Source: Southeast Finance

On March 19, Junhe Stock (603617.SH) Lhasa Hardware Mechanical & Electrical Warehouse Center officially opened its doors to welcome customers, which means that the company's domestic market map is another city.

From the East China Sea to the snowy plateau, since 2024 Junhe shares since the start of the domestic market expansion, the company has reached the Yangtze River Delta, the Pearl River Delta, the Eastern provinces, the Central Plains, the Southwest and other regions, opened seven one-stop procurement platform.

Now, the leading domestic water pump will be 2025 domestic first store is located in the “sunshine city” Lhasa, what do you want?

A water pump to reach the Tibetan area and link up with South Asia.

Junhe shares formerly formerly known as Ningbo Junhe Tool Manufacturing Co., Ltd. was founded in 1999, the company's products are widely used in household water supply, drainage, garden irrigation, home cleaning and landscaping. Previously, the company's overseas revenue accounted for up to 98% of total revenue.

However, a decades of dealing with water pump manufacturers, but will do business to the alpine, water shortages, sunshine enough domestic cities, the reason for its deployment can not help but lead to the outside world full of doubts.

The opening site of Junhe Co.'s hardware and electromechanical warehousing center in Lhasa. Interviewee's picture

In fact, Junhe stock's strategic layout for the domestic market was initiated in 2020. Last year, the company's seven domestic sourcing platforms showed their first glimpses, and annual sales are expected to exceed 15 million yuan. Coinciding with this year, the Ministry of Commerce has stepped up efforts to promote the integration of domestic and foreign trade and help foreign trade enterprises to expand domestic sales channels, and Junhe Stock's move is not a vivid practice.

“The company has always been driven by the dual-wheel drive of ‘intelligence + service’, and the completion of the warehouse center in Lhasa is not only an expansion of the geographical territory, but also a commitment to the development of the West.” Junhe shares secretary Chen Jiawei introduced to the domestic market expansion process, not confined to the traditional production and marketing model is characterized by the opening of the Lhasa store will also become the company's “layout of the Southwest, service Tibetan region” an important hub.

It is understood that the Lhasa Hardware Mechanical and Electrical Warehouse Center fills the blank of Junhe's services in the Qinghai-Tibet region, and is an important part of its advancement to improve the layout of the domestic market. The center has a total construction surface of about 2,000 square meters, integrating Internet of Things warehouse management and digital supply chain platform.

Junhe Co.'s product booth in the Lhasa Hardware and Machinery Warehouse Center. Interviewee's picture

Not only that, Junhe shares also for the domestic market rules, market channels, consumer awareness for dealers to provide store location, supply chain support, marketing planning, intelligent logistics and other full-process support system to make it silky smooth landing. The hardware electromechanical distribution base built in the Tibetan area, not only covers the company's full range of products, but also will open up the plateau logistics “last kilometer”, to realize the 7 * 24 hours intelligent order, 48 hours of distribution throughout the region.

It should be noted that the Qinghai-Tibet region as a “Belt and Road” South Asia channel hub, the local infrastructure investment is growing rapidly, which makes Junhe shares of the pump products in the plateau agriculture and animal husbandry irrigation, infrastructure and other scenarios of surging demand.

Chen Jiawei said, Junhe shares will rely on Qinghai-Tibet storage center radiation Nepal and other cross-border markets, to achieve “domestic production capacity + South Asia demand” two-way linkage. At the same time, this year, the company will also increase the speed of the domestic market layout, is expected to be realized within two years to cover the country's 34 provincial administrative regions.

First-line “big sellers” go behind the scenes to chain owners

At present, Junhe's main products include submersible pumps, garden pumps, fountain pumps and deep-well pumps, four series of more than 800 specifications and models of products. Among them, the company leads the shipments in the submerged electric pump segment in the country.

The 2024 performance forecast shows that Junhe shares before and after the deduction of mother net profit hit a record high. Among them, the company is expected to realize net profit of 76 million yuan to 82 million yuan, an increase of 107.54% to 123.93%.

Not bad performance also gained investors positive recognition, the company's stock price in the performance forecast released at the end of the month to open 4 consecutive stops, and in January 7 touched 10.50 yuan / share, hit a new high in nearly 2 years.

“Whether it is the company's performance or market capitalization management, improve the quality of operation is fundamental.” Chen Jiawei told reporters that last year's performance advance was mainly due to the positive industry trends in overseas markets, while the company continues to launch new products and improve existing products to meet the increasingly diverse needs of consumers, so that the target customer base is growing.

Chen Jiawei believes that today, a new round of foreign trade enterprises to expand the domestic sales process, than the volume, should pay more attention to product quality.

Junhe Co. corporate showroom. Photo by the interviewee

Last year, Junhe Co. launched a series of star products such as lithium DC rainwater pumps with lightweight design, high flow garden jet pumps, and lithium pool cleaners with adjustable suction power for domestic customer groups. Among them, the new garden pumps have LCD display, remote control and other functions, and the maximum flow rate has been increased by more than 30% compared with the conventional pumps. 2024, the cumulative sales of the above products amounted to hundreds of thousands of units.

It is understood that this year, Junhe shares in the combination of diversification and product power, focusing on quality and price ratio, the introduction of new products that can be applied to intelligent pressurization, sewage treatment, high-rise water supply, engineering precipitation and other scenarios. Such as the new development of 0.55KW low suction submersible pump, the use of adaptive flow adjustment patented technology, in order to meet the 5 milli water level start performance premise, can be realized under the pumping rate and automatically achieve a balance of 1 mm low water level suction performance, but also can be applied to the windy season family flooding, sea operation of the fishing boat drainage, swimming pool cleaning and drainage and other multi-scenarios use.

It is worth mentioning that having consistent stability is one of the important indexes to measure the goodness of the product. junhe shares will be the digital factory as an important guarantee of the production link.

Junhe stock production line. Photo by the interviewee

As early as 2021, Junhe stock has stepped into the new era of 5G intelligent manufacturing. Now, digitalization and intelligence have penetrated the production and management side of the company, with a total investment of 700 million yuan in Junhe Intelligent Science and Technology Industrial Park, information systems, intelligent production lines, three-dimensional intelligent logistics warehouses, with a degree of automation of more than 85%.

On this basis, last October, Junhe shares ushered in the opening of the new park. According to reports, Junhe Industrial Park covers an area of 74,100 square meters, and on the basis of intelligent management comparable to that of the company's headquarters, it integrates 8 major services such as technological innovation, achievement transformation, financial investment, etc., and actively introduces enterprises in upstream and downstream chains to expand industrial agglomeration effect.

Chen Jiawei said, the company attaches great importance to the domestic pump industry upstream and downstream industry chain integration opportunities, while continuing to pay attention to opportunities related to strategic emerging industries, and actively build the second growth curve. According to the company's planning, later mergers and acquisitions, the direction of investment will focus on this, aimed at both to meet the existing main products to provide a supporting base, but also outward horizontal layout of the transformation and upgrading, and continue to enhance the company's market position and industry influence.