SNS(SZ:300470)2024-05-31 15:46Group 1: Financial Performance - The company's gross profit margin is closely related to the domestic economic situation, with downward pressure expected to persist in the short term [1] - Despite the competitive pressure, the company can withstand a decline in gross profit margin, while many small and medium-sized enterprises in the mechanical sealing sector may exit the market [1] - The company is implementing precise cost management to maintain gross profit margins, focusing on order selection and effective cost control [1] Group 2: Revenue Growth - Revenue growth is driven by three main areas: existing business, international business, and the valve segment [2] - The gross profit margin for existing business remains stable, while international business also shows high margins [2] - The valve segment is expected to see significant improvement in gross profit margin based on current orders [2] Group 3: Business Segmentation - The ratio of incremental to existing business is approximately 1:1, with incremental business having lower gross profit margins due to intense competition [2] - Factors contributing to lower margins in incremental business include the competitive strategy of "incremental occupying existing," lower value contribution of sealing products, and the presence of low-margin sealing auxiliary systems [2] Group 4: Competitive Position - The company is a leading player in the Chinese mechanical sealing industry, with advantages in talent, technology, R&D, and brand management [3] - Since 2017, the company has maintained the top position in domestic market revenue for six consecutive years [3] - The company has narrowed the technology gap with international brands, achieving product quality that meets or exceeds international standards [3] Group 5: International Business Strategy - The company's international business model has evolved, with a decreasing reliance on domestic manufacturers for international orders [3] - The company is now engaging directly with foreign end-users and has been included in the qualified supplier lists of some international clients [3] - Collaborations with renowned international manufacturers like Siemens and Elliott have been established, contributing to performance [3]