Luohe Letone Hydraulics Technology (832225) 开源证券·2025-01-23 12:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company, Litong Technology, specializes in the research, production, and sales of hydraulic rubber hoses and hose assemblies, focusing on advanced technology to meet complex industrial requirements. The company has achieved a compound annual growth rate (CAGR) of 31.42% in net profit attributable to shareholders from 2015 to 2023 [3][4] - The company has successfully launched its first ultra-high pressure sterilization (HPP) equipment, which operates at approximately 600MPa, marking a significant step in diversifying its business into new areas [5][18] - The company has adjusted its profit forecasts for 2024-2025 due to cyclical adjustments in the downstream engineering machinery industry, with expected net profits of 102 million yuan in 2024, 122 million yuan in 2025, and 142 million yuan in 2026 [3][4] Summary by Sections Section 1: Leading Technology in Acid Fracturing Hoses - Litong Technology is recognized as a national-level specialized and innovative "little giant" enterprise, producing high-performance steel wire reinforced hydraulic rubber hoses [12] - The company’s oil drilling hoses have received multiple certifications, including API Q1, API 7K, and API 16C, ensuring high quality and performance [13][17] - The company’s products are competitive with international brands, with some performance indicators exceeding those of well-known brands like Gates and Continental [17][45] Section 2: Broad Applications of Rubber Hoses - The rubber hose industry is expected to grow significantly, with the global industrial hose market projected to increase from 12.8 billion USD in 2019 to 17 billion USD by 2024, reflecting a CAGR of 5.8% [49] - The shale oil and gas sector in China is rapidly expanding, with the country’s shale oil production exceeding 4 million tons in 2023, creating new demand for rubber hoses [4][51] Section 3: Financial Performance and Forecasts - The company’s revenue for Q1-3 of 2024 was 331 million yuan, a decrease of 7.22%, with a net profit of 68.83 million yuan, down 29.39% year-on-year [3] - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.80 yuan, 0.96 yuan, and 1.12 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 13.2, 10.9, and 9.4 [3][4] Section 4: Ultra-High Pressure Equipment and New Business Areas - The newly launched HPP equipment is designed for food sterilization without additives, preserving the nutritional value and flavor of the food [18][22] - The company is also exploring applications of ultra-high pressure water cutting technology for urban underground pipeline management, addressing issues like urban flooding [31][33]