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The following is the Welcome smart water, embrace smart water meter upgrade 3.0 From Intelligent water meter industry depth report recommended by recordtrend.com. And this article belongs to the classification: Industry information.
1. From smart water meter 1.0 to smart water meter 3.0
Smart water is to sense the operation status of urban water supply and drainage system in real time through online monitoring equipment such as data acquisition instrument, wireless network, water quality and water pressure meter, and organically integrate water management department and water supply and drainage facilities in a visual way to form the “urban water Internet of things”. With AI enabling, it can realize massive water supply and drainage Timely analysis and processing of water information can manage the whole production, management and service process of water system in a more precise and dynamic way, and make corresponding processing results to assist decision-making suggestions, so as to achieve the state of “wisdom”. Among them, “intelligent water meter” plays the role of “eye” in the whole intelligent water system, which is the cornerstone of the realization of intelligent water. For example, in Yingtan City, 130000 intelligent water meters have been installed in the whole area, realizing real-time water consumption measurement and leakage real-time alarm, successfully reducing the leakage rate of pipe network from 20% to 12%, saving 2.4 million tons of water annually.
The types of water meters can be divided according to the principle of measurement
a) Mechanical water meter: the measuring sensor, calculator and indicating device are all water meters with mechanical principle and structure, mainly including speed type water meter (to measure water flow speed and indirectly measure water consumption, reasoning method) and volumetric type water meter (to measure actual fluid volume, direct method). Mechanical water meter is the most traditional water meter, the biggest disadvantage is the need for manual meter reading. With the improvement of human cost and the need of water fine management, it will be gradually replaced by intelligent water meter in the future.
b) Intelligent water meter 1.0: a mechanical water meter equipped with electronic devices, that is, a mechanical water meter with complete structure as the base meter, on which an electronic device is added. The common types include prepaid IC card water meter, photoelectric direct reading remote water meter and wireless remote water meter (LORA / Nb lot). Intelligent water meter 1.0 does not need manual meter reading. It is the general trend for intelligent water meter to replace traditional water meter. Among them, policy support + standard unified Internet of things NB lot wireless remote water meter will occupy the dominant position.
c) Intelligent water meter 2.0: Based on the principle of electricity and electronics, common types include ultrasonic water meter, electromagnetic remote water meter, jet water meter, etc. Electronic water meter uses electromagnetic, ultrasonic and other advanced flow measurement technology to achieve the purpose of accurate measurement of water quantity. Compared with mechanical water meter, it has higher accuracy and lower initial flow. The disadvantage is that it has higher price and is more suitable for industrial process measurement and other application fields with higher accuracy demand.
d) Intelligent water meter 3.0: at present, it is in the stage of commercial research and development. In addition to the basic functions of the existing intelligent water meter, it can also measure the comprehensive water parameters of the pipe network, and provide water supply enterprises with online integrated and cost-effective big data sensing devices for the pipe network (including: water quantity, water pressure, water pressure) It can provide massive data support for the new business of smart water supply and water information cloud platform, so that the water supply enterprises can carry out the urgent new business as soon as possible, such as the comprehensive and accurate control of pipe network pressure and water quantity, energy saving and consumption reduction, online water quality monitoring and early warning and alarm at the end of pipe network, monitoring and accurate positioning of pipe network leakage and seepage status.
At present, the domestic water meter industry is in the situation of coexistence of mechanical water meter, intelligent water meter 1.0 represented by prepaid IC card water meter, photoelectric direct reading remote water meter and wireless remote water meter, and intelligent water meter 2.0 represented by ultrasonic water meter and electromagnetic water meter. Mechanical water meter still occupies an important share, and the proportion of intelligent water meter increases year by year. Among them, the intelligent water meter has also experienced the upgrading process from prepaid IC card water meter, wired remote water meter to wireless remote water meter. In the past 17 years, with the policy guidance of the Ministry of industry and information technology, the market space of Nb IOT, which is becoming more and more perfect, has been released rapidly, driving the promotion of Nb IOT water meters. It is expected that Nb IOT water meters will still penetrate rapidly in the next five years, and the number of manual meter reading areas will be greatly reduced. In the medium term, with the need of pipeline leakage control, cost reduction and efficiency improvement of water operation, and intelligent operation, intelligent water meter will be further upgraded, and 3.0 intelligent water meter with the function of measuring comprehensive water parameters of pipeline network is expected to be on the stage.
2. Policy + demand + technology, Troika driving intelligent water meter penetration
Electric power, gas and water supply are three large-scale meter application markets in China, which have different types of intelligent demand. At present, the penetration rate of smart meters is the highest, and it is the most mature market, with a share of nearly 90%; after years of promotion, the penetration rate of smart gas meters has exceeded 50%; smart water meters have grown rapidly in recent years, but the overall penetration rate is still low, accounting for only about 30%.
The promotion of smart electricity meters and smart gas meters started from the 12th Five Year Plan period, while the promotion process of smart water meters was slower than that of electricity meters and gas meters 17 years ago, which was mainly affected by many factors
The downstream customers of water meter are scattered. Compared with the gas and power industry, the leading enterprises are large state-owned enterprises with high market concentration. The downstream customers of the water meter industry are more than 4000 Waterworks in China. The industry is very scattered and the downstream customers are highly regional, which makes it difficult to promote.
There is no unified technical route and standard, and the quality service is uneven, which leads to poor early application effect. The national water system is very scattered, and there is no unified management of enterprises similar to the State Grid. The technical force is not as “strong” as the power industry. Therefore, the revision of the standard system and system can only be undertaken by the water meter industry association. Compared with the electricity meter with network access certificate, the communication of each electricity meter will be monitored. No one is responsible for the water meter’s network access, and the concentrator has no place to monitor.
Most of the waterworks are public institutions, and their profitability is not as good as that of gas companies and electric power companies. Moreover, the waterworks need to bear huge pipeline operation and maintenance costs, and the funds for water meter transformation are relatively tight.
Since 17 years ago, under the influence of policy guidance, large-scale demand, mature technology and other factors, the penetration of intelligent water meters has increased significantly.
Policy guidance: in June 2017, the Ministry of industry and information technology issued the notice on comprehensively promoting the construction and development of mobile Internet of things (NB IOT), which clearly mentioned that the application of Nb IOT in urban public services and public management should be accelerated by taking water, electricity, gas meter intelligent measurement, public parking management, environmental protection monitoring and other fields as the breakthrough points. On July 17, 2017, Nb IOT network was officially put into commercial use. Under the guidance of policies, infrastructure and supporting facilities were gradually improved, and Nb IOT intelligent water meters were able to shine.
Demand volume: over the years, there are many management pain points in the water supply industry. On the one hand, manual meter reading is facing higher and higher operating cost pressure with the rising labor cost. At the same time, manual meter reading also has the defects of long settlement cycle and easy to make mistakes. On the other hand, the leakage rate of water supply enterprises in China remains high. According to the statistical yearbook of urban water supply, the average production and marketing difference of water supply enterprises in 603 cities in 2015 was 20.7%. In January 2017, the work guide for zonal measurement management of urban water supply network – Construction of leakage control system of water supply network (Trial Implementation) proposed that the leakage rate of urban public water supply network in China should be controlled within 10% by 2020. The introduction of policies makes the demand for leakage control more urgent. On the one hand, the use of intelligent water meter can replace manual meter reading and improve operation efficiency, on the other hand, it is also the basis for water supply enterprises to carry out leakage control of pipe network. In addition, in March 2017, the world’s first NB IOT smart water business project was released, and more than 1200 NB IOT smart water meters were deployed in Yantian District and Futian District of Shenzhen city. Successful demonstration cases also dispelled industry concerns and accelerated the release of demand for smart water meters.
Mature technology: NB IOT remote water meter has the characteristics of wide technology coverage, low cost, low power consumption, many connections and low speed. Compared with wired remote water meter, Nb IOT water meter has the advantages of convenient wiring and line maintenance, no need to be arranged in advance, saving the cost of installation and maintenance; compared with other wireless remote water meters, Nb IOT water meter has more advantages The water meter adopts the authorized spectrum and adopts the mature narrow-band Internet of things technology, which solves the problems of small user capacity, high power consumption, poor signal and poor security of other wireless water meter communication base stations.
The water meter industry in China is still in a period of rapid development under the background of increasing penetration rate of intelligent water meters. In 19 years, the market scale of China’s water meter industry was about 11.1 billion yuan. According to research statistics, Lora intelligent water meter was about 260 yuan, Nb IOT intelligent water meter was about 280-350 yuan, the average unit price of traditional mechanical water meter was 77 yuan, and the price of Internet of things water meter was more than three times that of traditional mechanical water meter. At present, the penetration rate of intelligent water meters is about 30%, and the proportion of Internet of things water meters in intelligent water meters is only 30%. With the increase of penetration rate of Nb IOT and other Internet of things water meters with higher unit price, it is estimated that the overall water meter industry will still grow by 15-20% in the next three years, and the growth rate of intelligent water meter market will reach 25% – 30%.
The evolution of concentration degree of water meter industry has also experienced a process of “high low high”. Due to the increase in the number of production enterprises, the competition in the water meter industry has intensified significantly in 14-17 years, and the industry has fallen into a price war. Low price products sacrificing quality have gradually seized the market share of leading enterprises. Since then, with the exposure of quality problems of low-cost products and the accelerated promotion of Nb IOT intelligent water meters in 17 years, downstream customers have paid more attention to brands, the industry has returned to healthy competition, and the concentration has risen again. Intelligent water meter has the characteristics of combination of software and hardware, the technical threshold is relatively high, and customers also have the demand for follow-up operation and maintenance, technology upgrade, software update and other services after use. Large water meter enterprises have more rapid response after-sales service. We believe that in the future, with the increase of penetration rate of intelligent water meter and the promotion of intelligent water business, leading enterprises will benefit from the improvement of industry concentration.
3. Comparative analysis of water meter faucets driven by NB IOT intelligent water meter sales
From the business scope of the four listed water meter companies, ningshui group’s business is relatively pure and concentrated in the field of water meters. Among them, ningshui group’s intelligent water meters account for 53% of its revenue, and Sanchuan wisdom accounts for 61%. Xintian technology’s main business is intelligent measuring instruments and systems. Its products cover four series of intelligent water meters, heat meters, intelligent gas meters and intelligent electricity meters. At the same time, it has also arranged power simulation training and water-saving business. It is mainly engaged in intelligent ultrasonic flow measurement products, including ultrasonic heat meters, ultrasonic water meters and ultrasonic flow meters.
Among the four listed water meter companies, although the roe of 24.2% of ningshui group in 2019 is lower than that in previous years, it is still the highest level in the industry, thanks to the company’s high asset turnover rate. The decline of roe in 2019 is mainly due to the initial fund raising and the expansion of intelligent water meter business, which makes the equity multiplier and asset turnover rate of ningshui group decline. The roe level of Huizhong shares is also relatively high, which was 16.4% in 19 years. Thanks to the high net profit rate of the company’s ultrasonic flow measurement products, the company’s roe has increased year by year in recent years, mainly due to the synchronous improvement of the company’s net profit rate, asset turnover rate and equity multiplier with the increase of the sales volume of ultrasonic flow measurement products. The roe of Xintian technology and Sanchuan wisdom were 13.3% and 11.4% respectively in 2009. With the sales growth of Nb IOT products in 19 years, the roe has increased significantly compared with previous years.
In terms of operational capacity, ningshui group has the highest operational efficiency, followed by Xintian technology, while Sanchuan wisdom and Huizhong share have relatively poor operational efficiency. Ningshui group’s accounts receivable turnover days of about 70 days are far ahead of other comparable companies. At the same time, the accounts payable turnover days of 80-100 days are also at a better level in the industry, indicating that the company has a strong bargaining power both for customers and upstream suppliers. With the increase of the proportion of intelligent water meters, the number of days of inventory turnover caused by the company’s stock preparation increased slightly, but it is still better than other comparable listed companies. Due to its business structure, Xintian technology mainly produces intelligent meter products. Compared with traditional water meter companies, the delivery and acceptance cycle of intelligent products is longer, so the inventory turnover days of Xintian are relatively high. However, the rapid turnover of accounts receivable and the long turnover days of accounts payable also make the company’s operation efficiency excellent, with a net business cycle of 141 days, Second only to ningshui group.
The four listed water meter companies have their own characteristics
The ningshui group has been deeply engaged in the industry for more than 60 years, and has established a stable relationship with more than 2000 water companies in China, with a customer coverage rate of 60%. Its Ningbo brand water meters are well-known in the industry. Although the intelligent products of the company started relatively late, they are rapidly making up for their own shortcomings in information technology. Relying on their own brand and channel advantages, the market share of intelligent products has increased year by year, and at present, they are also increasing the number of intelligent water meters In the future, the R & D efforts of 2.0 and 3.0 will extend to the field of upstream sensor and downstream intelligent water integrated platform, and consolidate its own moat.
The product category of Xintian technology meter is complete, including intelligent water meter, heat meter, intelligent gas meter and intelligent electricity meter There is still a gap between the company and ningshui group, which is the first in the industry in terms of channels. However, the company has seized the first opportunity in the intellectualization of products and has developed rapidly in recent years. At the same time, the company has a broad market space in the fields of Intelligent Agriculture and agricultural water saving, which is expected to become the second growth power source of the company.
In the future, with the continuous investment of ningshui group in the research and development of ultrasonic water meters, if the company can not continue to maintain the leading technology, Huizhong’s market share of ultrasonic water meters will be challenged by ningshui group.
The company has established and maintained long-term and stable business relations with about 1400 water meters above the county level in China at any time, with a customer coverage rate of about 40%. There is a certain gap in channels and brands compared with ningshui group.
4. Investment strategy
The water meter industry in China is still in a period of rapid development under the background of increasing penetration rate of intelligent water meters. In 19 years, the market scale of China’s water meter industry was about 11.1 billion. At present, the penetration rate of intelligent water meters is about 30%, of which the Internet of things water meters account for only 30% of intelligent water meters. With the increase of penetration rate of Nb IOT and other Internet of things water meters with higher unit price, it is estimated that the overall water meter industry will still grow by 15-20% in the next three years, of which the growth rate of intelligent water meter market will reach 25% – 30%.
The market scale of pure hardware in the water meter industry is small. If the leader wants to break through the ceiling of market value, he must extend to the downstream intelligent water service platform, or construct the second growth curve in other related fields. In the competition of water meter enterprises in the future, the enterprises with brand, channel, combination of software and hardware, and the ability to provide intelligent water comprehensive solutions are expected to further expand their market share in the field of water meter. Meanwhile, the companies with the second growth point other than water meter are expected to obtain sustained growth momentum in the long term.
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