GATD(SH:688239)2025-11-10 03:34Summary of the Conference Call for Hangyu Technology Industry and Company Overview - The conference call pertains to Hangyu Technology, focusing on the aerospace and energy sectors, particularly in gas turbines and aviation engines [2][3][4]. Key Points and Arguments Financial Performance and Growth Projections - Hangyu Technology forecasts a total order value close to 6 billion yuan, ensuring performance growth in the upcoming quarters, primarily driven by increased market share in the overseas aviation engine sector and Boeing's recovery [2][3]. - In Q3 2025, the company reported a revenue growth of over 40% year-on-year, with a net profit growth of over 30% after excluding non-recurring items, attributed to a robust order backlog [3]. - The gas turbine business is expected to generate approximately 300 million yuan in revenue by 2025, with a target of 1-1.5 billion yuan by 2030 [2][5]. Business Segments and Market Strategy - The overseas aviation engine business is projected to reach nearly 1 billion yuan in revenue by 2025, aiming for 3 billion yuan by 2030, focusing on high-value products like precision machining and component assembly, which can achieve gross margins of 50%-60% [2][6]. - The company is negotiating long-term framework agreements with GEV and Siemens, which are expected to materialize by the end of 2025 or early 2026 [3][4]. Technological Advancements - Hangyu Technology's self-developed NST technology significantly reduces raw material usage by 20%-50%, lowering customer costs and enhancing order potential, especially in the context of overseas supply chain inflation [2][10]. - The company plans to expand its precision machining output at the Deyang base and explore nuclear power-related businesses, anticipating a growth rate exceeding 50% in the gas turbine sector by 2026 [2][9]. Competitive Landscape - The precision machining capacity in China is mainly concentrated in the aviation sector, while the gas turbine and semiconductor equipment components market is fragmented with no dominant players [8]. - Internationally, most capacity is held by large forging plants in Europe and the US, with a current shortage of overseas capacity due to acquisitions by large groups or private equity [8]. Future Development Plans - By 2030, Hangyu Technology aims to achieve 1-1.5 billion yuan in gas turbine product revenue and 3 billion yuan in overseas commercial aviation engine product revenue [9]. - The company is also looking to expand into nuclear power-related businesses after obtaining the necessary qualifications [9]. Market Conditions and Challenges - The gross margin is significantly affected by domestic special refunds, but improvements are expected through scaled production and new technology applications [4][17]. - The company has a substantial order backlog that covers revenue forecasts for 2026, with long-term contracts providing a conservative estimate extending to 2029 [16]. Semiconductor Equipment Market - The company has delivered semiconductor equipment products to clients and is awaiting evaluation results, with an expected revenue of nearly 10 million yuan by 2026 [14]. - The global market for semiconductor equipment is estimated to be around 10 billion yuan annually, with a focus on titanium alloy products [14][15]. Additional Important Insights - The company is actively pursuing new contracts for wide-body engines to increase market share, with many existing contracts awaiting renewal [13]. - The impact of overseas supply chain inflation is evident in rising raw material prices and increased costs across various stages of production [11].