have occurred frequently. On the one hand, the door of the IPO cycle has been closed for a long time and there are many queues. On the other hand, under the background of the introduction of environmental tax, the price change of public utilities and the stricter assessment of ecological performance, China's environmental protection industry has been in a rapid growth period. Analysts believe that environmental listed companies will take the lead in this round of environmental protection development because of their advantages in financing channels.
Merger and Acquisition Boom in Environmental Protection Industry
According to incomplete statistics, since December last year alone, more than 10 energy-saving and environmental protection companies have suspended trading because of planning major issues, such as Tianrui Instruments, Hanlan Environment and other companies have issued announcements one after another to purchase shares of non-listed environmental protection companies, and mergers and acquisitions have set off a boom in the environmental protection industry. According to Guangzheng Hang Seng statistics, in 2012, only 17 mergers and acquisitions of environmental listed companies, the total capital scale of purchased targets is only 1.2 billion yuan, while in the first three quarters of 2013, 28 mergers and acquisitions projects, involving 9.9 billion yuan. In the fourth quarter of 2013, mergers and acquisitions were further strengthened, involving 11 projects with a total value of 5.6 billion yuan.
For the merger and acquisition boom in the environmental protection industry, Ping An Securities analyst Yu Zhenjia believes that the door of the IPO cycle has been closed for a long time and there are many queues. This means that if environmental companies seek an IPO, there is not only great uncertainty, but also a high time cost. Therefore, many companies choose to be merged or listed by backdoor, which has become an important theme in the field of environmental protection this year. Under the situation of stricter IPO and constant investment in environmental protection, mergers and acquisitions in the field of environmental protection will continue to occur. For listed companies, actively promoting acquisition by choosing the appropriate target can not only achieve rapid expansion and complementary advantages, but also provide an opportunity for companies to finance and reduce financial pressure.
Listed companies have obvious advantages
Under the background of the introduction of environmental tax, the price change of public utilities products and the stricter assessment of ecological performance, China's environmental protection industry is still in a period of rapid growth in 2014. Galaxy Securities believes that the scale of environmental protection industry output is expected to continue to grow rapidly. From international experience, M&A is the only way for large companies to grow. 2014 will be the year of merger and acquisition of environmental protection industry, and the wave of asset securitization of environmental protection industry is rolling in. Listed companies have obvious advantages in controllable capital and financing ability. If the GEM refinancing is liberalized, the financing advantages of related listed companies will be further enlarged.
In addition, the government, as the main investor of environmental protection projects, has been under increasing debt pressure in recent years. BT, BOT and other modes can extend the payment cycle of customers, and are quickly accepted by the market in the field of environmental protection. At the same time, the financial pressure is transferred from the client to the supplier of equipment or engineering. Ping An Securities analyst Yu Zhenjia believes that in the context of high investment in environmental infrastructure, equipment sales and engineering services are still the main business models of the current environmental protection industry. With the increase of the number of projects, the scale of advance capital of environmental protection enterprises has risen, and they are generally facing greater financial pressure. Listed companies have the advantage of financing channels, which will take the lead in this round of environmental protection development.
Specifically, in the trend of industry mergers and acquisitions, companies with sufficient project operation experience and strong business innovation ability (the ability to obtain orders) are expected to take the lead. The Galaxy Securities Report believes that project operation experience and business innovation ability are important indicators to consider the competitiveness of environmental protection companies. Water treatment industry chain, domestic waste treatment industry chain Advantage companies, as well as industrial waste treatment, soil remediation and other areas of business model improvement and innovation, and mining companies with relevant project experience and innovation capabilities, are worthy of attention.