Inventory of 18 environmental protection listed companies annual income compound growth rate of nearly 20%

As one of the few industries in the national economic system, which integrates economic, social and environmental benefits, energy-saving and environmental protection industry has developed rapidly in recent years. While the total output value of the energy-saving and environmental protection market keeps rising and the field is becoming more and more refined, new changes are bred.

China is a big country in energy consumption. Although energy consumption per unit GDP has been decreasing continuously in the past decade, energy consumption still ranks first in the world. Primary energy is mainly fossil energy and coal consumption accounts for 66%. Adjusting energy structure and energy saving and emission reduction will be an important task for a long time to come. Under this background, energy-saving enterprises in energy-saving industries are still in the forefront of the world. There will still be broad room for development in the longer term. In this paper, Ho Jun scanned 18 energy-saving listed companies in A shares, and selected some representative companies to conduct in-depth analysis of their development context.

In particular, this study is not an investment guide for the environmental protection industry, nor does it constitute any recommendation. As a retrospective study, it only represents the observation and reflection of an authoritative media on the industry.

I. The basic situation of Listed Companies in the energy conservation industry

(1) plate distribution

Up to now, there are 18 listed companies in the energy-saving industry, including 4 listed on the motherboard, 6 listed on the SME board and 8 listed on the GEM board.

(2) geographical distribution

The 18 energy-saving listed companies are mainly distributed in the eastern coastal provinces, of which Beijing and Guangdong each have four, the largest number, Zhejiang has three.

(3) scale analysis

As of July 1, 2016, the average market value of 18 energy-saving listed companies was 8.8 billion yuan, of which Shenwu environmental protection market value was the highest, reaching 21.4 billion. Overall, the total market capitalization of enterprises is mainly concentrated in the range of 5 billion to 10 billion.　

2, the performance of Listed Companies in energy saving industry in the past three years.

(1) profitability

In 2015, all 18 enterprises were profitable, and the overall net profit rose from 2.046 billion yuan to 2.373 billion yuan, an increase of 16.0% over the same period. There are two companies with a net profit of less than 30 million and three companies with a net profit of more than 200 million, of which sunlight is the highest, with a net profit of 360 million yuan.

In terms of return on net assets, the annual return on net assets (ROE) of Listed Companies in energy-saving industry in 2015 is mainly concentrated in the range of 5% - 20%. Shuangliang Energy Saving, Sunshine Lighting, Zhiguang Electronics, Shenwu Environmental Protection, Yanhua Intelligent's return on net assets are all over 10%, of which Shuangliang Energy Saving's return on net assets is the highest, 16.0%; Yishida is the lowest, only 0.7%.

(2) growth ability

In terms of operating income, the operating income level of 18 enterprises in 2015 was mainly concentrated in the range of 1-2 billion yuan. There were 3 companies with operating income of less than 500 million yuan, and 4 companies with operating income of more than 2 billion yuan. Among them, Dun'an had the highest operating income of 5.86 billion yuan, followed by sunlight lighting, which was 4.26 billion yuan.

According to the compound growth rate of business income, the compound growth rate of 4 listed companies in energy-saving industry is negative, while the compound growth rate of 3 listed companies is more than 50%, of which Shenwu Environmental Protection has the highest compound growth rate of business income in recent two years, 109%. Most of the listed companies in the energy saving industry have a compound growth rate of 0 to 20%.

(3) capital market performance

In terms of P/E ratio (PE), the average P/E ratio of Listed Companies in energy-saving industry in 2015 is 144, which is relatively high in environmental protection sub-sectors. The lowest P/E ratio of 18 enterprises is sunlight lighting, which is 34.　　

3. Analysis of success factors

Based on the above analysis, this part selects two outstanding and representative listed companies in the industry, focusing on exploring their successful elements in management, capital operation, resource integration and so on.

Zhi Guang electric - reasonable layout of business structure, create characteristic business platform

Guangzhou Zhiguang Electronics Co., Ltd. (hereinafter referred to as "Zhiguang Electronics"), headquartered in Guangzhou, was founded in 1999, formerly the Guangdong Academy of Electrical Technology. After several years of development, the company has now become a high-tech enterprise with independent R&D and innovation capabilities, listed on the Shenzhen Stock Exchange in 2007 (Securities Code: 002169). According to one authoritative media, reasonable business layout and emphasis on R&D innovation are the key factors for the success of Zhiguang Electronics.

Business layout, the company has formed a "product + service + investment" business platform, in the integrated energy technology and services in various directions and market segmentation in a deep-seated layout.

In 2011, after exploration and innovation, the company has built a comprehensive development platform of power measurement and control technology, power electronics, communication technology and application software technology. On the one hand, on the basis of the original products, the company has further enriched and improved the product lines in the field of electrical control and automation; on the other hand, it has seized the energy-saving service production. Industry development opportunities, aiming at the huge demand for industrial energy conservation in the future, we will strive to provide comprehensive energy-saving services, and provide energy-saving solutions for energy-using units through contract energy management. By 2015, the company's integrated energy-saving services accounted for 15.5% of operating income. Established in 2014, Guangdong Zhiguang Electricity Investment Co., Ltd. began to enter the field of power-side services, completed the acquisition of Lingnan Cable in 2015, expanded the company's product and business scope, and helped the company to build an energy-oriented Internet business development layout that includes energy control, transmission and service.

At present, the company's electrical control equipment, power cables, integrated energy-saving services and electricity service four aspects of business with a high degree of relevance and linkage, this business layout to achieve customer, personnel, technology, business management synergy, so that the company has established a unique competitive advantage.

In terms of R&D innovation, the company adheres to customer demand-oriented, constantly improve core technology, develop new products, upgrade product structure, and continuously enhance the core competitiveness of the company. In 2014, the company increased research and development investment in permanent magnet synchronous motor servo control system, industrial intelligent transmission, high-voltage energy storage and intelligent distribution network, in-depth market prospects and application value of the subdivision and professional areas, enhance the company's sustainable development momentum. By December 31, 2015, the company and its holding subsidiaries had 115 patents and 104 computer software copyrights, and had participated in the drafting of 14 national or industrial standards. At the same time, the company has established close cooperation with many famous domestic universities such as Tsinghua University, Zhejiang University, Guangdong Electric Power Science Research Institute and so on. In addition to the internal core technical personnel, the company also hired a number of industry senior experts and scholars as members of the technical committee, joint decision-making direction of future technology development, has formed a complete system of technology research and development and product innovation.　　

Environmental protection -- the deployment of collaborative environmental protection business

Shenwu Environmental Protection Technology Co., Ltd. (formerly Tianli Environmental Protection Engineering Co., Ltd.) was founded in 2004. At the beginning of its founding, the company is committed to providing a systematic solution for the closed and clean production of furnace and kiln in the fields of calcium carbide, iron and steel and the recycling of residual energy and waste heat. The company was listed on the Shenzhen GEM in 2011 (Securities Code: 300156) and renamed "Shenwu Environmental Protection" in 2014. According to one authoritative media, the success factors of Shenwu environmental protection include active asset integration, emphasis on R&D innovation and strengthening internal management.

First, optimize the company's business structure through active asset integration. The company's assets integration mainly includes two aspects: mergers and acquisitions and divestiture. On the one hand, in order to concentrate on energy conservation and emission reduction, the company resolutely cut down the investment projects with poor market prospects and low correlation between the main industries in 2014, and carried out the clearance and integration of non-main assets in a bold way: if the loss of Tianli Airport equity is transferred, the wholly-owned subsidiaries Jilin Sanming and Changling Sanming will be trusted. In the director Wang Li pin, clearing Zhuji Tianli environmental protection, hosting high nitrogen steel project. On the other hand, the company actively launched a series of mergers and acquisitions around the dominant business. The company acquired 100% ownership of Hongyang Smelting Chemical Co., Ltd. of Shenwu Group in 2015, and constructed a complete chain of "new acetylene coal chemical process", which greatly enhanced its asset quality and sustainable profitability. At the same time, the completion of the acquisition enabled the company to successfully enter the water treatment industry, and signed a large order of OKI Indonesia. In September of the same year, the company acquired a 100% stake in Wuhaishen Coal Technology Co., Ltd. of Shenwu Group, laying a foundation for extending downstream to the industrial chain. Around the business pattern of "Great Environmental Protection", the company has formed four main plates, namely "New Acetylene Coalification Process", "Tube Heating Furnace System", "Water Treatment and Characteristic Process Devices". Each business plate can be independently contracted, and can also provide customized, one-stop service according to the individual needs of the owners in major projects, so as to integrate rationally. To allocate internal technology and human resources, to coordinate the promotion of project construction, to meet the comprehensive energy-saving and environmental protection needs of the owners.

The two is to attach importance to R & D innovation. The company attaches great importance to and actively strengthens the research and development of technology, actively introduces high-level research and development personnel, and continuously innovates and optimizes the core technology and process links. Under the situation of global energy crisis and environmental pollution becoming more and more serious, the company aims at high energy consumption and high pollution industries, through technology development, product development, application development, and constantly overcome the technical problems of the industry to promote industrial technology upgrading. At present, the company has become a leader in energy saving, emission reduction, clean production and comprehensive utilization of calcium carbide, ferroalloy, steel and other industries. The company adopts a scientific research organization mode with internal independent research and development and extensive external cooperation. Inside the company, R&D centers are set up through institutional integration, science and technology project management departments and special R&D awards are set up to promote research and development of new products and processes. In terms of external cooperation, the company has set up special research funds, and jointly conducted research and development with Tsinghua University, the Institute of Coal Science and other well-known research institutes, forming a research and development team covering domestic and foreign industry experts. In addition, the company's scientific research work breaks through the traditional single laboratory model, and pays more attention to the combination of R&D work and engineering practice, forming a "R&D-implementation-feedback-improvement" closed-loop scientific research model, reducing R&D costs, improving R&D efficiency, so as to achieve the integration of production, teaching and research. In 2015, the company completed 8 patent applications, 10 patent authorizations, completed the research and development of 8 projects, such as "research and development of high temperature calcined coal series needle coke project" and "new technology of calcium carbide regenerative production", and its scientific research strength can be seen.

Three is to strengthen internal management. In recent years, the company pays attention to the optimization and promotion of internal management, pay close attention to standardized management, highlighting the performance in the system and organizational construction of two major aspects. In the aspect of system construction, the company has formulated, revised and promulgated more than 50 work rules, regulations and normative procedures in auditing, human resource management, financial management, etc., and revised the internal control manual to implement comprehensive and standardized management of the company's affairs. In organizational construction, the company has made a series of organizational structure adjustment, adhering to the concept of "decentralization" of the management system, the company's institutional settings tend to flatten, and streamline functional departments, standardize operational processes, strengthen the standardization and process of operational management, create a streamlined and efficient management system and pragmatic. Fast execution system.