NEWAY(SH:603699) Soochow Securities·2024-09-11 06:44Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company, Nuwei Co., Ltd., is a leading domestic industrial valve manufacturer benefiting from the expansion of Chinese EPC contractors into overseas markets, particularly in the oil service industry [2][3] - The company has a strong competitive edge due to its comprehensive product offerings across various downstream sectors, including oil and gas extraction, chemical, and marine engineering [2][3] Summary by Sections 1. Company Overview - Nuwei Co., Ltd. specializes in the design, manufacturing, and sales of valves, establishing itself as a leading industrial valve supplier in China since its inception [2][3] - The company has a diverse product range, including gate valves, globe valves, check valves, ball valves, butterfly valves, control valves, and nuclear valves, with over 5,000 specifications [2][3] 2. Market Dynamics - The industrial valve market is characterized by a fragmented competitive landscape, with significant growth driven by the oil and gas extraction and marine engineering sectors [2][3] - The company’s revenue is closely linked to the capital expenditure of major oil companies, which influences its profitability [2][3] 3. International Expansion - The deepening of the "Belt and Road" initiative has facilitated the overseas expansion of Chinese EPC contractors, creating new market opportunities for the company in the Middle East [2][3] - The company has established long-term partnerships with global energy giants, enhancing its market presence and customer loyalty [2][3] 4. Financial Performance - The report projects significant revenue growth, with total revenue expected to reach 6,869 million yuan in 2024, reflecting a year-on-year increase of 23.89% [1] - The net profit forecast for 2024 is set at 953.16 million yuan, indicating a 32.05% increase compared to the previous year [1] 5. Competitive Advantages - The company has a complete qualification and extensive experience in product safety applications, which are critical competitive advantages in the high-end market [2][3] - Nuwei Co., Ltd. has successfully integrated its supply chain, reducing the impact of raw material price fluctuations on profitability [2][3]