Zhejiang Sanhua Co., Ltd. (hereinafter referred to Sanhua Co., Ltd.) has a total share capital of 113 million shares, 30 million tradable shares and 24 million tradable shares at a price of 7.39 yuan. Sanhua shares controlling shareholder Sanhua Group for private enterprises, Zhang Dao-chen and his son owned a total of 41.5% stake in Sanhua Group shares. Sanhua shares of the main business is supporting the air-conditioning cut-off valve, solenoid valves, electronic expansion valve and other products. Sanhua shares accounted for 32.1% of the globe valve market share in the domestic market, ranking first in the country, the international market share of 13.6%, the size of the company makes the valve closing the lower unit costs and pricing power. The raised funds to invest in the construction of electronic expansion valve four projects with a total investment of 266.22 million yuan, after completion of the new sales revenue is estimated to be 315.3 million yuan, the new annual profit before tax 60.01 million yuan. However, analysts believe that in recent years, the domestic refrigeration and air conditioner manufacturing industry is increasingly competitive, the downturn in the air conditioning industry or significant adverse changes, the company's production and management will have a negative impact. At the same time, air conditioner manufacturers on the upstream parts suppliers continue to demand improved product quality, and trying to reduce the purchase price of components, but also to the company's business risks. The main raw materials required for the production of copper rods, copper pieces and brass. Raw materials in the composition of the company's share of the larger cost, if the price of copper continue to rise, the cost of the company will bring greater pressure. In addition, the company purchased 43.77% of the top five suppliers in 2004, and has a certain degree of dependence on major suppliers. Since 40% of the company's main revenue comes from exports, the rise of RMB exchange rate will reduce the competitiveness of the Company's products. Sanhua shares in 2004, 2003 and 2002 net profit respectively 42.07 million yuan, 27.71 million yuan, 16.46 million yuan, according to the issued share capital, earnings per share were 0.37 yuan, 0.24 yuan, 0.14 yuan. Industrial Securities is expected in 2005 Sanhua shares of 49 million yuan per share, earnings per share of 0.43 yuan, is expected to market a reasonable price range of 7.6-8.4 yuan; State Investment believes that the company's industry concentration is high, the company's market share Large, a typical subdivision industry leader. The first day is expected to be located between 8.9-9.8 yuan. Sanhua shares (002,050) is the country's largest and most complete variety of stop valve production base, is also the global leader in the field of air-conditioning globe valve, the main products are globe valve, check valve, electronic expansion valve, solenoid valve, drainage pump , Ball valves, globe valves and other seven major North American household and commercial refrigeration and air conditioning accessories. Among them, the air-conditioning shut-off valve has three series of thousands of varieties, in 2004 the sales of valve to achieve 26.24 million, the domestic market share of 32.10%, the international market share of 13.60%, ranking first in the world. Obvious advantages of technology companies, was named the National Torch Plan key high-tech enterprises, a total of 47 national patents. The company has established long-term and stable supply relations with famous international and domestic famous air-conditioner manufacturers such as LG, Samsung, Panasonic, Mitsubishi, Daikin, Sharp, Toshiba, Hitachi, Fujitsu, Sanyo and Haier, Gree, Changhong, Midea and Hisense , 40% of products are sold to Europe and the United States, South Korea, Japan and Southeast Asia. The strength of the company in the fields of electronic expansion valve, solenoid valve and so on will also be leapfrogged by the investment of raised funds, and it is expected that it will become the new leader in these two fields after 3 or 4 years. The company's export products are settled in foreign currencies, the potential appreciation of RMB will affect its export business. Estimated secondary stock market positioning will be 8 yuan -9 yuan.