Based on the 2023 annual reports and the first quarter of 2024 disclosed by each company, this article interprets 11 top power equipment companies from seven dimensions: company size, management team, core business, financial status, expense management, capital market performance and talent market performance.
This article interprets the list of the top 11 listed companies in terms of revenue or market value of power transmission and transformation equipment: Guodian NARI, TBEA, Chint Electric, Hongfa Shares, Baosheng Shares, China Xidian, Xu Ji Electric, Pinggao Electric, Siyuan Electric, Samsung Medical, and Far East Shares.
☛ The size of the company
The top listed companies of power equipment have been established for a long time, and many companies such as Hongfa Co., Ltd., Sieyuan Electric, and TBEA have a history of more than 30 years.
The headquarters of power equipment enterprises are scattered, including Xinjiang, Jiangsu, Henan, Shaanxi, Shanghai, Fujian, Qinghai, Hubei and Zhejiang.
In terms of total assets, TBEA and CHINT are in the lead, both exceeding 120 billion yuan, and in terms of revenue scale, TBEA, CHINT and NARI are leading, with revenue exceeding 50 billion yuan. From the perspective of the number of employees, the number of employees in many enterprises such as NARI, TBEA, Chint Electric, Hongfa Co., Ltd., and Samsung Medical has exceeded 10,000.
☛ Management team
Among the top listed companies in power equipment, there are many central enterprises and private enterprises, and the state-owned enterprises are centered on Guodian NARI and China Electrical Equipment Group (Electrician Times, Xu Ji Electric, China Xidian, Pinggao Electric).
According to the published information, the executive salary level of top power equipment companies is relatively high, and the executive salary of Samsung Medical, Chint Electric, TBEA, and Sieyuan Electric exceeds 3 million. Xu Tao, general manager of Xu Ji Electric, has the lowest salary, only 400,000 yuan.
☛ Core business
The business of the top industry of power equipment is relatively fragmented, with cables and power automation equipment as the core. TBEA's business is more complex, in addition to power transmission and transformation business, it also includes new energy and new materials business, Chint Electric also includes photovoltaic power station business, and Samsung Healthcare also includes medical service business.
☛ Financials
The highest revenue in 2023 is TBEA, Chint Electric and Guodian NARI, with revenues of more than 50 billion yuan. In 2023, the growth of the power equipment industry will be good, and the revenue of all enterprises will achieve positive growth.
The highest net profit in 2023 is Guodian NARI and TBEA, with net profits of 7.184 billion yuan and 10.7 billion yuan respectively. In 2023, the profit growth of the industry will be average, and the net profit of four companies, including TBEA, Chint Electric, Baosheng and Far East, will achieve negative growth.
The gross profit margin and net profit margin of top power equipment companies are different, with the net profit margin of companies such as Guodian NARI, Hongfa Shares, Sieyuan Electric, TBEA and Samsung Medical exceeding 10%, but the net profit margin of cable companies such as Baosheng and Far East Shares is less than 2%.
According to the performance of the first quarter, the overall performance of the power equipment industry is better, from the perspective of revenue and net profit, four companies have achieved negative growth in revenue and net profit, and seven companies have achieved positive growth in revenue and net profit.
☛ Expense management
The R&D rate of the power equipment industry is average, and only the R&D rate of three enterprises, Guodian NARI, Siyuan Electric and Hongfa Co., Ltd., is higher than 5%.
The marketing rate of the power equipment industry is not high, only the marketing rate of Samsung Medical exceeds 5%, and the marketing rate of Baosheng shares, TBEA and Xu Ji Electric is less than 3%.
The salary rate of top power equipment enterprises is uneven, and the salary rate of many companies such as Samsung Medical, Siyuan Electric, China Xidian, and Hongfa Co., Ltd. exceeds 10%. However, the salary rate of cable companies such as Baosheng shares and Far East shares is less than 5%.
☛ Capital market performance
As of June, the highest market value in the power equipment industry is NARI, with a market value of nearly 200 billion yuan, and the market value of TBEA, Sieyuan Electric, Samsung Medical and other enterprises also exceeds 5 billion yuan.
At present, the price-earnings ratio and price-to-book ratio are relatively high, such as Guodian NARI, Sieyuan Electric, Samsung Medical, and Xu Ji Electric, with a price-earnings ratio of more than 25 times and a price-to-book ratio of more than 3%, indicating that the capital market is more optimistic about the development prospects of the above-mentioned enterprises.
☛ Talent market performance
There is a large gap in the per capita revenue of the power equipment industry, and several companies such as Guodian NARI, TBEA, and Baosheng have the highest per capita revenue, exceeding 3 million / person, and Hongfa has the lowest per capita revenue of only 845,300 / person.
The per capita salary of the power equipment industry is seriously polarized, and the per capita salary of central state-owned enterprises with Guodian NARI, Pinggao Electric, China Xidian and Xu Ji Electric as the core is relatively high, all exceeding 200,000 yuan/person. The average salary of many enterprises such as Chint Electric, Baosheng Co., Ltd., and Far East Co., Ltd. is less than 150,000 yuan/person.
Please pay attention to the relevant articles for overtime and turnover levels.
☛ Job search advice in the power equipment industry
There are a large number of enterprises in the power equipment industry, and there are more than 10 cable companies with revenue of more than 5 billion, including Hengtong Optoelectronics, Baosheng Shares, Shanglian Cable, Zhongtian Technology, Far East Shares, Han Cable Shares, Sun Cable, Jinbei Electrician, Wanma Shares, Qifan Cable, Huatong Cable, Dongfang Cable, etc. With the improvement of the construction of power infrastructure in the mainland, the incremental space of the power equipment industry is limited, and the growth rate has slowed down. It is expected that for a long time in the future, the power equipment industry will enter a stage of stable development, with a compound growth rate of less than 10%.
From the perspective of job hunting, the power equipment industry is relatively stable, and the competition pattern is gradually clear, with cable and power automation as the two core directions, and UHV as the new technical direction. However, with the slowdown in growth, the competition between enterprises will also intensify, especially in the wire and cable industry, most of which are private enterprises, and the competition is more intense. Priority is given to enterprises with strong financial strength, strong technical strength in subdivided fields, and high net profit margin, and the traditional judgment criterion with scale as the core is abandoned.
Article source: New Energy Workplace Services
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