Recently, "Cao Dewang" has become popular again.
Two days ago, Sina held an "Entrepreneur Night" event, which was attended by many famous entrepreneurs, such as Li Dongsheng of TCL, Yu Minhong of New Oriental, and so on.
Of course, there is also Cao Dewang of Fuyao Glass.
And Cao Dewang once again talked about the fact that he spent 100 billion yuan to run "Fuyao University of Science and Technology" at the event.
Cao Dewang, who is 78 years old, is in a very good mental state, and when he talks about running a university, he is even more smiling.
Cao Dewang is really concerned about running a school, he sets up his office directly in the board room of the school construction site, arrives at 5 o'clock every morning, and in addition to handling company affairs, he has to inspect the construction site at least twice a day.
Cao Dewang may have a strong shadow of ancient Confucianism, and the literati pay attention to the three pillars of life, namely meritorious service, virtue, and speech.
Seriously running a school has been a meritorious thing since ancient times, plus Cao Dewang has so many remarks, and he also wrote the book "Heart Ruobodhi".
It means that he is about to finish the three major events in life.
According to the latest information on Fujian's official website, the application for the establishment of Fuyao University of Science and Technology (tentative name) has been announced, and the application is for ordinary undergraduates.
I thought it would be a junior college, but I didn't expect it to be an undergraduate.
The release of this public information means that Fuyao University of Science and Technology is one of the last steps away, and it can enroll students and open school.
The progress is indeed very fast, this plan is starting in 2021, in May of that year, Cao Dewang donated 10 billion to the Heren Charity ** Association, which is used to run this school.
Ground was broken in May 2022 and it was completed in less than two years.
And the scale is not small, with 6 colleges, namely:
School of Mechanical Engineering and Automation, School of Materials, School of Vehicle and Transportation, School of Computer Science, School of Economics and Management, School of Health Sciences. ”
According to the plan, 12,000 students can be enrolled.
It also covers three major levels: bachelor's, master's and doctor's.
Of course, the quality of the school cannot be falsified at present, but I don't think it will be bad for two reasons.
The first is that there is no shortage of money, although the hand-made investment is 10 billion, which is already a lot, and in the 10 years after the start of school, 500 million will be donated every year.
The fund of 15 billion yuan is not a small amount for an ordinary undergraduate school with more than 10,000 people.
The second is that Cao Dewang is the chairman, and his style is impossible to run a garbage school.
Even putting aside the personal factors of meritorious service and morality, and even if there is a lot of controversy about Cao Dewang, I still feel that he is a respectable entrepreneur.
I always remember a conversation between Wang Zhiwen and him, and I was deeply touched.
He said:
"There is a ** interview I said, recently there are many entrepreneurs immigrating overseas, I told him that you don't have to worry, the one who chooses to immigrate is not an entrepreneur, he is a small boss, a real aspiring person, he will not immigrate, he is a character, he must be responsible for history, I have experienced it myself, I say again, I am seventy years old, the crystallization of decades of struggle, I will not keep the evening festival, my roots are in China, to be a truly rational person, he must stick to the bottom line of China. ”I believe he said this from the bottom of his heart, so I admire him.
Every time I mentioned the issue of immigration in my articles in the first half of last year, I was filled with emotion, and I believe that old readers should remember it.
Later, I won't talk about it, they ran out with money, they have no feelings for their family and country, and they have made so much money in China with the dividends of reform and opening up, but they never want to do something for the country, but human nature is inherently selfish, and ordinary people can't overcome human nature, so understand.
So those people are indeed successful businessmen, rich people, but not personalities.
Since he is not a character, then what does he do!
So many people may be very rich, even richer than Cao Dewang, Cao Dewang's ranking on the Hurun list is only 253rd with 21 billion.
There is still a lot of money in it that can't be moved, so it's much richer than Cao Dewang.
But they can't understand Cao Dewang's ideals and pursuits, the reason is very simple, they are no longer Chinese, how can they understand the essence of traditional Chinese culture.
They won't understand why Cao Dewang spent so much money to build a school.
So why did Cao Dewang run a university?
The reason is that when he acquired a factory in Germany, he found a phenomenon that caused reflection, many small factories in Germany can also make very good products, and many important spare parts suppliers of international giants have many such small factories.
For example, you may not think that Volkswagen's first set of molds was made in a small factory with dozens of people.
The result of his reflection is the difference in educational philosophy.
Our young people are generally very poor in hands-on ability, and they are also low-eyed and hand-skilled, and they are reluctant to enter the factory with a little education.
So he said: "I don't run a university to have one more school in China, but to explore a new education model." ”
We don't have a shortage of white-collar workers, why do we want so many people to sit in the office?
The Internet is a good thing, artificial intelligence also has a good future, and finance is an indispensable tool.
But the foundation and lining of a country are still in industry.
Sometimes I wonder if sitting in an office is really better than being a mechanic.
Some people may say, of course it's good, sitting in the office has heating in winter, air conditioning in summer, clean and clean, and you can also fish and play with your mobile phone, how good!
This seems to be a good thing, but maybe this is the root cause of occupational discrimination.
I always feel wrong, but I can't refute it, I can't refute human nature, right?
I can only say that our country is really short of skilled workers, and if you really learn a technology thoroughly, coupled with super hands-on ability, you will definitely be able to make good products.
At this time, you can work alone, and you can have a good income when you go to work in the company, and there is no problem with the prospects.
This may also be Cao Dewang's pursuit, he wants to cultivate more hands-on technical talents for China.
Of course, I have to say that this is also a very good thing for Fuyao Glass, and the company will no longer lack talents.
The reason why I talk so much about Cao Dewang's school is because I think this is the culture and the genes.
When we study companies, we can't just be limited to financial reports, financial data is just the result, if you only see how much the company's revenue has grown, how much profit has increased, then it is not good to make investment.
In the primary market, many venture capitalists may be more focused on people, and there are many of them around me.
But this is actually a bit "biased", I think whether it is a person or a thing, we should look at the bottom of the back.
I remember that "Xu Xin" of today's capital said a few very interesting words, she said that I also looked at a lot of eyes, felt that someone or something was doing well, looked very competitive, so I voted, but after learning more, I found that it was not like that, I only saw this tree, not the forest behind it.
The same is true for the secondary market, which is much simpler than the primary market, and the risk is much smaller.
The key is to look at what's behind the earnings report.
Fuyao Glass's genes are obviously very good, the company's fundamentals are fine, at least in Cao Dewang's hands, Fuyao Glass is definitely a good company.
Let's take a look at another big move of Fuyao Glass.
In less than a month, "Fuyao Glass" issued two investment announcements, the first announcing an investment in Fuqing, Fujian Province 32500 million, build an automotive safety glass factory, this is Cao Dewang's hometown.
Then two days ago, it was announced that it would set up three wholly-owned subsidiaries in Hefei, whose names have not yet been announced, which are used to produce automotive safety glass (OEM supporting market), auto parts glass (ARG after-sales maintenance market) and high-quality float glass.
The total investment is 57500 million, forming a safety glass production scale of 26.1 million square meters and two high-quality float glass production lines.
Why Hefei?
The first is that Hefei, together with Beijing, Shanghai and Tianjin, is known as the "four major science and education cities", that is, the science and education base and the manufacturing base.
In recent years, a large number of car companies have set up factories in Hefei, such as BYD, Volkswagen, Changan and so on.
The second is that Hefei, as the only pilot city in the construction of the first chain ecosystem of the new energy automobile industry chain in the country, is of course involved in the construction of automotive glass, as an important spare part of the automobile.
You must know that in 2023, Hefei's automobile production will be as high as 1.34 million, and new energy vehicles will account for 740,000, an increase of 16 times.
I have roughly counted the expansion plans of various car companies in Hefei, and based on public information alone, Hefei's future production capacity will be as high as 4 million vehicles.
So for Fuyao Glass, such a large market, of course, it is necessary to keep up with the pace.
So it is equivalent to a month, Fuyao Glass has invested a huge amount of 9 billion, which is really a coincidence, not even a fraction.
It is understandable that such a big stroke has attracted widespread attention.
This can also be regarded as a major adjustment of Fuyao Glass.
Because Cao Dewang was not optimistic about new energy vehicles a few years ago, he thought that this was a bubble, and he was very worried that he might waste a lot of money.
It may be that seeing the development trend of new energy vehicles in 2023, the concept has changed.
Last year's new energy vehicles were indeed too fierce, although the first battle was fought badly, but the growth rate of penetration rate did exceed everyone's expectations.
In the past, the goal set by the management was to achieve a penetration rate of 30% for new energy vehicles by 2025, who knew that it had been completed so much ahead of schedule, and there was a trend of impacting half of the automotive industry.
So Cao Dewang, as the king of glass, has to re-examine the industry pattern.
After all, for every three cars in China, two are made of Fuyao Glass, with a market share of more than 70%.
I also ** Fuyao Glass will definitely expand production before, but I didn't expect it to be so fierce all of a sudden.
You must know that up to now, the total investment of Fuyao Glass's 10 production bases in China is about 10 billion, that is, the average is only 10 billion each, and the largest one seems to have a total investment of just over 2 billion.
And of these four new projects, Fuqing invested 32 alone500 million, and the other three factories totaled 57500 million, with an average of more than 1.9 billion each.
Is this the pace of doubling production capacity?
Just kidding, it can only be said that the current capacity investment is much larger than before.
According to the data of 2022, the production of automotive glass is about 1300 million square meters.
Then the upcoming new Fuqing factory will have an annual output of about 20.5 million square meters, plus 26.1 million square meters in Hefei, that is, a total of 46.6 million square meters, accounting for 356%。
At present, when many industries are reducing production capacity, does Fuyao Glass really have the strength to expand production with such intensity?
You must know that according to the announcement, the Fujian project is all self-funded, and the Hefei project is also self-funded or self-raised.
This has to praise the company's very good asset-liability ratio.
As a manufacturing industry, Fuyao Glass's debt ratio has always been low.
And now because there are nearly 20 billion monetary funds on the account, hundreds of millions of financial expenses (interest) have also been collected.
Just like Cao Dewang said at the "Entrepreneur's Night", Fuyao minus the loan, there are still hundreds of millions left, and there is no money owed to the bank, I don't know how many people envy it.
Moreover, Fuyao Glass has current assets of 340700 million, and the current liabilities are only 16.8 billion, which is the confidence of his expansion.
Since Fuyao Glass released its third quarterly report, many people have questioned the company's profitability.
This is the company's revenue for nearly a decade, and it has been growing except for a decline in 2020.
In the third quarter of 2023, the revenue will be 23.8 billion, an increase of 16% year-on-year56%。
Then look at the net profit.
There is obviously a fault line in net profit, and the three years from 2019 to 2021 are low.
In 2022, it will indeed increase significantly, but in the third quarter of 2023, it will report a net profit of 4.1 billion, a year-on-year increase of 587%。
Although it is also growing, it is up 16 percent with revenue56% is nearly 3 times worse.
And the focus is on the third quarter revenue of 8.8 billion, a year-on-year increase of 167%, but the net profit attributable to the parent company was 1.3 billion, a year-on-year decrease of 15%.
Of course, this is mainly due to the exchange loss of 2600 million, while the exchange in the same period last year earned 5500 million, so this one in and one out, there is a difference of 8200 million.
Excluding this impact, third-quarter profit increased by 35% year-over-year88%, which is also the proportion of overseas performance is too high, and it has to be reflected in the financial report, in fact, as long as it is not exchanged, it will have no impact.
However, even if the profit in 2023 can be justified, there is no doubt that the gross profit margin in these years will decline.
In 2016, the gross profit margin was as high as 43%, and then it has been declining until 2022, when the figure changed positions to 34%.
In order to improve profitability, in 2020, Fuyao Glass made a big foray into photovoltaic glass, hoping to create a second growth curve with the help of the popularity of photovoltaics.
Therefore, in 2021, more than 100 million shares will be issued, raising HK $4.3 billion, and it is planned to spend 4HK$300 million to build photovoltaic glass.
However, the situation does not seem to be very optimistic, and so far, photovoltaic glass has not brought much performance to the company.
Since it takes time for new business to grow, it is only natural to strengthen the main business.
In particular, China's automobile industry has risen rapidly and has surpassed Japan to become the world's largest automobile exporter.
Once this potential energy is turned up, it will not stop in the short term, and our cars will definitely continue to grow.
Whether it is the replacement of domestic new energy vehicles, or continue to conquer cities abroad, in the future, our own automobile companies will gradually achieve the world's first pure domestic car exports, and now after all, foreign car companies have contributed a lot.
However, this has little to do with Fuyao Glass, whether it is domestic or foreign, anyway, 70% of the cars produced in China use Fuyao's automotive glass.
Therefore, as long as the total production is increasing, Fuyao's performance will increase.
This is also the advantage of having an absolute share, and it is basically impossible to have a strong opponent in a short period of time.
Cao Dewang said that since he started his business 30 years ago, he has earned a total of 100 billion, and he is known as the "glass king".
Obviously, the 9 billion smashed down to increase the production capacity by 1 3, and the glass king will go to the next level, just to make up for the decline in gross profit margin.
In fact, glass products are also large energy consumers, and theoretically they should be like those photovoltaic companies, and set up factories in places like Sichuan, Yunnan and Inner Mongolia, because energy is cheap.
However, these places do not happen to be the concentration of the automotive industry chain, so transportation will be a big problem.
So in order to integrate into the industrial chain, we can only retreat to the next best thing and sacrifice the gross profit margin.
Therefore, it is difficult for Fuyao Glass's gross profit margin to be greatly improved in the future, and the internal optimization must have been optimized long ago, leaving only the impact of raw material fluctuations.
But it doesn't matter, it's no problem to make up the price by volume, and the company also has a net profit margin of about 17%, which is not hard money in the manufacturing industry.
Fuyao Glass is very resistant to falling in this bear market.
Only at the beginning of 2022, there was a **, and it immediately rose back again, and it basically fluctuated little in the past two years.
This also proves from the side that A-shares are not as miserable as many people say, at least many excellent companies have withstood it.
Fuyao Glass is undoubtedly one of the outstanding companies.
As I said earlier, as long as Cao Dewang is still there, Fuyao Glass will be fine.
Although he is relatively old, after all, he is almost eighty years old, but his thinking is very clear and he hits the nail on the head.
For example, he said that there are two main difficulties encountered by our Chinese enterprises:
"One is homogeneous and low-level duplicate construction, resulting in overcapacity, and the other is too much debt. ”
Yes, if we look at the companies that are currently experiencing difficulties, which is not caused by these two points.
So I believe that Fuyao Glass will not take this path.
So for a company that has been listed for 30 years, paid dividends 27 times, increased its market value by 72 times, and paid a total of more than 25 billion dividends, what reason is there to say that he is not good?
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All companies analyzed will update their data in the table above.
Exploring the study of corporate fundamentals together, the gains are bound to be huge.
Little thumbs, get a thumbs up.
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