Premier Li Keqiang presided over an executive meeting of the State Council recently. Conference pointed out that, in view of the long-standing city underground infrastructure behind the prominent problems, should start from the situation of our country, draw lessons from international advanced experience, in the city built for centralized laying electricity, communications, radio and television, water supply and drainage, heating, gas and other municipal pipeline comprehensive underground pipeline corridor, as a national key support of the people's livelihood project.
In fact, policies on urban pipe network construction have been issued frequently recently, and two important documents have been issued, the Interim Measures for the Management of Special Funds for Urban Pipe Network (hereinafter referred to as the Measures) and the Investment Estimation Index for Urban Comprehensive Pipe Network Project. The Measures, formulated by the Ministry of Finance and the Ministry of Housing and Urban-rural Development, make it clear that the special funds will be used to support the construction of urban sewage treatment facilities supporting pipe networks and sewage pumping stations, the pilot construction of sponge cities, the pilot construction of underground comprehensive pipe gallery and other matters requiring support for the construction of urban ecological space.
In this regard, Guojin Securities said that the above two documents are the framework provisions necessary for substantive actions at the city level, in the context of steady growth, the growth rate of urban pipe network investment will accelerate. In the context of rising policy level and release of catalytic effect, it is suggested that investors pay attention to the following items successively: Natuan (mainly producing HDPE winding reinforcing pipes for drainage pipe network), Guotong (leading company of PCCP pipe network industry) and Tunnel (leading company of underground pipe network construction). According to the market performance on July 30, Qinglong pipe industry rose by the daily limit, and several underground pipe network concept stocks, such as Guotong Stock And Julong pipe industry, rose more than 8%.
Qilu securities also said the pipeline network investment is a medium - and long-term opportunity: a new round of pipeline network investment involves the renovation of old pipe network and the construction of new comprehensive pipe network, which will bring a large number of orders for pipeline companies if the nationwide construction starts. In Chongqing, for example, the renovation of old underground pipelines will be completed in the next five years, with about 68,000 kilometers of pipeline network to be inspected. The pilot project of comprehensive pipeline gallery will be completed by the end of 2015, and the project construction is also expected to be completed in the next few years. Underground pipelines involve a variety of types, including steel pipes, cast pipes, composite pipes and so on. If the planning is well implemented, orders from relevant enterprises are expected to break out in the future.
It is worth mentioning that the personage inside course of study says, has issued by the State Council "water pollution prevention plan of action" shows the government's determination of water pollution control, and black smelly water in cities and towns governance is action plan for water pollution prevention and control of target one of the most difficult tasks, management the key is to cut pollution, it puts forward new requirements for pipe network construction, to a certain extent, is conducive to improve the performance of listed companies.