LSKJ(300680)2025-04-16 15:46Summary of Longsheng Technology Conference Call Company Overview - Longsheng Technology has a stable shareholding structure with the actual controller holding approximately 30% of the shares. Subsidiaries include Weiyuan Precision, Longsheng New Energy, and Weiyuan Zhongjia, each responsible for different business segments. The company has achieved its 2023 equity incentive goals and expects to meet similar targets in the next two years, demonstrating its commitment to business advancement and profit release [2][3][11]. Financial Performance - From 2018 to 2023, Longsheng Technology's revenue increased from 230 million to 1.8 billion, with a compound annual growth rate (CAGR) of 47%. The net profit attributable to shareholders rose from 4 million to 147 million, reflecting a growth rate of 204%. In the first three quarters of 2023, the company's revenue and profit growth rates remained in the range of 40% to 60% [2][4]. Product Lines - Longsheng Technology has three main product lines: EGR systems, new energy sector, and precision components. The EGR system is the core business, benefiting from the implementation of National VI emission standards, which is expected to drive demand for commercial vehicles. The motor core business is rapidly developing, accounting for nearly 44% of total revenue, directly supplying companies like Tesla and Geely [2][6][8]. Market Outlook - The EGR system market is projected to reach 5 billion by 2025, driven by increased usage in diesel vehicles due to stricter emission standards. Major clients include BYD and Geely [7]. The motor core business, essential for electric vehicle drive motors, is expected to approach a market size of 9 billion by 2025, with significant partnerships with various automakers [8]. New Energy and Natural Gas Injection Products - Longsheng Technology is actively expanding into the new energy sector through its motor core business and has also made significant strides in natural gas injection products, which benefit from the widening price gap between oil and gas. The company has been working with Bosch to supply components for Weichai and Cummins engines since 2019, which is expected to contribute to new growth [5][10]. Future Development Directions - The company plans to continue focusing on traditional EGR systems while actively exploring the new energy sector through its motor core business. Additionally, it is making significant investments in natural gas injection products to meet diverse energy demands. Longsheng Technology is also increasing its client base, including partnerships with companies like Huawei Digital Energy, indicating substantial growth potential in the coming years [11][12]. New Business Initiatives - Longsheng Technology has begun to explore new growth avenues, including low-altitude and robotics sectors. Collaborations with Northwest Polytechnical University and the Chinese Academy of Sciences are underway to develop low-altitude commercial fixed-wing aircraft and collaborative robots, respectively [5][13][15]. Market Potential for Robotics - The humanoid robot market is projected to see sales reach 250,000 units by 2030, with a potential market size of 35 billion [17]. Financial Forecast - Revenue growth for EGR products is expected to be around 40% from 2024 to 2026. The motor core business is projected to grow at rates of 70%, 30%, and 20% for clients like Fudi Power, Tesla, and Geely, respectively. Overall, the company's revenue growth is anticipated to be 30% and 24% for 2025 and 2026, respectively [18][19].