Environmental protection machinery in the second half of the year or beyond the industry level

It is understood that from the perspective of the performance of the machinery and equipment industry, although the overall industry was in a sluggish state in the first half of the year, the good news was not completely annihilated. The overall increase in environmental protection equipment in the first half of the year exceeded 80% “out of the limelight”.

In the first half of the year, from the perspective of the performance of machinery and equipment listed companies, nearly 10% of listed company revenues fell by more than 30% year-on-year in the first quarter, and nearly 33% of the listed companies' revenue fell between 0% and 30%. Analysts believe that although the overall decline in investment has brought greater constraints to the machinery manufacturing sector, but from the inside of the segmentation segment due to property differences, performance differentiation will be more obvious, energy-saving environmental protection machinery manufacturing enterprises may be better in the second half which performed.

Looking into the future, the new impetus for economic development may be determined in the new urbanization strategy, which will also have a major impact on China's industrial development in the medium to long term. Analysts believe that the direction of the transformation of the machinery industry lies in new urbanization, energy structure adjustment, industrial automation, and environmental protection. This will promote the development of six industries including railway (subway) oil service and equipment, agricultural machinery, industrial automation, and environmental protection and new coal chemical related equipment.

In addition, there are environmental protection devices in the fine-grained industries that deserve attention. In the second half of the year, environmental protection equipment is more optimistic about the waste-to-energy related equipment in the solid waste disposal field and the corresponding demand equipment in the desulfurization reform. Regarding the actual market size of waste incineration equipment, it is expected that the market capacity of waste incineration equipment during the 12th Five-Year Plan period will be around 61.4 billion to 92.1 billion yuan. As far as the field of denitrification equipment is concerned, in the next three years, the industrial capacity of the thermal power and denitrification equipment will be relatively large. A total of 529 million kilowatts of thermal power and denitrification equipment will need to be newly constructed and the market capacity will be approximately 68.59 billion yuan. It is estimated that the compound annual growth rate of the denitrification equipment industry in the next three years will be around 40%, which is much higher than the growth rate of the thermal power industry. All of these will open up a rich imagination for environmental protection equipment companies. As the sub-sector of machinery and equipment is closely related to urbanization and residential consumption, the development of these sub-sectors is expected to exceed the overall level of the industry.