CHINA LESSO(HK:02128) Chan Ye Xin Xi Wang·2026-02-09 01:21Core Insights - The Chinese duct industry is transitioning from traditional construction accessories to high-tech, high-value key system components, characterized by expanding market size, highly differentiated competition, and technology-driven transformation [1][8] Industry Overview - Ducts, short for "ventilation ducts," are closed channel systems used in buildings or industrial systems to transport, distribute, and control air (or gas) flow [2] - The primary functions of ducts include achieving directed airflow for ventilation, temperature regulation, smoke and dust removal, material transport, or maintaining specific cleanliness standards [2] Market Size - The market size of the Chinese duct industry is projected to reach approximately 3.342 billion yuan in 2024, representing a year-on-year growth of 4.44% [1][8] - The demand for efficient ventilation systems is driven by policies promoting building energy retrofitting and carbon neutrality goals, with a surge in demand for ducts meeting specific cleanliness, corrosion resistance, and high airtightness requirements in high-end manufacturing sectors such as data centers and biomedicine [1][8] Industry Chain - The upstream of the duct industry includes raw materials such as galvanized steel plates, stainless steel plates, aluminum plates, and various insulation materials [4] - The midstream involves the production and manufacturing of ducts, while the downstream applications span commercial and public buildings, industrial facilities, data centers, cleanrooms, and residential buildings [4] Key Enterprises - The competitive landscape of the duct industry is characterized by a "large industry, small enterprises" model, with significant differentiation along technological and application lines [9] - China Liansu Group is a major player in the duct market, leveraging its large-scale production and nationwide sales network to extend its product lines into various duct materials [9] - Duken New Materials is recognized as a national-level specialized and innovative "little giant," focusing on flexible composite ducts and innovative solutions [10] Trends and Innovations - The future of ducts will evolve from "standardized transport carriers" to "multi-functional integrated components," driven by breakthroughs in material technology [11] - The industry will increasingly adopt environmentally friendly, high-performance composite materials and functional surface treatments to meet stringent hygiene standards in healthcare and laboratory settings [11] - Digital transformation will fundamentally change duct production and operation, with automation and digital twin technologies enhancing efficiency and monitoring capabilities [12] - The demand for highly specialized and customized duct solutions will rise, necessitating duct manufacturers to transition into deep scene solution providers [13]