Market Competitiveness Analysis Report on the Pump Business of Leo Group Co., Ltd. (002131.SZ)

Based on the comprehensive data and market information obtained, I will provide you with an in-depth analysis report on the market competitiveness of the pump business of Leo Group Co., Ltd. (002131.SZ).

---

Leo Group Co., Ltd. (Stock Code: 002131.SZ) was founded in 2007 and listed on the Shenzhen Stock Exchange as “China’s first pump stock”. After years of development, the company has formed a dual main business structure of “Mechanical Manufacturing + Digital Marketing”, with the mechanical manufacturing business focusing on pump products, making it one of the leading enterprises in China’s pump industry [0][1].

As of January 15, 2026, the company’s total market capitalization is approximately USD 70.427 billion, the current stock price is USD 10.40, and the increase in the past year has reached as high as 173.68% [0].

---

Indicator	2024	2023	YoY Change
Leo Pump Business Operating Revenue	RMB 4.687 billion	RMB 3.931 billion	+19.24%
Of which: Domestic Market	RMB 2.233 billion	RMB 1.976 billion	+13.02%
Of which: International Market	RMB 2.454 billion	RMB 1.955 billion	+25.54%
Overall Manufacturing Revenue	RMB 4.631 billion	RMB 3.892 billion	+18.99%
Manufacturing Gross Profit Margin	23.59%	23.79%	-0.20pp

Leo Pump Business maintains a dual-circulation development pattern in domestic and international markets, with the international market growing significantly faster than the domestic market, reflecting the strategic effectiveness of the company’s global layout [1].

---

Leo Group has established significant competitive barriers in the field of pump technology:

• National Honorary Qualifications:
  Awarded honors such as “National High-Tech Enterprise” and “Second Prize of National Scientific and Technological Progress”, and has been listed in the Top 500 Chinese Manufacturing Enterprises many times [1]
• Technology Center Recognition:
  The company’s technology center has been recognized as a national-level enterprise (group) technology center, and has been approved for a national-level postdoctoral research workstation
• Participation in Standard Setting:
  Participated in the formulation and revision of multiple national, industrial, Zhejiang Manufacturing and group standards, reflecting its industry discourse power
• R&D Investment:
  R&D expenses in 2024 were RMB 177 million, a year-on-year increase of 31.86%, mainly due to increased investment in R&D personnel and R&D projects [1][3]

The company’s production bases are equipped with a complete set of advanced equipment, leading the industry:

Equipment Type	Specific Configuration
Intelligent Equipment	Intelligent three-dimensional warehouse, fully automatic rotor production line, fully automatic feeding system
Precision Manufacturing	Fully automatic rotor aluminum die-casting line, automatic guide vane shell stamping line, high-speed punch press
Large-scale Processing Equipment	Large gantry mobile CNC boring and milling machine, large gantry machining center, large horizontal lathe, large floor-type boring and milling machine

These equipment meet the company’s high-quality production needs for pump products in multiple fields, enhancing the competitiveness of the company’s products in the full-category pump market [1].

• Domestic Market:
  Participates in a large number of water conservancy, electric power, petrochemical, urban water supply and heating project construction, and has extensive sales channels and numerous partners
• International Market:
  Has established a complete marketing network in major sales markets around the world, and has established stable cooperative relationships with local mainstream sales channels. Customers include well-known manufacturers, mainstream distributors, international supermarket chains, etc.
• Global Layout:
  Relying on the “Belt and Road” layout and the Indonesia production base, it radiates to emerging markets such as the Middle East and Africa [1]

The company’s business covers multiple categories such as civilian pumps, commercial pumps, industrial pumps and garden machinery, forming unique industry synergy advantages, and can provide customers with comprehensive solutions.

---

Leo Group continues to invest in technological innovation in the pump industry, with main R&D projects including:

Product/Technology	Technical Features	Application Fields	Status
Synchronous Reluctance Motor	Uses super ferrite magnetic steel, integrated design of controller and motor	Industrial energy conservation field	Already put into use
Stainless Steel End-Suction Centrifugal Pump	Stainless steel stamping, bulging and welding process, high efficiency, energy saving and corrosion resistance	Water supply, industrial pressurization, water treatment, medical and health	Already put into use
Special Pump for Cooling Towers	Large flow, low head design, low noise and environmental protection	Data center cooling tower projects	Already put into use
Single-Stage Double-Suction Horizontal Split Case Centrifugal Pump	High-efficiency and energy-saving double-suction pump, reaching international advanced level	Iron and steel smelting, petrochemical, thermal power generation, mining	Already put into use
High-Pressure High-Speed Vertical Multistage Pump	High-speed, intelligent and integrated technology	Industrial applications such as water treatment and high-pressure flushing	Under development

These product layouts cover high-growth fields from traditional industry to emerging data center cooling, demonstrating the company’s keen grasp of market trends [1].

---

Indicator	2024	Evaluation
Net Profit Attributable to Shareholders Excluding Non-Recurring Items	RMB 161 million	YoY increase of 193.35%
Manufacturing Gross Profit Margin	23.59%	Remains stable
ROE	3.74%	In the upper-middle level of the industry
Net Profit Margin	2.47%	Affected by investment gains and losses

The net profit attributable to shareholders in 2024 was -RMB 259 million, mainly due to the fair value change loss of approximately -RMB 821 million from the company’s holdings of Li Auto shares. This is a non-recurring gain/loss and does not affect the company’s actual cash flow and core business competitiveness [1][3].

Indicator	Value	Evaluation
Current Ratio	2.41	Strong short-term solvency
Quick Ratio	2.29	Abundant liquidity
Debt Risk Classification	Low Risk	Sound financial structure

Financial analysis shows that the company’s debt risk is at a

level, with abundant liquidity [0][2].

---

According to industry data, the market concentration of China’s pump industry continues to increase:

• From 2015 to 2020, the revenue share of the top leading enterprises increased from 7.96% to 17.74%
• The industry’s head effect is increasingly obvious, and the market share of enterprises with technological leadership and scale advantages continues to expand

Dimension	Performance
Revenue Scale	First echelon of China’s pump industry
Technological Strength	National-level technology center, participates in standard setting
Market Coverage	Domestic regional office network + global marketing network
Product Matrix	Full-category pump products covering civilian, commercial and industrial fields

Comprehensive assessment shows that Leo Group holds a

in China’s pump industry and is one of the most competitive enterprises in the industry [1][4].

---

• National-level technology center with strong R&D capabilities
• Advanced intelligent manufacturing equipment level
• Global marketing network and brand influence
• Dual main business synergy with strong performance stability
• Sound financial structure with abundant liquidity

• The scale of net profit excluding non-recurring items is still relatively small compared to revenue
• High proportion of digital marketing business may lead to resource dispersion
• Stock price fluctuations are greatly affected by investments in Li Auto

• Growth in infrastructure investment in countries along the “Belt and Road”
• New infrastructure such as data centers drives demand for cooling pumps
• Favorable environmental policies for water treatment and sewage treatment
• Domestic substitution trend of industrial pumps

• Raw material price fluctuations affect costs
• Domestic and international economic downward pressure
• Intensified industry competition

---

As of January 15, 2026:

• Current Trend:
  In an upward trend (to be confirmed)
• Price Resistance Level:
  USD 10.40
• Price Support Level:
  USD 7.69
• Next Target Level:
  USD 10.86
• Technical Indicator Risk Warning:
  RSI and KDJ indicate overbought risks [0]

Indicator	Value	Industry Comparison
P/E (TTM)	138.06x	Higher than industry average
P/B	5.10x	Higher than industry average
P/S	3.56x	Slightly lower than peers

The valuation level is relatively high, mainly reflecting the concept premium from the market on the digital marketing business and investment in Li Auto. As a core asset, the pump business has valuation support [0][2].

---

The pump business of Leo Group has

, mainly reflected in:

1. Technological Leadership:
   National-level technology center, numerous technical patents, participation in standard setting
2. Scale Advantage:
   RMB 4.687 billion revenue scale firmly ranks in the industry’s first echelon
3. Global Layout:
   25.54% revenue growth in the international market, with remarkable effectiveness of the global strategy
4. Product Innovation:
   Full-scenario product matrix covering traditional industry to emerging data centers
5. Financial Soundness:
   Low debt risk and abundant liquidity support sustainable development

The pump business will continue to benefit from:

• Domestic Circulation:
  Water conservancy infrastructure, urban water supply and heating upgrading and transformation
• International Circulation:
  Market development in countries along the “Belt and Road”, radiation from the Indonesia production base
• New Infrastructure:
  Emerging demand such as special pumps for data center cooling towers

It is recommended that investors focus on the growth momentum of the company’s net profit excluding non-recurring items, the efficiency of R&D input and output, and the disturbance impact of fluctuations in Li Auto investments on the stock price.

---

[0] Jinling API - Company Overview, Real-Time Quotes and Technical Analysis Data of Leo Group (002131.SZ)
[1] Leo Group 2024 Annual Report - Sina Finance (https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=002131&id=11032476)
[2] Investing.com - Stock Quotes and Peer Comparison Data of Leo Group (https://cn.investing.com/equities/leo-group-a)
[3] Investor Network - “Leo Group Under Hong Kong Stock Listing Application: The Full Picture of Profit Sources, Capital Actions and Performance Fluctuations” (https://finance.sina.com.cn/tech/roll/2025-11-17/doc-infxtehe3637557.shtml)
[4] iFind - Company Profile and Industry Data of Leo Group (https://basic.10jqka.com.cn/002131/)