Core Viewpoint - Yuelong Technology has established itself as a leader in the flexible pipeline sector for fluid transport, achieving significant milestones in technology and market presence, culminating in its successful IPO on the Beijing Stock Exchange in 2023 [1][2]. Company Development and Achievements - Yuelong Technology developed China's first 3-inch 35MPa high-pressure drilling hose in 1991, breaking foreign monopolies and marking a significant step towards domestic self-sufficiency in oil drilling equipment [1]. - The company has received multiple national awards for its technological advancements, including the National Science and Technology Progress Third Prize and the Ministry of Chemical Industry Technology Progress Second Prize [1]. - As of March 30, 2023, Yuelong Technology successfully listed on the Beijing Stock Exchange, becoming the first company in Yantai to achieve an A-share listing in 2023 [1]. Product Portfolio and Market Position - Yuelong Technology has developed a comprehensive product lineup, including three main series: marine engineering flexible pipelines, land oil and gas flexible pipelines, and industrial special hoses, with nearly 10,000 product models [3][6][8]. - The industrial special hoses contributed 39.45% of the company's revenue in 2024, while marine engineering flexible pipelines accounted for 35.38%, and land oil and gas flexible pipelines contributed 20.99% [3][6][8]. - The company has established a global certification system, holding multiple certifications from the American Petroleum Institute and various classification societies, which supports its international market expansion [12]. Industry Context and Competitive Landscape - The rubber hose industry in China shows a clear polarization, with low-end manufacturers facing disorganized competition, while high-end flexible pipelines require stringent certification standards [11]. - Yuelong Technology's high-performance products are positioned in a niche market with limited direct competition, particularly in the marine engineering sector [27]. Financial Performance and Growth - Yuelong Technology's revenue grew from 1.89 billion in 2022 to 2.89 billion in 2025, with a year-on-year growth rate of 7.89% [17]. - The net profit attributable to the parent company increased from 49.21 million to 88.97 million, reflecting a 14.44% year-on-year growth in 2025 [19]. - The marine engineering flexible pipeline sales revenue showed a compound annual growth rate of 26.78% from 2022 to 2024, while land oil and gas flexible pipeline sales revenue increased by 130% in 2024 compared to the previous year [21]. Future Prospects and Investment Plans - The company plans to raise 289 million for projects aimed at expanding production capacity and enhancing technological capabilities, including the establishment of a high-end hose R&D center [28][30]. - With the ongoing demand in the oil and gas sector and the company's strategic investments, Yuelong Technology is positioned to become a leading player in the global high-end flexible pipeline market [30].

Investment Rating - The investment rating for the company is "Buy," indicating that it is expected to outperform the market index by more than 15% over the next 6-12 months [33]. Core Insights - The company, Yuelong Technology (920188.BJ), specializes in the research, production, and sales of flexible pipelines and hose assemblies for fluid transport, with a focus on high-performance applications in extreme conditions [6][14]. - The company is positioned in the first tier of rubber hose manufacturers in China, particularly excelling in marine engineering and land oil and gas drilling sectors, with a significant competitive advantage due to its extensive experience and product range [22][23]. - Revenue projections for 2023-2025 are 219 million, 268 million, and 289 million yuan, respectively, with year-over-year growth rates of 15.70%, 22.36%, and 7.89% [8][22]. - The company has achieved notable certifications, including API17K, and has participated in major engineering projects, enhancing its reputation and market presence [23][7]. Summary by Sections Basic Financial Status - The company is expected to achieve revenues of 2.19 billion yuan in 2023, 2.68 billion yuan in 2024, and 2.89 billion yuan in 2025, with corresponding net profits of 610 million, 830 million, and 900 million yuan [8][22]. - The revenue from land oil and gas flexible pipelines is increasing, contributing to a growing share of total revenue [8]. Industry Situation - The flexible pipeline industry is anticipated to grow due to increased investment in marine oil and gas engineering and rising demand for fracturing equipment [22][23]. - The global market for natural gas hoses is projected to grow from 6.217 billion USD in 2024 to 10.11 billion USD by 2031, with a compound annual growth rate of 7.3% [22]. Company Highlights - The company has a diverse product range with nearly 10,000 product models, catering to various extreme conditions [23]. - It has been recognized as one of the top ten rubber hose manufacturers in China and is the only company in the marine hose top ten [23][24]. Fundraising Projects - The company plans to invest in four projects through its IPO, including a new production line for self-floating oil rubber hoses and an upgrade of existing production facilities [24][26].

Investment Rating - The investment rating for the company is currently not available [1] Core Insights - The company, Yuelong Technology, has over 30 years of experience in the flexible pipeline industry, focusing on extreme working conditions and is a leader in marine engineering and land oil and gas high-end equipment [3][8] - The company specializes in high-performance flexible pipeline research and manufacturing, providing customized solutions for extreme conditions such as ultra-high pressure and high temperature, and has established a strong reputation in the industry [3][12] - The company has maintained a gross margin above 50% due to high-margin product upgrades and lean cost control, reflecting stable profitability and high-quality operational performance [3][15] - The company is benefiting from the domestic substitution opportunities in marine engineering and oil and gas drilling, having entered the supply chains of major international oil service companies and exporting products to regions such as the Middle East and North America [3][54] Summary by Sections Section 1: Company Overview - Yuelong Technology focuses on the research, production, and sales of flexible pipelines, with core products covering marine engineering, land oil and gas, and industrial special hoses [8] - The company has participated in drafting 19 national industry standards and has received multiple international certifications, enhancing its competitive edge [12][51] - The company's revenue is projected to grow steadily from 189 million to 289 million yuan from 2022 to 2025, with net profit increasing from 48 million to 90 million yuan during the same period [15][22] Section 2: Industry Trends - The rubber hose industry is transitioning towards high-quality development driven by high-performance, environmental sustainability, and intelligent integration [29][34] - The demand for high-performance flexible pipelines is increasing in marine engineering and land oil and gas sectors, driven by the recovery of offshore oil and gas investments and the development of new energy [35][36] - The market for rubber hoses is expanding steadily, with significant growth in marine engineering and land oil and gas applications, as well as in industrial production [35][38] Section 3: Competitive Advantages - The company has developed a comprehensive technology system with a focus on marine engineering and land oil and gas applications, achieving a series of core technologies and holding 68 authorized patents [50][51] - The company is enhancing its production capabilities through smart manufacturing and is developing a smart management system for the entire lifecycle of its products [47][48] - The company is positioned to benefit from the dual opportunities of high-end substitution and market concentration, supported by favorable policies and industry consolidation [53][54]

Investment Rating - The investment rating for the company is "Buy," indicating that it is expected to outperform the market index by more than 15% over the next 6-12 months [33]. Core Insights - The company, Yuelong Technology (920188.BJ), specializes in the research, production, and sales of flexible pipelines and hose assemblies for fluid transportation, with a focus on marine engineering and land oil and gas extraction [6][22]. - The company is positioned in the first tier of rubber hose manufacturers in China, particularly excelling in marine engineering and land oil and gas drilling sectors, with a diverse product range that meets extreme environmental conditions [23][24]. - Revenue projections for 2023-2025 are 219 million, 268 million, and 289 million yuan, respectively, with year-over-year growth rates of 15.70%, 22.36%, and 7.89% [8][22]. - The company has achieved significant milestones, including obtaining API17K certification, making it one of the few companies globally to hold this qualification, and has participated in major engineering projects [23][24]. Summary by Sections Basic Financial Status - The company is expected to achieve revenues of 2.19 billion yuan in 2023, 2.68 billion yuan in 2024, and 2.89 billion yuan in 2025, with corresponding net profits of 610 million, 830 million, and 900 million yuan [8][22]. - The revenue from land oil and gas flexible pipelines is steadily increasing, contributing to a growing share of total revenue [8]. Industry Situation - The flexible pipeline industry is anticipated to grow due to increased investment in marine oil and gas engineering and rising demand for fracturing equipment [22]. - The global market for natural gas hoses is projected to grow from 6.217 billion USD in 2024 to 10.11 billion USD by 2031, with a compound annual growth rate of 7.3% [22]. Company Highlights - The company has a strong competitive advantage in high-pressure and high-temperature applications, with a product range that includes over 10,000 models tailored for extreme conditions [23]. - It has been recognized as one of the top ten rubber hose manufacturers in China and is the only company in the marine hose sector to achieve such recognition [23]. Fundraising Projects - The company plans to invest in four projects through its IPO, including a new production line for self-floating oil rubber hoses and an upgrade of existing production facilities to enhance automation [24][26].

Investment Rating - The investment rating for the company is suggested to be actively participated in the IPO due to its low initial valuation and significant market position in the marine engineering sector [26]. Core Viewpoints - The company is a fluid transport flexible pipeline manufacturer with significant advantages in marine engineering, having established a strong product advantage in this field and successfully extending its applications to land oil and gas [4][5]. - The company has achieved rapid revenue growth, with a projected revenue of 268 million yuan in 2024, reflecting a CAGR of +18.98% over the past three years, and a net profit of 83.42 million yuan, with a CAGR of +31.94% [7]. - The global offshore oil and gas investment is recovering, with a projected investment of approximately 209.6 billion USD in 2024, indicating a sustained growth trend in the marine oil and gas equipment sector [17][18]. Summary by Sections 1. Company Overview - The company, established in 2009 and headquartered in Yantai, Shandong, specializes in the research, production, and sales of flexible pipelines, including marine engineering flexible pipelines, land oil and gas flexible pipelines, and industrial hoses [4]. 2. Issuance Plan - The IPO will adopt a direct pricing method with an issue price of 14.04 yuan per share, raising approximately 309 million yuan. The initial issuance scale is 21.9932 million shares, accounting for 26.5% of the total share capital post-issue [12][13]. 3. Industry Situation - The global offshore oil and gas investment is on the rise, with a projected annual compound growth rate of 11% over the next few years. The domestic demand for marine oil and gas equipment is expected to remain strong due to national energy security strategies [17][18]. 4. Competitive Advantages - The company possesses significant technical advantages, having developed core technologies that ensure the performance of flexible pipelines under extreme conditions. It has also achieved multiple international certifications, enhancing its market competitiveness [20][21][22]. 5. Comparable Companies - The company is relatively smaller in scale compared to its peers but maintains a higher gross margin, indicating a strong position within the industry [25].

Investment Rating - The report recommends an active participation in the subscription of the company's shares due to its low initial valuation and significant market position in the marine engineering sector [30]. Core Insights - The company, established in 2009, specializes in the manufacturing of flexible pipelines for fluid transport, with a strong emphasis on marine engineering applications. It has successfully extended its expertise to land-based oil and gas sectors [3][7]. - The company has achieved rapid revenue growth, with projected revenue of 268 million yuan in 2024, reflecting a CAGR of +18.98% over the past three years. The net profit is expected to reach 83.42 million yuan, with a CAGR of +31.94% [10]. - The company has established a strong competitive advantage through its technological capabilities, industry certifications, and a broad customer base, including major players in the oil and gas sector [23][24][25]. Summary by Sections 1. Company Overview - The company is a manufacturer of flexible pipelines, focusing on marine engineering, land oil and gas, and industrial hoses. It has a significant presence in marine oil and gas drilling equipment and has developed products that meet international standards [3][7][9]. 2. Issuance Plan - The new share issuance is priced at 14.04 yuan per share, with an initial offering of 21.9932 million shares, representing 26.5% of the total post-issue shares. The expected market capitalization after issuance is 1.165 billion yuan [15][16]. 3. Industry Situation - The global marine oil and gas investment is recovering, with a projected investment of approximately 209.6 billion USD in 2024, reflecting a compound annual growth rate of 11%. This growth is driven by rising oil prices and increased exploration and development activities [20][21][22]. 4. Competitive Advantages - The company possesses significant technological advantages, having developed core technologies for high-pressure flexible pipelines. It has also achieved multiple international certifications, enhancing its market competitiveness [23][24]. 5. Comparable Companies - The company is compared with other firms in the industry, showing a favorable gross margin of 59.68% for 2024, which positions it well within the competitive landscape [29].

Industry Overview - Rubber hoses are tubular rubber products used for transporting gases, liquids, slurries, or granular materials. The structure typically consists of an inner rubber layer, a reinforcement layer, and an outer rubber layer [1][2][5] - The demand for rubber hoses has been increasing across various sectors, particularly in automotive, aerospace, petrochemical, and construction industries, driven by the acceleration of industrialization in the country [1][7] - China's annual production capacity for rubber hoses has shown a steady upward trend, with production expected to reach approximately 1.86 billion standard meters in 2024, up from 1.4 billion standard meters in 2014 [1][7] Production Sector - The production of rubber hoses is essential for providing stable solutions for liquid and gas transportation in complex environments. The industry has seen a consistent increase in demand due to industrial growth [7] - The upstream supply chain includes raw materials such as natural rubber, synthetic rubber, rubber additives, and metal components, while the midstream involves manufacturing processes [5][7] Import and Export - China's rubber hose products have reached or are close to developed country standards, leading to a significant increase in export volumes, which have outpaced imports. In 2024, the export volume is projected to be 361,800 tons, reflecting a year-on-year increase of 15.87% [9] - The import volume for the same year is expected to be 26,300 tons, showing a decrease of 6.7% compared to the previous year [9] Consumption Sector - The global industrial hose market is expanding, with the market size projected to grow from $12.8 billion in 2019 to $17 billion in 2024, indicating a broad market space for the rubber hose industry [11] - The demand for hydraulic fracturing water treatment system hoses is also on the rise, with the market size expected to grow from $0.69 million in 2022 to $1.29 million in 2024, and potentially reaching $4.53 million by 2028 [13] Competitive Landscape - The rubber hose industry in China is characterized by a large number of small to medium-sized enterprises, with many competing in the low-end product market. There is a noticeable gap in technology and brand recognition compared to leading multinational companies [15][21] - Major international brands like Manuli, Parker, and Gates dominate the global market, leveraging their extensive experience and technological advantages [15][17] Future Trends - The industry is expected to see an increase in concentration, with smaller companies being phased out due to rising quality demands from downstream sectors [21] - There is a growing trend towards domestic production of high-end rubber hoses, as local companies invest in technology and innovation to reduce reliance on imports [22] - Environmental concerns are driving the industry towards greener and low-carbon production methods, with advancements in automation and digitalization enhancing production efficiency and product quality [23]