HUAMING(SZ:002270)2022-11-22 01:01Group 1: Company Overview - Huaming Power Equipment Co., Ltd. is involved in the production of power equipment, specifically focusing on products like tap changers and voltage regulation switches [2]. - The company has approximately 40 years of industry experience, allowing it to meet diverse customer needs and maintain high product reliability [3]. Group 2: Product and Technology - The market for tap changers is small but has high technical barriers, requiring over a thousand components and various production processes [2]. - The company’s products are primarily oil-immersed, with vacuum-type products being more expensive [3]. - The company has launched its first no-load ultra-high voltage product, which is expected to be operational on China's ultra-high voltage lines soon [4]. Group 3: Market Position and Competition - Huaming's tap changer products are priced 30%-70% lower than similar products from competitors like MR, providing a strong cost-performance ratio [5]. - The company competes with MR across all product ranges, from low-end to high-end products, marking a history of domestic substitution for imports [5]. Group 4: Financial Aspects and Future Outlook - Service revenue currently accounts for 1/3 to 1/2 of the company's profits, indicating significant potential for growth in this area [4]. - The company plans to enhance service income as a key development focus moving forward [4]. - Future investments in the power sector are expected to drive demand for tap changers, particularly due to the need for infrastructure improvements and renewable energy integration [6]. Group 5: Customer Base and Sales Strategy - Major customers include transformer manufacturers and the top 20 global power grid companies [5]. - The sales process for tap changers varies by customer type, with end-users typically selecting products through specified or certified methods during project planning [4].