Hello everyone, I am a corporate archivist. Today, let’s talk about a very interesting company – Longxi Co., Ltd. (600592).
Do the “joints” of the smartphones, computers, and even future household robots you use every day also need bearings? That’s right! This company from Zhangzhou, Fujian, is the invisible champion in the domestic joint bearing field, with layouts in high-end fields such as aerospace, high-speed rail, and humanoid robots.
After a 600% surge in five years, why has Longxi Co., Ltd. suddenly lost its appeal?
Core Business: Joint bearings (75% market share in China, 13% globally)
Emerging Concepts: Humanoid robot joint components, domestic production of C919 large aircraft, military-civilian integration
Stock Performance: Over 600% increase from 2020 to now, but a 22.23% year-on-year decline in revenue in the first three quarters of 2025.
What exactly does this company do? How is its quality? Is there still an opportunity for the future? Don’t worry, today we will uncover everything! 👇
1. Understand in 30 seconds: What exactly does Longxi Co., Ltd. do?
One-sentence introduction: Simply put, Longxi Co., Ltd. is a company that makes “mechanical joints”, specializing in producing key components that allow machines to move flexibly.
Main Products/Services: Its “money printer” mainly consists of the following:
| Business Segment | Main Products/Services | Revenue Contribution (%) | Business Interpretation (in one sentence) |
|---|---|---|---|
| Core Business A | Joint bearings (supporting C919 large aircraft, Chang’e project) | 62.11% | 75% market share in China, 13% globally, high technical barriers |
| Growth Business B | Robot joint bearings (currently in small batch sampling stage) | 0.00% | Supporting Zhiyuan, Xiaomi, etc., with great future potential |
| Other Business C | Gearboxes, tapered roller bearings | 2.82% | Emerging field, supporting new energy commercial vehicles |
Sales Area Distribution
| Sales Area | Revenue Contribution (%) | |
|---|---|---|
| Domestic Market | 82.34% | Covers construction machinery, aerospace, military industry, etc. |
| International Market | 17.66% | Exports to over 40 countries in Europe and America, certified by NAVAIR |
How powerful are Longxi Co., Ltd.’s joint bearings? It is the only company in China that has passed the A-mark certification from the U.S. Navy Aviation Command, and its products are included in the U.S. government’s qualified procurement catalog.
2. Recent 5-Year “Report Card”: Is it a top student or a poor performer?
Overview of Core Financial Data in the Last 5 Years (Unit: 100 million)
| Year | Total Revenue | Revenue Growth Rate (%) | Net Profit Attributable to Parent | Net Profit Growth Rate (%) |
|---|---|---|---|---|
| 2025 Q1-Q3 | 10.67 | -22.23 | 1.17 | -29.38 |
| 2024 | 17.77 | -6.68 | 1.25 | -25.55 |
| 2023 | 19.04 | +10.74 | 1.68 | +2909.84 |
| 2022 | 17.19 | +19.81 | -0.06 | -102.01 |
| 2021 | 14.35 | +23.86 | 2.98 | +99.28 |
| 2020 | 11.59 | +22.48 | 1.50 | +2.22 |
Chart Interpretation:
From the table, it can be seen that Longxi Co., Ltd.’s performance has fluctuated greatly over the past five years, resembling a “roller coaster”.
- 2020-2021: Both revenue and net profit maintained growth, mainly benefiting from export growth and breakthroughs in high-end products.
- 2022: Net profit plummeted by 102%, mainly due to cost control issues and non-recurring losses.
- 2023: Net profit surged by 2909%, but mainly from asset disposal gains (non-recurring losses), with the main business still under pressure.
- 2024: Revenue decreased by 6.68% year-on-year, net profit decreased by 25.55%, with an increase in the proportion of high-end products but an overall decline in performance.
- 2025 Q1-Q3: Revenue decreased by 22.23% year-on-year, net profit decreased by 29.38%, but the net profit excluding non-recurring items only declined by 17.05%, indicating that the optimization of the high-margin product structure is beginning to take effect.
One-sentence summary: Longxi Co., Ltd.’s ability to make money in the past five years has been as unstable as a roller coaster; although the proportion of high-end products has increased to 68%, the decline of traditional businesses has dragged down overall performance, and it is still in a period of painful transformation.
3. Stock Price Roller Coaster: What Happened in the Last 5 Years?
Key Stock Price Nodes and Major Events in the Last 5 Years
| Year | Highest Price (Yuan) | Lowest Price (Yuan) | Annual Change (%) | Major Events/Interpretation During the Same Period |
|---|---|---|---|---|
| 2025 | 31.95 | 9.03 | +138% | Humanoid robot concept exploded, with the proportion of high-margin products rising to 68% in Q3 |
| 2024 | 15.00 | 9.00 | -15% | Revenue fell by 6.68%, net profit fell by 25.55% |
| 2023 | 12.00 | 8.50 | +45% | Turned a profit, obtained NAVAIR certification, entered the humanoid robot track |
| 2022 | 10.00 | 5.00 | -30% | Net profit loss, steel trade dragged down gross margin |
| 2021 | 18.00 | 10.00 | +90% | Net profit doubled to 298 million yuan, strong export growth |
| 2020 | 12.00 | 8.00 | +20% | Traditional business under pressure at the beginning of the pandemic, but annual revenue grew by 22.48% |
Several Key Moments:
- 2021: Net profit doubled to 298 million yuan, stock price rose by 90%
- 2022: Net profit loss, stock price fell by 30%
- 2023: Turned a profit and obtained NAVAIR certification, stock price rose by 45%
- 2025: Humanoid robot concept exploded, stock price surged by 138% within the year
Current Status: The stock price is currently in an upward channel, but the valuation is high, and there is a need to be cautious of the risk of market sentiment cooling.
4. Behind the “Big Boss”: Who is in control of this company?
Founding Team: The soul of the company is Chen Jinhui, male, 55 years old, with a master’s degree in business administration, senior economist, senior engineer, currently serving as chairman and general manager.
Major Shareholder Changes:
- 2020: Jiulongjiang Group held 37.85% of the shares, becoming the absolute controlling shareholder.
- 2023: Jiulongjiang Group’s shareholding ratio remained stable, but it integrated resources through equity transfer to enhance control over Longxi Co., Ltd.
- 2025 Q3: New shareholders include Zhangzhou State-owned Capital Operation Group (0.73%), Hong Kong Central Clearing (northbound funds, 0.57%), and Dongfang Alpha Fund (0.26%), etc.
One-sentence Comment: Currently, the company’s equity structure is highly concentrated, with Jiulongjiang Group as the largest shareholder, and the Zhangzhou State-owned Assets Supervision and Administration Commission controlling the company 100%, giving it strong influence.
How powerful is Jiulongjiang Group? As a state-owned holding enterprise under the Zhangzhou State-owned Assets Supervision and Administration Commission, it ranked 323rd in the “China Top 500 Enterprises” in 2024 with an operating income of 76.382 billion yuan, owning 19 wholly-owned and holding enterprises, with total assets exceeding 120 billion yuan.
5. Future Development Prospects: Can it Ride the AI and Robotics Fast Train?
Can Longxi Co., Ltd. take off in the future? This depends on whether it can achieve breakthroughs in two emerging fields:
1. Humanoid Robot Track:
- Market Space: The market size of humanoid robots in China is expected to reach about 870 billion yuan by 2030, and the global market will reach 13.8 billion USD by 2028.
- Company Layout: Longxi Co., Ltd. has obtained patent authorization for “robot joint components” and provides linkage assemblies and pre-research products for Zhiyuan and Xiaomi robots, but currently only in small batch sampling, and has not yet formed significant revenue.
- Opportunities and Challenges: Zhiyuan’s robot production capacity is expected to reach 3000 units/year by 2025, with leading companies like Xiaomi and Tesla accelerating their layouts, but Longxi Co., Ltd. needs to break through the technical barriers of international giants (such as SKF, NSK) to truly enter the core supply chain.
2. Aerospace Domestic Production:
- C919 Large Aircraft Progress: As of November 2025, C919 orders exceeded 1400 aircraft, but only over 20 will be delivered in 2025, with production capacity expected to increase to 5 aircraft per month in 2026.
- Company Advantages: Longxi Co., Ltd. is a core supplier of joint bearings for C919, certified by NAVAIR, with high technical barriers.
- Opportunities for Domestic Substitution: The domestic production rate of C919 has reached 62%, and with the advancement of the domestic engine CJ-1000A (expected to replace imports by 2027), Longxi Co., Ltd. is expected to further expand its market share.
AI Technology Empowerment: Although Longxi Co., Ltd. is not directly involved in AI hardware manufacturing, its bearing products will be used in robots and automation equipment equipped with AI systems, indirectly benefiting from the development of AI technology.
Risk Warning: The company’s traditional businesses (such as construction machinery and heavy trucks) are significantly affected by macroeconomic fluctuations. If the humanoid robot and aerospace businesses do not progress as expected, it may face the risk of continued performance decline.
6. Investment Value Analysis: The Logic Behind High Valuation
Valuation Comparison:
- Price-to-Earnings Ratio: The current dynamic price-to-earnings ratio is about 131 times, far higher than the industry average of 25 times,overvalued by 425%.
- Price-to-Book Ratio: The current price-to-book ratio is about 3.97 times, higher than the industry average of 2.5 times,overvalued by 58%.
Investment Logic:
- Short-term Logic: Speculation on the humanoid robot concept (in November 2025, interactive progress was revealed), combined with expectations for the domestic production of C919 large aircraft, driving stock price increases.
- Long-term Logic: If the humanoid robot business can achieve breakthroughs in mass production, or if the domestic production rate in aerospace continues to rise, the company is expected to welcome a turning point in performance.
Institutional Views:
- Guangfa Securities: In January 2024, it gave a “buy” rating, believing the company has technical barriers and industry status, and is optimistic in the long run.
- Market Consensus: Based on the forecasted net profit of 150 million yuan in 2025, a PE of 40 times (robot premium) is given, with a reasonable market value estimate of 6 billion yuan (currently 10.069 billion, overvalued by 68%).
7. Summary and Outlook
What kind of company is Longxi Co., Ltd.?:
- Core Advantages: Domestic leader in joint bearings, high technical barriers, certified by NAVAIR, and participated in the formulation of 3 national standards.
- Transformation Challenges: Traditional business decline, emerging businesses (humanoid robots, aerospace) have not yet formed scale, performance under pressure.
- State-owned Background: Absolute control by the Zhangzhou State-owned Assets Supervision and Administration Commission, governance structure optimization (removal of the supervisory board in 2025, new appointment of secretary Huang Jie), but insufficient market vitality.
Where are the future opportunities?:
- Humanoid Robots: If it can enter the supply chains of leading companies like Tesla and Zhiyuan, it will open up new growth space.
- C919 Large Aircraft: With the increase in domestic production rates and capacity expansion, the demand for joint bearings will continue to grow.
- Military-Civilian Integration: The company holds “three military certificates” and undertakes the task of domestic production of aerospace joint bearings, with military orders expected to grow steadily.
One-sentence Outlook: Longxi Co., Ltd. is at the crossroads of traditional manufacturing and emerging technology industries. Whether it can seize the AI and robotics wave and achieve a turning point in performance will determine its future value.
So the question arises: What do you think, how much imagination space does Longxi Co., Ltd. have in the future? Feel free to leave your thoughts in the comments! If you find this helpful, don’t forget to give a “like”, and see you next time!
This article is for information sharing only and does not constitute any investment advice. Investment carries risks, and decisions should be made cautiously.