Oriental demon, the industry is about to explode, Oriental cable, the new energy subdivision of super high gross profit leading
Some people say that a good name may have a great influence on the fate of life, which belongs to the category of metaphysics, but in the capital market, the company name with a specific name, is often easy to become a monster.In A shares, the name of the company with the East, the number may be second only to that of China, the specific reason may be because the east sunrise, the East is easy to give A person A feeling that the company is thriving, and the east has the meaning of China, and even Asia, it is easy to let A person feel that the company is relatively large.And I don’t know because the company with the East is more, or really called the East easy bull, such as Oriental communication, Oriental wealth, Oriental Yuhong.And eastern cable, which we’ll talk about today.What is Oriental cable doing, why can walk out of such a fierce trend, and what is the potential of the future?Let’s take a closer look today.The Eastern cable is currently the world’s leading offshore wind power cable, so to understand the Eastern cable, we must understand the basic situation of offshore wind power.Obviously, offshore wind is much more difficult to build than onshore wind, resulting in the current cost per kilowatt hour of offshore wind being significantly higher than onshore wind and photovoltaic.At present, the cost per kilowatt hour of offshore wind power is about 0.3 to 0.5 yuan, while the cost per kilowatt hour of onshore wind power and photovoltaic power is about 0.15 to 0.3 yuan.After China and the world’s new energy installed capacity mainly driven by government subsidies, offshore wind electricity costs lead to its high degrees of installed the relatively small size, by the end of 2020 total domestic size is about 9 GW, and onshore wind power cumulative installed scale has reached 270 gigawatts (GW), photovoltaic cumulative installed capacity has more than 250 GW.In addition, photovoltaic and onshore wind power have basically achieved parity, but offshore wind power is still dependent on subsidies because of its high cost. After the rush to install last year, offshore wind power projects have basically ground to a halt.However, the technology will always develop, the cost will always fall, the national development of new energy strategy is very certain, and the offshore wind power does have some unique advantages compared with onshore wind power and photovoltaic.Unique advantages of offshore wind Power Onshore wind power and photovoltaic are more restricted by natural resources, are more affected by weather, and have obvious seasonality. However, offshore wind power can operate all year round, and the annual generation time of offshore wind power is higher than that of photovoltaic and onshore wind power.In addition, photovoltaic and onshore wind power resources are mainly concentrated in the west and north, but power consumption is mainly in the east. Although uHV transmission technology exists, part of the loss cannot be avoided, while the power generation and consumption regions of offshore wind power overlap, which can avoid the loss problem.And offshore wind does not have the land requirements and environmental impact of photovoltaic and onshore wind.With these unique advantages, decided that it will always occupy a seat under the national strategy to promote new energy.As long as offshore wind power develops in the long term, the demand for offshore cable will continue. As the industry leader, Oriental Cable will benefit in the long term, which is the biggest logic of Oriental Cable.Marine cable can be divided into three categories according to their functions: submarine optical cable, submarine cable and submarine photoelectric composite cable. The former is mainly for communication, while the latter two are mainly related to the demand for offshore wind power, transnational power grid interconnection, offshore oil and gas development and power transmission on remote islands.Due to Marine special environmental factors, the installation of submarine cable is more difficult, need to install laying ship, through a submarine cable aboard again by submarine cable wharves and special sea the sea directly, so the closer distance from sea submarine cable enterprise, the better, especially if production large submarine cable length, must be the factory near the deep water wharf, which belongs to the unique geographical resources,Who can preempt who will occupy the advantage, belongs to one of the competition thresholds of the industry.Secondly, due to the harsh Marine environment, once there is a problem with Marine cable, the manufacturer also needs to respond quickly. There is a certain location requirement, which is also the threshold of the industry.In addition, the downstream of Marine cable is mainly large groups such as central enterprises, which have strict requirements on suppliers in terms of quality and scale. Many of them require stable operation data of similar projects before, which is also a relatively large entry threshold for latecomers in the industry.In general, the threshold of the offshore cable industry is relatively high, with the current geographical location, capital, technology, customer access and other aspects of the threshold complex. Therefore, the competition pattern of the offshore cable industry is quite good, with Dongfang Cable and ZHONGtian Technology monopolizing over 70% of the market share!And just because of this, the gross profit margin of Marine cable business is relatively high, and the gross profit margin of the company and Zhongtian Technology is relatively high, and has been rising all the way, and the gross profit margin in 2020 will be more than 50%!At present, Dongfang Cable is the leading company in China’s offshore cable industry. It owns the domestic high-end submarine cable and Marine umbilical production base. It has spent ten years on the research and development of umbilical cable, and successfully delivered the first deep-water large-length umbilical cable in China in March 2018, taking the lead in breaking the monopoly of foreign enterprises in umbilical cable.It is also the only enterprise in China to master Marine umbilical cord technology and produce it independently.Just as babies need umbilical cords to connect to their mothers, submersible equipment needs a cable to connect to operators on the ocean floor.So the umbilical cord is not like a normal cable, but it has a lot of integrated pipelines, not only for electricity, but also for hydraulic fluid, for chemicals, for control signals, and so on, so it doesn’t look like a normal cable.If you zoom in on a cross section, it looks like this.The reason why it is difficult to produce is that in addition to various functions, due to the special environment of the ocean and the particularity of its functions, it is required to have various functions, be small and light, be flexible and rigid, and be resistant to corrosion.However, although the technical content is indeed large, the umbilical cord market space is not very large, at least compared to the company’s overall revenue, is small, more like the embodiment of the company’s technical strength.Of course, as a cable company, the company is not only a submarine cable business, also have a land line, and Marine engineering, etc., but the company’s business than zhongtian technology submarine cable and prosper photoelectric proportion is much higher: 2021 NianZhongBao, cable system and Marine engineering business income ratio is near 55%, zhongtian technology has just over 10%.There is a fierce debate on the Internet about whether the Marine Cable should be made by Oriental Cable or ZHONGtian Technology. In terms of the purity of the subject matter, Oriental Cable is undoubtedly better. Moreover, the growth of Oriental Cable is indeed faster in the rush of installation in the past two years, and its professional advantages are still reflected.Therefore, if we are optimistic about the development of offshore wind power and the development of sea cable, then East Cable is undoubtedly one of the long-term companies worth the company.