Zhongtai Cryogenic(SZ:300435)2022-12-04 07:18Group 1: Business Overview - The company has a ten-year strategic plan focusing on "engineering equipment + investment operation" as two major directions [1] - The main business lines include natural gas, synthesis gas, olefins, and air, with a focus on energy and industrial gas sectors [1] - The company has successfully restarted previously paused natural gas liquefaction projects, ensuring solid performance commitments for the year [1] Group 2: Financial Performance - In 2017, the company experienced significant growth, with new contracts doubling compared to previous years [3] - Natural gas business accounts for 50% of new contracts, with an expected growth rate of 40% [3] - The coal chemical synthesis gas sector is also seeing rapid growth, with new contracts increasing significantly in the second half of the year [3] Group 3: Market Position and Competition - The company holds a substantial market share in the petrochemical sector, particularly in low-temperature cold boxes, with a 50-60% share of new projects [3] - In the olefins sector, competition is limited, with only 6-7 active competitors, including major international players [3] - The air products segment has shown improvement, particularly in projects related to the Belt and Road Initiative [3] Group 4: Challenges and Future Outlook - The company faced profit pressure in 2017 due to price reductions from foreign competitors, but expects a recovery in profitability in the coming year [3] - Raw material prices, particularly aluminum, have shown a recent decline, impacting project costs [3] - The company’s core manufacturing capacity is fully operational, with adjustments possible through increased shifts [3]