China's submersible pump industry is booming

China's submersible pump industry is booming 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.

This week, the Ministry of Finance has issued a promotion plan for the Qingmin Water Centrifugal Pump, an energy-saving product Huimin Project. The energy-efficient products are expected to achieve a 5-10% subsidy; in addition, the stricter new tap water standard will be implemented in July this year.

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%. Its conservative alternative space is 2-3 times the current market size (taking into account the non-agricultural share of the market rose to 50-60%, and some areas of agricultural pump replacement, 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 acquired the Long River in the South last year, it has increased its investment on the one hand and expanded its management, R&D and sales levels on the other hand. The products have gradually gained recognition. This year, it obtained 50 million yuan in Iraqi Ministry of Water Resources and other large-scale performance (as well as high-end customers such as NASA). To increase overseas sales efforts, it will also enhance the domestic market for high-end industrial pumps and will achieve profitability this year (the break-even point - 50 million yuan / A). In addition, the company's seawater desalination pump (1.25 million tons) project has been completed, which will accompany the desalination market growth, and the long-term prospects are worth watching. 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, and understand that the company's income is 20%? Yushui, 20% water treatment, 15% for HVAC, 15% for industrial sites (eg pharmaceuticals), 30% 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, it is expected that the high growth in performance in the coming years will be sustainable.

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

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