Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company achieved a revenue of 124 million yuan in Q1 2025, representing a year-on-year growth of 23.14%, and a net profit attributable to the parent company of 36 million yuan, up 86.13% year-on-year [3] - The company is actively expanding into the nuclear power hose market and has revised its profit forecasts for 2025-2027, expecting net profits of 122 million yuan, 147 million yuan, and 175 million yuan respectively, with corresponding EPS of 0.96 yuan, 1.16 yuan, and 1.38 yuan per share [3] - The company has successfully passed multiple certifications for its oil drilling hoses and has been included in the first-level supplier system of China National Petroleum Corporation (CNPC) [4] - The first ultra-high pressure equipment has been successfully launched, and the company is advancing the development of nuclear power hoses, which opens up new growth opportunities [5] Financial Summary and Valuation Indicators - In 2025, the company is expected to generate a revenue of 525 million yuan, with a year-on-year growth of 8.4% [7] - The gross profit margin is projected to be 42.6% in 2025, with a net profit margin of 23.1% [10] - The company’s return on equity (ROE) is expected to be 15.3% in 2025, with an EPS of 0.96 yuan [7][10]

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company has achieved a revenue of 124 million yuan in Q1 2025, representing a year-on-year growth of 23.14%, and a net profit attributable to the parent company of 36 million yuan, which is an increase of 86.13% year-on-year [3] - The company is actively expanding into the nuclear power hose sector and has revised its profit forecasts for 2026 and introduced a new forecast for 2027, expecting net profits of 122 million yuan, 147 million yuan, and 175 million yuan for 2025, 2026, and 2027 respectively [3] - The company has successfully passed multiple certifications for its oil drilling hoses and has been included in the first-level supplier system of China National Petroleum Corporation (CNPC) [4] - The first ultra-high pressure equipment has been successfully launched, and the company is advancing the development of nuclear power hoses, which opens up new growth opportunities [5] Financial Summary and Valuation Indicators - In 2025, the company is expected to achieve a revenue of 525 million yuan, with a year-on-year growth of 8.4% [7] - The net profit attributable to the parent company is projected to be 122 million yuan in 2025, reflecting a year-on-year increase of 13.3% [10] - The company's gross margin is expected to be 42.6% in 2025, with a net margin of 23.1% [10] - The earnings per share (EPS) for 2025 is estimated at 0.96 yuan, with a price-to-earnings (P/E) ratio of 19.6 times [7][10]

Core Viewpoint - The report highlights the recovery of LITONG Technology's performance in Q1 2025, driven by increased orders for acid fracturing hose assemblies and a rebound in domestic demand for construction machinery [1][2]. Financial Performance - In 2024, the company reported operating revenue of 483.84 million yuan, a slight decrease of 0.32% year-on-year, and a net profit attributable to shareholders of 107.21 million yuan, down 19.82% year-on-year [1]. - For Q1 2025, the company achieved operating revenue of 124.26 million yuan, representing a year-on-year growth of 23.14%, and a net profit attributable to shareholders of 35.64 million yuan, up 86.13% year-on-year [1]. Product and Market Development - The company has seen an increase in orders for acid fracturing hose assemblies, contributing to a rise in gross margin to 43.26% in 2024, despite a decline of 4.58 percentage points from the previous year [2]. - The company has obtained API17K certification for its products, facilitating its expansion into the marine engineering hose market [3]. - Multiple new product developments have progressed, including 43 types of nuclear power hoses and a high-pressure food sterilization device, indicating a broadening of the company's product portfolio [4]. Future Growth Prospects - The company projects net profits of 125 million yuan, 144 million yuan, and 167 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 16.30%, 15.70%, and 16.10% [4]. - The market potential for the company's main products, including hydraulic rubber hoses and industrial hoses, is significant, with new product lines expected to contribute to future revenue growth [4].