Hebei Runnong Water-saving Technology (BJ:830964) KAIYUAN SECURITIES·2024-09-30 06:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Views - Runong Water Saving is recognized as a national-level specialized and innovative "little giant" enterprise, focusing on water-saving irrigation products with a projected revenue growth of 13.6% in 2023, reaching 750 million yuan [3]. - The company is expected to achieve net profits of 40 million yuan, 53 million yuan, and 66 million yuan from 2024 to 2026, with corresponding EPS of 0.15, 0.20, and 0.25 yuan per share, indicating a favorable valuation compared to industry averages [3][4]. - The agricultural modernization trend and government policies are expected to drive growth in the water-saving irrigation sector, supported by the issuance of special bonds for agricultural infrastructure [4]. Summary by Sections Company Overview - Runong Water Saving specializes in water-saving irrigation products and has evolved from material sales to providing comprehensive irrigation systems since its establishment in 2011 [11]. - The company has received multiple qualifications, including a national-level specialized and innovative "little giant" designation, and has been listed on the Beijing Stock Exchange [11][12]. Product and Technology - The company offers a complete range of water-saving irrigation solutions, including drip irrigation systems, water supply pipes, and control systems, with a focus on smart agriculture [13][14]. - Runong Water Saving has developed a smart agriculture management platform that has been applied in over 100 projects, enhancing efficiency and productivity in irrigation management [20][21]. Market Position - The company operates six production bases across key regions in China, including North China, Northeast, Northwest, and Southwest, with significant market expansion potential [24][25]. - Runong Water Saving's market share in the Northwest and North China regions is growing, with a notable increase in sales in the Southwest due to its subsidiary Zhonglongtai [28][29]. Financial Performance - The company's revenue from water-saving engineering projects has consistently contributed to its main income, with a significant portion of revenue coming from these projects [18]. - The projected revenue for 2024 is expected to reach 966 million yuan, with a year-on-year growth of 28.9% [4][18].