Yorhe(SZ:002795)2022-12-06 09:48Company Overview - Yonghe Fluid Control Co., Ltd. provides an introduction to its corporate structure, governance, industry status, and business operations [2][3]. Main Business Analysis - From 2013 to 2015, the revenue from valve products was ¥31,728.76 million, ¥39,209.68 million, and ¥37,475.19 million, accounting for 69.24%, 75.52%, and 78.44% of total revenue respectively. Pipe fittings generated revenue of ¥11,939.25 million, ¥9,796.94 million, and ¥7,773.90 million, representing 26.05%, 18.87%, and 16.27% of total revenue [3]. - The gross profit margin for valve products was 30.12%, 30.99%, and 31.34% from 2013 to 2015, showing a steady increase, while pipe fittings had margins of 28.54%, 27.06%, and 23.60% [3]. Market and Competition - The plumbing materials industry has a large market capacity and promising future growth, driven by the rapid increase in lead-free plumbing products and advancements in production technology [3][4]. - Domestic competitors include Fujian Valve Industry Co., Ltd., Zhejiang Aidi Fluid Control Co., Ltd., and Ningbo Huaping Metal Products Co., Ltd. International competitors include Italian companies such as Caleffi S.p.A and Rubinetterie Bresciane Bonomi S.P.A [3]. Strategic Advantages - The company emphasizes continuous improvement in operations, a differentiated competitive strategy targeting high-end clients, and advantages in lead-free product markets [4]. - R&D and testing capabilities are highlighted as significant competitive advantages, along with the benefits of being part of an industrial cluster [4]. Financial and Investment Outlook - The company plans to utilize financial leverage and capital market functions to maintain a healthy asset-liability structure and ensure sustainable development [4]. - Post-IPO, the company expects to enhance its product structure and production scale, significantly improving its competitive edge [4]. Future Growth and Market Development - The company aims to gradually develop its domestic market while consolidating its position in international markets, focusing on building its own brand strategy and expanding into plumbing system applications and services [5].