Guidance: During the “12th Five-Year Plan” period, China’s seawater desalination will reach 1.5 million to 2 million tons/day, which is three or four times the current production capacity, and the investment scale will reach about 20 billion yuan. The program supports the development of large-scale reverse osmosis, low-temperature multi-effect seawater desalination technologies and equipment, and encourages large-scale desalination industrialization demonstration projects. Large-scale investment in high-pressure pumps, high-performance corrosion-resistant steel pipes and instrument manufacturers will usher in Explosive growth.

Guo Youzhi, secretary-general of the China Desalination Association, was in a good mood recently because the State Oceanic Administration, the Ministry of Science and Technology, the Ministry of Education, and the National Natural Science Foundation of China jointly issued the “National Outline for the 12th Five-Year Plan for Marine Science and Technology Development”.

Guo Youzhi told the "Science Times" reporter that the program supports the development of large-scale reverse osmosis, low-temperature multi-effect seawater desalination technologies and equipment, and encourages large-scale desalination industrialization demonstration projects, which will accelerate the autonomy and scale of China's desalination industry.

“It can be determined that the desalination industry will enter the explosive growth phase in the future.” Guo Youzhi said with confidence.

Investment space expansion At present, China's desalination equipment as a whole depends on foreign products.

Taking reverse osmosis membranes as an example, a reporter from the Scientific Times learned from the China Separation Film Industry Association that there are currently more than 300 membrane production companies in China and nearly 1,000 membrane engineering companies, but the larger ones are mostly foreign or overseas. There is a cooperative company. The domestic membrane enterprises are mostly small and medium-sized enterprises. There are common problems such as less funds, fewer product varieties, and unstable quality. This undoubtedly affects the application of membrane technology and the company's own survival and development.

Now, with the introduction of various supportive policies, these problems will soon be changed. Guo Youzhi stated that in the future, the localization rate of seawater desalination equipment will undoubtedly increase dramatically.

In fact, as the scarcity of freshwater resources becomes increasingly prominent, the state is paying more and more attention to the use of seawater. At present, the Ministry of Science and Technology is formulating the "12th Five-Year Plan for the Specialization of Seawater Desalination Technology Development." In terms of promoting industrial development, the Development and Reform Commission, together with 11 ministries and commissions, has formulated the “Opinions on Accelerating the Development of Desalination Industry”, which is expected to be introduced in the name of the State Council within the year. At the same time, the National Development and Reform Commission will also launch a special plan for the "Twelfth Five-Year Plan" for the desalination industry.

According to estimates from the China Desalination Association, during the “12th Five-Year Plan” period, seawater desalination in China will reach 1.5 million to 2 million tons/day, which is three or four times the current production capacity, and the investment scale will reach about 20 billion yuan. By 2020, seawater desalination capacity will reach 2.5 million to 3 million tons/day, which is more than 5 times of the existing capacity.

The doubling of production capacity also means the expansion of investment space, especially investment in seawater desalination equipment. This will bring development opportunities for related equipment manufacturers.

Guo Youzhi believes that the country’s tilting of financial support and policies for key enterprises will promote the combination of membrane companies, membrane companies and water treatment engineering companies, and will help create China and even international famous brands, and help companies participate in domestic and international affairs. competition.

Listed companies favorably favored the policy in the face of the aforementioned policies, and the investment community's attention to listed companies in the desalination field is gradually heating up.

When interviewed by a reporter from the "Scientific Times," Huatai Joint Securities Analyst Feng Weitong introduced the investment strategy in this field to reporters.

“Investment opportunities in the desalination industry are mainly derived from the reverse osmosis method with the largest market share, the best technology, and the most promising development prospects,” said Feng Weitong. In the field of reverse osmosis, Feng Weitong is mainly optimistic about three types of enterprises: the first choice is to produce seawater desalination core equipment reverse osmosis membrane companies, the second choice in the investment accounted for relatively large high-pressure pump, high-performance corrosion-resistant steel pipe and instrument manufacturers. In addition, there are manufacturers of chemical agents such as chlorine and alkali used in water treatment.

Founder Securities publishes a research report that in the future, investment in seawater desalination equipment will be mainly distributed in high-pressure pumps, corrosion-resistant copper tubes, meters and membrane modules.

Among the listed companies in related fields, many securities institutions are optimistic about South Huitong, Shuangliang Energy Saving, and Hailiang shares.

Hailiang is a leading company in the desalination of copper pipes. Since seawater contains a large amount of corrosive substances, the pipelines used to treat seawater must have strong corrosion resistance. The prospect of Hailiang shares with the ability to produce this kind of corrosion-resistant copper tube is expected.

It is understood that the company's current production capacity has reached 30,000 tons / year, processing fees and gross margins are relatively high. Hailiang's performance report shows that in 2010, Hailiang shares realized a net profit of 226 million yuan, a year-on-year increase of 29%.

"Hailiang has a good performance, after the introduction of the national support policy, Hailiang shares valuation will be improved." Founder Securities analyst Deng Xinrong said in an interview with the "Scientific Times" reporter.

South Huitong is a leader in the reverse osmosis membrane market. Beijing Times Wharton, a 42% subsidiary of South Huitong Holdings, is the largest professional manufacturer of composite reverse osmosis membranes in China. Currently, it has a reverse osmosis membrane production capacity of 3 million square meters and an annual output of more than 2.8 million square meters, occupying 4% to 5 The market share of %, which accounts for 50% of domestic enterprises' supply.

The company’s mid-year report shows that the company's composite reverse osmosis membrane revenue increased by 65% ​​year-on-year in the first half of the year, with a gross margin of 40%, accounting for 13% of the company’s operating revenue, and accounting for 26% of the company’s gross profit, becoming the company’s new profit growth point. .

In addition, Shuangliang energy-saving in the production of low-temperature multi-effect seawater desalination equipment is also generally favored by brokers. The reporter learned that last year, Shuangliang Energy issued nearly RMB 500 million worth of convertible bonds to engage in the production of low-temperature multi-effect seawater desalination equipment. After the project has reached full production, it can produce 9 sets of low-temperature multi-effect LT-MED/12,000 tons of seawater desalination equipment each year. The company's “25,000 tons/day large-scale low-temperature multi-effect distillation seawater desalination pilot plant” participated in research and development has passed expert review this year. Huatai United Securities expects its gross profit margin for seawater desalination equipment to reach 30%, with a net profit margin of over 10%.