SINOMACH Precision: A leader in aerospace and wind power bearings

The core of commercial aerospace lies in the advancement of rocket technology, especially breakthroughs in turbopump technology. As the heart of the rocket engine, the performance of the turbopump directly determines the thrust of the engine. Among the key components of the turbine pump, bearings and dynamic seals play a vital role.

As a leader in China's aerospace bearing field, SINOMACH Seiko occupies about 90% of the market share, demonstrating a strong market dominance. In recent years, Sinomach Seiko has actively adjusted its business structure, focusing more on its two core businesses of bearings and superhard materials, reducing non-core businesses and improving overall operating efficiency.

In the first quarter of 2024, Sinomach Precision achieved operating income of 636 million yuan, a year-on-year increase of 3.04%, and net profit reached 85.5237 million yuan, a year-on-year increase of 14.88%, showing a healthy growth momentum. The company's gross profit margin has also increased significantly, reaching 36.26%, which is much higher than the industry average.

The advantage of SINOMACH lies in its shaft research institute, the only comprehensive bearing research institute (ZYS) in China. The special bearing products of ZYS are widely used in the aerospace field, such as the Chang'e-6 lunar backside sampling mission, as well as major projects such as the "Shenzhou" series of manned spacecraft. In 2023, the revenue of the bearing business will reach 1.038 billion yuan, accounting for 37.28% of the total revenue, and the gross profit margin will be 39.52%.

With the development of China's satellite application industry, especially the advancement of the Beidou system and commercial aerospace projects, Sinomach Seiko's prospects in this field are very broad. The company is also actively developing the wind power bearing business and leading the localization process of wind power bearings. Currently, SINOMACH Seiko has cooperated with a number of well-known domestic companies to develop a variety of spindle bearings suitable for wind turbines of different powers, and has achieved batch supply.

It is expected that in the next few years, with the increase in demand and technological advancement in the wind power industry, Sinomach Precision's business in the field of wind power bearings will develop rapidly and become one of the company's important growth points. In addition, the company's business in fields such as electric spindles and machine tool bearings is also gradually expanding, and it is expected to achieve the goal of import substitution.