The rail transit sector, which has been neglected by the secondary market for a long time, will add another rail transit equipment company. Recently, the technology innovation board IPO of China Railway High Speed Railway Electrical Equipment Co., Ltd. (hereinafter referred to as “high speed railway electric”), whose performance is highly dependent on China Railway (601390. SH), was approved and registered《 The reporter of economic information daily noted that the IPO of high-speed railway electric not only alleviated its own capital dilemma, but also relieved China Railway, which had sounded the financial alarm. However, affected by the decline of railway investment and fierce urban rail competition, the decline of comprehensive gross profit margin of high-speed railway electric is inevitable, and its sustainable profitability will also be greatly affected.
Highly dependent on major shareholders
As a holding subsidiary of China Railway, HSR electric “enjoys the cool by leaning against the big tree” – in 2018, 2019 and 2020, the company’s main business income from China Railway accounted for 60.79%, 42.82% and 53.53% respectively, accounting for more than 50% in total, and the company’s gross profit from China Railway accounted for 63.27%, 39.26% and 45.12% respectively.
“The business or market share of high-speed rail electric should be said to be relatively stable. The domestic rail transit construction is basically monopolized by China Railway and China railway construction. Both companies have their own supporting catenary products and rail transit power supply equipment R & D, production and system integration product manufacturers. As long as China Railway wins the job of building railways, the corresponding supporting facilities must be for high-speed railway electric, which is beyond doubt. ” A senior investor in the field of rail transit said frankly.
According to the bidding and winning of power supply equipment in China’s high-speed rail and urban rail market from 2018 to 2020 according to the statistics of high-speed rail electric, calculated by the winning amount, the company has a market share of about 60% in high-speed rail catenary products and about 50% in urban rail transit power supply equipment.
However, this was not the case in the early stage. This should start with Baoji baodeli Electrical Equipment Co., Ltd. (hereinafter referred to as “baodeli”), the most important asset of high-speed rail electric.
Baodeli was established on August 1, 2007, and its shareholders are high speed railway electric (holding 95%) and bunomi Eugenio company (holding 5%). Baodeli is established to introduce the high-speed railway catenary products and technologies of Italian bunomi company with a speed of 300km / h and above. On this basis, baodeli digested and absorbed the above technologies, formed its own technologies through independent research and development, and gradually formed a supplier of electrified railway catenary products and urban rail transit power supply equipment R & D, production and system integration products with large scale, advanced technology, complete varieties and wide market coverage in the same industry in China.
Later, with the support of China Railway, the indirect controlling shareholder, the performance of high-speed railway electric increased rapidly. According to the prospectus, from 2018 to 2020, the operating revenue of high-speed railway electric was RMB 1.040 billion, RMB 1.287 billion and RMB 1.355 billion respectively, and the net profit attributable to the owner of the parent company in the same period was RMB 76.8809 million, RMB 145 million and RMB 164 million respectively.
In sharp contrast, Shaanxi flywheel high speed railway equipment Co., Ltd., a competitor located in the same place, signed an agreement in 2007 to undertake the OCS parts and components transferred by Sanhe from Japan. In 2017, the IPO failed. In addition to the limited shareholder resources, the development gap between the company and high speed railway electric continued to expand.