CBGF(002478)2024-05-06 02:30Investment Rating - The report gives a positive investment rating for Changbao Co., indicating it as a small giant in specialized pipe manufacturing with a focus on high-end transformation [3]. Core Viewpoints - Changbao Co. specializes in the production of small-diameter seamless steel pipes, primarily for oil and gas exploration and power generation, with a strong market presence both domestically and internationally [4][6]. - The company has shifted back to its core steel pipe business after divesting its medical segment in 2021, enhancing its production capacity and focusing on high-end products [9][22]. - The company’s revenue for 2023 is projected at 6.66 billion yuan, with a net profit of 780 million yuan, reflecting a recovery from previous downturns [10][15]. Summary by Sections Company Overview - Established over 60 years ago, Changbao Co. focuses on specialized seamless steel pipes, with key products including oil casing and boiler pipes [4][6]. - The company has a significant market share in both domestic and international markets, serving major oil companies and boiler manufacturers [6][9]. Business Performance - In 2023, the company achieved a revenue of 6.66 billion yuan and a net profit of 780 million yuan, with a gross margin of 19.2% [10][15]. - The production capacity is approximately 1 million tons, with specific capacities for oil casing, boiler pipes, and other products [9][15]. Market Dynamics - The global demand for oil casing is expected to grow, driven by increased capital expenditure in the oil and gas sector, particularly in offshore projects [29][39]. - The company has seen a significant increase in export revenue, with overseas sales accounting for 39% of total revenue in 2023 [17][21]. Financial Projections - The report forecasts stable sales volumes for oil casing and boiler pipes from 2024 to 2026, with expected gross margins of 21.6% for oil casing and 17.4% for boiler pipes [62]. - The company plans to expand into new markets, including precision tubes for electric vehicles, with projected revenues from these new projects expected to contribute significantly to future earnings [59][60].