KINGLAND(SZ:002443)2025-03-06 07:52Company Overview - The main products of Zhejiang Jinzhu Pipeline Technology Co., Ltd. include hot-dip galvanized steel pipes, high-frequency welded pipes, stainless steel pipes, and various types of anti-corrosion steel pipes, widely used in water supply, drainage, firefighting, gas, and oil transportation [2][3]. - The company has maintained a stable operation despite a decline in performance due to external factors, particularly in the real estate sector, with a low debt ratio and ample financial resources [2]. Industry Insights - The steel industry has been in a downturn since 2022, with a challenging market environment. However, the worst period is believed to be over, with potential positive impacts from government policies aimed at stabilizing the real estate market and a projected 5% economic growth target [3]. - The government plans to renovate 600,000 kilometers of urban pipelines over the next five years, which is expected to benefit the steel pipe industry [3]. Pricing and Procurement - The pricing of steel pipes is closely linked to upstream steel prices. The company benefited from high prices in 2022 but faced inventory losses as prices declined in 2023 and 2024. The price drop is expected to stabilize in 2025 [4]. - The company primarily sources raw materials based on direct procurement costs and risk assessment, favoring large enterprises to mitigate risks associated with smaller firms [5]. Market Demand and Competition - The demand for pipeline projects has not accelerated as expected due to lengthy approval processes, but future construction is anticipated to align with national planning [6]. - The competitive landscape of the steel pipe industry is evolving, with three key segments identified: energy pipelines, municipal engineering, and structural pipes. The company holds a significant market share in small-diameter energy pipelines [7][8]. Future Outlook - The company is exploring new product developments, including hydrogen pipelines, but currently has no confirmed investment projects [8]. - There is a focus on maintaining sufficient funds for long-term development and future project investments, with no immediate plans for dividends [8].