Shandong Longquan Pipeline Engineering Co Ltd

Longquan Co., Ltd. released its 2026 interim report, with total operating revenue of 517 million yuan, down 16.25% year on year. Net profit attributable to the parent company was 4.3721 million yuan, down 88.30% from the same period last year. Net cash inflow from operating activities was 35.1802 million yuan, down 74.09% year on year. The company's asset-liability ratio was 39.28%, and gross margin was 23.42%, down 6.19 percentage points from the same period last year. Diluted earnings per share were 0.01 yuan, down 88.13% year on year.

Longquan Co. has disclosed its earnings forecast, expecting net profit attributable to shareholders of the listed company in the first half of 2026 to be between 3.5 million yuan and 4.75 million yuan, a year-on-year decline of 87.29% to 90.63%. Net profit after deducting non-recurring gains and losses is expected to be between 2.5 million yuan and 3.75 million yuan, a year-on-year decline of 89.49% to 92.99%. The company said the sharp decline in performance was mainly due to a phased revenue drop in its core prestressed concrete cylinder pipe business, as major PCCP projects in northwest and south China entered their final stages, leading to a significant year-on-year reduction in supply volumes, while major PCCP projects signed in central China are still in the preparation and production scheduling stage and have not yet entered the concentrated delivery cycle. At the same time, revenue and profit from the valve business maintained steady growth, and the metal pipe fittings business has ample orders on hand, but limited by its overall scale, the boost to overall performance is limited and still insufficient to fully offset the profit gap caused by the decline in the PCCP business.