In terms of the external environment, the legal framework for environmental protection has been established, industry and technical specifications have been gradually released, and a number of national policies have defined the strategic development plan for the solid waste treatment industry, setting milestones and supplemented by other specific policies to guide the development direction of the solid waste treatment industry, the solid waste treatment industry has ushered in a period of better external development environment against the background of national support and encouragement for development, and the overall external risk to the industry is The overall external risk of the industry is relatively small.
As for industry risks, the national regulation of pollutant emission standards is becoming stricter and stricter, unqualified enterprises will be punished and affect the future business expansion of enterprises, and enterprises with lower technology level are at high risk of being eliminated. In addition, the background of state-owned enterprises, the regional advantage of the main business scope and the advantage of lower financing costs will also have a certain enhancement effect on the credit level of solid waste treatment enterprises. The main players with leading treatment technology, complete industrial chain, rich operational experience and strong capital strength will dominate the market.
In terms of financial status, the solid waste treatment industry is in the early stage of development, and the overall asset size is relatively small, with greater pressure on future investment and facing certain financing pressure. In general, the solid waste treatment industry as a whole is in good operating condition, with moderate leverage and strong debt servicing capacity. At the same time, we need to pay attention to the financial risks associated with the increase in goodwill of enterprises in the industry during the merger and acquisition process, the amount of investment and sources of funding for projects under construction and in the pipeline.
Overall, with the further development of various segments of the solid waste industry and the further improvement of policies and standard systems, the level of competition will continue to rise. Considering the continuous improvement of the market pattern in recent years and the influence of various solid waste policies, the future industry profitability has room for growth and the industry outlook is stable and positive. At the same time, as the domestic solid waste industry mergers and acquisitions continue to increase, the credit level of enterprises with strong processing scale and capital strength will also be on an upward trend.
