Leo shares: The end of the acquisition of the hope that the future is clear

The purchase of the Swan Pump, the big pump market prospects for the company today issued a notice that will be 14.58 yuan per share of the price of more than 20 million shares, to the Oyayun and other nine natural and Swiss geese to invest in its holding Hunan Swan Pump 92.61% of the equity.　　The company will also be in cash to acquire the remaining 7.39% of the swan pump industry, and eventually achieve full holding. Leo is China's largest micro-small water pump manufacturer and exporter, exports to Europe accounted for more than 70% of the total exports.　　Swan Pump is the main power plant circulation pumps and other industrial use of large pumps, the market is Leo to break the field.　　We believe that the company will be through the acquisition, coupled with rapid access to the big pump field, with the help of quality shareholder background, the future in the South-to-north water Diversion, water conservancy construction, agricultural irrigation and other areas to harvest a large number of orders. Domestic pump market capacity is huge, the company enjoys local channels and international technology dual advantages of China's pump market capacity of more than 100 billion yuan, accounting for a global share of One-fourth.　　In the "Eleven-Five" period, China's pump industry will be 25% of the average speed of development, much higher than overseas market growth. Compared with domestic ordinary manufacturers, the company enjoys the dual advantages of local channels and international technology, and is in a favorable position in the competition.　　With the company's strong marketing network, industrial pumps and other new products can quickly obtain bulk orders to achieve large-scale production. "Two-step" to enter the field of large pump, water shares are expected to share the domestic water conservancy construction large market industrial pump can be widely used in electric power, water conservancy, chemical industry, metallurgy and other industries. Therefore, in recent years, the company has sought to enter this huge potential industrial pump market. Through the establishment of Hunan Lee-European pump industry, the company began to produce industrial pump products, out of the strategic transformation of the previous step.　　And the acquisition of Swan Pump, the company can quickly achieve scale upgrading and customer integration, is a crucial step in the transition. China's Water Affairs equity participation brings broad market opportunities to the company.　　South-to-north water Diversion, 35 period five years 4 trillion water conservancy investment, of which pump and other equipment investment accounted for more than 10%. The company completes the magnificent transformation, the performance will appear the explosive growth we anticipate in the industrial pump and so on product's pull, the company 2010-2012 main business revenue compound growth rate will reach 39.9%,eps respectively 0.46 yuan, 0.70 yuan, 0.94 yuan. We are optimistic about the long-term benefits of the acquisition to the company, to give the company 2011 40 times Times PE, corresponding to the target price of 28 yuan, to give "buy" rating.