Zheng Quan Zhi Xing·2025-09-03 05:11Core Viewpoint - The report discusses the merger of Hangzhou Hailianxun Technology Co., Ltd. and Hangzhou Turbine Power Group Co., Ltd., highlighting the operational performance and sustainability of the latter amid market challenges and competition [1][2]. Financial Performance - Hangzhou Turbine's gross profit and profit margins have been declining over the reporting periods, with gross profits of 1.294 billion, 1.178 billion, and 939 million yuan, and gross margins of 29.30%, 26.78%, and 21.21% respectively [2][12]. - Net profits for the reporting periods were 708 million, 736 million, and 638 million yuan, with minority shareholder profits of 103 million, 149 million, and 40 million yuan [2][12]. Market Dynamics - The industrial turbine market is facing increased competition due to the "dual carbon policy" and the rise of new energy units, leading to a decline in production and sales of traditional turbines by over 20% in 2024 [2][12]. - The global turbine market is projected to grow from $28.375 billion in 2024 to $33.752 billion by 2032, with a compound annual growth rate of 2.19% [21]. Product Segmentation - Hangzhou Turbine's products include industrial drive turbines and industrial power generation turbines, with the former accounting for 44.05%, 36.30%, and 43.65% of revenue during the reporting periods [5][10]. - The company has a strong market position in the industrial drive turbine sector, with over 50% of the domestic market share from 2021 to 2023 [10][19]. Competitive Landscape - The turbine market is characterized by a "multi-polar and tiered" structure, with international leaders like Siemens Energy and General Electric dominating the global market, while domestic players like Dongfang Electric and Shanghai Electric lead in China [9][10]. - Hangzhou Turbine is one of the few domestic manufacturers capable of non-standard design and manufacturing of industrial turbines, maintaining a competitive edge against international firms [10][15]. Future Outlook - The company is focusing on enhancing its market share in the industrial drive turbine sector and improving cost control, with a projected increase in the proportion of industrial drive turbine revenue from 40% in 2024 to around 50% in early 2025 [17]. - The company has a robust order backlog exceeding 60 billion yuan as of June 30, 2025, indicating a solid foundation for future operations [19].