Environmental testing equipment provider will benefit from PM2.5 air monitoring

Introduction: As PM2.5 air monitoring has received unprecedented attention in all sectors of society, the capital market has also begun to pay attention to the value of environmental monitoring concept stocks.

“Environmental investment drives monitoring equipment first.” Xiao Jie, an analyst at Huatai United Securities, said that the successful completion of future environmental protection indicators depends on the strict control of environmental monitoring (including air environment and surface water quality monitoring, waste gas and wastewater pollution source monitoring). Under the logic driven by environmental protection investment, the industry leader in environmental monitoring equipment such as the monitoring equipment industry and environmental protection and concentrating technology will be the first to benefit.

She said that according to the search and statistics on government tender information for environmental monitoring equipment in 2009, Sanhe Environmental Protection had a market share of more than 30% in the field of airline on-line monitoring systems, and most benefited from government tender procurement of PM2.5 monitoring equipment.

“According to calculations, the investment in the air monitoring system will exceed 2 billion during the 12th Five-Year Plan period, and with a conservative 30% market share, the company’s average annual revenue in the field of air online monitoring system equipment will reach 120 million yuan, up from 2010. The growth rate is about 40%. Among them, government procurement bidding will become a major stimulus factor.” Xiao Jie said.

According to her introduction, Concentration's main business is research and development, production and sales of instruments used in environmental monitoring, industrial process analysis and safety monitoring. The environmental monitoring system (including the pollution source monitoring system, the wastewater pollution source detection system, the ambient air quality monitoring system, and the surface water quality monitoring system) accounted for about 50% of the company's total revenue. From 2008 to 2010, the company's revenue in environmental monitoring systems was 130 million, 285 million, and 316 million, respectively.

Chen Long, an analyst at Minsheng Securities, said that imported PM2.5 monitoring instruments have disadvantages such as high prices and low measurement readings. The beta-ray-based instruments introduced by domestic manufacturers have fully compensated for these two deficiencies, and the competitive advantage is very prominent.

“At present, the scale of government procurement is relatively small. We expect that once large-scale purchases are made, domestic manufacturers are expected to share a feast of up to 2 billion PM2.5 monitoring instruments by virtue of their advantages in products and services,” said Chen Long.