Quanchai Power: Eight ministries support full power

The executive meeting of the State Council decided to increase subsidies for farm machinery purchases to 10 billion yuan in 2009. The state’s supportive policies for agriculture will continue to prosper our country’s agriculture. The introduction of the farmland transfer policy has led to the full-scale mechanization of agriculture in China, and the demand for agricultural machinery has greatly increased. The diesel engine is the model with the highest heat rate, the best energy efficiency, the most energy-saving and the cleanest among various power machines, and is widely used in various agricultural machinery. At the same time, the state-subsidized hybrid passenger car takes diesel as the dominant power, and Foton Motor Co., Ltd. The manufacturers of hybrid vehicles such as Ankai Bus, Yaxing Bus, JAC Automobile, Zhongtong Bus, and Changan Automobile performed equally well. Due to the strong demand for environmentally friendly diesel engines from agricultural and hybrid vehicles, Dongan Power's share price has risen by 3%. , Yunnei’s stock price has doubled, and the power sector has accelerated to meet new opportunities.

At the same time, the policy of “automobile going to the countryside” was formally implemented on March 1, 2009. The state will allocate 5 billion yuan to give three-wheeled vehicles to farmers and low-speed trucks to buy light-duty trucks and to buy minibuses with a displacement of 1.3 liters or less. One-time financial subsidies, according to estimates by relevant agencies, this policy will reduce the cost of car purchases by 5% to 10%. Coupled with the previous central government’s 4 trillion investment to stimulate domestic demand and promote new rural construction, many Expansion will promote "cars to the countryside", making the rural car market perhaps the new growth point for car sales this year.

Quanchai Power is a leading company in China's environmental protection diesel engine industry. Its products are widely used in various combine harvesters, large and medium-sized agricultural machinery, pumps, pumps, etc. The main domestic major customers of Quanchai Power are the biggest beneficiaries of the car-to-country policy. Light truck manufacturers Foton Motor, Dongfeng Motor, and JAC etc. Beiqi Foton as the second largest shareholder of Quanchai Power, Anhui Jianghuai Group, as the largest user in the province, naturally brings huge product demand to Quanchai Power, and the automobile to the countryside policy It will prompt its future orders and production to further increase and become the main driving force for growth. At the same time, the introduction of the farmland transfer policy has led to the full-scale mechanization of agriculture in China, and the demand for agricultural machinery has greatly increased. Quanchai Power also directly benefits from the support of national policies as an agricultural machinery. Quanchai Power has two major benefits, which are given to the company. Bring rare opportunities for development, the future will show its strength, and the stamina should not be overlooked.

Investment highlights:

First of all: benefit from the support of environmental protection industry policies, the company usher in a period of rapid development

The State Economic and Trade Commission together with the State Development Planning Commission, the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Construction, the People’s Bank of China, the State Administration of Taxation, and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued the “Opinions on Accelerating the Development of the Environmental Protection Industry”, with regard to taxation, loans, and other aspects. Industry supports and encourages environmentally friendly companies with good quality to go public overseas. The comments clarify that the priority areas for the development of the environmental protection industry in the current priority include the technologies for the prevention and control of motor vehicle exhaust pollution. At the same time, the four ministries and commissions of the Ministry of Finance, the Ministry of Science and Technology, the National Development and Reform Commission, and the Ministry of Industry and Information Technology are in Beijing for Beijing, Shanghai, Chongqing and Changchun. The pilot cities for demonstration and promotion of new energy vehicles will be awarded with permits, and the standards for financial subsidies will be further clarified, and concrete plans will be made to promote the pilot work. It is reported that urban bus passengers over 10 meters in length are the focus of this subsidy. Among them, hybrid buses have a subsidy of up to RMB 420,000 per vehicle, and pure electric vehicles and fuel cell buses each subsidize RMB 500,000 and RMB 600,000 respectively. At the same time, local finances must also arrange certain funds to provide appropriate subsidies for the construction of related facilities for energy-saving and new energy vehicles, maintenance, and other related expenses, so as to guarantee the smooth progress of the pilot work. The policy's subsidies for hybrid buses have made the price of a hybrid bus similar to that of a conventionally configured high-powered bus, which has stimulated the replacement of such vehicles by public transport companies. Hybrid buses are mainly based on diesel-electric hybrids. The advantage of diesel engines is that they can achieve constant power for a long time, so as to reduce wear and tear. At the same time, they have higher working efficiency. The high torque of diesel engines, coupled with hybrid technology, can increase. Engine efficiency.

Second: domestic machinery leader, technology, brand outstanding advantages

The company relied on outstanding technology and brand advantages to continue rapid development, and formed a product system of three series and more than 100 varieties based on automotive, agricultural, and construction machinery, and became one of the leading machinery manufacturers in China. Quanchai Power has a prominent position in the small and medium-diameter diesel engine industry. The company annually produces more than 300,000 diesel engines, including agricultural diesel engines, automotive diesel engines, and related mechanical products. The products developed have six series and more than 100 varieties, and the power covers 2-90. Horsepower, Euro II and Euro III multi-cylinder diesel engines that met the national emission standards became popular after they were introduced to the market. The country's 15 major diesel engine manufacturers have produced and sold 2.03 million units, of which 5 are annual sales of more than 100,000 units and 10 to 5 million units. The company's production and sales rank among the top in the medium and small bore diesel engine industry. Among the top 10 automotive companies in the light-duty truck industry, there are 5 companies supporting the company.

Finally: The new product has great potential and considerable profits

The company cooperates with German ELSBETT company, BOSCH company, Shanghai Internal Combustion Engine Research Institute, adopts international advanced electronic control, high pressure common rail, booster intercooling and other technologies, and takes the lead in the development of 4D22E, 4D25, 4D26 series III models, and has passed the environmental protection announcement. . The company has completely independent intellectual property rights and has filled the gaps in the domestic models of this type of gear; in order to meet the requirements for the implementation of the Auto IV standard in 2010 and do a good job in the company's product technology reserves, it has started the development of the National IV series diesel engine. The first Euro III emission 4D22E diesel engine produced small-batch production at the end of 2008. In 2009, it produced an annual production capacity of 30,000 units, and an annual sales income of 600 million yuan.

In the secondary market, the stock is rising steadily in the rising channel, with good volume and price, strong support at the bottom, supported by the 5th line today, and the market outlook is expected to continue to hit a new high.

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