What will be the future development of the wire and cable industry?

The future prospects of the cable industry are of course very good. Now the state is vigorously supporting the construction. All engineering construction is inseparable from the use of cables.

In the future, the prospects of China's wire and cable industry are good, and the trend of product upgrading in the industry is obvious.

According to the planning of the State Grid, the total investment in development during the "14th Five-Year Plan" period is expected to be 579.5 billion yuan, an increase of 22.6 billion yuan year-on-year, of which 473 billion yuan is invested in the power grid, an increase of 12.5 billion yuan year-on-year. From the perspective of the country's planning for the main application fields of wire and cable power (new energy, smart grid), rail transit, aerospace, marine engineering, etc., the prospect of China's wire and cable industry is good in the future, and the trend of industry product upgrading is obvious. It is estimated that by 2026, the scale of industry demand is expected to be close to one trillion yuan.

According to the statistics of the National Bureau of Statistics, since 2011, the total output of power cables in China has shown a trend as a whole. After two consecutive years of decline in output from 2017 to 2018, in 2019, the total output of power cables in China rebounded, and the overall scale reached 51.41 million kilometers, a year-on-year increase. In 2020, due to the impact of the epidemic, the growth rate of the domestic wire and cable industry slowed down, and the overall scale reached 52.43 million kilometers, a year-on-year increase.

At present, the industrial chain of China's wire and cable industry is relatively mature, and the upstream industry is mainly the basic material industry that provides raw materials for the manufacture of wire and cable products, such as copper, aluminum and its alloys; manufacturing of cross-linked insulating sleeves and sheath materials in the rubber industry, polyethylene, polyvinyl chloride chemical industry, etc.; The midstream includes wire and cable manufacturing enterprises that provide power cables, communication cables, cables for electrical equipment, bare wires, winding wires and other types of cables; The downstream is mainly for the industry that has a demand for wires and cables, such as construction machinery, communication industry, power industry and construction industry.

Hope mine can help you.

The concentration of China's wire and cable industry is low, and the industry leader needs to be formed

Although the overall scale of China's wire and cable industry ranks first in the world, there is a large gap between the industry concentration and developed countries, the wire and cable industry in developed countries has developed for many years, especially in the face of fluctuations in raw materials, small enterprises have gradually withdrawn from the market, and the industrial concentration has increased significantly: the top 10 cable manufacturers in the United States (such as GM, Belden, Corning, South Line, etc.) occupy about 70% of the market share; Japan's seven major cable companies (such as Furukawa, Sumitomo, Tengcang, Hitachi, Showa, etc.) account for more than 65% of the market share; The five major cable companies in France (Nexans, Xinte, etc.) account for the turnover of the French market, accounting for more than 90% of the French market share. China's top ten cable companies only occupy less than 10% of China's market share, and the development potential of leading enterprises is huge.

Development trend: the concentration of the industry has been further improved, and the prospects of special cables are promising

Since 2014, wire and cable manufacturing enterprises around the world have begun the pace of mergers and acquisitions, and China's industry concentration is low, highly fragmented pattern is not conducive to the sustainable development of the industry, in the case of continuous improvement in downstream demand, the pace of mergers and acquisitions of China's wire and cable manufacturing enterprises will be accelerated, coupled with the introduction of copper options, will further reduce the impact of raw material fluctuations on manufacturing enterprises, and promote the improvement of industry concentration. Compared with ordinary cables, special cables have the characteristics of high technical content, strict application conditions, high added value, etc., and have more superior specific performance, which are mainly occupied by a small number of foreign-funded enterprises, joint ventures and domestic leading enterprises. With the progress of science and technology in China, the transformation of traditional industries, the rise of emerging industries and high-end manufacturing, the demand for special wires and cables will continue to grow, and the development potential is huge.

According to the country's planning for the main application fields of wire and cable - electric power (new energy, smart grid), rail transit, aerospace, marine engineering, etc., the prospect of China's wire and cable industry is good in the future, and the trend of industry product upgrading is obvious. It is estimated that by 2024, the scale of industry demand is expected to exceed one trillion yuan.

Hello, the significance and purpose of the research on the development status of the cable industry As the main means of power transmission, wire and cable have played a vital role in the development of modern society. It transmits electricity from the power plant to various places, making people's production and life more convenient and efficient. In the future society, the role of wire and cable will be more significant, wire and cable is an important means of electric stove rental power transmission.

In modern society, electricity has become an indispensable energy source in people's production and life.

Analysis of the operation of the wire and cable industry

According to the division of wire and cable business operating income, China's wire and cable enterprises can be divided into three competitive dust distribution echelons. Among them, there are 3 enterprises with a revenue scale of more than 10 billion yuan, namely Baosheng shares, Far East shares and Qifan Cable; Enterprises with revenue between 50 and 10 billion yuan include TBEA, Jinbei Electrician, Han Cable Co., Ltd., Wanma Co., Ltd., Hangzhou Electric Co., Ltd. and Zhongchao Holdings; The revenue scale of Jinlongyu, Sun Cable and other enterprises is less than 5 billion yuan.

From the perspective of operation, from 2017 to 2021, the total operating income of the above 16 representative listed companies in the wire and cable industry continued to rise, but the net profit fluctuated due to the impact of the epidemic. In 2021, the total operating income of representative listed companies in the wire and cable industry will be 100 million yuan, a year-on-year increase of 35%, and the growth rate will be significantly higher than that in 2020; The total net profit reached 100 million yuan, a year-on-year increase of nearly two times, and the recovery trend was obvious.

Profitability analysis of wire and cable industry

From the perspective of profitability, from 2017 to 2021, the average gross profit margin of 16 representative listed companies in China's wire and cable industry remained above 15%, but after reaching a high point in 2019, it showed a downward trend, and fell to less than 16% in 2021, the first time in nearly five years. In recent years, the increase in the number of participants in the industry has led to intensified competition, the industry's profit margins have continued to be depressed, and the raw material market has fluctuated greatly, and the gross profit margin has also been affected accordingly. Overall, the gross profit margin of China's wire and cable industry still has room to rise, and the profitability of the industry needs to be enhanced.

Analysis of the operational capability of the wire and cable industry

From the perspective of operational capacity, from 2017 to 2021, the inventory turnover rate of 16 representative listed companies in China's wire and cable industry showed a fluctuating upward trend, and remained above the second, and in 2021, it showed that the industry's inventory liquidity is good and the risk of unsalable inventory is low.

Analysis of solvency of wire and cable industry

From the perspective of solvency, from 2017 to 2021, the average asset-liability ratio of 16 representative listed companies in China's wire and cable industry showed a fluctuating upward trend, and rose to 2021, a significant increase compared with 2020. On the whole, the asset-liability ratio of China's wire and cable industry has been higher than 50% for many years, indicating that the long-term debt risk of the industry is relatively high, and the debt ratio needs to be appropriately controlled.

Analysis of the development capability of the wire and cable industry

From the perspective of development capacity, from 2017 to 2020, the average growth rate of operating income of 16 representative listed companies in China's wire and cable industry has been declining, and the impact of the epidemic in 2020 has arrived, and then it has rebounded sharply in 2021, indicating that the scale expansion of the industry has accelerated, mainly due to the rapid resumption of work and production after the epidemic in China and the strategic investment in new energy, and the downstream demand growth rate of the wire and cable industry has rebounded.

Although China's wire and cable industry has experienced more than 20 years and has made great progress, it still has not stepped out of the strange circle of big but not strong, and there is still a big gap compared with world-class enterprises. There are many problems such as low industrial concentration, large number and small scale of enterprises, far from enough economies of scale, insufficient independent innovation and prominent structural contradictions in products. At present, the main characteristics of China's wire and cable industry are:

1) Industrial concentration has increased, but it is still low overall.

Overall, China's wire and cable industry has the characteristics of large number and small scale. According to the "2014-2018 China Wire and Cable Industry Market Demand and Investment Planning Analysis Report" released by the Prospective Industry Research Institute, as of the end of 2013, there were as many as 10,000 large and small enterprises in China's wire and cable industry, 3,794 enterprises above designated size, and countless smaller enterprises. From 2009 to 2013, the proportion of sales revenue of large enterprises in the wire and cable industry increased year by year, reaching in 2013, still maintained below 20%, the concentration of the industry is still low, and the characteristics of the high concentration of industries in developed countries are in sharp contrast.

The wire and cable industry in developed countries such as Europe, America and Japan has gone through a hundred years of development history, and the market concentration is relatively high. Among them, the top 10 in the United States have a market share of 67%, the top 6 in Japan have a market share of 65%, and the top five in France have a market share of 90%.

2) Lack of development stamina.

More than 90% of the production capacity of the cable industry is concentrated in low-end products, and the average investment in research and development is less than 1% of sales. The lack of investment in scientific research in the wire and cable industry, the lack of high-quality talents, and the ability of technological innovation are still relatively weak.

3) Private enterprises dominate, and foreign-funded and other enterprises occupy an important position.

According to the statistical results of 2013, the market share of private and foreign-funded enterprises in China's wire and cable industry is and, and the proportion of other enterprises is the total proportion of the three. It can be seen that private enterprises, other enterprises and foreign-funded enterprises have occupied a dominant position in the industry.

4) The product structure is undergoing significant changes.

The proportion of enameled wires and wires and cables for electrical equipment has decreased. The proportion of power cables and communication cables has increased, and this change is related to the rapid development of China's electric power and communication industry in the 90s of the 20th century, which has led to a large demand for power cables, overhead lines and communication cables, and this trend is expected to continue in the future. At the same time, the proportion of special cable products with high added value will also increase.

In the future, with the continuous change of the world economic pattern, China's cable industry is bound to face restructuring and reshuffle. Especially in recent years, China's economic development is facing the bottleneck problem of energy and power shortage, and the country has continuously increased investment in electricity, which has made the industry enter a period of rapid development.

Wire and cable industry chain

From the perspective of the industrial chain, the upstream of the wire and cable industry is mainly the basic raw material industry that improves the raw materials for wire and cable manufacturing, such as copper, aluminum, the rubber industry that manufactures cross-linked insulating sleeves and sheath materials, and the polyethylene and polyvinyl chloride chemical industries; The midstream mainly includes wire and cable manufacturing enterprises that provide power cables, communication cables, cables for electrical equipment, bare wires, winding wires and other types of cables; The downstream is mainly for industries that have a demand for wires and cables, such as construction machinery.

In 2019, the sales revenue of the wire and cable industry reached one trillion yuan

In recent years, with the rapid development and continuous expansion of the scale of China's electric power, petroleum, chemical, urban rail transit, automobile and shipbuilding industries, especially the acceleration of power grid transformation, the construction of UHV projects, and the transfer of global wire and cable products to the Asia-Pacific region dominated by China, the market scale of China's wire and cable industry has grown rapidly.

The data shows that from 2015 to 2019, China's wire and cable sales revenue generally showed a growth trend, and the sales revenue of wires and cables in 2019 reached one trillion yuan, a year-on-year increase. With the increasing scale of the wire and cable industry, the domestic wire and cable market has broad development prospects.

——The above data ** in the Prospective Industry Research InstituteChina wire and cable industry market prospect and investment strategic planning analysis report