2024年水务行业回顾及展望报告：全国水利建设投资规模再创新高，经济稳增长背景下水务行业投资或将继续增长

Investment Rating - The report indicates a stable credit outlook for the water industry, with low credit risk overall [1]. Core Viewpoints - The water industry is expected to continue growing due to increased investment in water infrastructure, driven by government policies and economic stability [1][7]. - The total investment in national water conservancy construction reached 928.98 billion yuan in the first three quarters of 2024, marking a 9.8% increase year-on-year [1][8]. - The water industry is characterized by high entry barriers and stable demand and supply, with a tendency towards regional monopolies and the coexistence of leading companies operating across regions [1][7]. Industry Development Status - The water resources in China are abundant but unevenly distributed, with urban domestic water supply and sewage treatment being significant growth drivers for the industry [2][4]. - The water industry chain includes water extraction, processing, supply, and sewage treatment, with urban water demand influenced by economic growth and population increase [2][3]. Macroeconomic Environment and Policy Guidance - The government has introduced new policies to enhance efficiency, expand capacity, and improve profitability in the water sector [7][9]. - The economic growth rate for the first three quarters of 2024 was 4.8%, with fixed asset investment increasing by 3.4% [8]. Industry Competition Landscape - The water industry is stable, with regional monopolies and leading companies coexisting, primarily consisting of state-owned enterprises [14]. - The competition is expected to focus on environmental governance and related sectors, which require significant capital and technical expertise [14]. Industry Investment - Urban water supply investment reached 75.62 billion yuan in 2023, reflecting a 6% year-on-year increase [15]. - The sewage treatment and recycling investment was 75.81 billion yuan in 2023, up 7.05% from the previous year [16]. Water Price Changes - Water prices in key cities have been adjusted upwards, indicating potential for further increases in the future [17]. - The average sewage treatment price in 36 major cities remained stable at 1.02 yuan per cubic meter, suggesting room for future price adjustments [17]. Financial Performance of Water Enterprises - Water enterprises saw a compound annual growth rate of 4.4% in total revenue from 2021 to 2023, while total profit decreased at a compound annual rate of 16.64% [20]. - In the first three quarters of 2024, total revenue for water enterprises was 249.55 billion yuan, a decline of 3.32% year-on-year [20]. Debt Situation of Water Enterprises - The total debt of water enterprises reached 920.72 billion yuan by the end of 2023, reflecting a 14.15% increase from the previous year [30]. - The debt structure is primarily long-term, with long-term debt accounting for 77.39% as of September 2024 [30]. Bond Issuance Situation of Water Enterprises - In the first ten months of 2024, 52 water enterprises issued bonds totaling 120.56 billion yuan, a 30.44% increase compared to the same period in 2023 [42]. - The average issuance interest rate for short-term bonds was 2.08%, down from 2.44% in 2023, indicating a decrease in financing costs [53].