Huaming Equipment (002270) Institutional Research and Investor Q&A Selection (20210929)

The main contents are as follows:

1. What is the sales model of the company's tap changer?

The company's tap changer terminal customers have power grid companies and various types of electricity companies, etc., these companies do not directly purchase the company's products, but the project planning and design will generally choose the use of tap changers through the designation or certification method, for end customers, the company mainly does is through the customer's relevant certification and improve customer acceptance, overseas market certification process and link will be more. The direct customer of the tap changer is mainly the transformer factory, the transformer project is generally through the bidding method, the technical standard of the bidding scheme will generally specify the requirements and specifications of the tap changer, this process mainly considers the technical parameters of the product, the price and the guarantee of follow-up services.

2, the company's domestic market share is high, how do domestic customers see this matter, how does the company respond?

For customers, the lack of choice will definitely bring insecurity, leading to the current tap changer competition pattern of the main reasons for the following two aspects: 1, from the current tap changer market and business environment, its demand in the power transmission and transformation industry compared to the total market accounted for a relatively small, while the difference in customer demand is also relatively large, in order to meet user demand, the company needs to produce more specifications of products, which involve tens of thousands of parts, thousands of molds. Large capital participation in the lack of power, and small factories are difficult to do the product to the extreme, the company currently uses the whole industry chain production mode to organize production, from cast steel, cast aluminum, surface treatment, precision casting to metal processing and the development of polymer materials, across different industry fields, in addition to individual spare parts need to be purchased, the others are manufactured by the company itself, can form a high share is the result of natural competition in the market; 2, in order to protect the right of customers to choose, the current long march electric and Shanghai Huaming sales team or two independent accounting, There is a competitive sales team, an independent market price system and an independent production management system. The company will only make some restrictions on individual links to avoid returning to the original vicious competition, Shanghai Huaming's team and The team of Long March Electric have competition in price and service, but to avoid vicious competition, there is still a right of choice for users.

3. How about the voltage level distribution of the company's products?

The traditional power grid is divided into three parts of power generation, transmission and power supply, power generation this piece is mainly the traditional thermal power plant and hydropower units, because the motor of the thermal power plant can adjust the voltage by itself, so the demand for on-load voltage regulation is less, but in the new energy power station this situation has changed greatly. In the transmission system, everyone pays more attention to UHV transmission, but after the power is delivered, it needs to be reduced from 1000kV to 500kV, 220kV, and 220kV below it needs to be gradually reduced to 35kV, etc., which is a greater market demand. In the field of power supply, the country has put forward higher requirements and improvements in the quality of power supply, so there may be greater demand below 35kV in the future. In addition to power grid customers, industrial users also account for a large proportion of the market, such as high-speed rail users, silicon users, etc.

4. Overseas market layout?

The company's overseas layout is mainly four branches of Huaming Turkey, Huaming Russia, Huaming North America and Huaming Latin America. We strive for overseas layout to take every step as solid as possible.

5. What is the composition of the tap changer in the domestic market now?

Answer: The company's tap changer market mainly has three types of customer groups: one is the demand of power grid customers; one is industrial users, including some high-energy-consuming enterprises; and the last is power construction including new energy customers, including wind power, photovoltaic power plants, etc. With the growth of new energy power generation, under the same capacity, the number of transformer groups required by new energy power stations is usually 3 to 4 times that of thermal power units, and the corresponding booster stations and transformers that need to be matched will also increase, and the development of new energy provides a new market space for the demand for tap changers.

6. Is it necessary to use tap changer products for products below 35kV? Below 35kV is generally not used to have on-load tap-changers, the main reasons: first, due to the low voltage level, if the product is too expensive, the price of the transformer is relatively low; second, the transformer below 35kV, the future may use a relatively novel power electronic control, which will have a greater change in future production and market conditions. Tap changer in the power grid is a key component of energy saving and consumption reduction and adjustment of power flow, from the perspective of the long-term development of our national grid in the future and the improvement of the quality of electricity consumption of end users, transformers below 35kV are also equipped with tap-changers This is a trend, but the structure of the product is certainly different from the current products, requiring the product to be as small as possible, the cost is as low as possible, which requires enterprises and users including the grid system to jointly promote, the company will maintain the attention and reserves of this market.

7. What is the future prospect of dry-type transformer compared to oil-type transformer?

The disadvantage of dry-type transformer compared to oil-type transformer is that the voltage is not high, the capacity is not large, if it is large, it will be very large, but the advantage of dry-type transformer is that it can reduce maintenance costs and be safer, so the proportion of dry-type transformers in power distribution is growing very fast.

8. Will the new power system launched by the state to build new energy as the core bring about a huge incremental market?

Our country's power grid is an overall planning model, the transmission mechanism and the process of realization will be more complex and long, now we can see the demand for new energy power stations has increased than before, the electricity sent by new energy because it is not stable enough to correspond to the pressure of grid dispatch and the difficulty of planning are huge, the current speed of energy storage development is not fast enough, the process of peak shaving and peak regulation of new energy disadvantages is still relatively obvious, of course, theoretically improve the construction of the power grid to better support new energy, The large-scale application of on-load tap-changers in the power grid is also one of the ways to solve the problem, but due to the long conduction mechanism and implementation process, we have not seen a significant impact on sales and sales volume so far. In the future, if there is clear data support, the company will make relevant disclosures.

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■ Target-specific research □ Analyst meetings □ Media interviews □ performance briefings □ press conferences □ roadshows □ on-site visits □ others

The name of the participating unit and the name of the person

Northeast Securities: Wang Zheyu, Anbang Huatai Berry: Ding Heng Qingli Investment: Ishikawa Lin Bodao Investment: Guo Xiaoxuan Dazheng Asset Management: Xu Haitao Yong'an Guofu: Ni Tong Southwest Self-operated: Li Jia Qianxi Assets: Lin Juan ICBC AXA: Gan Xiaoyao Bank Asset Management: Zhang Lixin Hanlun Investment: Huang Zhiqing Agricultural Bank Huili: Luo Wenbo Yuance Investment: Yan Yuheng Changxin Fund: Wang Junyang Hexi Investment: Wu Di Juming Investment: Lu Peijie Kewen Investment: Liu Pan

Time

September 29, 2021 9:30-11:30

place

No. 977 Tongpu Road, Putuo District, Shanghai

The name of the receptionist of the listed company

Xiao Yi, chairman and general manager, Xia Haijing, secretary of the board of directors, Lei Chunli, financial director, and Lu Jiongjiong, deputy general manager of overseas sales of its subsidiaries

List of attachments

not

date

September 29, 2021

(This article was completed by the Securities Times e company writing robot "Kuaishou Xiaoe".) ）