On December 22, Hongsheng Huayuan (601096SH) officially listed on the Shanghai Stock Exchange. According to the "Letter of Intent for Initial Public Offering** and Listing on the Main Board", Hongsheng Huayuan issued 66.9 billion shares, with a total amount of 113.7 billion yuan, invested in the construction of a full range of voltage level transmission tower production projects, as well as intelligent manufacturing upgrading projects involving Zhejiang, Anhui, Jiangsu, Chongqing and other places.
The dominant position in the industry is prominent, and the operating income has grown steadily.
Transmission line towers are an important part of transmission lines. According to the prospectus, Hongsheng Huayuan is mainly engaged in the research and development, production and sales of transmission line towers, and the main products are transmission line towers, which can be divided into angle steel towers, steel pipe towers, steel pipe poles and substation brackets according to product characteristics and types. The company's customers are mainly State Grid, China Southern Power Grid and other power grid companies, power generation projects, user projects, overseas projects also have a certain demand for the company's transmission line tower products.
On the whole, Hongsheng Huayuan has achieved a full range of full-voltage level product coverage of transmission line towers, and is at the leading level in terms of production capacity, output and revenue scale, and is the largest transmission line tower supplier in China.
According to reports, the State Grid of the transmission line tower is mainly purchased through public bidding, and Hongsheng Huayuan in the State Grid, China Southern Power Grid project winning scale and market share are maintained at a high level. According to the statistics of public bidding information, from 2020 to the first half of 2023, Hongsheng Huayuan's market share in the bidding and procurement of transmission line towers at the State Grid Headquarters is respectively85% and 2500%, and the market share of the bidding and procurement of transmission line towers at the headquarters of China Southern Power Grid was .25% and 2079%。
In terms of key project construction experience and industry qualifications, Hongsheng Huayuan also continues to maintain a dominant position. According to public information, since the start of construction of China's first 1000kV Jindongnan-Nanyang-Jingmen UHV AC test demonstration project in 2006, the company has participated in the construction of all domestic UHV projects and the world's first transmission tower, the first transmission tower in South America, the world's first 500 kV double-loop steel pipe pole project and many other key large-scale projects, and the technical level has been proven by practice and recognized by the industry, with the processing advantages of UHV transmission line towers.
The continuous growth of power grid investment also provides a broad space for the development of transmission line tower enterprises. According to reports, UHV transmission line tower products have high technical barriers, the number of domestic enterprises with supply qualifications is limited, in the industry's top 15 UHV AC engineering tower processing enterprises, Hongsheng Huayuan subsidiary occupies 6 seats, has become the leading UHV transmission line tower business. Strong market development capabilities, production capacity scale and technical level provide a strong guarantee for the company's stable growth in future performance.
During the reporting period, from the perspective of performance stability, Hongsheng Huayuan's operating income maintained stable growth, but due to the fluctuation of raw materials, the company's net profit attributable to shareholders of the parent company declined, but it still maintained a relatively large-scale net profit level, and the stability of operating performance was relatively strong. Specifically, from January to June 2020, 2021, 2022 and 2023, the company's operating income will be 610662960,000 yuan, 716236800,000 yuan, 877076630,000 yuan and 457423230,000 yuan, and the net profit attributable to shareholders of the parent company was 52192650,000 yuan, 20694440,000 yuan, 16,579300,000 yuan and 6868840,000 yuan.
Industry-leading process technology, innovative R&D and continuous optimization.
Focusing on the production and research and development of transmission line tower products, Hongshenghua has always attached importance to technology research and development and technological innovation since its establishment. After years of accumulation of production experience and technology research and development, the company continuously optimizes the production process, and the product quality and production efficiency continue to improve. At present, Hongsheng Huayuan has established a technology research and development system composed of technology research and development centers and technical departments of various subsidiaries. The technology R&D center is mainly responsible for the overall design and project management of the company's scientific research projects, and the specific R&D tasks are undertaken by the technical department of the subsidiary. The company set up the Tower Research Institute in 2022, which will become an important part of the company's R&D system in the future.
According to the prospectus, Hongsheng Huayuan's existing core technologies include three-dimensional lofting and design integration technology of iron towers, virtual trial assembly technology based on three-dimensional digitalization, ultra-high voltage and large-span steel pipe tower processing technology, new materials and new process application technology, intelligent and environmentally friendly galvanizing technology, etc. Among them, in terms of UHV and large-span steel pipe tower processing technology, the company has participated in the processing of the State Grid's full range of UHV steel pipe towers and the world's tallest large-span steel pipe tower, forming an advanced independent processing technology. In terms of super-large diameter steel pipe production technology, the company has mastered the key process of large-diameter pipe blank forming, large-scale steel pipe joint and welding technology, pipe end groove opening and welding deformation control technology with flangeIn terms of welding deformation control of double-row bolt hole flanges, the company has mastered the technology of groove size design, control flange deformation mold design, welding process design and so onIn the production of large ball joints, the company has mastered the assembly and welding of hemispheres, the assembly and welding of the equator, the assembly and welding of intersecting lines, the assembly and welding of accessories, and the heat treatment of joints. At present, the company's UHV and large-span steel pipe tower processing technology is at the international leading level.
At the same time, as a leading company in the transmission line tower manufacturing industry, Hongsheng Huayuan has led and participated in the formulation of 24 standards in recent years, including 3 national standards, 7 industry standards, 7 group standards and 7 enterprise standards.
In terms of talent training and incentives, Hongsheng Huayuan continues to carry out incentives through a series of measures such as the establishment of a scientific and technological innovation reward system, the establishment of a professional leader review implementation plan, and the improvement of staff rank sequence management. In recent years, Hongsheng Huayuan has gradually strengthened the introduction and training of technical personnel, recruited a number of outstanding technical professionals through campus recruitment, supplemented mature scientific research talents in related technical fields through social recruitment, and also hired some technical experts in the form of external experts to guide scientific research projects. Hongsheng Huayuan also attaches great importance to industry-university-research cooperation, and actively carries out scientific and technological cooperation with scientific research institutes and colleges and universities, absorbs advanced technology, introduces outstanding talents, optimizes the allocation of scientific and technological resources, and promotes the transformation of scientific and technological achievements.
The market prospect of policy support and development is good.
China is currently at the starting stage of the "14th Five-Year Plan", and the construction of a modern energy system has become an important development goal in this period, and the transmission line tower has become an important part of the construction of a modern energy system as an important transmission power device. At the same time, China has also introduced a number of industrial policies to support the development of the industry. The proposal of many industrial policies has expanded the market capacity of power grid construction projects, and also created broad market prospects for the construction of supporting infrastructure for power grids, such as transmission line towers.
For example, in October 2019, the state issued the "Guiding Catalogue for Industrial Structure Adjustment (2019)", encouraging the industry to carry out DC and AC power transmission and transformation construction projects of 500 kV and above, and encouraging the transformation and construction of power grids. In 2021, the National Energy Administration's "2021 Energy Work Guidance" and "Notice of the National Energy Administration on Matters Related to the Development and Construction of Wind Power and Photovoltaic Power Generation in 2021" proposed to "actively promote the construction of new power systems with new energy as the main body, and promote Beijing, Shanghai, Tianjin, Chongqing, Guangzhou, Shenzhen and other pilot cities to strengthen the construction of local power grids" and "conscientiously implement the task of wind power and solar power generation capacity of more than 1.2 billion kilowatts".
In January 2022, the State Grid held an annual work conference, planning to invest 501.2 billion yuan in the power grid in 2022, a record high, a year-on-year increase of 884%。Xin Baoan, chairman of the State Grid, said that during the "14th Five-Year Plan" period, the State Grid plans to invest 350 billion US dollars (about 2.).23 trillion yuan). China Southern Power Grid proposed that the planned investment in power grid construction during the "14th Five-Year Plan" period will be about 670 billion yuan, an increase of 36% over the "13th Five-Year Plan" period. Based on this calculation, the "14th Five-Year Plan" power grid investment of the two major power grid companies will exceed 29 trillion yuan, 13% higher than the total investment of the national power grid during the "13th Five-Year Plan" period, and 45% higher than the "12th Five-Year Plan" period. The continuous growth of power grid investment provides a broad space for the development of transmission line tower enterprises.
In addition, in the context of the construction of a new power system with new energy as the main body, the UHV power grid has become the "aorta" of energy transportation in China, which has effectively promoted the clean and low-carbon transformation, and the construction of the UHV power grid has also accelerated the creation of new development opportunities for the industry.
The State Grid's Action Plan for Carbon Peak and Carbon Neutrality proposes that "during the 14th Five-Year Plan period, the State Grid has built cross-regional transmission channels to gradually achieve full transmission, increasing the transmission capacity by 35.27 million kilowatts;It is planned to build 7 UHVDC circuits, with an additional transmission capacity of 56 million kilowatts. Hongsheng Huayuan said that by 2025, the company's inter-provincial and inter-regional transmission capacity in the business area will reach 3000 million kilowatts, and the proportion of clean energy transmission has reached 50%;By 2030, the inter-provincial and inter-regional transmission capacity will be increased to 3500 million kilowatts. Industry insiders also pointed out that the construction of UHV line network is bound to drive the market demand for supporting high-voltage transmission line towers, bring new performance growth points to the industry, and create good opportunities for the development of the industry. (Reporter Wei Xiayi reports from Beijing).
Editor: Pang Xinyi.