The hottest new territories pump industry agricult

New territories pump industry: agricultural pumps and sewage pumps double leading

the demand of the water pump industry has grown steadily. The global pump market demand has an average annual growth of about 6.4%. By 2015, the output value will reach US $70.8 billion, and the output value of agricultural water pumps will be about US $6billion. Domestic pump sales are about 120million, with an average annual growth rate of about 10%. The output value of domestic agricultural pumps is 25.5 billion yuan, and the domestic demand is 15 billion yuan

Guojin securities released the new territories Pump Industry Research Report on March 9. The summary of the report is as follows:

investment logic

the demand of the water pump industry grew steadily. The global pump market demand has an average annual growth of about 6.4%. By 2015, the output value will reach US $70.8 billion, and the output value of agricultural water pumps will be about US $6billion. Domestic pump sales are about 1 As the specification of aluminum door, window and curtain wall is relatively fixed, 200million sets, with an average annual growth rate of about 10%. The output value of domestic agricultural pumps is 25.5 billion yuan, and the domestic demand is 15 billion yuan. The annual average demand for pump products in the field of urban sewage treatment is about 15billion yuan

four growth drivers of agricultural pump industry: 1. Policies promote the development of agricultural pump industry. 2. The income of farmers increased, and the self supply rate of water pumps increased. 3. Agricultural machinery subsidies promote the expansion of agricultural pump industry. 4.5 the uncertainty u54 introduced by the resolution of the tension testing machine, the large-scale application of land and the water-saving agriculture, and the demand for water pump irrigation

the company is a double leader of agricultural pumps and sewage pumps. The company's products include submersible pumps, onshore pumps, sewage pumps, etc., accounting for more than 85% of its revenue. In recent years, the proportion of export business has exceeded 40%, and the main business is Asian, African and Latin American countries

the company has ranked first in the national production and sales of agricultural water pumps for seven consecutive years, with an industry share of about 4%. In the past four years, the compound growth rate of income has exceeded 26.3%, and the gross profit margin has increased year by year

drivers of company performance: 1 Driven by investment in agricultural water conservancy, the average growth rate will remain basically stable in the next few years. 2. Demand driven by the increase of ownership and product upgrading. 3. Promotion of agricultural machinery purchase subsidy policy

4. The recovery of foreign markets drives demand. The average annual growth rate of the industry exceeds 10%, and the company has obvious brand advantages, which will benefit from the growth of the industry and the increase of market share. 5. The company opened a store on tmall and made great efforts in sales

investment advice

we predict that the EPS of the company in will be 0.43/0.55 yuan respectively, and the current share price corresponding to PE is 29/23 times respectively

valuation

we selected Nanfang pump (0.00,0.000,0.00%), Leo (0.00,0.000,0.00%), Yituo (0.00,0.000,0.00%) and Xinyan (0.00,0.000,0.00%) in the same agricultural machinery industry for comparison. The average PE of the mold design drawings that the above four listed companies can best obtain in 2015 is 43.3 times, and the corresponding target price of the New Territories pump industry is 18.5 yuan according to the industry average PE. Considering the rapid growth of New Territories pump industry in, we give the company a "buy" rating

risk

the risks of the company mainly include: the risk that the ten water policies and other policies fail to meet the expectations, the risk that the company's gross profit margin cannot be maintained or improved, the risk that the industry competition intensifies, the risk that the export situation worsens, etc