According to the news on March 31, Wantong Hydraulics (830839) recently received on-site investigations from 7 institutions including Northeast Securities (000686), China International Capital Corporation, and China National Finance Securities (600109). In the survey, the company's overseas sales, products and future development prospects were favored.

According to the information of the Kubei Research Institute, Wantong Hydraulics is mainly engaged in the research and development, production and sales of hydraulic cylinders. The products include special cylinders for dump trucks, cylinders for mechanical equipment and oil and gas springs, etc., which are widely used in automobiles, energy mining equipment, construction machinery, and military industries. equipment etc.

According to reports, Wantong hydraulic technology is strong and has mastered a number of core technologies, such as cold drawing technology, sealing structure optimization technology, piston rod heat treatment and surface treatment technology, mirror polishing roughness control technology, accumulator double air chamber technology, etc. Core hydraulic cylinder and oil-gas spring design, production technology, etc., and has a series of core technology patents with independent intellectual property rights.

Relying on the high reliability of products and core technology advantages, Wantong Hydraulics continues to open up overseas markets, selling special oil cylinders for dump trucks, oil and gas springs and other products. Overseas markets are mainly concentrated in North America. Among them, the United States, Russia, Canada and other countries have faster growth rates. At present, Russia and other Eastern European regions have the fastest growth rates. Overseas customers are mainly dealers and some truck OEMs.

Wantong Hydraulics stated that as the penetration rate continues to increase, the market size of the company's product oil and gas springs will further grow. In addition, in the field of military industry, with the smooth progress of the trial production of a variety of "military multi-bridge heavy-duty vehicles" and "a certain type of amphibious armored vehicle", orders for related oil and gas spring products are expected to further increase.

It is worth mentioning that Wantong Hydraulics has now fully covered the main models of hydraulic cylinders used in the domestic coal machinery industry, and has high-precision machining capabilities.

Key Questions of the Survey and Summary of Company Responses

Question 1: How many countries or regions are sold overseas, and which region has a relatively high proportion? What are the fastest growing regions?

Answer: The company's overseas sales mainly include North America, South America, Africa, Eastern Europe, Asia and other regions. Generally speaking, the North American market accounts for a relatively high proportion; the fastest growing countries are mainly the United States, Russia, Canada and other countries. Currently, Russia, etc. The fastest growing region is Eastern Europe.

Question 2: What are the types of customers for overseas sales?

Answer: Overseas customers are mainly dealers, and there are also some truck OEMs. In the overseas market, the company continues to give full play to the high reliability and core technical advantages of special oil cylinders for dump trucks, and launches thin-walled stepped dump truck oil cylinders for the North American market. With the increase in market penetration of such products, the company’s overseas market share will further increase. expand. In the future, the company plans to establish an after-sales service team to provide customers with better services and further develop OEM customers. With the continuous expansion of the market share of OEMs, the company's overseas revenue is expected to further increase by virtue of product technology, quality and cost-effective advantages.

Question 3: What are the main types of products sold overseas?

Answer: The main products sold overseas by the company include oil cylinders for dump trucks, cylinders for mechanical equipment and oil-gas springs. At present, most of the overseas income comes from the sales of special oil tanks for dump trucks. For the foreign market of oil and gas springs, we continue to increase research and development work. The models used for oil and gas spring products in foreign markets are rigid heavy-duty vehicles, and the suspension type is quite different from that of domestic vehicles. The development and production of suspension products that can withstand large lateral forces, large bending moments, and large local stresses are customized in terms of product material composition selection, material special process treatment, and processing technology. With the completion of the loading test, It is expected to further increase the sales of foreign oil and gas spring products.

Question 4: What are the main application scenarios of oil and gas springs? What are the prospects for future development?

Answer: The oil-gas spring is the elastic and shock-absorbing element of the oil-gas suspension. It is the core component. Its main function is to disperse the impact generated by the transportation road and loading, improve driving safety and comfort, and extend the life of the frame. The oil and gas springs produced by the company can be used in off-highway mining dump trucks, multi-axle heavy-duty transport vehicles and semi-trailers and other fields.

With the test and promotion of heavy-duty off-highway mining dump trucks, the company has developed a complete vehicle full oil-pneumatic suspension system. This system will increase the loading capacity of single-machine oil-air springs. The oil-air balanced suspension with dual air chambers on the rear axle is gradually promoted from the front axle oil-air suspension to the full vehicle oil-air suspension. As the penetration rate continues to increase, the market size of oil and gas springs will further grow. In addition, in the field of military industry, with the smooth development of the trial production of a variety of "military multi-bridge heavy-duty vehicles" and "a certain type of amphibious armored vehicle", orders for related oil and gas spring products are expected to further increase.

Question 5: How does the company maintain strong competitiveness in cylinders used in coal mining equipment?

Answer: The coal mining equipment cylinders in the company's mechanical equipment cylinders are generally used on mid-end and high-end hydraulic supports. Through product research and development, the introduction of advanced equipment and talents and the accumulation of production experience, the comprehensive coverage of the main models of hydraulic cylinder products used in the domestic coal machinery industry has been achieved. With high-precision machining capabilities, the produced cylinder products can meet extremely high shape and position. Tolerance standards, equipped with displacement sensors, can be widely used in intelligent electro-hydraulic control mining equipment. Major customers include Zhengmei Machinery (601717), Yankuang Donghua, Beimei Machinery, Shanxi Pingyang, Sany Heavy and other large coal mining equipment enterprises in the country.

The ultra-large rice mining height hydraulic support developed by the company has high corrosion resistance, super large diameter, long stroke, two-stage 630 column, which can meet the maximum cylinder diameter requirements of mining equipment, and has laid a foundation for subsequent order growth.

At present, high-quality fully mechanized mining equipment is developing in the direction of intelligence and greenness, and higher requirements have been put forward for hydraulic cylinder products used in hydraulic supports. The proportion will increase. In this regard, the company cooperated with downstream customers to actively respond to the construction requirements of green mines and environmentally friendly mines, successfully developed and trial-produced pure water hydraulic cylinders, and launched hydraulic supports with pure water as the working medium. With the active promotion of green mine construction in various places, the market prospect of pure water hydraulic cylinder is good, and it is expected to further expand the market scale.