NEWAY(SH:603699)2025-09-02 00:42Summary of Nuo Wei Co., Ltd. Conference Call Company Overview - Nuo Wei Co., Ltd. operates in diverse sectors including oil, gas, water treatment, automation production, and renewable energy, leveraging technological innovation to meet market demands and promote industry diversification [2][3] Financial Performance - In the first half of 2025, Nuo Wei's profit levels remained stable with a gross margin around 35%, a decline from the initial public offering gross margin of 44.41% in 2014, but still considered good within the manufacturing industry [2][5][6] - The company’s net profit has also remained stable [6] Market Trends and Growth Projections - The valve market is projected to grow at a compound annual growth rate (CAGR) of 6% from 2025 to 2033, driven by demand from oil, gas, water treatment, automation production, and renewable energy sectors [2][7] - The company’s strategic direction focuses on high-end, diversified, and global expansion, particularly in downstream sectors like electricity, water treatment, and renewable energy projects [2][8] Order and Market Insights - Order growth in 2025 is primarily from international markets, with domestic orders remaining flat compared to 2024. The Middle East and Asia-Pacific regions show significant growth [9] - Oil and gas extraction, including clean LNG, accounts for approximately 35%-40% of the company’s business, with rapid growth observed in water treatment, nuclear power, and coal chemical sectors [9][10] Nuclear Power Sector - Nuo Wei has experienced rapid growth in the nuclear power sector, expanding its business with China National Nuclear Corporation and increasing its product range, aiming for an annual output value of 600 million yuan [11] Water Treatment Sector - The water treatment industry has shown slight growth, with a healthier customer structure compared to previous years. The company has delivered projects like the data center for Google in Belgium and is engaging with major players like Alibaba and Tencent [12][17] - Expected order size in the water treatment sector for 2025 is around 300 million yuan, maintaining or slightly increasing from 2024 [19] Data Center Business - The outlook for the data center business is optimistic, with participation in significant projects and a focus on meeting the needs of high-quality, low-price-sensitive clients [14][15] - The company anticipates securing data center orders in the Middle East by early next year [15] Strategic Initiatives - Nuo Wei is focusing on high-margin orders in a competitive domestic market and accelerating overseas expansion through standardized product integration [20] - The company is also addressing currency fluctuations that impact overseas margins, maintaining a stable gross margin around 35% [21] Conclusion - Nuo Wei Co., Ltd. is strategically positioned for growth across multiple sectors, with a focus on international markets and high-margin products, while navigating challenges in domestic competition and currency fluctuations.