Domestic smart meter industry leader Samsung Electric will break the market on the 15th. Although on June 10, the State Grid Corporation of China started the tender for the third batch of smart meters this year, the prospects of the industry are not optimistic for investors. Once the State Grid has come to an end with the centralized bidding for smart meters, the market demand for the industry may shrink significantly.
There are still three years of centralized tendering. On June 10th, the State Grid Corporation of China launched the third batch of smart meters for tenders this year. Domestic meter manufacturers have expressed that they will participate in the tender for the State Grid.
The State Grid plans to replace 300 million single-phase smart meters between 2010 and 2014. The bidding volume for 2010-2011 is about 100 million. Therefore, there is still 200 million market space for the smart meter market in the next three years. With the maturity of the tendering system of the State Grid and the stabilization of the market competition, listed companies will continue to benefit.
In fact, in the bidding for the second batch of projects of the State Grid Corporation this year, Hao Ningda won a bid of 119.904 million yuan, accounting for approximately 33.39% of the company's total operating revenue in 2010; Ke Lun electronic won a bid of 226 million yuan, accounting for the company's 2010 business turnover. 24.28% of total revenue.
Some analysts pointed out that the next three years may be the golden age of smart meters. In December 2009, the State Grid for the first time tendered 2,943,400. Subsequently, the State Grid has increased the number of tenders. In 2010, it completed 4 smart electricity meter tenders and accumulated 45.37 million tenders. Some analysts predict that in 2011 the State Grid plan to tender 60 million.
"This means that there will still be more space in the smart meter market in the next three years," said a brokerage researcher. However, Hao Ningda believes that the design life of ordinary electric energy meter is 8-10 years, and the long-life meter is 15-25 years. After the five-year centralized tendering of the State Grid, the first batch of purchased electric meters do not need to be replaced. The smart meter The market space will drop dramatically.
Seeking business diversification Although the smart meter market has a three-year golden period, due to fierce competition in the industry, the gross profit margin of listed companies is declining year by year.
In 2010, the State Grid adopted a low bid to reduce the profitability of bidders. In 2011, tenders for the State Grid have changed. Taking into account factors such as production capacity, quality, delivery on time, and product price of the manufacturers, the average price of the smart meters has increased. However, it is worth noting that the gross profit margin of listed companies has not been significantly improved. Smart meters accounted for over 80% of Hao Ningda. In the first quarter of this year, the main business profit decreased by 262.14% year-on-year.
"Listed companies need to expand their overseas markets or diversify their development in order to get out of their difficulties." Some analysts have said that Kelu Electronics has begun to dilute the dependence on smart meters, and Samsung Electric also began to look for overseas markets.
Ke Lu Electronics announced a few days ago that the wholly-owned subsidiary Shenzhen Kelu Energy Service received an amount of RMB 136 million from the contracted energy management project contract signed by Mingfeng Mengcheng Building Material Company of Ningxia. Its, photovoltaic inverters, etc. have also received orders. Industrial Securities pointed out that benefiting from the "12th Five-Year Plan" energy saving plan, inverters and other products will help the company's performance increase, while photovoltaic inverter products are key long-term investment areas for new energy sources in the world and are expected to become the company's future performance growth point.
Samsung Electric also stated that from 2009 to 2010, with the company's efforts to expand its overseas market, the company’s sales revenue from overseas markets has grown rapidly, and it is expected that it will gradually become an important sales area for the company in the future.
There are still three years of centralized tendering. On June 10th, the State Grid Corporation of China launched the third batch of smart meters for tenders this year. Domestic meter manufacturers have expressed that they will participate in the tender for the State Grid.
The State Grid plans to replace 300 million single-phase smart meters between 2010 and 2014. The bidding volume for 2010-2011 is about 100 million. Therefore, there is still 200 million market space for the smart meter market in the next three years. With the maturity of the tendering system of the State Grid and the stabilization of the market competition, listed companies will continue to benefit.
In fact, in the bidding for the second batch of projects of the State Grid Corporation this year, Hao Ningda won a bid of 119.904 million yuan, accounting for approximately 33.39% of the company's total operating revenue in 2010; Ke Lun electronic won a bid of 226 million yuan, accounting for the company's 2010 business turnover. 24.28% of total revenue.
Some analysts pointed out that the next three years may be the golden age of smart meters. In December 2009, the State Grid for the first time tendered 2,943,400. Subsequently, the State Grid has increased the number of tenders. In 2010, it completed 4 smart electricity meter tenders and accumulated 45.37 million tenders. Some analysts predict that in 2011 the State Grid plan to tender 60 million.
"This means that there will still be more space in the smart meter market in the next three years," said a brokerage researcher. However, Hao Ningda believes that the design life of ordinary electric energy meter is 8-10 years, and the long-life meter is 15-25 years. After the five-year centralized tendering of the State Grid, the first batch of purchased electric meters do not need to be replaced. The smart meter The market space will drop dramatically.
Seeking business diversification Although the smart meter market has a three-year golden period, due to fierce competition in the industry, the gross profit margin of listed companies is declining year by year.
In 2010, the State Grid adopted a low bid to reduce the profitability of bidders. In 2011, tenders for the State Grid have changed. Taking into account factors such as production capacity, quality, delivery on time, and product price of the manufacturers, the average price of the smart meters has increased. However, it is worth noting that the gross profit margin of listed companies has not been significantly improved. Smart meters accounted for over 80% of Hao Ningda. In the first quarter of this year, the main business profit decreased by 262.14% year-on-year.
"Listed companies need to expand their overseas markets or diversify their development in order to get out of their difficulties." Some analysts have said that Kelu Electronics has begun to dilute the dependence on smart meters, and Samsung Electric also began to look for overseas markets.
Ke Lu Electronics announced a few days ago that the wholly-owned subsidiary Shenzhen Kelu Energy Service received an amount of RMB 136 million from the contracted energy management project contract signed by Mingfeng Mengcheng Building Material Company of Ningxia. Its, photovoltaic inverters, etc. have also received orders. Industrial Securities pointed out that benefiting from the "12th Five-Year Plan" energy saving plan, inverters and other products will help the company's performance increase, while photovoltaic inverter products are key long-term investment areas for new energy sources in the world and are expected to become the company's future performance growth point.
Samsung Electric also stated that from 2009 to 2010, with the company's efforts to expand its overseas market, the company’s sales revenue from overseas markets has grown rapidly, and it is expected that it will gradually become an important sales area for the company in the future.
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