Zhejiang Linuo Flow (SZ:300838) Quan Jing Wang·2025-10-15 08:11Industry Overview - In the first half of 2025, the general equipment manufacturing industry is expected to reach a cyclical bottom recovery, characterized by "revenue stabilization and profit acceleration" [1] - The machinery sector saw a year-on-year revenue growth of 6.9% in Q2, with net profit growth of 14.3%, particularly driven by the instrumentation sector, which experienced a 2.2 percentage point increase in gross margin [1] Company Positioning - Zhejiang Lino (300838) is deeply integrated into the industry's recovery process, focusing on instrumentation and general equipment, which are core growth areas benefiting from industry demand [1] - The company is positioned in the control valve sector, benefiting from both "domestic substitution and overseas incremental" demand, as the competitive landscape is shifting towards leading companies with technological advantages [1] Market Dynamics - The demand for electric measuring instruments is recovering globally, with domestic manufacturers achieving double-digit revenue growth due to domestic substitution advantages [1] - The explosion in demand for oil and petrochemical equipment is a key driver, particularly as energy development accelerates in emerging markets like the Middle East [1] Policy Support - Policy benefits are categorized into national strategy, local support, and standard upgrades, with "smart control valves and high-efficiency energy-saving valves" listed as encouraged products [2] - The ongoing national equipment update initiative is driving demand in the maintenance market, positively impacting Zhejiang Lino's "product + service" transformation [2] Technological Advancements - The company has made significant strides in technology through strategic adjustments, including the acquisition of 100% of Xuzhou Huaji's shares, filling gaps in coal chemical and cryogenic conditions [2] - As of June 2025, the company and its subsidiaries have been granted 224 patents, with new products like pneumatic corrugated pipe control valves being widely applied in industrial fields [2] Market Expansion - The company is expanding its market presence in the Middle East by participating in key industry events, targeting high-end markets in oil, petrochemicals, and natural gas processing [3] - The domestic market is also seeing a shift towards service transformation, with subsidiaries providing maintenance services that enhance customer loyalty and reduce long-term costs [3] Digital Transformation - The implementation of the Selection Quotation 4.0 system has improved operational efficiency by quickly generating customized solutions through intelligent algorithms [3] - The company is advancing its headquarters-level information platform to streamline business processes and enhance resource allocation [3] Future Outlook - The company is expected to see performance improvements driven by multiple positive factors, including deepening domestic substitution and the implementation of equipment update policies [4] - The regional supply chain advantages and ongoing policy support are anticipated to lower procurement costs and enhance R&D capabilities [4] - The company's overseas market breakthroughs, particularly in the Middle East, are expected to convert customer resources into substantial orders, complementing its domestic strengths [4]