Many companies in the power equipment industry got off to a good start in the first quarter, and their export business grew strongly

With the steady development of the global economy and the rapid rise of artificial intelligence and other industries, the upgrading and construction of supporting facilities on the power grid side may usher in a new round of opportunities. In the A-share market, the performance of many companies in the power equipment industry rose sharply in the first quarter, and many of them performed well in overseas business.

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The distribution network product market picked up, and Yangdian Technology's performance rose sharply in the first quarter

Yangdian Technology(301012. SZ) design and production of energy-saving power transformers and core products are mainly used in the power distribution link of the power system, and are widely used in urban electricity, rural electricity, industrial electricity and other fields.

In 2023, Yangdian Technology will achieve a total operating income of 575 million yuan, a year-on-year decrease of 9.43%, a net profit attributable to shareholders of listed companies of 6.766 million yuan, a year-on-year decrease of 89.74%, and a non-net profit of 5.0453 million yuan, a year-on-year decrease of 91.75%. The decline in performance is mainly due to the fact that the company's technological transformation progress in the first half of 2023 is less than expected, which affects the order acquisition of new energy products.

Yangdian Technology disclosed that in the first quarter of 2024, the company achieved operating income of 234 million yuan, a year-on-year increase of 199.43%, the net profit attributable to shareholders of listed companies was 12.6689 million yuan, a year-on-year increase of 2458.23%, and the non-net profit attributable to shareholders was 12.5627 million yuan, a year-on-year increase of 1974.50%.

The substantial increase in performance in the first quarter is mainly due to the increase in market orders for the company's distribution network products from the fourth quarter of 2023 with the increase in power grid investment. At the same time, the company's new energy substation products have large-scale production capacity and market orders have increased. In addition, the export business also achieved significant growth.

The performance of many companies in the power equipment industry in the first quarter is expected to increase, and the overseas business has performed well

Under the general trend of global new energy growth and power grid upgrading/construction, the development of the power industry is facing major opportunities, while overseas demand continues to increase.

According to Choice Financial Terminal, according to the classification of Shenwan Industry (2021), Yangdian Technology belongs to the "Power Equipment-Power Grid Equipment-Power Transmission and Transformation Equipment" sector. In the A-share market, there are 30 listed companies under this industry classification. In addition to Yangdian Technology, many companies achieved growth in the first quarter of this year, and performed well in overseas sales.

Kinpan Technology Co., Ltd. (688676. SH) is engaged in the research and development, production and sales of transformer series, switchgear series, box transformer series, power electronic equipment series and energy storage series. In 2023, the company's main business income will be 6.668 billion yuan, a year-on-year increase of 40.50%, and the net profit attributable to owners of the parent company will be 505 million yuan, a year-on-year increase of 78.15%. During the reporting period, the company achieved overseas sales revenue of 1.177 billion yuan, a year-on-year increase of 79.54%.

In the first quarter of 2024, Kinpan Technology achieved operating income of 1.305 billion yuan, a year-on-year increase of 0.60%. Among them, the power transmission and distribution and control equipment manufacturing industry achieved a revenue of 1.133 billion yuan, and the energy storage series products achieved a revenue of 110 million yuan. According to the division of domestic and foreign sales: the domestic business achieved a revenue of 912 million yuan, and the export business achieved a revenue of 388 million yuan.

In terms of profitability, in the first quarter of 2024, the company's net profit attributable to shareholders of listed companies was 94.6396 million yuan, a year-on-year increase of 8.57%, and the net profit attributable to shareholders of the parent company was 101 million yuan, a year-on-year increase of 36.63%. During the reporting period, the proportion of the company's export sales increased, resulting in an increase in gross profit margin compared with the same period last year. In the first quarter of this year, Kinpan Technology achieved a gross profit of 331 million yuan, with a gross profit margin of 25.39%, an increase of 2.70 percentage points over the same period last year.

It is worth mentioning that with the rapid growth of demand in overseas markets and the increasingly prominent advantages of overseas channels, the company's export business has achieved strong growth. In 2023, the Group's overall sales orders will be 7.832 billion yuan, of which export orders will be 1.991 billion yuan, an increase of 119.18% over the same period of the previous year.

On April 18, 2024, Kinpan Technology disclosed the signing of important contracts for daily operations, stating that the company and its holding subsidiaries have signed a number of contracts with E, an overseas customer of one of the main EPC partners, and the subject matter of the contract is the transformer products produced by the company, with a cumulative contract amount equivalent to about 739 million yuan.

Sieyuan Electric(002028. SZ) is mainly engaged in the research and development, production, sales and service of power transmission and distribution equipment. The company expects to achieve net profit attributable to shareholders of listed companies of 284 million yuan to 393 million yuan in the first quarter of 2024, a year-on-year increase of 30% to 80%, and net profit attributable to the parent company of 274 million yuan to 365 million yuan, a year-on-year increase of 50% to 100%. During the reporting period, the company's major projects were completed and delivered in a timely manner, and some postponed projects were received in the first quarter of 2024.

In 2023, Sieyuan Electric achieved operating income of 12.460 billion yuan, a year-on-year increase of 18.25%, and net profit attributable to the parent company of 1.559 billion yuan, a year-on-year increase of 27.75%. Among them, the revenue in the fourth quarter of 2023 will be 3.879 billion yuan, and the net profit attributable to the parent company will be 411 million yuan. During the year, the company added orders of 16.513 billion yuan, a year-on-year increase of 36.22%. In 2023, the company will achieve overseas revenue of 2.158 billion yuan, a year-on-year increase of 15.71%, and overseas orders of 4.01 billion yuan, a year-on-year increase of 34%, with overseas revenue and orders accounting for 17% and 24% of the total, respectively.

In 2023, the power equipment business will be Huaming Equipment (002270. SZ) contributes about 83% of revenue and 93% of gross profit, and is the company's main source of profit. In the first quarter of 2024, the company's operating income increased by 9.40% year-on-year to 451 million yuan, the net profit attributable to shareholders of listed companies was 127 million yuan, and the net profit attributable to shareholders of listed companies after deducting non-profits was 126 million yuan, a year-on-year increase of 7.59% and 24.09%, respectively. During the reporting period, the power equipment business achieved revenue of 392 million yuan, a year-on-year increase of 14.63%.

In terms of overseas sales team layout, Huaming Equipment initially plans to deploy local sales and service teams in Southeast Asia and Europe. The production capacity layout of the Southeast Asian market is mainly assembly and pilot plants, and the US market will also carry out preliminary demonstration and evaluation work at the same time.

Pinggao Electric(600312. SH) business scope covers the research and development, design, manufacturing, sales and testing of power transmission and distribution equipment and its core components. The company has promoted its products to more than 70 countries and regions around the world, and has established a complete overseas marketing network. In the first quarter of 2024, the company achieved operating income of 2.044 billion yuan, a year-on-year increase of 4.47%, and net profit attributable to shareholders of listed companies of 230 million yuan, a year-on-year increase of 52.69%.

Pinggao Electric disclosed that since 2024, the company and its subsidiaries have won bids of about 955 million yuan in the "State Grid Corporation of China's first batch of procurement in 2024 (the first bidding and procurement of power transmission and transformation projects (including cables))" and "the second batch of procurement of State Grid Corporation of China in 2024 (the first single-source procurement of power transmission and transformation projects)". The company expects to achieve operating income of 12 billion yuan to 13 billion yuan in 2024.

In addition, Baoguang shares (600379. SH) main products: arc extinguisher and sealed pole are the core components necessary for the interruption of 0.36kV-252kV circuit. In the first quarter of 2024, the company achieved a net profit attributable to the owners of the parent company of 16.1433 million yuan, a year-on-year increase of 73.19%, and a non-net profit attributable to the owners of the parent company of 16.0462 million yuan, a year-on-year increase of 88.64%. During the reporting period, the company increased its market development efforts, and the scale of domestic and international sales increased.

Jinguan Electric(688517. SH) is engaged in the research and development, manufacturing and sales of power transmission and distribution and control equipment. In the first quarter of 2024, the company achieved operating income of 129 million yuan and net profit attributable to shareholders of listed companies of 20.5664 million yuan, an increase of 49.82% and 129.88% respectively over the same period of the previous year.