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Great opportunity to create the South's largest water conservancy project will benefit the industry

     Water diversion project has attracted worldwide attention. Certain machinery and equipment industry insiders told reporters, usually in a large project, relative to raw materials, booster cables machinery and equipment investment share of 5% -10%. According to this proportion, the total investment of 500 billion yuan South, of which 5% -10%,battery clip or 25 billion -500 billion will be used to purchase machinery and equipment. This machinery and equipment industry will play a major role in driving.

    Engineering equipment needs: in water projects, pump station require large pumps, large motor, tow rope water pump, drainage pump and other hydraulic machinery and auxiliary equipment, and substation equipment, low voltage switch cabinets, control, protection and measuring devices and other electrical equipment. ratchet tie dowm The river training works required scrapers, tractors, bulldozers, cutter suction dredgers, tamping machines, road rollers and other large machinery and equipment.

    North Water Transfer Project East, Middle Route of the Project respectively, December 27, 2002 and December 30, 2003 officially started construction, as by far the world's largest water diversion project, across the four major river basin , points, lines long and involves long construction period. For such a massive construction projects, engineering, machinery and equipment industry, communications industry, sewage treatment industry and other industries will benefit, which benefit the largest water conservancy industry, machinery and equipment industry have limited impact.

    Water industry will benefit the most.

    Water diversion project to benefit the most direct type of plate is contracting companies, especially those with large-scale water hydraulic construction contractor qualified enterprises.

    "85% of railway construction with funds from different countries, with the exception of the Three Gorges is a government funded, the majority of hydropower construction enterprise investment through bank loans, the same building is the Central railway was built of iron and iron oligopoly, water conservancy and hydropower construction is by the China Water Conservancy and Hydropower and Gezhouba (600,068, stock it) oligopoly. "Guotai Junan Securities analyst Han Qicheng said.

    South China, the tender and bid information Web site shows that construction companies involved in the South China Water and Hydropower main group, China Railway Group (601390, stock it) (601390. SH) Co., Ltd. and China Gezhouba ( 600068. SH) Group Co., Ltd..

    According to information, under normal circumstances, 65% of large-scale projects will be used for construction of fixed assets, facilities or installation works. The first phase of the project and the Eastern Route Transfer Project first phase investment of 124 billion yuan body, according to this proportion, of which 80.6 billion will be used for building facilities and construction, and water companies directly benefit from such a large investment.

    To Gezhouba, for example, Gezhouba Water General Contract with premium quality, representing installed capacity of hydropower in China since the founding of 1 / 4, after the China Water Conservancy and Hydropower Construction Group, is the Three Gorges (600116, stock it) main construction Project persons. Because they have experience in the construction of the Three Gorges Project, the South through the beginning of the program, some industry analysts had forecast, Gezhouba Danjiangkou or major shareholders may play an important role in the reconstruction project.

    In fact, according to Chinese website published by the South won the bid information has been published in the 56 successful projects, the participation of Gezhouba project and its major shareholders have 9. Among them, water projects in the Middle Dam Heightening Project, the Gezhouba Water Corporation is responsible for the left bank of the civil construction and installation of standard metal structure, Gezhouba Company Limited is responsible for providing the heat Portland cement and low heat Portland cement.

    Currently, the Gezhouba business to engineering, construction, cement, civil blasting, highways, hydroelectric power, real estate, six based. Semi-annual report under the Gezhouba 2008, the first half of 2008, construction Gezhouba gross margin 13.4%, cement gross profit margin was 17.76%. The first half of 2008, 7.0 billion of construction revenue, 86% of total revenue. South of the construction and cement demand for raw materials to provide great opportunities for the company.

    In addition to other Gezhouba, "China Railway Construction Engineering Contracting gross margin 9.3%, gross profit margin of China Railway Infrastructure Construction 9.0%, tunnel shares (600,820, stock it) construction gross margin 7.4%, National Materials International ( 600,970, stock it) cement production line to install 3.6 percent. "Guotai Junan's research report.

    Mechanical communication also benefit.

    In addition to hydraulic engineering industry, the water diversion project on the machinery and equipment industry is a positive. The development of machinery and equipment is the foundation and the national economy in particular is closely related to the project, the demand for machinery and equipment mainly from earth and stone works projects, real estate projects, handling and storage of goods exports, including fixed asset investment in boosting the role of machinery and equipment max.

    Certain machinery and equipment industry insiders told reporters, usually in a large project, relative to raw materials, machinery and equipment investment share of 5% -10%. According to this proportion, the total investment of 500 billion yuan South, of which 5% -10%, or 25 billion -500 billion will be used to purchase machinery and equipment. This machinery and equipment industry will play a major role in driving.

    To Tellhow (600590. SH), for example, the company's North Water Transfer in 2008 the first phase of emergency water supply project Shijiazhuang (Shijiazhuang to North Water Transfer) straight or on behalf of the construction project bid for the project diesel generator building.

    "We provide 68-120 kW / h of the engine, a total of 15, has now completed the transfer, to produce 300 million profit, there is no follow-up actions of cooperation." Tellhow Ministry of Commerce, Miss Lee told reporters.

    According Tellhow half of 2008 Annual Report, Tellhow Technology Co., Ltd. net profit 17.43 million yuan parent company, of which gross profit margin for the power generators and 21.74%, middle-Shijiazhuang section of the first phase project to bring listed companies 17% of the total net profits.

    In addition, the South the construction process, communication engineering project management scheduling to meet the needs, the need to build a dedicated communications network, including the telemetry system and communication systems. This is the upstream provider for communications equipment providers provide some opportunities.

    "Our main aim is to co-operate and communicate, this large project had no significant effect on us." War communications (600,498, stock it) (600498. SH) Securities Department staff told reporters. Wuhan is a business FiberHome optical fiber communications equipment and systems, optical access network equipment, optical fiber, cable, cable and other research and development, production and sales of listed companies.

    "War is to provide communications equipment, communications, and compared to some construction companies, engineering in the South can not afford a direct effect on the company's impact is hard to make it clear." Changjiang Securities (000,783, stock it) analysis Teacher Mr Chan told reporters.

    In addition, the South the construction process, communication engineering project management scheduling to meet the needs, the need to build a dedicated communications network, including the telemetry system and communication systems. This is the upstream provider for communications equipment providers provide some opportunities.

    "Our main aim is to co-operate and communicate, this large project had no significant effect on us." War communications (600,498, stock it) (600498. SH) Securities Department staff told reporters. Wuhan is a business FiberHome optical fiber communications equipment and systems, optical access network equipment, optical fiber, cable, cable and other research and development, production and sales of listed companies.

    "War is to provide communications equipment, communications, and compared to some construction companies, engineering in the South can not afford a direct effect on the company's impact is hard to make it clear." Changjiang Securities (000,783, stock it) analysis Teacher Mr Chan told reporters.

    Previously, the flames of the Middle Route Project communication worked Shijiazhuang emergency water supply project to provide communications and fiber optic cable connector boxes, the winning project to pipe cable (GYTA-24) 1025km, flame retardant cable 2km, 15 sets of emergency repair cables, pipes Cable (GYTA-4) 100km, cable connector box (24 cores) 540 sets, cable connector box 50 sets of special tools.

    According to the 2008 semi-annual report FiberHome, communications systems gross margin was 26.67%, gross profit margin of fiber optic cables 18.17%, compared to the first half of 2008, 1.319 billion yuan of business revenue is limited.

    Create big opportunities for the South.

    North Water Diversion Project, in accordance with the plan, east, middle, west line will be built and the Yangtze River, Huaihe River, Yellow River, Haihe River interconnected to form water resources in China, "three vertical and four horizontal, north-south allocation, mutual economic thing," the overall pattern .

    Far as engineering equipment, in water projects, pump station requires large pumps and large motors for water pumps, drainage pumps and other hydraulic machinery and auxiliary equipment, and substation equipment, low voltage switch cabinets, control, protection and measuring devices and other electrical equipment. The river training works required scrapers, tractors, bulldozers, cutter suction dredgers, tamping machines, road rollers and other large machinery and equipment.

    In addition, the dredging project, Hudi reinforcement, Yellow River Project in addition to the large amount of cement and other raw materials. Communication and sewage treatment and other related companies for the smooth construction projects also need to provide services.

    If you come from industry segments that can benefit directly from the water diversion project is the mechanical engineering industry, cement industry, water conservancy industry. If the chain from the production point of view, water diversion project, covering almost the upstream and downstream of these industries, from raw materials supplied to the manufacture and sale of products.

    Cement industry, for example, project planning program shows middle east and a project totaling nearly 800 million tons of cement consumption. Calculated at 6 years period, cement consumption of over one million tons annually, equivalent to a medium-sized cement per year. For environmental protection enterprises, water diversion first flood control, pollution abatement South's heavy task. Hundred will be built along the city sewage treatment plants to ensure water quality meets the three main channels of the standard. South also need to participate in water supply and environmental protection industry.

    For listed companies, the South a large scale, long cycle, will provide a stable source of customers. For example, the first phase of the project Jiangdu station east renovation project, the Shanghai Electric Group Shanghai Electric Motor Factory Co., Ltd. won the bid and its ancillary equipment; eastern gate Hanzhuang Canal Pump Station Project Construction Section of years, the Shanghai Electric Group Shanghai Electric Machine Factory Co., Ltd. won the bid tenders; Middle Route of emergency water supply project management and operation of automated scheduling decision support system, Shanghai Putian (600,680, stock it) (600680. SH) major shareholder, China Putian Information Industry Co., Ltd. Communication system power equipment procurement bid .

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