China's pump and valve industry revenue will be on a new scale

According to incomplete statistics, the output value of pump products in China is more than 40 billion yuan each year. Every year, 20%-25% of the nation's power generation capacity is consumed in pump products. The number of pump products in China is more than 6,000.

During the “Twelfth Five-Year Plan” period, the pump and valve industry played a guiding role in the development of new industrial industries. A resource-saving and environment-friendly society is the future direction of the development of the pump and valve industry. Benefited from the financial crisis, due to the decline in orders and the increase in raw material prices during the financial crisis in China's pump and valve industry, it led to the survival of the fittest within the industry, and some companies with backward production capacity were eliminated, thus making the pump and valve industry “lightly mounted”. , to achieve a better space for development.

Under the support of China's policy during the 12th Five-Year Plan period, China's submersible pump industry is booming. And the state vigorously supports a number of sewage pump companies to ensure the construction of urban sewage discharge and sewage pumping stations. The stainless steel pump replacement process is expected to accelerate.

In 2002, there were 598 large-scale pump manufacturers in China, with a total output of 17.447 million units. The total industrial output value was 16.162 billion yuan, and the sales income of products was 15.088 billion yuan, and the profit was 814 million yuan. According to the statistics of 147 key enterprises in the industry, the total industrial output value was 6.055 billion yuan in 2002, an increase of 18.52% over the previous year, and the sales output value was 6.05 billion yuan, an increase of 15.26% over the previous year; the industrial added value was 1.91 billion yuan. , an increase of 18.62% over the previous year; completed export delivery value of 669 million yuan, an increase of 22.42% over the previous year. In 2003, 699 enterprises in the pump industry completed an industrial output value of 20.8 billion yuan, a year-on-year increase of 26.8%.

The promotion of policies has been strengthened, and society has a strong demand for water quality improvement. As a result, the market for stainless steel pumps with high energy efficiency and little secondary pollution has been given development opportunities. In 2011, the total domestic output of water pumps was 97.39 million units, non-agricultural 25 million units, and the calculated sales of stainless steel pumps accounted for less than 18%. The conservative alternative space was 2-3 times the current market size, and the non-agricultural sector’s share increased to 50. -60%, as well as partial replacement of agricultural pumps, the industry is expected to maintain a 20% growth rate in the coming years.

It is expected that its quarterly revenue will be on a new scale

Last year, the 2Q company's single-quarter revenue reached 200 million yuan for the first time, and this year's 4Q is expected to reach 300 million yuan. The company has a market share of 13-15% in the stainless steel pump market. The international brand share in the market still exceeds 50%, while a small number of small pump companies with an income of 100 million yuan or less exist in large numbers. Therefore, the company has the potential for substitution in these two areas. The scale effect is The company's important competitive advantage. On the other hand, the company has made significant progress in diversifying its products and will gain new developments in the industrial pumps, small and medium sewage pumps and other markets.

Industrial pump business grows rapidly

Since the company purchased the Nanchang Changhe last year, it has increased its investment on the one hand, and on the other hand, it has increased the level of management, R&D and sales, and the products have gradually gained recognition. This year, it obtained 50 million yuan in Iraqi Ministry of Water Resources and other major achievements such as NASA and other high-end customers. In the future, while increasing overseas sales efforts, it will also enhance the development of the domestic high-end industrial pump market, and this year it will achieve profitability at its breakeven point of ~50 million yuan/A. In addition, the company's seawater desalination pump, which has a project volume of 125,000 tons, has been completed and will be accompanied by the desalination market. The long-term prospects are promising. In addition, the demand for small and medium sized sewage pumps in the South Tsurumi City is closely related to the growth of the environmental protection industry.

From periodicity to growth

The market tends to link the cyclical nature of real estate with the company. It is understood that the company's income is 20% for water supply, 20% for water treatment, 15% for HVAC, 15% for industrial sites such as pharmaceuticals, and 30% for others. The current growth of the stainless steel pump market and the company's business is even more pronounced. Combined with the company's sound financial and strong cost control capabilities, high performance growth is expected to be sustainable in the coming years.

During the 12th Five-Year Plan period, China’s submersible pump companies intervened in the submersible pump industry’s policy and the submersible pump industry became an important revenue for the state’s finances. Along with the year-on-year increase, sewage pump companies are expected to have a greater leap forward in δ in 10 years. .