On February 24, the global intelligent manufacturing leader of China’s process industry Zhejiang Supcon Technology Co.Ltd(688777) released the 2021 annual performance express. The performance of Zhejiang Supcon Technology Co.Ltd(688777) maintained rapid growth, exceeding the consensus expectation of the wind market. The company pointed out that the rapid growth of performance in the reporting period was due to the continuous expansion of market share of the company’s advantageous products, industrial automation control system products, and the high growth of orders; On the other hand, it is also due to the rapid growth of the company’s key industrial software and intelligent manufacturing overall solution business, which drives the substantial growth of revenue.
performance exceeded expectations and market position continued to consolidate
The performance express shows that during the reporting period Zhejiang Supcon Technology Co.Ltd(688777) the operating revenue was 4.519 billion yuan, an increase of 43.08% year-on-year; The net profit attributable to the parent company was 578 million yuan, a year-on-year increase of 36.54%; The net profit attributable to the parent company after non deduction was 452 million yuan, a year-on-year increase of 39.10%. The total assets reached 10.248 billion yuan, a year-on-year increase of 24.68%; The basic earnings per share reached 1.17 yuan, a year-on-year increase of 23.16%. The performance exceeded the consensus forecast of the wind market.
In terms of single quarter, the revenue of Zhejiang Supcon Technology Co.Ltd(688777) in the fourth quarter of 2021 was 1.597 billion yuan, with a year-on-year increase of 46.54% and a month on month increase of 46.58%; The net profit attributable to the parent company after non deduction was 216 million yuan, with a year-on-year increase of 54.50% and a month on month increase of 172.35%. This is also the fifth quarter since the listing of Zhejiang Supcon Technology Co.Ltd(688777) to maintain high-speed positive growth in revenue and net profit.
In 2021, the digital transformation of China’s process industry was further upgraded. The manufacturing industry’s demand for high-end automated, digital and intelligent manufacturing continued to rise, and the demand of downstream customers was strong. During the reporting period, Zhejiang Supcon Technology Co.Ltd(688777) achieved an increase in the customer coverage of the process industry through the new service mode of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) of 5S automated housekeeper and S2B platform. At the same time, it broke through multiple leading large customers, and further consolidated and improved its position in the Chinese market.
It is worth mentioning that in 2021 Zhejiang Supcon Technology Co.Ltd(688777) we will continue to increase R & D investment and further accumulate product and technical advantages. In 2021, a new generation of control system products, a new generation of real-time database, intelligent factory platform software and other industrial software products were launched, adding the application scenarios of intelligent factory for downstream customers. The company’s advantages in automation, digitization and intelligent technology and products in the industrial field have been further improved.
Industry insiders pointed out that Zhejiang Supcon Technology Co.Ltd(688777) as a leader in the field of industrial control, with the comprehensive upgrading of business and the deepening of digital transformation, it is expected to continue to broaden the technological moat.
acquire the equity business of Sinopec Yingke, complement and improve the strategic layout
It is reported that in recent years, Zhejiang Supcon Technology Co.Ltd(688777) has continued to strengthen the strategic layout of “industry 3.0 + industry 4.0” and 5T (process technology Pt + equipment technology et + operation technology ot + automation technology at + information technology it) business, so as to improve the company’s comprehensive competitiveness in the field of digitization and intellectualization.
At the same time of issuing the performance express, Zhejiang Supcon Technology Co.Ltd(688777) issued the announcement of cash acquisition of petrochemical Yingke, which plans to acquire 22% equity of petrochemical Yingke Information Technology Co., Ltd. (hereinafter referred to as “Petrochemical Yingke”) with cash of RMB 561 million.
The announcement shows that based on industrial software, PCCW has accumulated many years of best practice experience in informatization in the energy and chemical industry, focusing on combining software technology and Internet of things technology with traditional industries, covering the whole upstream, midstream and downstream industrial chain, and covering complete, autonomous and controllable informatization solutions and it services at all levels, It has grown into a provider of digital, intelligent and automation solutions and products for the whole industrial chain of the energy and chemical industry, and can provide customers with high-quality and professional information technology services.
In the first three quarters of 2021, PCCW achieved a revenue of 1.435 billion yuan and a net profit of 156 million yuan. Since 2016, the company’s operating revenue has been stable, its gross profit margin has shown an increasing trend, its asset scale is stable, and its assets and liabilities have shown a downward trend.
For Zhejiang Supcon Technology Co.Ltd(688777) , PCCW has many years of technology accumulation and implementation experience in petroleum, chemical and oil and gas industries, deep cultivation of operation digital technology (ERP) and process mechanism model, and can realize complementary advantages and coordinated development with Zhejiang Supcon Technology Co.Ltd(688777) . After the completion of this transaction, Zhejiang Supcon Technology Co.Ltd(688777) will cooperate and innovate with the target company in technology and market, or cooperate with each other externally, integrate into each other’s supply chain system, and form an overall solution of intelligent factory with the most comprehensive and competitive business coverage on the market, so as to better cope with the new industrial structure The adjustment of economic structure brings the demand for rapid and deep digital transformation.
According to the research of Shenwan Hongyuan Group Co.Ltd(000166) , Zhejiang Supcon Technology Co.Ltd(688777) as the scarce target of Intelligent Manufacturing in process industry, is continuing to innovate in the right direction of “5T + 5S”, creating a lot of value for customers, and has strong certainty of medium and high growth in long-term performance. In addition, the company’s “dynamic moat”, that is, the ability of continuous innovation and continuous value creation, is also improving. For the company, the overall solution of intelligent manufacturing is the second growth curve. Around the “5T + 5S” strategic layout, there is a wide space for expandable products and services, and the long-term value continues to improve.
