PX Starts Supplying Gases to Hua Li - Analyst Blog
June 30 2011 - 7:15AM
Zacks
Praxair (China) Investment Co. Ltd,
the Chinese unit of Praxair Inc. (PX) and a
leading industrial gas supplier, started supplying industrial gases
to Shanghai Hua Li Microelectronics Corporation. A long-term
contract was signed by the two parties earlier in September,
2010.
Praxair China is currently
supplying ultra-high-purity oxygen, nitrogen, argon, hydrogen and
helium for Hua Li’s 12-inch integrated-circuit chips production
line. Situated in Shanghai’s Zhangjiang High-Tech Park, Hua Li
Microelectronics is a state-owned company engaged in the production
of advanced integrated circuits.
The contract further strengthens
Praxair China’s foothold as a leading industrial gas supplier in
Zhangjiang High-Tech Park. The company expanded its existing
pipeline in the park complex to supply the gases for the
project.
Praxair is a premier industrial gas
supplier in the Americas and internationally. The company’s intense
focus on expanding its operations within its operating regions and
adding new customers has accelerated its profit growth, which
should continue in the future.
For the long run, the company has
set a goal to achieve annual organic sales growth of 8%-12%, while
it is anticipated that emerging markets, including South America,
Asia, and Mexico, would account for approximately 45% of total
sales by 2015 compared with 36% in the fiscal year 2010.
Moreover, the company is
experiencing high project backlog which reached about $2.5 billion
at the end of the first quarter of fiscal 2011. Further, growth in
the company’s backlog will enable Praxair to achieve its revenue
targets.
The company is slated to release
its second quarter financial results on July 27, 2011. Currently,
the Zacks Consensus Estimate for the quarter is $1.37, representing
a year- over-year increase of 15.44%. Estimate for the fiscal year
2011 and 2012 is $5.47 and $6.27, respectively.
Praxair faces stiff competition
from Air Products and Chemicals Inc.(APD) and
Airgas Inc. (ARG). We currently maintain a Neutral
recommendation on Praxair.
AIR PRODS & CHE (APD): Free Stock Analysis Report
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PRAXAIR INC (PX): Free Stock Analysis Report
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