LZJT(SZ:300428)2019-09-11 11:20Group 1: Company Overview and Investor Interaction - Hebei Sitong New Material Co., Ltd. is a leading enterprise in the research, production, and sales of functional intermediate alloy new materials [1] - The company held an investor research meeting on September 11, 2019, attended by representatives from various securities firms [1] Group 2: Profit Growth Points - The company is constructing a production line with an annual capacity of 25,000 tons for high-end grain refining agents, which is expected to significantly enhance product profitability [2] - The company possesses a leading special intermediate alloy production line for aerospace applications, with strong growth potential driven by national development strategies and domestic substitution [2] Group 3: Product Applications - Sitong's products are primarily used in automotive, high-speed rail, aerospace, military, power electronics, building aluminum profiles, and food packaging sectors [3] - The company has successfully developed key components for aerospace engines, such as exhaust plugs and nozzles, using independently developed multi-element alloys [4] Group 4: Market Structure and Sales Policy Adjustments - Following the major asset restructuring in 2018, Sitong has integrated high-quality assets, enhancing asset quality and sustainable profitability [5] - The company aims to optimize its business structure and revenue model while expanding its market presence, particularly in the automotive sector [5] Group 5: Automotive Industry Impact and Profit Maintenance - Despite a slowdown in order growth due to the domestic automotive market, Sitong is focusing on optimizing customer structure and expanding into overseas high-end markets [6] - In the first half of 2019, sales revenue from aluminum alloy wheels was approximately ¥2.56 billion, a year-on-year decrease of 9.72%, but operating profit increased by 19.53% to ¥201.61 million due to favorable exchange rates [7] - International market sales accounted for 61.08% of total wheel business sales in the first half of 2019, an increase of 7.55 percentage points year-on-year [7]