Benefiting from the national long-term economic development plan, the construction of new infrastructure and smart grid will be promoted, and the wire and cable industry will continue to optimize and upgrade, showing a sustained and stable growth trend.
China's total output value of wire and cable ranks first in the world
Under the background of the construction of new power system, the "commodity" attribute of power is becoming more and more prominent, the "logistics" attribute of power network is becoming more and more prominent, and the "highway" attribute of power line is becoming more and more prominent. The demand of power cable industry and technological progress are expected to usher in the development situation of "increasing quantity and improving quality".
In recent years, with the steady growth of China's economy and the continuous advancement of industrialization and urbanization, the rapid development of electric power, petroleum, chemical industry, urban rail transit, automobile and other industries has been driven especially the investment in the construction of smart transmission and distribution grid and UHV grid has been increasing, which has promoted the efficient development of China's wire and cable industry as early as 2011, China's total output value of wire and cable has surpassed that of the United States, becoming the world's largest wire and cable producer.
Today, the wire and cable industry has become the second largest supporting industry in China's national economy, second only to the automobile industry. The annual market scale exceeds trillion, accounting for one quarter of the output value of China's electrical industry. According to products, it can be divided into power cables, cables for electrical equipment, communication cables and winding wires.
On March 30, 2022, the national development and Reform Commission and other ten departments jointly issued the guidance on further promoting electric energy substitution, which further expanded the scope of electric energy substitution to: 1) all industrial fields, all power and thermal links; 2) In the whole transportation field, land transportation is fully electrified, water transportation demonstration and promotion, and air transportation innovation and application; 3) The whole construction field infiltrates into cooking and other aspects of life; 4) The whole agricultural and rural area covers planting, irrigation and drainage, greenhouse, processing, cold chain, animal husbandry, breeding and other aspects.
the planned investment in power grid during the 14th Five Year Plan period exceeds 2.9 trillion
With the support of electric energy substitution, the terminal power capacity continues to rise, promoting the continuous development of the cable industry. According to Guolian Securities Co.Ltd(601456) calculation, the total market scale of the national overhead line and cable industry will reach 540 billion yuan in the five years from 2021 to 2025, with a compound growth rate of about 9% in four years. Among them, the total market scale of overhead conductor from 2021 to 2025 will reach 300 billion yuan, with a compound growth rate of about 7% in four years. The total market scale of cable from 2021 to 2025 will reach 240 billion yuan, with a compound growth rate of about 12% in four years.
According to the bidding data of the State Grid, the total proportion of new conductors such as capacity increasing conductors and energy-saving conductors in the bid winning projects of overhead lines is about 9% Guolian Securities Co.Ltd(601456) it is estimated that by 2025, the proportion of new conductors is expected to reach 18%, and the market scale will exceed 10 billion yuan.
Energy saving and capacity increasing conductors with high conductivity aluminum, aluminum alloy, soft aluminum profile and carbon fiber composite core are the main development direction of new conductors in the future. It is expected that the total market scale will reach 35 billion yuan during the 14th Five Year Plan period, with a compound growth rate of about 22% in four years.
The cumulative planned investment of the State Grid and China Southern Power Grid in the 14th five year plan will exceed 2.9 trillion yuan. This is significantly higher than the total investment of 2.57 trillion yuan in the national power grid during the 13th Five Year Plan period and 2 trillion yuan during the 12th Five Year Plan period. It can be seen that benefiting from the national long-term economic development plan, the construction of new infrastructure and smart grid will be promoted, and the wire and cable industry will continue to optimize and upgrade, showing a sustained and stable growth trend.
8 shares with a rolling P / E ratio of less than 20 times
Statistics show that there are more than 30 listed companies whose main business is wire and cable business in the A-share market. Calculated according to the lower limit of net profit of annual report, express report and advance notice, Jiangsu Zhongchao Holding Co.Ltd(002471) , Far East Smarter Energy Co.Ltd(600869) , Zhejiang Grandwall Electric Science&Technology Co.Ltd(603897) , Shanghai Qifan Cable Co.Ltd(605222) , Jiangsu Ankura Smart Transmission Engineering Technology Co.Ltd(300617) and other net profits increased by more than 50%. From the perspective of the valuation level, as of the closing on April 22, the closing on April 22, the end of the closing on April 22, from the valuation level, as of the closing on April 22, the eight share rolling is less than 20 times the price earnings ratio of the eight share rolling, including 456456456456in the price of a valuation level, the valuation level of the valuation level. As of the closing on April 22, the closing on April 22, closing on the closing on April 22, as of the closing on April 22, the valuation level of the valuation level, as of the closing on the closing on April 22, the eight share rolling is less than 20 times the multiple multiple multiple multiple multiple multiple, including '123 456456 6 atthe same time, Shanghai Qifan Cable Co.Ltd(605222) P / E ratio of 11.53 times is at the lowest position.
Shanghai Qifan Cable Co.Ltd(605222) is the largest wire and cable production and sales enterprise in Shanghai and one of the largest manufacturers and sellers of cloth and wire products in China. At present, there are four production bases in Jinshan in Shanghai, Chizhou in Anhui, Yichang in Hubei and Nanyang tengcang, sales centers directly under Xi'an in Shaanxi and Sanming in Fujian, and more than 300 dealers. The scale of production and sales has ranked first in the industry.
Zhejiang Grandwall Electric Science&Technology Co.Ltd(603897) since its establishment, it has focused on the field of electromagnetic wire business. At present, it is one of the main manufacturers of similar products in China, and its product sales volume is in the forefront of the same industry in China. At present, the products have formed thousands of specifications. The thermal grade of the products covers grade 130240, the diameter range of round wire is 0.06mm-6.0mm, and the cross-sectional area of flat wire is less than 20mm2.
Ningbo Orient Wires & Cables Co.Ltd(603606) is the core supplier of China's land cable and submarine cable system. It has the system R & D and production capacity of AC submarine cable and land cable of 500kV and below and DC submarine cable and land cable of ± 535kv and below. It sets a precedent for the successful application of flexible joints in the world's first 500kV submarine cable and sets an industry benchmark.
Jiangsu Ankura Smart Transmission Engineering Technology Co.Ltd(300617) is one of the few enterprises in China that can produce a full range of 1kv-500kv cable connectors. Since 2020, the company has been far ahead in the market share of loop length of gas insulated transmission line (GIL) orders. Gil system has been successfully applied to underground transmission lines dedicated to Contemporary Amperex Technology Co.Limited(300750) Jiangsu production base, China Green Development Group Nanjing Yanziji and Caoshan tourist resort and other projects.
