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[SMM Analysis] which listed company in the wire and cable industry makes the most money in 2019
May 20,2020 18:28CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

Smm5 March 20: as of May 20, 2020, the annual reports of listed companies have been basically announced. According to our SMM statistics, there are 20 listed companies with wire and cable business. Overall, the total operating income of the above companies in 2019 was about 229.16 billion yuan, a slight increase of 3% over 2018; the cumulative net profit was about 5.7 billion yuan, down 38.8% from 2018; and the non-net profit was about 4.5 billion yuan, down 47.3% from 2018. Of these, 18 made profits and only 2 lost money, the same as 2 in 2018.

A list of the performance of listed companies in the wire and cable industry in 2019

From the above table: the highest operating income is Zhongtian Technology for 38.77 billion yuan; the highest net profit is special electrician for 2.02 billion yuan; deducting the highest non-net profit is also Zhongtian Technology for 1.595 billion yuan. There are two losses: one is that Tongding Interconnection lost 2.12 billion yuan. The reason for such a large loss is that there are signs of impairment in the company's goodwill, fixed assets, inventory and other assets, and the corresponding provision for impairment is included, resulting in large-scale asset impairment losses. The second is that Zhongchao Holdings has a loss of 462 million yuan.

Generally speaking, the listed companies in the cable industry can be roughly divided into three camps: the first camp is that there are four enterprises with revenue of more than 30 billion yuan; the second camp is that there are seven enterprises with revenue of more than 5 billion yuan and less than 30 billion yuan; and the third camp is that there are nine enterprises with revenue of less than 5 billion yuan.

2. The actual revenue of the above-mentioned enterprises related to wires and cables in 2019

Although the revenue of these 20 enterprises is 221.65 billion yuan, the revenue related to wires and cables is only 81.595 billion yuan, accounting for only 35.6%. In addition to carrying out wire and cable business, many enterprises also carry out copper pole business, transformer business, submarine cable business; and even carry out purple sand teapot and other industries that have nothing to do with the main business.

If it is classified according to the revenue related to wires and cables, it can be divided into four camps: the first camp is that there are three enterprises with revenue of more than 10 billion yuan, and Hengtong Optoelectronics has the highest operating income, with the highest profit of 1.811 billion yuan, becoming the most profitable cable enterprise; the second camp is that there are 4 enterprises with revenue of more than 5 billion yuan and less than 10 billion yuan; and the third camp is that there are 7 enterprises with revenue of less than 5 billion yuan and more than 1 billion yuan. In the fourth camp, there are six with revenue below 1 billion. Thus it can be seen that there are still few giants in China's cable industry, and most of them are small and medium-sized enterprises.

In addition, in terms of industry profits, the average gross profit margin of the industry in 2019 was 15.18%, up 2.08% from 2018. The decline in copper prices in 2019 is one of the reasons for higher profit margins in the cable industry. In 1919, the average spot price of copper in the domestic market was 47739 yuan / ton, down 5.8 per cent from the same period last year. In addition, the limited profit margins of some small and micro wire and cable companies that produce low-end products have been gradually compressed and forced to withdraw from the market, which is another important reason for the improvement of profit margins of large enterprises.

 

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