The Beijing Stock Exchange has discovered a 'big white horse', and the secret behind this company's doubling of annual growth lies here
2024-09-1943
Litong Technology's Secretary of the Board, He Jun, stated that the company mainly focuses on improving the performance of existing hoses and market demand, or laying out new products for project reserves. Compared with developed cities, Luohe has certain disadvantages in attracting talents. The company is actively considering and planning to establish research and development centers and other related institutions in other cities (such as Zhengzhou) to attract higher-level R&D talents.
Regarding the expansion situation, He Jun stated that the company is currently expanding two acid fracturing hose production lines, which are undergoing equipment installation and commissioning. The preliminary plan is to conduct trial production in August. In addition to producing fracturing hoses, the production line can also produce other types of large-diameter industrial pipes. The company will arrange production reasonably based on the order situation of various products. According to the data, Litong Technology mainly engages in the research and development, production, and sales of hydraulic rubber hoses and hose assemblies. With 20 years of deep cultivation in the industry, it has been rated as one of the "Top Ten Rubber Hose Enterprises" and a national level specialized and innovative "Little Giant" enterprise. The product is widely used in industries such as construction machinery, coal mining machinery, chemical engineering, petroleum drilling and extraction, and food.
The company's traditional hydraulic hose business has excellent performance, and some high-end products have better performance and technical indicators than similar domestic products, reaching the international level of similar products. The company has delved into the supply chain systems of well-known clients such as Sany Heavy Industry, Yutong Heavy Industry, and Zhengmei Machinery. Compared with the products of internationally renowned enterprises, the company's hydraulic pipes have obvious price and service advantages, gradually realizing the import substitution of some high-performance products. In addition, the company's fundraising project "Annual Production of 40 Million Meter Industrial Hose Automation Manufacturing Project" has gradually released an additional 25 million meter production capacity, which is expected to drive performance upward.
In recent years, Litong Technology has been focusing on industrial pipe business and has comprehensively mastered the production technology of industrial pipe products. It is positioned in industries with high economic added value such as petroleum and energy, and some performance indicators of its products have reached or exceeded internationally renowned industrial pipe products. In 2022, the revenue from acid fracturing hoses reached about 80 million yuan, driving the gross profit margin of the company's hose assembly and supporting fittings to increase by 40.5pp to 62.7%. The two newly built acid fracturing hose production lines of the company are about to be put into operation, and the annual production capacity converted into output value will reach 500 million yuan. The company's profitability is expected to improve rapidly.
Southwest Securities analysis pointed out that as a leading enterprise in the domestic rubber hose industry, Litong Technology's hydraulic hose business has maintained steady growth, with high-value products such as acid fracturing hoses increasing in volume, driving rapid improvement in profitability. At the same time, the release of production capacity from fundraising projects is expected to drive the company's high performance growth. (Liu Mingtao)