GUOTONG PP(SH:600444) Huaan Securities·2024-09-25 11:09Investment Rating - The investment rating for the company is "Accumulate" [1]. Core Views - The company has been deeply engaged in the fluid machinery sector, with steady growth in revenue per employee, increasing from 1.53 million yuan per person in 2019 to 2.10 million yuan per person in 2023 [1][3]. - The fluid machinery industry has broad application prospects, driven by both policy support and market demand, with significant growth opportunities in traditional sectors like energy and emerging fields such as 3C electronics and new energy vehicles [1][28]. - The company leverages its platform and technological advantages, emphasizing internal control to ensure robust operational stability and sustainable development [1][3]. - The company plans to gradually exit the plastic pipe business to focus on high-growth areas, with revenue from this segment dropping from 16.60% in 2020 to 2.81% in the first half of 2024 [1][18]. Summary by Sections Company Overview - The company, established in 1993, specializes in fluid machinery, including product R&D, manufacturing, technical services, and engineering design [1][9]. - The company is optimizing its plastic pipe business and aims to exit this sector, focusing on enhancing its core competencies in fluid machinery [1][15]. Industry Analysis - The fluid machinery sector is a crucial part of the equipment manufacturing industry, encompassing pumps, fans, compressors, valves, and more, serving various industrial applications [1][28]. - Government policies are increasingly supporting the development of the fluid machinery industry, promoting technological innovation and environmental sustainability [1][29]. Financial Projections - The company is expected to achieve revenues of 708 million yuan in 2024, 795 million yuan in 2025, and 901 million yuan in 2026, with corresponding net profits of 36 million yuan, 40 million yuan, and 47 million yuan respectively [1][2]. - The projected EPS for 2024, 2025, and 2026 is 0.24 yuan, 0.28 yuan, and 0.32 yuan, with P/E ratios of 48, 43, and 36 times respectively [1][2]. Management and Talent - The company has a concentrated shareholding structure, with significant ownership by its parent companies, and a management team with extensive industry experience [1][12]. - The workforce has been optimized, with a reduction in headcount from 443 to 360, while the proportion of employees with a bachelor's degree or higher has increased from 58.79% to 65.28% [1][26].