Machine tools have always been an important strategic layout point for major countries and leading enterprises; Especially for high-strategic industries such as global automotive, aerospace, and high-end equipment manufacturing, the machine tool industry is an important strategic fulcrum and plays an important role in influencing future competitiveness.
The 2024 government work report proposes to "implement the technological transformation and upgrading project of the manufacturing industry, cultivate and expand advanced manufacturing clusters, create a national new industrialization demonstration zone, and promote the high-end, intelligent and green transformation of traditional industries".
High-end CNC machine tools are the working machine of intelligent manufacturing in the equipment manufacturing industry, and an important symbol to measure the development level and product quality of a country's equipment manufacturing industry.
High-end CNC machine tools refer to CNC machine tools with high-speed, precision, intelligence, compounding, multi-axis linkage, network communication and other functions. The advanced form of the development of high-end CNC machine tools is intelligent machine tools, intelligent machine tools are the product of the integration and deep integration of advanced manufacturing technology, information technology and intelligent technology, which has self-perception, self-decision-making, self-diagnosis, self-adjustment, self-adaptation and instant network communication functions. And with the continuous innovation of science and technology, intelligent machine tools will be used as mobile Internet intelligent terminals and become key processing equipment for intelligent production systems.
Through the analysis of the CNC machine tool industry chain, the Prospective Industry Research Institute found that the main manufacturers of upstream equipment components of CNC machine tools include Huazhong CNC, Kede CNC, Estun, Ketuo Co., Ltd., Leisai Intelligence, etc.; CNC machine tool manufacturers mainly include East China CNC, Genesis, Haitian Precision, Rifa Precision Machinery, Qinchuan Machine Tool, Zhejiang Heideman, Shenyang Machine Tool, Yawei Shares, Huading Shares, etc.; There are a large number of enterprises in the downstream application field, and the main representative enterprises include AECC, Baosteel Group, Guangzhou Automobile Group, Jin Hongshun, China Shipbuilding, Dongfang Electric, Zhenyu Technology, etc.
High-end CNC machine tools are one of the most important key equipment for intelligent manufacturing, which is of great significance to intelligent manufacturing. In order to promote the industrial upgrading of the CNC machine tool industry in the mainland, in recent years, the state has introduced a series of policies to support the development of the CNC machine tool industry.
The "14th Five-Year Plan for the Development of Intelligent Manufacturing" proposes to support leading enterprises in the industry to build a number of manufacturing innovation carriers in conjunction with universities, scientific research institutes and upstream and downstream enterprises in key areas such as key processes and industrial machine tools. In view of the key core technical problems, Origin Intelligence is linking upstream and downstream enterprises and scientific research institutes in the industrial chain, and is taking the lead in establishing a high-end laser CNC machine tool innovation consortium driven by the industrial chain, aiming to accelerate the gathering of the industrial chain to support high-quality development.
The development of high-end CNC machine tools will be taken as an important goal in important policy documents such as "Made in China 2025", "Outline of National Innovation-Driven Development Strategy", "14th Five-Year Plan" for Intelligent Manufacturing Development, and "Work Plan for Steady Growth of Machinery Industry (2023-2024)".
In April 2024, according to the latest "Implementation Plan for Promoting the Renewal of Equipment in the Industrial Field" jointly issued by the Ministry of Industry and Information Technology and other seven departments, it is proposed that by 2027, the scale of equipment investment in the industrial field will increase by more than 25% compared with 2023; The penetration rate of digital R&D and design tools and the numerical control rate of key processes in industrial enterprises above designated size exceeded 90% and 75% respectively. Accelerate the elimination of backward and inefficient equipment, old equipment that has been in service for an extended period of time, and promote the application of intelligent manufacturing equipment updates. Focus on promoting the industrial machine tool industry to update machine tools that have been in service for more than 10 years, which is expected to catalyze the high-end process of machine tools.
During the "14th Five-Year Plan" period, local governments have also issued supportive policies to promote the development of the CNC machine tool industry, and the policy content has implemented the theme of "focusing on the development of high-end CNC machine tools". On March 26, 2024, in order to implement the planning and deployment of the "20+8" strategic emerging industries and the development of future industrial clusters, Shenzhen jointly issued the "Several Measures of Shenzhen on Promoting the High-quality Development of High-end Equipment Industry Clusters", focusing on wafer manufacturing equipment and high-end CNC machine tools, and striving to achieve a breakthrough from "0 to 1".
Strong national and local policy support provides a good policy environment for the development of high-end CNC machine tool industry and promotes its rapid development. Overall, in the second half of 2024, local governments will continue to pay more attention to the investment promotion of the high-end CNC machine tool industry. So, what is the distribution of enterprises in the main domestic high-end CNC machine tool industry? The Prospective Industry Investment Promotion Group selected the following 30 companies through multiple dimensions such as establishment time, registered capital, and enterprise label: (the following rankings are in no particular order)
According to the database of Chinese enterprises in Qichamao, at present, the number of enterprises still in the mainland CNC machine tool industry is 8,382. Compared with the number of registered enterprises from 2015 to 2022, the survival rate of enterprises is low. The number of production/manufacturing enterprises that are still relatively active in the CNC machine tool industry is 1,574. Compared with the number of existing/active enterprises in the CNC machine tool industry in the mainland, the proportion of production/manufacturing enterprises is only 18.8%.
From the perspective of the mainland CNC machine tool competition cluster, the current Genesis, Huazhong CNC, Qinchuan Machine Tool and other enterprises have strong market competitiveness, and the same Genesis, Huazhong CNC, Zhejiang Heideman, Kede CNC and other CNC machine tool enterprises are leading in strategic intensity.
On the whole, the major CNC machine tool listed companies are accelerating the layout of high-end CNC machine tools, machining centers and other directions, among which Genesis is in a leading position in the layout of high-end CNC machine tools.
The case of leading enterprises in the high-end CNC machine tool industry - Genesis
Genesis: CNC machine tool business layout history
Guangdong Genesis Intelligent Equipment Group Co., Ltd., formerly known as Guangdong Jinsheng Intelligent Group Co., Ltd., takes high-end intelligent equipment business as its core business. In 2010, Genesis was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange; In 2015, Genesis entered the high-end CNC machine tool industry, and in the following five years, it continued to integrate its business and deepen the layout of high-end intelligent equipment such as CNC machine tools.
Genesis: CNC machine tool business layout
Genesis' business scope includes CNC machine tools, high-end equipment manufacturing and intelligent manufacturing services. In the first half of 2022, the revenue of Genesis' CNC machine tool business is about 2.485 billion yuan, accounting for 97%; Other business income was 72 million yuan, accounting for 3%.
At present, the main layout of CNC machine tool products includes five-axis machining centers, vertical machining centers (V series), gantry machining center series, horizontal machining center series, CNC lathe series, high-speed drilling and milling tapping machining center.
According to the official website, Genesis' Taiqun Precision Machinery brand has provided more than 90,000 drilling and milling machining centers to the global 3C field. With the development of the new energy vehicle market in recent years, Taiqun vertical machining centers have also begun to explode, and the annual sales volume in 2021 has exceeded the 10,000 mark, setting an industry milestone.
Genesis: The latest financial data
According to the 2023 annual report, Genesis achieved operating income of 3.529 billion yuan during the reporting period, a year-on-year decrease of 22.04%, a net profit attributable to the parent company of 194 million yuan, a year-on-year decrease of 41.96%, and a net profit attributable to the parent company of 64.7958 million yuan, a year-on-year decrease of 71.86%.
Regarding the decline in performance, Genesis pointed out in the annual report that due to the wide application of the company's downstream 3C field, the main customers are concentrated in the high-end consumer electronics industry chain, and the domestic market is the main market, which is affected by the increase in uncertainty of downstream fixed asset investment, resulting in lower than expected performance in 2023.
In the first quarter of 2024, Genesis achieved operating income of 856 million yuan, a year-on-year decrease of 24.27%, a net profit attributable to the parent company of 59.0106 million yuan, a year-on-year decrease of 51.46%, and a net profit attributable to the parent company of 38.342 million yuan, a year-on-year decrease of 64.03%.
High-end CNC machine tool industry market investment and financing analysis
The number of investment and financing in the CNC machine tool industry has gradually increased
From 2017 to 2022, the number of investment and financing events in China's CNC machine tool industry is generally on the rise, and the financing amount fluctuates, but the overall investment and financing enthusiasm of the industry is weak.
The investment and financing of the CNC machine tool industry is more in the stage of the new third board
From the perspective of the amount of single financing, the amount of single financing has fluctuated since 2017-2022. In 2020, the amount of single financing reached a high in recent years, at RMB 47 million.
As of September 2023, there are more enterprises in the investment and financing stage of China's CNC machine tool industry in the new third board stage, followed by enterprises in angel rounds and Pre-A rounds.
High-end CNC machine tool industry expert views and brokerage forecasts
"If domestic high-end CNC machine tools want to go from 'bigger' to 'stronger', the key is that one end must be connected to technology research and development, and the other end must touch the application market." Yu Xubo, deputy to the National People's Congress, chairman and party secretary of General Technology Group, said, "Therefore, in the case that the foreign machine tool industry has occupied a leading position in technology and market monopoly, we need to promote the long-term cooperation mechanism between advanced manufacturing leaders and machine tool backbone enterprises to achieve synchronous research and development, joint verification and benefit sharing." Yu Xubo pointed out that under this mechanism, domestic high-end CNC machine tools will open up the complete chain of theoretical research - technology development - market application, and realize the high-level application carried out in stages and systematically, from the real "easy to use" to the user really "good use".
Wanhe Securities released a research report on the machinery and equipment industry, which pointed out that it is optimistic about technological upgrading to open up the high-end market and domestic substitution space. According to the machine tool industry association of key enterprises survey, the machine tool industry demand shortage continues to be highlighted, the first three quarters of new orders, orders in hand year-on-year growth of key enterprises accounted for only 30% and below, export orders year-on-year growth of less than 50%, more than 30% of the key enterprises capacity utilization is insufficient. However, at the same time, the unit price of products has gradually increased, and the trend of upgrading the product structure of the industry is obvious. The demand for high-precision machining in downstream automotive and other industries is growing, and the importance of high-end CNC machine tools, high-hardness tools, and abrasives in processing is increasing. At present, these fields are still highly dependent on imported high-end products, and there is a broad space for domestic substitution.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "In-depth Research and Investment Strategic Planning Analysis Report of China's CNC Machine Tool Industry" by the Prospective Industry Research Institute
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