Tianzheng Electric achieved a double increase in revenue and net profit in the first half of the year to accelerate the layout of the new energy field

Reporter Wu Yixuan trainee reporter Wu Jixia

On July 26, Tianzheng Electric released its 2021 semi-annual report, the company achieved operating income of 1.665 billion yuan in the first half of this year, an increase of 57.57% year-on-year; net profit attributable to shareholders of listed companies was 145 million yuan, an increase of 57.87% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 116 million yuan, an increase of 21.88% year-on-year.

Tianzheng Electric said in its semi-annual report that in the first half of 2021, in the face of the sharp rise in commodity prices and raw materials, the company continued to promote management reform in market expansion, technology and product research and development, intelligent manufacturing, strategic management, human resource management and other aspects, and achieved remarkable results.

Affected by this news, Tianzheng Electric touched the up and down board for two consecutive days, closing at 16.16 yuan / share on July 27, an increase of 10.01%, and the company's total market value reached 6.531 billion yuan.

Low-voltage electrical appliances market potential is large Competition between domestic and foreign enterprises is fierce

Tianzheng Electric is mainly engaged in the research and development, production and sales of low-voltage electrical products such as power distribution appliances, control electrical appliances, terminal electrical appliances, power supply electrical appliances, instrumentation appliances, etc., and the company also provides intelligent low-voltage electrical products and intelligent distribution system comprehensive solutions for various industries.

Low-voltage electrical appliances are widely used in production and residential life, and they are irreplaceable in the process of power transmission. At present, the domestic low-voltage electrical appliance market is in a state of full competition, forming a competitive pattern in which multinational companies with strong strength coexist with local advantageous enterprises, and is gradually moving towards industry integration.

Anxin Securities Research Report analysis believes that China's low-voltage electrical appliance industry is a fully competitive market, the degree of marketization is very high, and the current pattern of joint operation and mutual competition between foreign and domestic capital has been formed. In recent years, the growth rate of foreign-funded enterprises represented by Schneider and ABB has slowed down, and its market share has gradually declined. Local private enterprises represented by Chint Electric Appliances, Liangxin Shares, Tianzheng Electric, etc., have shown a rapid growth momentum.

Du Meng, chairman of the China Enterprise Capital Alliance and an independent economist, said in an interview with the Securities Daily reporter: "After nearly ten years of rapid development, China's low-voltage electrical appliance industry has formed a relatively complete industrial system, and its products are widely used and have great market potential. With the popularization of low-voltage electrical appliance technology, coupled with the lower and lower threshold for enterprises to enter the low-voltage electrical appliance industry, the difficulty of differentiation of low-voltage electrical products will increase, the gross profit margin of products will decrease, most enterprises in the low-voltage electrical appliance industry are in the 'small profit but high sales stage', and many enterprises are in a period of transformation or industrial structure adjustment. ”

Qi Haiyan, president of Beijing Teyi Sunshine New Energy, also mentioned in an interview with the "Securities Daily" reporter: "China's low-voltage electrical appliance industry relative to the international mainstream technology level there is still room for progress, especially the product stability and durability and foreign head enterprises there is still some gap, and AC 1000 volts or DC 1500 volts is our daily production and life contact with the most voltage range, the capacity space of this market has been close to 100 billion yuan scale, Tianzheng Electric's market share still has a lot of room for improvement." ”

Accelerate the layout of the new energy field and build new business growth points

Under the background of the rapid development of the digital economy and the superposition of "carbon peaking and carbon neutrality" of "double circulation and new infrastructure", the investment and technological innovation of the new energy industry will become the key to whether low-voltage electrical appliance companies can achieve curve overtaking in the next round of competition.

Qi Haiyan believes: "The gradual release and promotion of the new power system policy proposed by the '14th Five-Year Plan' to build a new power system with new energy as the main body has enabled the state to increase investment in the fields of increasing the construction of smart grids, the coordinated development of distributed energy interconnection, and the power storage market, which has increased the demand for just-needed products for low-voltage electrical appliances of control types and protection types, whether it is AC/DC distribution boxes/cabinets, grid-connected boxes/cabinets, inverter units, energy storage converter PCS units, power management EMS/ BMS and other units will use a lot of low-voltage electrical products, which is absolutely and substantially positive. ”

The relevant person in charge of Tianzheng Electric told reporters: "Driven by the double carbon target, the new energy industry will develop rapidly in the future, and the power equipment and electrical components will also generate greater demand. These include power Internet of Things, smart energy, 5G new infrastructure, clean energy and other fields, which are the company's main development directions. ”

According to the semi-annual report, Tianzheng Electric's research and development expenses in the first half of the year were 54.4966 million yuan, an increase of 36.49% year-on-year. The company's R & D system mainly focuses on cutting-edge technology research and industry product development, and has completed the development of AC1140V frame circuit breaker and AC800V molded case circuit breaker, which can meet the new needs of special industries such as wind power, photovoltaic, energy storage new energy and so on.

In the first half of this year, Tianzheng Electric was also successfully shortlisted for the 2021 new energy box transformer framework agreement procurement project of China Huaneng Group and the low-voltage frame circuit breaker project of China Datang Group Co., Ltd. in the 2021-2022 framework procurement project. In addition, in April 2021, the company signed a joint innovation framework agreement with China Telecom, focusing on the optimization of communication energy products (switch breakers, distribution cabinets, column head cabinets, etc.), and has completed the formation of the project team and preliminarily completed the investigation of pain points in the operation and maintenance and use of products.

The relevant person in charge of Tianzheng Electric said: "The company will continue to use better products and services, deeply focus on customer needs, further strengthen technical investment and business layout in 5G, new energy, rail transit, data centers and other industries, and continue to exert efforts in the high-end market to build a new business growth point." ”

(Editing by Shangguan Monroe)