The market competition pattern of cable accessories industry presents a "pyramid" structure with the improvement of voltage level. The market competition of medium and low voltage accessories is fierce, and the industry concentration of high voltage market is high.
On the afternoon of April 15, at the annual shareholders' meeting of Chang Lan Electric Technology Co.Ltd(002879) ( Chang Lan Electric Technology Co.Ltd(002879) . SZ), the relevant person in charge of the company told the associated press that the company's high-voltage products had achieved a breakthrough last year, and the rapid rise of copper and silicone rubber chemical raw materials last year led to the pressure on the gross rate of products. The second phase of the company's production expansion project has been completed. The production expansion project of the new base in Wangcheng area is under normal construction. It is expected to be completed and gradually reach full production before July 2023.
product structure inclines to high voltage level
According to the annual report, the company achieved a revenue of 1.058 billion yuan in 2021, a year-on-year increase of 12.46%, and a attributable net profit of 140 million yuan, a year-on-year decrease of 13.13%. Among them, 320kv to 500kV products broke the "zero", realizing a sales revenue of about 39 million yuan, accounting for 3.68%.
Why did you increase income but not profit last year? Huang Ping, the company's board secretary, responded that it was mainly affected by the increase in raw material prices and labor remuneration. The financial report shows that the direct materials of the company's cable accessories and supporting products account for 76.67% of the operating cost, involving metal materials (copper, aluminum, etc.) and chemical materials (silicone rubber, EPDM, epoxy resin, etc.).
According to the relevant person in charge of the company, the price of copper rose sharply from the fourth quarter of 2020, and the price of silicone rubber chemical raw materials rose sharply from the third quarter of 2021. The price rise of these raw materials will have a direct impact on the performance of the company. As for how to deal with the rising pressure of raw materials, Huang Ping told reporters that the company has adjusted the product price according to the market situation. In addition, this year, it will reduce the relevant impact by strengthening internal management, improving production efficiency, optimizing product structure and reducing cost of scale effect.
It is reported that in recent years, the company has newly developed 500kV AC and DC products and successively won the bid in pumped storage power station, offshore wind power, flexible DC transmission and other projects. In 2021, the company's revenue of 220 kV and above products accounted for 25.04% (+ 4.4 PCTs), and the product structure was inclined to high voltage level.
In addition. Last year, the company carried out personnel expansion and salary adjustment. According to the financial report, its R & D personnel increased from 213 to 239, and the R & D expenses reached 76.69 million yuan, a year-on-year increase of 25%, higher than the revenue growth of the same year. The person in charge said that the R & D is mainly invested in higher voltage series products.
Wangcheng new base is expected to be completed by July next year
Chang Lan Electric Technology Co.Ltd(002879) mainly engaged in the production and sales of cable accessories and supporting products. Cable accessories are the general term of cable terminals and connectors, and are an indispensable part of cable lines. According to the investment planning of the State Grid and China Southern Power Grid during the 14th Five Year Plan period, the investment scale of the two networks will be significantly higher than the actual completion amount of the 13th five year plan.
Can the increment of UHV industry drive the company's product sales in the future? Huang Ping told reporters that UHV refers to 1000kV and above AC and ± 800kV and above DC transmission lines. At present, it is mainly large-scale and long-distance overhead line transmission. The company's products are not directly used for UHV overhead line transmission, but when UHV transmission is put into the urban power grid, it needs to step down in the substation. At the same time, the supporting cable accessories will be used in the process of urban transmission.
He believes that under the background of "double carbon", there is a big gap in the power transmission and distribution industry in meeting the growing power demand of cities in the future. The power industry will have large development space in the fields of distribution network construction and transformation, wind power, photovoltaic, pumped storage and smart grid. With the acceleration of UHV construction in recent years, it will drive the demand for relevant cable accessories of the company to improve, In the future, the leading enterprises in the cable accessories industry will face better opportunities.
The reporter noted that previously, the company disclosed that the construction project of 500kV and below AC and DC cable accessories capacity expansion project is planned to be constructed in two phases. For the latest progress of the project, Huang Ping, the company's board secretary, said that the company has sufficient orders and the current production capacity can fully meet the needs of orders. The second phase of the company's production expansion project has been completed, and the first phase of the project in Wangcheng district is under normal construction.
According to the on-site understanding, the phase II project has built a 9000 square meter ultra clean workshop and a 4000 square meter test hall. The company's new production base in Wangcheng district is expected to be successfully completed and gradually achieve full production by July next year. Huang Ping said that after the completion of the expansion project, the company's production capacity will be greatly improved.
Combined with the employee stock ownership plan launched by the company, the unlocking conditions need to meet two categories at the same time: Based on the revenue in 2021, the revenue growth in 2022 / 2023 / 2024 should not be less than 25% / 50% / 80%; Based on the net profit deducted in 2021, the growth rate of attributable net profit deducted in 2022 / 2023 / 2024 shall not be less than 25% / 50% / 80%. As for how to achieve future performance goals, Yu Tao, chairman of the company, said at the recent performance briefing that through R & D driven product iteration, we will continue to expand China's market share and international market share.
