Industry News » Outbreak Promotes Water Treatment Companies

Outbreak Promotes Water Treatment Companies

In response to the epidemic situation, the Ministry of Ecology and Environment has recently issued emergency monitoring plans to respond to new coronavirus infection pneumonia epidemics, medical wastewater and urban sewage supervision notices, medical waste emergency disposal management and technical guidelines (trial), and medical wastewater emergency treatment technical plans (trial) Wait. Therefore, affected by the epidemic, in addition to the huge demand for medical protection, environmental cleaning, disinfection, environmental monitoring, sewage treatment, solid waste treatment, etc. also face huge market demand, which has driven the water treatment industry.

As chlorine-containing disinfection products are more effective in killing the new crown virus, public places, households, and manufacturing companies often use chlorine-containing disinfectants to prevent and control epidemics. When the residual chlorine content in sewage increases, it indicates that disinfection and sterilization are more thorough. . As a result, the chlorine content index in sewage discharge has been increased, which has significantly increased the demand for residual chlorine index detection products from sewage companies and sewage treatment plants. Lianhua Technology, as a professional manufacturer of water quality analyzers, has a portable LH -CLO2M residual chlorine analyzer affected by this market phenomenon, sales increased significantly.

In the past two years, a large number of PPP projects of water treatment enterprises have a large demand for funds, and the aftermath of deleveraging is still in progress. The project progress has slowed down and financial costs have increased. Among them, the survival of some sewage treatment enterprises is difficult.

The outbreak has affected many industries. The impact on the water treatment industry is mainly the problem of resumption of work: once the work is resumed, the enterprise will face the major pressure of concentrated project start and insufficient human resources. Therefore, if the epidemic lasts too long, it may be troublesome, but the impact is not significant at this stage.

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With the normalization of strong supervision, the water treatment market may enter a longer growth cycle. During this period, changes in the industry are undercurrent, plate rotation and industry reshuffle will continue to occur. From the perspective of domestic securities firms, "Looking forward to 2020, we don't have to place too much hope on overall regulatory easing." The current water treatment market is rising in volume and price and expecting a stable pattern. In the future, industry policies will stabilize, and policies will be fine-tuned counter-cyclically according to market conditions, while "precision and efficiency" are still hard constraints.

From the perspective of the overall market environment, the trend of market consumption upgrade is becoming more and more obvious, the internal structure of each market segment is significantly different, and the low-end market share will continue to be impacted by the high-end market. The strong are Hengqiang, the existing market is moving closer to the leader, the new market is opened for innovators, and the companies with less prominent technology and lack of core capabilities are becoming more difficult. In particular, when private enterprises compete with state-owned enterprises on the same stage, they must more clearly recognize their positioning, judge based on their own development experience, and be able to resolutely give up business areas that are not suitable for them.

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