A-share listed companies lined up to set feet in environmental protection business like solid wastes disposal via merger and acquisitions (M&As) in the past months. Since late October, six new M&A cases in environmental protection sector have been registered, involving some 3.06 billion yuan of disclosed value.
For instance, Shanghai Mechanical and Electrical Industry Co., Ltd. (600835.SH) announced on October 20 to buy 100 percent equity of a Switzerland-based clean technology company at a price of 24.4 million yuan, while Orient Landscape Industry Group Ltd. (002310.SZ) announced on October 28 to acquire 60 percent stake of Fuyang Shenneng Solid Waste Disposal and Regeneration Co., Ltd through 1.46 billion yuan of cash payment.
Analysts from Essence International said that compared with waste water disposal and waster gas disposal, solid wastes disposal sector became the favorite due to high recovery, more market segmentations and high access standards.
According to statistics from Wind Information, A-share listed companies in environmental protection sector have achieved 37.63 billion yuan in revenue in the first three quarter, up 25 percent year on year, which revealed boom of the industry.
CITIC Securities said that A-share investors were suggested to pay close attention to Beijing Origin Water Technology Co., Ltd (300070.SZ), Shenzhen Seg Samsung Glass (000068.SZ), Xingyuan Environment Technology (300266.SZ), Beijing SDL Technology Co., Ltd (002658.SZ), Hebei Sailhero Environmental Protection High-tech (300137.SZ), Dongjiang Environmental Co., Ltd (002672.SZ) and Wuxi Xuelang Environmental Technology Co., Ltd (300385.SZ).