Investment Rating - The report assigns an "Accumulate" rating to the company for the first time [1]. Core Insights - The company has focused on the pipeline industry for over 20 years, serving the global high-end rubber hose market, and has shown steady growth in revenue and net profit [2][12]. - The downstream applications for rubber hoses are broad, with a steadily growing market space, particularly in shale oil and gas fracturing supply water hoses [2][26]. - The company is enhancing its strategic layout in the Middle East market, with significant investments in R&D and product development [3][12]. Summary by Sections Company Overview - The company, Zhongyu Technology, was established in 2000 and specializes in the R&D, production, and sales of fluid transmission polymer material hoses, targeting the high-end market [12]. - The company has achieved a compound annual growth rate (CAGR) of 25.89% in revenue from 2020 to 2023, with revenue increasing from 266 million to 667 million yuan [2][19]. Market Potential - The rubber hose market is expected to grow, with the global hydraulic fracturing water treatment system hose market projected to increase from 269 million USD in 2022 to 453 million USD by 2028, representing a CAGR of 9.05% [2][32]. - The company is well-positioned to benefit from the growing demand in various sectors, including mining, agriculture, and emergency services [26][29]. Product and Technology Development - The company has a diverse product range, including high-pressure large-flow delivery hoses and ordinary lightweight delivery hoses, with a focus on high-end products [3][18]. - R&D investment has increased significantly, with 32.58 million yuan spent in 2023, a 64.49% increase year-on-year, leading to the development of several new products [2][25]. Financial Forecast - The company is expected to achieve net profits of 128 million, 138 million, and 197 million yuan for the years 2024 to 2026, respectively, with corresponding dynamic P/E ratios of 8.34, 7.75, and 5.42 [1][3].
中裕科技：流体传输软管“小巨人”，深化布局中东市场