深耕液压油缸，新业务高成长

Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first rating given [3][6]. Core Insights - The company specializes in the research, production, and sales of medium and high-pressure hydraulic cylinders, with a focus on self-dumping truck cylinders and mechanical equipment cylinders. It has recently entered the oil and gas spring sector and successfully developed electric cylinders for new energy applications, with new business revenue accounting for nearly 10% of total revenue. The company is recognized as a national "specialized and innovative" small giant and a single champion in Shandong's manufacturing sector [2][7]. Summary by Sections Company Overview - The company is a small giant in hydraulic cylinders, focusing on medium and high-pressure products. Its main products include self-dumping truck cylinders, mechanical equipment cylinders, and oil-gas springs. The company has a strong emphasis on independent research and development, mastering core technologies in hydraulic cylinders and oil-gas springs [12][17]. Market Potential - The hydraulic cylinder market in China is projected to grow from approximately 300 billion RMB in 2021 to over 500 billion RMB by 2026, with a CAGR of 13%. The engineering machinery sector is the largest downstream market, accounting for 60% of the hydraulic cylinder market in 2022 [5][30]. Business Strategy - The company is actively expanding into four key application areas: specialized vehicles, coal mining equipment, engineering machinery, and national defense equipment. This diversification helps mitigate industry cyclicality. The company is also increasing its focus on electric cylinders and oil-gas springs, aligning with the trend towards electrification [6][9]. Financial Projections - Revenue projections for 2024-2026 are 778 million RMB, 922 million RMB, and 1.093 billion RMB, with year-on-year growth rates of 16.4%, 18.5%, and 18.6%, respectively. Net profit is expected to reach 98 million RMB, 120 million RMB, and 145 million RMB during the same period, with corresponding growth rates of 23.7%, 22.5%, and 21.0% [8][9]. Competitive Landscape - The hydraulic cylinder industry in China is characterized by low concentration, with the top four companies holding only 14% of the market share. This presents significant growth opportunities for domestic companies [32].