The technological advancement and rapid replacement of electrical equipment have a direct impact on the stable operation of power systems and electricity prices. In particular, the technological progress of new energy equipment directly promotes the rapid decline in the cost of installed power systems.
At present, there are more than 250 electrical equipment corp listed in the Mainland, Hong Kong, and the United States, including traditional electrical companies, as well as new energy companies such as energy storage and photovoltaics. At the end of April 2020, all listed companies announced their 2019 financial statements. According to relevant financial statistics and analysis, Energy magazine released the list of Top 20 Listed Electrical Equipment Companies in 2020. The following are the features.
- Among the companies on the list, the valuation of leading new technology companies is relatively high
Market valuation often represents the company's future development potential. It is not difficult to find from the list that the market value of traditional electrical equipment enterprises such as Shanghai Electric, Dongfang Electric, Harbin Electric, and others are lower than the revenue level, and the price-earnings ratio is obviously low. The market value of CATL (energy storage), LONGI shares (photovoltaic), and NARI (power intelligentization and digitization), which represent new technologies and new directions, are far higher than revenue.
- The revenue scale of the listed companies is generally small
As an integral part of the power industry, the electrical equipment industry has a relatively small overall scale. Among the top 20 listed companies in the electrical equipment sector, only Shanghai Electric has a revenue of more than 100 billion. Except for Shanghai Electric, the top 10 companies have revenues of less than 50 billion yuan, and nearly half of the listed companies have revenues of less than 20 billion yuan.
- The valuation of electrical equipment supply companylisted in Hong Kong is generally low
Among the top 20 companies listed this year, three companies are listed on the Hong Kong Stock Exchange, namely Harbin Electric, Jiangnan Group, and CHNENERGY Technology & Environment Group. From the perspective of operating income, the three companies are all over 10 billion, but due to poor profitability, the valuation given by the Hong Kong market is low.
- Most of the listed companies are mainly engaged in the new energy business
Most of the top 20 listed companies are mainly engaged in or involved in new energy businesses such as wind power, photovoltaics, and energy storage. Among them, CATL, LONGI shares, and Goldwind Technology are leading companies in power batteries, photovoltaics, and wind power respectively. This also highlights the rise and rapid growth of China's new energy industry in recent years.
- CATL has become a fast-growing company
Among the companies on the list, the operating performance of the CATL is very outstanding. In the past five years, the overall operating income and net profit have maintained year-on-year growth. It is a typical high-growth leading company. The market has also given extremely high valuations.
