Shanghai Bloom Technology (603325) Xinda Securities·2024-09-02 01:23Investment Rating - The investment rating for the company is "Buy" [2]. Core Viewpoints - The company, Bolong Technology, is a leader in the pneumatic conveying field, benefiting from large-scale projects in the petrochemical and chemical industries, with a significant increase in new orders and revenue growth [2][6]. - The company has achieved a compound annual growth rate (CAGR) of 56.74% in revenue from 2018 to 2023, with revenue increasing from 277 million yuan to 1.223 billion yuan [2][12]. - The company has a strong order backlog, with new orders reaching a historical high in 2023, indicating robust future revenue growth potential [6][19]. Summary by Sections Company Overview - Bolong Technology specializes in pneumatic conveying systems and has over 20 years of industry experience, providing comprehensive solutions including design, manufacturing, and technical services [8][10]. - The company has maintained a market share of over 30% in the domestic synthetic resin market from 2020 to 2022, solidifying its leading position in the industry [6][8]. Growth Drivers - The company has benefited from the ongoing expansion of large-scale projects in the domestic petrochemical and chemical sectors, leading to a new growth phase in revenue [12][19]. - New signed orders have reached record highs, with significant increases in contract liabilities, indicating strong future revenue potential [2][19]. Financial Projections - Revenue projections for 2024 to 2026 are estimated at 1.515 billion yuan, 2.016 billion yuan, and 2.508 billion yuan, representing year-on-year growth rates of 23.8%, 33.1%, and 24.4% respectively [2][7]. - Net profit projections for the same period are expected to be 323 million yuan, 432 million yuan, and 527 million yuan, with corresponding growth rates of 12.3%, 33.7%, and 22.0% [2][7]. Market Position and Competitive Advantage - The company has a strong competitive edge due to its technological capabilities and project experience, allowing it to maintain high profitability levels with stable gross and net profit margins [14][15]. - The company’s products are widely used in various industries, including petrochemicals, pharmaceuticals, and food, with ongoing efforts to expand into new sectors [10][12].