The bidding for the procurement and laying of 220kV and 35kV submarine cables of Mingyang Yangjiang Qingzhou Sihai wind farm project began on October 15, 2021 and was opened on February 15, 2022. Bid section 1 requires that 220kV be delivered before June 5, 2022 and laid before June 30, 2022. The first 35kV submarine cable shall be laid before May 1, 2022, and all 35kV submarine cables in Lot 1 shall be laid before August 31, 2022. Bid section 2 requires that 220kV be delivered before July 10, 2022 and laid before August 10, 2022. The first 35kV submarine cable shall be laid before June 1, 2022, and all 35kV submarine cables in lot 2 shall be laid before September 15, 2022.
Ningbo Orient Wires & Cables Co.Ltd(603606) won the bid at a non lowest price, and the unit price did not fall significantly. On February 15, Ningbo Orient Wires & Cables Co.Ltd(603606) won bid sections 1 and 2 of 220kV and 35kV submarine cable procurement and laying works of Mingyang Yangjiang Qingzhou four seas wind farm project with 699161300 yuan and 690783300 yuan respectively, with a total bid amount of about 1.39 billion yuan. We assume that the laying and installation cost accounts for 20% in the fourth Qingzhou project, and the proportion of outgoing submarine cable and array submarine cable in submarine cable is about 8:2. Combined with the 81km of 220kV submarine cable in one circuit of each bid section, it is estimated that the unit bid winning price of 220kV outgoing submarine cable under the model remains above 5 million yuan / km; Compared with the previous bid winning price of submarine cables with the same voltage level, there is no significant reduction in the price.
Submarine cable is not a single dimension, price is king, and comprehensive ability builds pattern barriers. Our analysis shows that: the bid winning unit price of submarine cable of different projects varies greatly due to different conditions of each project, but the overall price trend does not rule out the possibility of a slight downward trend, and the gross profit margin basically stabilizes after a slight reduction; In addition, it is even more noteworthy that the winning enterprise of submarine cable once again wins the bid at a non lowest price, so the competition pattern is not simply conceived as price is king, and there are certain barriers in product quality, resources and other aspects.
It is recommended to pay attention to the leader of submarine cable pattern Ningbo Orient Wires & Cables Co.Ltd(603606) (603606, not rated), Jiangsu Zhongtian Technology Co.Ltd(600522) (600522, not rated).
Risk tips
The growth of sea breeze is less than expected, the price of submarine cable is less than expected, the risk of raw material price rise, and the change of hypothetical conditions affects the calculation results.
