SNS(300470)2023-10-29 10:40Group 1: Company Performance Overview - The company achieved a record high quarterly revenue in Q3 2023, with a significant increase in profit compared to the previous quarter [3] - The main factor affecting profit was the increase in the proportion of incremental business, with confidence in meeting annual operational targets based on current order status [3] - The mechanical sealing sector remains stable in the petrochemical field, while the nuclear power sector shows strong growth potential [3][4] Group 2: Business Segments Performance - The international business segment saw a substantial increase in new orders, significantly exceeding the same period last year [4] - The rubber and plastic sealing segment also reached a record high in quarterly revenue, maintaining stable gross margins [4] - The special valve segment experienced a notable recovery in gross margin, although revenue completion was hindered by project delays [4] Group 3: Incremental Business Insights - The growth in incremental business in Q3 primarily came from the international business segment, which contributed most of the incremental revenue [4] - The gross margin for international business is generally higher than that of domestic incremental business, although Q3 margins were lower than expected due to competitive pressures [4][5] - The delivery cycle for international business is longer than domestic, influenced by project construction timelines and complexity [5] Group 4: Future Outlook - The company anticipates that the gross margin for incremental business will gradually recover, driven by the overall economic recovery and growth in high-margin sectors like international business and nuclear power [5] - The international team's capacity is being enhanced to meet the growing order demands, with design time for international orders improving from 5 times to 2.5 times that of domestic orders [5]