China will soon power the boiler industry technology IPO Analysis
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China Power Technology (CNPT,,%) Company Limited on September 22 the U.S. Securities and Exchange Commission $ 80,000,000 IPO application. The company plans to be listed on NASDAQ (code CNPT), Oppenheimer & Co. Its lead underwriters. As of June 30 this year, China Power Technology for 12 months before the $ 81,000,000 in sales. China Power Technology Co., Ltd. is located in Kaifeng City, Henan Province, was established in 2010, is a national A-BR1 boiler and pressure vessel manufacturers, the current set of boiler design, manufacturing, transportation, installation, maintenance, alteration in Body. Its core business includes two areas: design and production of boilers, boiler installation and maintenance services. China Power Technology Co., Ltd. The main products for the circulating fluidized bed boiler, with more than 12 series 143 models. According to Freedonia's statistics, production and sales revenue in the boiler, China Power Technology Chinese market share of 16.1%, respectively, 14.0% of the share of the market in the second-largest manufacturer. The following describes the overall situation of the boiler industry, will help to better understand the industries in which China's dynamic technology market prospects and future development. Introduction of China's boiler industry as a whole 1. Boiler classification and future trends Boiler fuel or other energy sources is the use of hot water can be hot water or steam heating equipment. Boiler to provide hot water as hot water boilers, mainly for domestic, industrial production is also a small amount of applications. Produce steam Boiler as steam boilers, used for thermal power plants, ships, locomotives and industrial and mining enterprises. According to sub-boilers, the boiler are two types of utility boilers and industrial boilers, boiler size and usually larger. According to fuel Burning technology to points, there are fixed or manually grate boiler, chain grate boiler, the boiler combustion chamber, circulating fluidized bed boilers. According to the fuel intake points, mainly oil-fired boiler, gas boiler, biomass boiler And waste heat boilers. Currently oil, gas boiler cleaner boiler combustion technology will be faster in the cities development. Gas boiler will have made great progress, fueled with waste and biomass boilers market potential, thermal storage Electric boiler system with the electric power industry reform and development of its market will be further widened. The use of cleaner fuels and high efficiency clean combustion technology, energy saving, low pollution products, the boiler will be the development trend of the boiler to the high-end and High value-added product market development. 2. Boiler Installation Services Description Boiler installation and boiler service industry highly correlated. In general, the industrial boiler installation cost is about 30% of the cost of the boiler, so the installation of industrial boilers industrial boilers market size is about 30% of the manufacturing market. As Technical director, sales price is high, the installation of circulating fluidized bed boiler is more expensive than traditional boilers. Quality of service essential to the installation of the operating performance of the boiler. According to industry experience, the safety of low quality in China Failure of equipment is one of the main boiler. As the boiler installation and maintenance of technical complexity, involving users of industrial boilers to install more and more inclined to purchase from the boiler installation to maintenance and service package of services. 3. China boiler business license requirements Because boilers generally operate under high pressure environment, the Chinese government implemented a very strict oversight and regulation of the industry. Any production or installation of boilers in China, companies must obtain "special equipment services license." China Power Technology Co., Ltd. now has A-line boiler manufacturing license and two boiler installation permit. China's boiler industry market size and growth potential 1. China's boiler industry, the overall development trend In the past 50 years, Chinese industrial boiler industry has achieved substantial growth, especially in the late 70s, after China's reform and opening-up policy. According to Freedonia company data, in the past 5 years led to the continuous development of Chinese economy Increasing demand for industrial boilers, and this trend will continue into the future. Industrial boiler steam capacity expected to grow from 27 million tons in 2009 / 2014 hours to 40 tons / hour, the annual compound growth rate of 8.2%. At the same time, the output value of industrial boilers from 2009 sales of 39.9 billion U.S. dollars to 7 billion U.S. dollars in 2014, the annual compound growth rate of 11.9%. . Circulating fluidized bed boiler future trends China has the world's largest CFB boiler installation capacity. In 2009, China has more than 900 CFB boiler is installed, but only accounted for 9.3% of the boiler steam demand. CFB workers Increased demand for the boiler industry, in part because of environmental laws and regulations for clean combustion technology of all ages. Corporate data, according to Freedonia, China's demand for circulating fluidized bed steam capacity from 9,000 tons in 2004 / h growth 2009, 25,000 tons / hour, the annual compound growth rate of 22.7%; circulating fluidized bed boiler sales value increased from 90 million U.S. dollars 365 million, the annual compound growth rate of 32.3%. Demand for clean energy technologies by the driver, circulating fluidized bed boiler demand is expected to continue strong growth. According to Freedonia company data, from 2009 to 2014, the Chinese circulating fluidized bed boiler steam capacity will be Increased to 5.5 tons / hour, the annual compound growth rate of 17.1%; sales value is expected to grow 19.2% CAGR growth in 2014 to 8.8 billion U.S. dollars. 3. Industrial boiler installation services market, future trends Industrial boiler installation services market revenue from $ 333,000,000 in 2004 increased to $ 1,157,000,000 in 2009, the annual compound growth rate of 28.3%. Different industries by the market demand-driven, industrial boiler installation services are expected next 5 Year compound annual growth rate will reach 15.2% in value from $ 1,157,000,000 in 2009 to grow to 2.35 billion in 2014. China's boiler industry's key growth driver 1. China's rapid economic growth China's economy since the reform and opening up access to high-speed development. According to a World Bank study, from 2009 to 2014 compound annual growth rate of China's economy is expected to reach 8.4%. As China's overall economic development, and the upper and lower The scale of the development of travel industry, industrial boilers and boiler related services demand will generally increase. Upstream and downstream business needs and because the diversification of industrial boiler industry is not vulnerable to the specific impact of government industrial policy, but also Less susceptible to other industry-specific business cycle fluctuations. 2. The rapid growth of downstream industries CFB boiler is widely used in various industries, including chemicals, machinery, food, beverage, textile printing and dyeing, paper and paper products, coal, medicine, utilities and so on. Because manufacturing is the boiler industry Important downstream market, manufacturing sector growth will drive demand for industrial boilers. According to Freedonia's statistics, China's manufacturing industry from 2004 up to $ 1,447,000,000,000 $ 2,887,000,000,000 in 2009, the annual compound growth Length was 14.8%; expected from 2009 to 2014, China's manufacturing industry grew at a CAGR of 9.9% in 2014 to reach 4.635 trillion U.S. dollars. 3. Boiler equipment replacement needs According to Freedonia's statistics, in 2009 China accounted for circulating fluidized bed boiler industrial boiler steam demand of 9.3% overall, while the traditional chain grate boiler is accounted for 38.9%. China's Eleventh Five Year Plan in accordance with the small and medium fuel Coal boiler, including the chain grate boiler in the future must be made by circulating fluidized bed boilers or other clean burning technology replaced. It is expected that government policies in industrial applications and are conducive to clean technology market, the cycle Fluidized bed boiler will continue to increase market share, on the contrary Stoker coal is gradually being replaced. Therefore, the replacement of old boiler industry, industrial boilers will be another major growth potential. According to Chinese industrial boilers can normally use 15 to 20 years, we expect 2010 to 2020 there will be 820,000 tons / small Be replaced when the steam demand, equivalent to 2009 the overall capacity of circulating fluidized bed boiler steam 30 times. 4. The Chinese government to increase support As environmental protection has become a global concern, the Chinese government has set energy reduction targets and develop appropriate policies to be implemented. China Development and Reform Commission promulgated the "long-term energy conservation and development plan" in the requirements of the current All the existing boiler thermal efficiency must be increased to 70-80%. The circulating fluidized bed boiler to the boiler is high thermal efficiency and help reduce carbon dioxide emissions. Others favor the use of circulating fluidized bed boiler policies include: Coal-fired circulating fluidized bed boiler replacement boiler. According to the Tenth Five-Year Plan, the existing small coal-fired boiler or coal boiler must be replaced to improve the thermal efficiency. CFB technology will be included in the main technical Small city's long-term energy conservation and development plans. By the National Development and Reform Commission, issued by the Ministry of Science, "priority high-tech industries (2007) catalog" that give priority to the development of coal-fired boilers to improve combustion efficiency. The circulating fluidized bed boiler can greatly improve Thermal efficiency, than conventional coal-fired boiler more efficient. The main features of China's boiler industry and future trends 1. Coal will remain China's main fuel, as China has abundant coal resources, but lack of resources such as oil and natural gas. As a result of coal has been the main source of energy. According to Freedonia's statistics, China's coal consumption of 61.9 trillion in 2009 Btus, Overall energy consumption occupies about 70%. The burning of coal has become China's major sources of emissions of carbon dioxide, accounting for about China's overall emissions of carbon dioxide and particulate matter 70-80%. In the foreseeable future, coal will continue to serve as China's main fuel, and in 2014, still account for about 66% of the energy consumption. Taking into account energy security and cost-effectiveness, the Chinese boiler market need to develop less polluting emissions and upgrading boilers and equipment, it can With a variety of different quality and have fewer emissions of coal in circulating fluidized bed boiler to have great market potential. 2. Development of clean energy technologies Since the topic of pollution and energy conservation is increasingly concerned about the use of clean burning boiler more and more respected. Boiler cleaning technology, including circulating fluidized bed boiler, biomass fired boilers and waste heat boilers. Biomass boiler Furnace using various types of biological or waste material as fuel. Circulating fluidized bed boiler, biomass fired boilers and waste heat boiler in the last five years have a strong growth. According to Freedonia's data, from 2009 to 2014, Biomass fired boilers and waste heat boiler compound annual growth rate will reach 16.5% and 12.7%. 3. Boiler-stop service model At present, only a small part of the business while providing the boiler manufacturing and installation services. Advantage of providing comprehensive support services to improve the quality of the installation, the cost can be reduced, because an enterprise is more familiar with the internal installation team Their products. Industry experience shows that the installation of low-quality China the main reason for failure of the boiler. As a one-stop service shops, manufacturing and installation services while providing help to avoid the installation and operation of the boiler question Problems. Another advantage is that customers can use a more timely resolution of issues arising. When a boiler failure, customers often can not determine the root cause, because they can not determine the problem lies in the manufacture, installation, or Other accessories. And a provider of integrated solutions can help customers find the problem. Companies are willing to comprehensive solutions and services to pay more price. That is, manufacturing and there will be a win-win Bureau of boiler installation Surface. According to international experience, we believe the integrated solution is a global trend, will lead to a larger rise of the leading enterprises in China. 4. Consolidation trend within the industry 2009, more than 1,500 Chinese boiler enterprises, of which over 60 have A-level manufacturing license. Boiler market is highly fragmented, mostly small to medium-sized boiler manufacturers, and are the production of conventional low thermal efficiency of the boiler operators . As government policies will lead to low efficiency and clean alternative to coal-fired boiler coal technology, these small companies are either out or be more mergers and acquisitions. This also gives us through acquisitions to gain market advantage on the small boiler to provide machine Association.