Market Research Report : Water and wastewater treatment in china 2015 - Sample

Water and Wastewater Treatment Market in China

February 2015

2 WATER AND WASTEWATER TREATMENT IN CHINA 2015.PPT

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

China is facing acute water scarcity with an estimated x bn m3 shortage in the supply of water by the end of 20--

The Yth Five Year Plan sets increased impetus to wastewater treatment to ensure quality water supply amidst scarcity in the country

Trends

Adoption of MBR technology

Improved support from banks

Heightened exposure through trade shows

Drivers: Accelerating Urbanization

Increasing Industrialization

Water Scarcity drives Wastewater Treatment Operations

Need for Technological Upgradation

High Level of Output by Industries such as Textile and Pulp and Paper

Low Coverage Rate of China’s Treated Water Supply

Challenges:

Entry Barriers

Rapidly Increasing Sludge

Water Pricing Mechanism

Increasing Electricity Consumption in Wastewater Treatment Plants

Drug Resistance Gene Produced by Treatment Plants

Major Players

Company A Company B Company C

Company D Company E Company F

3

•Macroeconomic Indicators

•Water Situation & Consumption

•Water Pollution in China

•Wastewater Treatment – Market Overview

•Wastewater Treatment Technologies

•Wastewater Treatment – Operating Modes

•Drivers & Challenges

•Trends

•Government Bodies and Initiatives

•Competitive Landscape

•Strategic Recommendations

•Appendix WATER AND WASTEWATER TREATMENT IN CHINA 2015.PPT

4

SAMPLE It has become essential to develop systems that can more effectively deal with the dual issues…

Wastewater – Discharged

• China’s fresh water supply has continued to be exploited in the past three decades and is burdened due to the population and urbanization growth as well as economic development

China has an estimated xx bn m³ per annum of naturally-available water from surface and underground sources

It stands at the nth position after Brazil, Russia, Canada, Indonesia and the US

In spite of this, China’s naturally available water flow per annum, in per capita basis, is one of the lowest levels in the world and is only zth of the world average

• Main sources of water pollution are:

Industrial (chemical, organic, and thermal wastes)

Municipal (largely sewage consisting of human wastes, other organic wastes, detergents)

Agricultural (animal wastes, pesticides, and fertilizers)

• Health concerns

China has a growing cancer rate, with hundreds of "cancer villages" along the banks of polluted water sources

The World Health Organization estimated that nearly yy people die annually from water pollution-related illnesses in China, and p% of disease is linked with poor water quality

24%

26%

49%

Wastewater – Segmentation (20--)

China’s Rampant Water Pollution (1/2)

P1%

P2%

Q2 Q1

y4

y4

y3

y2

y1

20--

x2

20--

x1

WATER AND WASTEWATER TREATMENT IN CHINA 2015.PPT

5

SAMPLE Chinese wastewater treatment market offers strong growth potential in the coming years

Wastewater Treatment – Capacity

Wastewater Treatment – Overview

y5

y4

y3

y2

y1

+13.9%

20—

x8

20--

x7

20--

x6

20--

x5

20--

x4

20--

x3

20--

x2

20--

x1


• Water treatment industry is highly fragmented in China

• In the 20-- Environmental Performance Index, China ranked xth for wastewater treatment

• Some of the chief concerns in this sector are lagging wastewater pipeline networks, low wastewater reuse rate, inefficient infrastructure as well as lack of operational governance

• The Government has planned for an additional yy mn cu m of daily treatment capacity nationwide between 20-- and 20--

• In 20--, zz new treatment plants have been constructed which brings the total count of municipal treatment plants the country owns to p

6

Drivers & Challenges – Summary

Drivers

Accelerating Urbanization

Increasing Industrialization

Water Scarcity drives Wastewater Treatment Operations

Need for Technological Upgradation

High Level of Output by Industries such as Textile and Pulp and Paper

Low Coverage Rate of China’s Treated Water Supply

Challenges

Entry Barriers

Rapidly Increasing Sludge

Water Pricing Mechanism

Increasing Electricity Consumption in Wastewater Treatment Plants

Drug Resistance Gene Produced by Treatment Plants


7

SAMPLE Increasing urbanization rate continue to aggravate demand for treating wastewater

Impact

Urbanization Rate in China

Accelerating Urbanization

• Country’s rapid economic growth has resulted in increase in level of urbanization

• Continuous urbanization mounts to higher demand for wastewater treatment and water supply services

In comparison with rural areas, urban areas usually have higher per capita water demand

• With the mass migration of people to major cities, many of which are in eastern China, increased water consumption in densely populated coastal provinces aggravates imbalances between water supply and demand

• Due to the concentration of industrial, residential and commercial activities in cities, urbanization further drives higher demand for wastewater treatment capacity

• In the early 19--s, approx. p% of the population lived in cities compared to the present figure of q% in 20--

• Urbanization is slated to accelerate and is expected to constitute z% of China’s total population by the end of 20--

• Growing at this rate, it can be estimated that by 20--, China will have about xx cities with more than y mn inhabitants

• Therefore, urban demand for water is expected to increase by k% between 20-- to 20--

y1

y5

y4

y3

y2

20--

x2

20--

x1


8

Trends – Summary


Key Trends

Adoption of MBR technology

Heightened exposure through trade shows

Improved support from banks

9

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact Impact

Impact

Impact

Impact


10

Competitive Benchmarking (1/4)

Public Trading Comparables (FY 2013)

Company A Company B Company C Company D

Market Capitalization (USD mn)

Share Price (USD)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

Note: Major 4 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as of xx/yy/20--


11

Key Ratios of Major 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/4)

z1

z6

z5

z4

z3

z2

Company C

c3

b3

a3

Company B

c2

b2

a2

Company A

c1

b1

a1

% Operating Margin Gross Margin Net Margin

• Text

• Text

• Text


12

SAMPLE Public: Domestic Company – Company A (1/4)

Key People

Products and Services

Company Information Locations – China

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

X1

X2 Name Designation

Person 1

Person 1

Person 1

Person 1

Headquarters


13

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of USD 98.4 mn in FY 2013, as compared to net profit of USD 95.1 mn in FY 2012

• The company reported total income of USD 803.5 mn in FY 2013, registering an increase of 29.28% over FY 2012

• The company earned an operating margin of 17.26% in FY 2013 a decrease of 5.38 percentage points over FY 2012

• The company reported debt to equity ratio of 0.88 in FY 2013, a decrease of 1.97% over FY 2012

Key Financial Performance Indicators

Net Profit/Loss Total Income

0

50

100y3

y2

y1

Profit USD mn

Total Income USD mn

20--

z3

x3

20--

z2

x2

20--

z4

x4

20--

z1

x1

Indicators Value Market Capitalization (USD mn)

Total Enterprise Value (USD mn)

EPS (USD)

PE Ratio (Absolute)

Improved Decline

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Public: Domestic Company – Company A (2/4)


14

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview • Text

Operational Capacity • Text

Upcoming Projects • Text


a3

a1

a2

x2

20--

p1 r1

q1 z1

y1

x1

p3 r3

q3 z3

y3

x3

20--

p2 r2

q2 z2

y2

20--

Land 1 Second-Level Development

Waste Disposal

Others

Expressways

Hotel Operations Construction of Water Supply

b3

b2

b1

d1

20--

China

The company has been operating only in China

for the past 3 years


15

SAMPLE

T O

W S



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Market Research Report : Water and wastewater treatment in china 2015 - Sample

Documents

water treatment industry

supply of water

x1 water

water supply challenges

quality water supply

wastewater segmentation

acute water scarcity

available water flow