GLONGHUI, March 22 | CMBC Capital released a research report to maintain the “buy” rating of Dalip Holdings (1921.HK). The target price is HK$10, indicating that Dalip is a supplier of energy development and application equipment. The products cover oil and gas pipes, special seamless steel pipes, new energy pipes, and other energy-related equipment. According to the research report, the company's future sales have various positive growth drivers, including: (i) in the face of a rebound in oil prices, the capital expenditure prospects of China's three major oil companies are steady, and domestic oil and gas production needs to be increased to meet growing domestic consumer demand; (ii) the company's export business continues to expand; (iii) the increase in mixed gross margin with the promotion of high-end products; and (iv) production capacity expansion plans. The research report mentioned that the rapid growth in export business is a “double help.” In fiscal year 2022, the company's overseas sales increased 2.2 times to 1.15 billion yuan. Overseas revenue accounted for 27.2% of total revenue, an increase of 17.6 percentage points over the previous year. The booming export business helps to further accelerate business growth and diversify business risks. The company's latest plan is to establish a headquarters, R&D center, smart factory and data control center in the Middle East, which will further accelerate the pace of overseas sales. In terms of performance, the company achieved net profit of 82.9 million yuan and 151.6 million yuan in fiscal year 2021 and fiscal year 2022, respectively. The bank predicts that with the expansion of production capacity and the increase in gross margin, the compound annual growth rate of profit will reach 50% during the fiscal year 2022/26. Furthermore, with the completion of the entire phase of capacity expansion, earnings are expected to explode after 2026, while sales revenue is expected to double from FY2022.