Industrial automatic control systems are widely used in petrochemicals, metallurgy, power, light industry and building materials, municipal environmental protection, new materials, and nuclear industries. Currently, the petrochemical, metallurgical, power, and nuclear industries still have significant demand for new projects, technological upgrades, and spare parts. Large-scale coal chemical, high-end chemical new materials, non-ferrous metal smelting and rolling processing, and nuclear industries continue to show strong growth momentum. The company is also expanding into broad overseas markets. Currently, the Middle East market is experiencing high growth and large-scale capital expenditures. Furthermore, based on the expansion of Chinese engineering companies in the Belt and Road region, the company is expected to continuously increase the proportion of export revenue, achieving sustained long-term revenue and profit growth.
Company Product Series:
Transmitters: There are many types of transmitters, which can be divided into temperature/humidity transmitters, pressure transmitters, level transmitters, flow transmitters, weight transmitters, etc., depending on the object being measured. Functionally, transmitters are similar to sensors, but there are certain differences. Taking pressure sensors and pressure transmitters as examples, the differences are: 1) Different concepts: Pressure sensors typically convert pressure signals into electrical signals for output. Pressure transmitters, on the other hand, convert the primary electrical signal from a sensor into a standard electrical signal. 2) Different applications: Pressure transmitters are characterized by intelligence, integration, and miniaturization, and have a wider range of applications than pressure sensors, allowing them to be used in harsh environments. 3) Different compositions: Pressure sensors mainly consist of elastic sensitive elements and displacement sensitive elements, which convert the pressure into an electrical signal that is related to the pressure. A pressure transmitter is a complete circuit unit for measuring pressure, consisting of a pressure-sensitive element and a conditioning circuit. It typically outputs a standard voltage or current signal that is linearly related to the pressure.
From a market perspective, although precise market size data for various types of transmitters is lacking, it is generally believed that the global market size for each type of transmitter is in the range of $1 billion to $4 billion. Therefore, the overall global market size for transmitters should be over $10 billion, indicating a vast market potential. According to Mordor Intelligence research, North America is expected to hold a significant market share in sub-sectors such as pressure transmitters. The Chinese transmitter market is smaller than that of the United States, but it still has a potential of several billion yuan. For example, the Chinese pressure transmitter market was projected to reach 6.08 billion yuan in 2024.
Flow meters: There are many types of flow meters. Based on their structural principles, representative types include: 1) Differential pressure flow meters: Composed of a primary device and a secondary device. The primary device, called the flow measuring element, is installed in the pipeline of the fluid being measured, generating a pressure difference proportional to the flow rate (velocity), which is then used by the secondary device to display the flow rate. The secondary device, called the display instrument, receives the differential pressure signal generated by the measuring element and converts it into the corresponding flow rate for display. Differential pressure flow meters are the oldest and most widely used type of flow meter. 2) Electromagnetic flow meters: These are made using the principle that a conductive body moving in a magnetic field generates an induced electromotive force, and the flow rate in the pipeline is reflected by measuring the electromotive force. They have high measurement accuracy and sensitivity. 3) Mass flow meters: Divided into direct and indirect types. Direct mass flow meters use principles directly related to mass flow rate for measurement. Commonly used types include calorimetric, angular momentum, vibrating gyroscope, Magnus effect, and Coriolis force mass flow meters. Indirect mass flow meters calculate the mass flow rate by directly multiplying the density meter reading by the volumetric flow rate.
The company's products are mainly used in the petrochemical, metallurgical, power, municipal utilities, and environmental protection markets, with a significant number in process-oriented industries. Process industries have higher requirements for product reliability and failure rates, making the accumulation of industry processes and projects crucial. Product development emphasizes the reuse of products after industry demonstration effects and the use of multiple products to increase the value of individual projects.
As the industrial and energy sectors demand higher levels of automation and precision, a wider variety and greater quantity of instruments are being used in automation control systems. Extensive coverage of industrial instrument categories (maximizing quantity) and high performance and stability (refining quality) have become core competitive advantages for process control instruments.
Leading domestic companies are actively expanding into overseas markets. Overseas business has not only become an important driver of revenue growth but also significantly supports overall corporate profitability due to its higher profit margins.
Companies with strong overall strength in the industry have fully leveraged their advantages in technological leadership, product reliability, localized manufacturing and service, and rapid response mechanisms to tap into the potential of the domestic market and accelerate expansion into overseas markets, maintaining stable overall performance.
In the instrumentation industry, the average profit of large and medium-sized enterprises shows an upward trend, while the number of other enterprises, although continuously increasing, exhibits greater fluctuations in average profit.
In summary, even if the industry's prosperity is under pressure in the short term, the wide downstream coverage of industrial instruments and meters means the industry is still in a relatively high-prosperity cycle. Large and medium-sized industrial enterprises within the industry possess technological leadership and reliable products, and their ability to maintain profit growth is significantly higher than that of small and medium-sized enterprises. There is ample room for domestic substitution, and the Middle Eastern market is experiencing high prosperity with substantial capital expenditure.
The company's three key tasks include:
1) Promoting industry upgrading – breaking through bottlenecks in the commercialization of research results, developing and producing products with internationally advanced levels, and achieving technological upgrading of domestically produced instruments and meters.
2) Ensuring supply chain security – focusing on collaborative research and development of key common technologies for high-end instruments and meters in key areas, improving original technology capabilities, and ensuring the security of the instrument and meter supply chain.
3) Building a world-class enterprise – striving to become a world-class enterprise with the strongest technological innovation and resource integration capabilities in my country's instrument and meter field, the most complete product categories and supply chain, and the most comprehensive system integration and application scenario service capabilities.
