Hangsheng advances: technology leading positive transformation

Hangzhou Tooth Advance (601177) Research Report Summary

1. Ship business: strive for a flat year. Although the shipbuilding industry is now in a recession, last year's offshore fishing vessels and Southeast Asian vessels have grown well. At present, ships with a capacity of more than 30,000 tons generally use low-speed diesel engines instead of gear boxes. Ships with a capacity of less than 30,000 tons must be equipped with high-speed power main engines and must use gear boxes. Therefore, the company's ship gearbox revenue this year is better than the average level of the ship industry.

2. The adjustable paddle business will double in size. Adjustable paddles can be used for trawling reels, survey vessels, offshore vessels and port tugs, etc., which have the characteristics of reducing fuel consumption, extending the life of the main engine, improving shipping maneuverability and economy. At present, the adjustable paddle products are still dominated by foreign brands. The company's adjustable paddle products are among the best in the country and can be used in foreign products, so they are favored by owners and ship owners. At present, the company has more orders for adjustable paddles than last year, and it is expected that the paddle business will double this year.

3. Fan business: The 2 MW class gear has technical advantages and will maintain a high growth rate this year. Although the wind power industry is sluggish, the main reason is that the sales of wind turbines with power below 2 MW are shrinking. Now the sales of wind turbines with power above 2 MW are still growing, and the company is now only producing wind turbine gearboxes with more than 2 MW, plus the company currently Wind power gearbox business base is low, this year's wind power gearbox is also expected to have a large increase. The quality of the 2 MW class wind turbine gearbox produced by the company is the best in China, and the flexible shaft used is suitable for China's wind conditions. Last year, the company's wind power equipment only had one customer. This year, it increased to 4 main engine factories, expanding for Hangzhou Tooth Power products. The market laid the foundation. The 2.5 MW wind power speed increase box product independently developed by the company is currently introducing 3 MW and above wind power speed increase box through the second round of technology, effectively improving the company's large wind turbine speed increase box. Development capabilities. At present, the downturn in the wind power industry can integrate the number of wind turbine main engines, thereby reducing the type of wind turbines, reducing the company's research and development costs, and making the company's wind power business more profitable.

4. Construction Machinery: Actively develop new products. The engineering machinery gearbox currently produced by the company is mainly used in loaders, graders, etc. Due to the sluggish construction machinery industry, the company's current engineering machinery gearbox revenue has also declined. However, considering the possibility of economic recovery in the second half of the year, the company's engineering machinery gearbox will also pick up. Faced with the sluggish construction machinery industry, the company is not waiting for the industry to recover, but actively research and develop new products such as bulldozers, excavator gear boxes, and strive to expand the product areas of the company's supporting engineering machinery.

5. Automobile: Transforming into a passenger car to produce gearboxes. At present, mainstream truck factories in China produce their own gearboxes, but all bus manufacturers choose specialized procurement. Since the end of the previous year, the company's automotive products business has shifted from producing truck gearboxes to producing passenger car gearboxes. Although the company's passenger car gearbox sales of more than 40 million yuan last year, but due to the small business volume of passenger car gearbox, there is no breakeven point, this year is still difficult to turn positive. The company's strengths are still technical.