Longhua Technology(SZ:300263) Zheng Quan Zhi Xing·2025-06-20 09:45Core Viewpoint - The credit rating agency maintains the credit rating of Longhua Technology Group (Luoyang) Co., Ltd. at AA- with a stable outlook, reflecting the company's competitive position and financial stability in the industrial heat exchange equipment sector [1][7]. Company Overview - Longhua Technology Group primarily engages in the production of industrial heat exchange energy-saving equipment, high polymer and composite materials, environmental water treatment, and target materials for high-temperature special functional materials [10][12]. - As of March 2025, the company has total assets of 6.97 billion yuan and equity of 3.42 billion yuan, with a debt-to-asset ratio of 51.00% [12]. Financial Performance - In 2024, the company achieved total operating revenue of 2.71 billion yuan and a profit of 193 million yuan, showing growth compared to previous years [12]. - The company’s revenue from high polymer and composite materials increased due to higher delivery volumes of PVC materials, while the target materials segment also saw growth due to increased sales of molybdenum targets [7][25]. Industry Analysis - The industrial heat exchange equipment sector is characterized by intense competition, with many small-scale manufacturers. The demand is driven by equipment updates and new project constructions, particularly in the petrochemical and power generation industries [18][20]. - The market for target materials is expanding, supported by national policies and technological advancements, with domestic manufacturers increasing their market share through improved production capabilities [21][23]. Competitive Position - Longhua Technology maintains a strong competitive edge in the petrochemical cooling equipment sector, with a solid order backlog supporting future business [7][8]. - The company is one of the first in China to fully replace imports of molybdenum and indium tin oxide (ITO) target materials, with significant production capacities established [10][11]. Recent Developments - The company has optimized its processes for molybdenum and ITO target materials, leading to increased sales and improved gross margins in the target materials segment [7][8]. - The company has also adjusted its fundraising project plans, reallocating remaining funds to permanently supplement working capital [13][17]. Market Trends - The demand for energy-efficient cooling equipment is expected to grow, driven by macroeconomic recovery and increased investments in the petrochemical and power sectors [20][21]. - The shift towards high-efficiency and environmentally friendly cooling solutions is anticipated to shape the future of the cooling equipment market [18][20].