South Pumps: Centrifugal pump market has certain pricing power

Executive Summary: The company's main business is research and development, manufacturing and sales of stainless steel stamping and welding centrifugal pumps and non-negative pressure frequency conversion water supply equipment. It is the earliest enterprise in China to start R&D and scale production of stainless steel stamping and welding centrifugal pumps. At present, the 2011 semi-annual report earnings per share: 0.26 yuan.

Total share capital: 144 million tradable shares: 360 million semi-annual report 2011 earnings per share: 0.26 yuan listed on restricted shares (December 9, 2011): 395.947 million shares of South Pump is currently the domestic production of stainless steel stamping and welding centrifugal pump product scale The largest manufacturer. The company has certain pricing power in the domestic stainless steel stamping and welding centrifugal pump market.

In order to add the precision stainless steel needed for the 200,000 stainless steel centrifugal pump technological transformation projects in the year, the company successively used super-raised funds of 70 million yuan to invest in Nanzhou Huzhou. After the project is completed and put into production, it will be able to realize the support for an additional 200,000 sets of stainless steel stamping pumps to solve the problems that plague the company's development of parts supply bottlenecks and quality control. The project is expected to be completed and put into operation in June next year.

From the whole year, it is expected that the high growth of company income and net profit is expected to continue. The company is the leading stainless steel punching and welding pump in China. Under the background of water resources shortage and the government's investment in urban and rural residents' drinking water safety, urban water supply capacity construction and water saving, the company's leading product import and replacement of stainless steel punching and welding pumps and its expansion applications The space is vast, and it is expected to continue to maintain an average annual growth rate of more than 30% in revenue and net profit.

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