SHANGHAI, Apr. 25 (SMM) - Jiangsu Zhongtian Technology (ZTT) reported RMB 447 million in net profits in 2012, up 19.75% YoY. Its earnings per share also increased 6.98% YoY to RMB 0.598.
The State Grid and China Southern Power Grid’s acceleration in construction of special high voltage power grid and smart power grid as well as power grid transformation in urban and rural areas are boosting demand for special cable. As such, the company’s revenues in cable products grew 16% YoY to RMB 1.85 billion last year. Its cable output and sales were 110,683 mt and 107,318 mt, respectively.
Power cable comes in two categories: general and special. Competition in general power cable market is more intense, and producers with revenues in excess of RMB 500 million accounting for a mere 3% of total general power cable producers. Special power cable, on the other hand, is more sophisticated. There are only five or six special power cable producers that are qualified to take bids from the State Grid. Shanghai Zhongtian Aluminum Wire, Wuhan Wire & Cable and Hangzhou Cable are the only three producers recognized as being capable of producing 500/230 special high strength steel-cored, high strength aluminum alloy.
Demand for traditional power cable is growing fast, but demand for aluminum alloy cable grows at a slower pace. As the State Grid and China Southern Power Grid increase use of aluminum alloy conductor, ZTT will see an increase in its earnings as well.