Cash In On China’s Winning Streak Through SmartHeat’s Success

by Investment U Research Team
Wednesday, December 23, 2009

Clean technology… Energy saving opportunities… A $12 billion, worldwide industry…

That’s what SmartHeat (Nasdaq: HEAT) has to offer through its energy efficient, heat exchanger solutions to industrial, residential and commercial markets.

By aggressively expanding its Plate Heat Exchanger (PHE) market and rapidly growing its heat meter sector, the company has attracted such illustrious customers as Motorola Inc. (NYSE: MOT) and The Coca-Cola Company (NYSE: KO).

But while that kind of business is all well and good, SmartHeat wants more… And the way it plans to expand further is through China’s patented clean technology.

SmartHeat’s Chinese Fortune

From 1990 through 2006, China’s urban population leapt upwards by 275 million.

That amounts to two billion square meters of new residential space added annually for 16 years straight… with about 10% of those new buildings relying on the kind of PHEs that SmartHeat makes or similar models.

The company is already profiting nicely on that fact alone, but it knows it can do better thanks to rising trends within the country.

In the last few years, the Chinese government mandated efficient energy use to ensure sustainable development while the country grew by leaps and bounds.

The new rules called for a 20% cut in energy consumption from 2006 to 2010, and China wants to reduce industry pollution by another 10% still. In addition, the new Energy Conservation law calls for heat metering in all Chinese buildings, both new and old.

By digging into its economic stimulus plan, China has already begun paying SmartHeat for its products.

And as the country continues to cut back on carbon emissions and other pollutants, SmartHeat will continue providing the means, raising revenue along the way for itself and any investors wise enough to get in now.

Good investing,

Sheena Martin

More on this topic (What's this?)
China’s Factories Improve
Scary: Why China is Buying Gold Like Mad
Read more on Smartheat, Investing in China at Wikinvest
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