DEVELOP(SH:688377) HTSC·2025-10-20 12:07Investment Rating - The report maintains an "Overweight" rating for the industry and "Buy" for the specific company, Diwei [7][9]. Core Insights - The multi-directional forging market is expected to grow from $1.205 billion in 2024 to $1.576 billion by 2031, with a CAGR of 3.9% [2][41]. - Domestic companies, particularly Diwei, have surpassed international competitors in technology, with their 350MN multi-directional forging hydraulic press achieving superior performance metrics [2][5]. - The global forging market is projected to grow from $95.02 billion in 2024 to $199.69 billion by 2034, with a CAGR of 7.7%, and the Chinese market is expected to grow at a CAGR of 11.3% from 2025 to 2035 [3][34]. Summary by Sections Market Expansion - The demand from high-end manufacturing sectors such as aerospace, deep-sea equipment, and new energy is driving the global multi-directional forging market expansion [2][3]. - Multi-directional forging is widely used in high-performance applications, including aerospace landing gear and complex structural components, enhancing material utilization and product reliability [3][12]. Technical Barriers - Multi-directional forging faces significant barriers in equipment, processes, and materials, creating a strong competitive moat [4][12]. - The technology requires high-precision multi-cylinder synchronous control and complex mold design, which are challenging to achieve [4][12]. Domestic Technological Breakthroughs - The domestic multi-directional forging industry has made significant technological advancements since around 2010, with companies like Diwei leading the way [5][13]. - Diwei's 350MN hydraulic press has entered the global supply chain for top oil service companies, showcasing China's capabilities in high-end forging equipment [5][13]. Market Growth and Demand - The global forging market is expected to grow steadily, with multi-directional forging benefiting from the increasing demand for high-performance components [33][34]. - The multi-directional forging hydraulic press market is projected to grow from $1.205 billion in 2024 to $1.576 billion by 2031, driven by aerospace and automotive lightweighting needs [41][43]. Application and Performance - Multi-directional forging is recognized for its ability to produce complex parts in a single forming process, significantly improving material utilization rates to 70%-85% [11][31]. - The technology is particularly advantageous in high-stress applications, such as aerospace and nuclear power, where performance and reliability are critical [42][44].