Longwei Petroleum (fka LPIH)

[derek2000]

Yanchang Oil

It seems to me that Yanchang is modeled as PetroChina (PTR), and SinoPec (SNP). PTR/SNP are huge companies with rather extensive business models - they have oil/gas fields, drilling operations, refineries, and gas stations.

LPH, on the other hands, focuses on the storage and distributions of oil to consuming companies such as power station, factories, and gas stations. It does not compete with PTR/SNP/Yanchang. It complements them.

The oil industry is a huge, vital, and fast-growing sector in China. Companies such as LPH can survive and thrive for a long time in this environment.