Huarui Precision: It Has Achieved Certain Results In The Fields Of High-temperature Alloy Processing Tools And Titanium Alloy Processing Tools, And Some Of Its Customers Have Placed Orders And Achieved Supply.

Huarui Precision: It has achieved certain results in the fields of high-temperature alloy processing tools and titanium alloy processing tools, and some of its customers have placed orders and achieved supply.

Ask the industry pain points behind the question

In the aerospace and military fields, the technical requirements for cutting tools are extremely high. When processing materials that are difficult to process such as titanium alloys and high-temperature alloys, the cutting tools must have excellent wear resistance and thermal stability. In the past, these high-end tool markets were basically monopolized by companies from Europe, the United States and Japan, and it was difficult for domestic companies to enter this field.

Huarui Precision is closely watched by investors because the market for high-end cutting tools has huge profit margins and the technical barriers are also extremely high. Once domestic enterprises achieve import substitution, they will not only save the country a lot of foreign exchange, but also enable the entire industrial chain to become autonomous and controllable.

The company's research and development has achieved substantial breakthroughs

Huarui Precision has achieved remarkable technological achievements in the field of high-temperature alloy processing tools. It also has outstanding performance in titanium alloy processing tools. And in the field of carbon fiber reinforced composite material processing tools, significant technical achievements have also been achieved. These materials are precisely the core materials in aerospace and military manufacturing, and their processing is extremely difficult.

Based on the characteristics of these materials, the company's R&D team has carried out special tool geometry design and optimized the coating process, thereby making the tool life and processing efficiency close to the level of international first-tier brands. This shows that domestic cutting tools already have the strength to challenge imported products at the technical level.

Order placement proves market recognition

Sinovel Precision clearly stated that in the aerospace and defense industries, some customers have already completed orders and delivered supplies. This is not just a laboratory result, but has been transformed into actual sales revenue.

Although the company has not disclosed detailed customer names and order payments, it has been recognized by customers in this field, which shows that the product quality can withstand rigorous tests. For a private tool company, this is undoubtedly a landmark breakthrough.

Tool gross profit margin remains a core concern

The gross profit margin level of cutting tools in the aerospace field is one of the issues that investors are extremely concerned about. Huarui Precision did not disclose exact data in its reply, but according to industry rules, the gross profit margin of high-end customized tools is often much higher than that of general-purpose tools.

In view of the high barriers to technology in this field, the strong stickiness of customers, and the high cost of replacing suppliers, Sinovel Precision's gross profit margin of tool products in this field is very likely to remain above 50%. This will be an extremely important driving force to support the company's future performance growth.

Import substitution process accelerates

At present, the country is vigorously promoting localization of key areas. The aerospace industry and the military industry have extremely high requirements for supply chain security. If foreign suppliers cut off or restrict supply, it will have a direct impact on the production of defense equipment.

Domestic companies such as Sinovel Precision are filling this gap. The company continues to track the application trend of new materials. Sinovel Precision: It has achieved certain results in the fields of high-temperature alloy processing tools and titanium alloy processing tools. Some of its customers have already placed orders and realized supply. The products are constantly iterating and are gradually narrowing the technological gap with international giants, and even surpassing them in some fields.

There is broad room for future growth

In the fields of aerospace and military industry, the demand for cutting tools is not as large as that of the general machinery manufacturing industry. However, the value of its individual products is high and the profit margins are also large. Once Sinovel Precision achieves a comprehensive layout in this field, it will open up a new growth curve.

Most of the company's current customers focus on traditional manufacturing industries, and the proportion of the high-end market is still relatively low. As more aerospace and military customers are certified and stable orders are reached, the company's product structure will continue to be optimized, and profitability is also expected to be further improved.

What percentage of the total revenue do you think Huarui Precision can achieve in the next two years from aerospace cutting tools? You are welcome to leave a message in the comment area to discuss, like and share so that more people can witness the rise of domestic cutting tools.