The company specializes in R & D, production and sales of well submersible pumps, small submersible pumps and land pumps. According to the statistics of drainage and Irrigation Branch of China Agricultural Machinery Industry Association, the company is currently the largest manufacturer and exporter of well submersible pumps in China, with more than 40 series and more than 2000 models, which are widely used in agriculture and forestry irrigation, domestic water intake, industrial water, pumping station water lifting, municipal engineering, building water supply, sewage / clean water treatment and other fields. With its excellent quality, own export rights and high-quality service, Dongyin's products are sold all over Asia, Europe, Africa and more than 60 countries and regions.
China accounted for more than 45% of the global submersible pump market capacity of 3 billion US dollars in 2016. At present, countries all over the world are facing the problem of lack of water resources, and groundwater resources are abundant, which can solve the problem of global water shortage, and submersible pumps are the main tools for groundwater development. According to the statistics of the drainage and Irrigation Machinery Branch of the China Agricultural Machinery Industry Association, it is estimated that by 2016, the global well submersible pump will double from 2011 to 3.07 billion US dollars, with an average annual compound growth rate of nearly 15%. China's well submersible pumps will triple compared with 2011, reaching 9.66 billion yuan, with an average annual compound growth rate of nearly 25%. At present, China's submersible pump market demand has accounted for more than 45% of the global share.
The company has a significant competitive advantage, and its domestic market share is among the best. The company has significant advantages in technology research and development, product quality and performance-to-price ratio, market, brand and other fields. According to the statistics of the drainage and Irrigation Machinery Branch of China Agricultural Machinery Industry Association, the sales scale of the company's well submersible pumps ranked first in China for two consecutive years in 2012 and 2013, and also occupied a high market share in Asia and Africa.
Capacity bottlenecks are expected to ease by the end of the year. One of the IPO investment projects of the company is the annual production of 1 million submersible pumps. After reaching production, there will be 800000 new submersible pumps for wells and 200000 small submersible pumps, which will be able to increase the company's average annual sales income of 642 million yuan and net profit of 63.27 million yuan. While the company's capacity bottleneck is expected to be alleviated, the company will also gain momentum for growth. At present, the construction of the project with an annual production capacity of 1 million submersible pumps is in the final stage and is expected to reach the scheduled state of use by the end of the year.
Profit forecast and investment rating. It is estimated that the company's earnings per share from 2016 to 2018 are 0.97 yuan, 1.08 yuan and 1.44 yuan respectively, corresponding to the closing price of 72.42 yuan in the previous trading day, the price-to-earnings ratio is 75 times, 67 times and 50 times respectively. For the first time, the company was given an investment rating of "prudent recommendation".
