Securities code: 300470 securities abbreviation: Sinoseal Holding Co.Ltd(300470) Sinoseal Holding Co.Ltd(300470) record of investor relations activities
No.: 2022-002
\uf0fe specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
□ press conference □ Roadshow
Category □ site visit
□ others (please specify other activities in words)
Name of participants and Dacheng Fund: Dai Jun, Zhu Qian, Jing Siyuan and Wang Jingjing; Maple Brown Abbott: personnel name: Li Yuan
Time: February 10, 2022, February 11, 2022
Location: conference room on the 4th floor of the company
Receptionist of listed company
Chen Hong, director, deputy general manager, Secretary of the board of directors and chief financial officer
1. What is the overall operation of the company in the fourth quarter of 2021? What is the impact of the epidemic on the company?
A: the overall operation of the company in the fourth quarter still showed a steady growth trend, and the development of various business segments and subsidiaries was relatively smooth. On the whole, the gross profit margin of the company is good, the orders on hand are still sufficient, the production is full, and the import substitution is progressing very smoothly, especially in the nuclear power sector in the fourth quarter. Although the company's headquarters stopped production in the fourth quarter due to the epidemic for more than two weeks when the main contents of investor relations activities were introduced, this temporary shutdown will only have a short-term impact on the company and will not have a significant impact. During the temporary shutdown period, the company's emergency management level was greatly improved. With the support of the information system, the company's headquarters resumed normal operation in a few days in addition to the work that must be carried out in the factory. Subsidiary Huayang seal and Japan machine seal undertook some urgent parts of the company's headquarters during this period.
2. What is the company's production expansion plan this year?
A: the overall pressure on the company's production capacity is still great. The production has been at full load, and the order volume continues to remain at an all-time high, but the growth is limited. This is mainly due to the tight production capacity of the company and the measures taken to limit the receipt of orders. According to the company's judgment on the market trend and the company's long-term development plan, the company now has a more positive attitude towards capacity expansion. This year, the company plans to implement greater capacity expansion for key bottlenecks. In the mechanical seal sector, it is expected to significantly expand the recruitment of employees. In addition, the construction of special workshops for nuclear power seals will be completed, and the production capacity of large seals will also be targeted. This part is expected to meet the production capacity required by 200 million sales revenue. In addition, the production of rubber and plastic seals and valve sectors will be expanded to a certain extent.
3. How does the company's international market develop?
A: for the company, internationalization strategy is one of the most important strategies of the company. Developing international market is not only an important part of the company's business, but also an important way for the company to obtain greater market space. The company has laid out the international market for many years and clearly felt the importance of brands in the international market. By continuously accumulating achievements and actively participating in international professional exhibitions, technical forums, academic exchanges and inter enterprise exchanges, the company has continuously improved its brand awareness and influence in the international market. The overall development process of the company's international business is relatively smooth and has achieved certain phased results. At present, new projects in the international market are mainly concentrated in developing countries, and the company's international market orders are basically in developing countries. One belt, one road initiative is the main one in the development of one's international business. One is supporting the "one belt, one road" project, and it also deepens cooperation with SIEMENS and Elliot and other international leading plants, and strengthens communication and cooperation with end customers. In addition, the company is also continuously cultivating international business talents and expanding the international business talent team.
4. Replacement cycle of nuclear power seal?
A: the safety performance requirements of sealing products in the field of nuclear power are higher than those of ordinary pump mechanical seals, and the replacement cycles of different nuclear power seals are also different. According to the company, a refueling cycle of the nuclear power plant is about one and a half years. The seal of the nuclear main pump will be repaired once in each refueling cycle. Usually, the seal of the nuclear main pump will be replaced once after two refueling cycles. Replacement cycle and of seals for nuclear secondary and tertiary pumps
The seal of nuclear main pump is similar. The seal replacement cycle of conventional island is similar to that of mechanical seal for ordinary pump, which is about 1-2 years.
5. What is the current proportion structure of stock business?
A: in the past two years, the stock business of the company has basically maintained a proportion of about 50%. This business structure is not common in internationally renowned sealing enterprises. According to the company's information, John Crane and Iger Bergman account for a relatively high proportion of stock business. In the company's business structure, the proportion of incremental business significantly exceeds that of these international companies. Because the company has a high market share in new projects in recent years, especially in the field of petrochemical industry, the market share of new projects can reach 60% - 70%. For the company, the high proportion of incremental business means that customers highly trust and value us and are willing to hand over a large number of incremental orders to us, which reflects the company's market position and brand position, and a large number of incremental business is also a strong guarantee for the continuous growth of the company's stock business in the future.
6. What are the reasons for the current rebound of gross profit margin in incremental market?
A: at present, the gross profit margin of the company has obviously warmed up, which is mainly because the intensity of incremental business competition has eased. Incremental business presents this feature. First, the competition pattern in the sealing market has been relatively stable. New large-scale projects have higher and more comprehensive requirements for suppliers. Generally, only a few companies with strong comprehensive ability are considered as the main suppliers of sealing products, The effectiveness of low price competition strategy gradually decreases. Second, under the current background of import substitution, customers usually have a strong willingness to import substitution. Although many large projects use foreign products when driving, they will import substitution soon after driving, so as to prevent possible supply risks in the future, Therefore, foreign competitors began to gradually change the mode of "low price incremental business + high price stock business" adopted in the past, and the quotation in the incremental market was higher than in the past.
Annex list (if any) none
Date: February 11, 2022
