Industrial valve leading to benefit from the recovery of the industry

A full set of industrial valve solutions suppliers, accounting for more than 70% of overseas revenue. The company provides a full range of industrial valve solutions for customers, the production of valves, valve cover valve, check valve, ball valve, butterfly valve, regulating valve, safety valve and nuclear power valve etc, have the ability to provide basic coverage of the industry portfolio for oil and natural gas, chemical industry, electric power and other industries. Is the domestic valve industry for large multinational enterprise groups approved by most enterprises. Now has 60 patents, of which 11 products were rated as high-tech products. The company has formed a multi-level marketing network covering the whole world, the proportion of overseas revenue increased year by year, in the first half of 2016 reached 70.88%.

Stabilization of the oil industry to pick up, industrial valve market is expected to improve. Since mid 2016, crude oil supply and demand difference gradually reduced, WTI crude oil futures settlement price from the lowest at the beginning of 2016 rose to the current $50 a barrel, the number of global drilling began to rebound trend, grew from 1407 in June 2016 to 2027 in February this year. The rise in oil prices to promote the growth of the number of oil rigs, oil mining equipment investment recovery, and thus promote the recovery of the valve industry. Mcilvaine report shows that when crude oil prices at $40 / barrel, the growth rate of industrial valve market close to 10%.

Domestic oil and gas pipeline investment increase, the company will benefit from the valve business. "It is pointed out that natural gas development plan" in the "13th Five-Year", "13th Five-Year", to create a new national natural gas trunk and supporting pipeline 40 thousand kilometers, in 2020 the total mileage of 104 thousand kilometers. Oil transportation, oil development "pointed out that" 13th Five-Year "plan", "13th Five-Year" during the completion of crude oil pipeline is about 5000 kilometers, built 12000 km oil pipeline; by 2020, completed a total of 32 thousand kilometers of crude oil pipelines, oil pipelines 33 thousand kilometers. The company with manufacturing technology in large diameter valves on advanced and reliable quality, in the west east gas pipeline project and the local oil and gas pipeline construction projects, the large diameter of the valve to a large number of orders, with major domestic oil companies and oil and gas companies to establish good relations of cooperation. With the oil and gas pipeline industry to further increase investment, the company will benefit from the valve business.

Actively expand the nuclear valve business, performance can be expected. "Power development plan", "13th Five-Year" in the "13th Five-Year plan" period, the national nuclear power production of about 30 thousand MW, started more than 30 thousand MW installed capacity in 2020 reached 58 thousand MW, the average annual growth rate will reach 16.25%. All parts of the nuclear island equipment investment, accounting for 13% of the valve. In accordance with the scale of China's nuclear power installed capacity reached 58 thousand MW in 2020, China needs to build a new nuclear power plant with a total of 14 units of two kilowatts of nuclear power stations, the total investment of about 8 billion 848 million yuan nuclear valve. The company actively expanding nuclear valve business, the company won the bid in May 2015, Hongyanhe Nuclear power project unit 5-6 supply contract, the total contract amount of about 18 million 290 thousand yuan; in December 2016, the company once again bid 3-4 Fangchenggang project unit valve contract, the contract amount of about 39 million 810 thousand yuan. Two consecutive years to obtain orders in the construction of nuclear power projects. With the development of nuclear power, nuclear power demand will continue to expand the size of the valve, the valve business performance can be expected.