On July 1, Sanhui Electric (002857. SZ) bidding price limit, to achieve 4 boards!
The Basic Rules for the Operation of the Electricity Market, recently issued by the National Development and Reform Commission (NDRC), came into force on July 1. Industry insiders generally believe that the new rules will be of great help to the deep marketization of the power market in the future, which is good for the intelligent construction of the power grid and the marketization of electricity.
Due to the concepts of smart grid and virtual power plant, Sanhui Electric has been optimistic about the market funds in the near future, or has good expectations for the company's future development. However, the company's profits have continued to decline in recent years, and the gross profit margin of the energy storage business it focuses on is low, and the growth space opened up by new business has been questioned.
Net profit has declined for six consecutive years
According to public information, Sanhui Electric, located in Zhengzhou, is a professional developer and manufacturer of electric energy metering instruments, which can provide comprehensive solutions for standard and calibration for smart grid metering instrument users and manufacturers. At present, the company has formed three major businesses: electric energy metering devices, power transformers and power load management and collection terminals.
According to the "Guiding Opinions on the High-quality Development of Distribution Networks under the New Situation" issued by the National Development and Reform Commission in February this year, the flexible, intelligent and digital transformation of distribution networks will be basically completed by 2030, effectively promoting the integrated development of distributed smart grids and large power grids. The recently released Basic Rules for the Operation of the Electricity Market will also have a great impact on the in-depth marketization of the electricity market in the future, which is conducive to the intelligent construction of the power grid.
Sanhui Electric's core products include electric energy standard devices, power transformers, power load management terminals, etc., which are the basic core equipment for services and applications in the distribution network, especially the power load management terminal products are the key gateway node equipment for building a flexible, intelligent and digital distribution network. Sanhui Electric said that the above policies will have a positive impact on the company's products, and the company will seize the opportunity to fully participate in the construction of a new distribution network.
Or because it involves smart grids, virtual power plants and other businesses, Sanhui Electric has been deeply tapped by market funds, and has recently continuously harvested the daily limit. As of noon on July 1, Sanhui Electric rose 10.01% to 15.17 yuan per share. According to the after-hours list on June 27, the well-known tour capital Guotai Junan Securities Shanghai Jiangsu Road, East Asia Qianhai Securities Shanghai Branch, and Quantitative Board (Huaxin Securities Shanghai Branch) all bought the stock. It can be said that the shot of a number of tour capital has also played a certain role in the continuous promotion of Sanhui Electric.
However, Lanfu Finance Network found that in 2023, the revenue of electric energy meter standard and calibration device, one of Sanhui Electric's core products, will be 58.0597 million yuan, a decrease of 43.32% compared with the same period in 2022; The gross profit margin was 37.31%, a decrease of 6.32 percentage points compared with the same period in 2022.
What is even more regrettable is that Sanhui Electric's net profit has declined continuously in the past 6 years. From 2018 to 2023, Sanhui Electric's net profit attributable to the parent company will be 36.7717 million yuan, 31.8635 million yuan, 23.4243 million yuan, 19.505 million yuan, 12.9447 million yuan, and 5.9112 million yuan respectively. In addition, the company's profit varies greatly in each quarter of the year, and the realization of profitability basically depends on the fourth quarter.
Judging from the current performance, Sanhui Electric's operating conditions are not so good, and the short-term rise in stock prices may be related to the speculation of free capital, and whether it can be sustainable, there needs to be a question mark here.
The gross profit margin of new products is less than 5%, and the growth is to be examined
Seeing that the company's profits continued to decline, Sanhui Electric did not sit still, and the company began to vigorously expand the energy storage business, hoping to open up future growth space through new business. However, Sanhui Electric, which failed to occupy the first-mover advantage, can it get its wish?
Relevant information shows that in 2023, Sanhui Electric will establish Shenzhen Sanhui Energy Technology Co., Ltd. (hereinafter referred to as "Sanhui Energy") and officially enter the field of energy storage. At that time, some institutions pointed out that Sanhui Electric's energy storage business and energy meter-related business have a high degree of consistency and relevance in target customers and technology, which will produce huge synergistic benefits, and it is expected that the energy storage business will become the company's most growing business.
Subsequently, Sanhui Electric did taste the "sweetness" in the energy storage business. At the end of August 2023, Sanhui Energy received an energy storage system procurement contract from Dongguan Xiaodong New Energy Co., Ltd., with a total contract amount of up to 402 million yuan. According to the data of its 2023 annual report, Sanhui Electric's energy storage business achieved revenue of 96.4594 million yuan, accounting for 29.57% of revenue.
It is not easy for Sanhui Electric to achieve such results in a new company that has just been established and a new business that has just started. However, after careful inquiry, the gross profit margin of Sanhui Electric's energy storage equipment products is less than 5%, and the low gross profit margin level indicates that the competitiveness of the product in the market is still insufficient.
However, Sanhui Electric still has high expectations for the energy storage business. The company said on the interactive platform that in the first quarter of 2024, the company's energy storage business revenue accounted for more than 50% of the main business revenue, and it has achieved profitability.
Let's take a look at Sanhui Electric's performance in the first quarter of this year. According to the company's disclosure, Sanhui Electric achieved a net loss of 3.3451 million yuan attributable to the parent company in the first quarter of 2024, an increase of 12.42% compared with the loss in the same period last year. In other words, although the energy storage business is profitable, the company's other businesses may be loss-making, which leads to the overall performance loss. Why is there a feeling of "losing a watermelon and picking up sesame seeds"?
The supervisor's wife speculates on her own stocks! Accurate bottom-hunting and top-escape
The company's management is not good, the growth of new business is doubtful, and the internal management of Sanhui Electric seems to have problems.
In April 2024, Sanhui Electric announced that Pan Yunfeng, the company's supervisor, received a warning letter issued by the Henan Supervision Bureau of the China Securities Regulatory Commission because his spouse bought and sold the company's shares, which constituted a short-term transaction.
It is understood that Pan Yunfeng, as a supervisor of Sanhui Electric, and his spouse Shen Yaping bought 52,900 shares of Sanhui Electric on February 8, 2024, with a turnover of 422,500 yuan, and sold 33,800 shares on March 8, 2024, with a turnover of 469,800 yuan. The income of this short-term transaction is 200,400 yuan.
Shen Yaping's above-mentioned behavior constituted short-term trading, which violated the relevant provisions of the Securities Law of the People's Republic of China, and the Henan Securities Regulatory Bureau decided to take administrative supervision measures against Pan Yunfeng by issuing a warning letter, and recorded it in the integrity file of the securities and futures market.
Sanhui Electric pointed out in the apology announcement that Pan Yunfeng did not know about the short-term trading, and the company did not have any major matters that should be disclosed but were not disclosed during the short-term trading, and there was no situation of trading the company's shares and using inside information to seek benefits due to the acquisition of inside information, and there was no intention of subjective violations.
Speaking of which, let's take a look at Sanhui Electric's stock price trend from February 8 to March 8, 2024. On February 8, Sanhui Electric created a record low of 7.29 yuan per share in recent years, and Shen Yaping, the wife of supervisor Pan Yunfeng, happened to buy it on the same day, "cleverly" buying the bottom.
Subsequently, Sanhui Electric's share price fluctuated and rose, with a cumulative increase of 72.17% on March 8, and Ms. Shen Yaping could almost be regarded as a "precise" escape. If there is no "greasy" in this, then you really need to admire the ability of the supervisor's wife to speculate in stocks.
On the whole, Sanhui Electric's profits have been declining continuously in the past 6 years, the growth of new business is still in doubt, the company's internal governance is relatively loose, and the chaotic fundamentals may not be able to support the continuous rise of its stock price, investors should remain cautious.