Great Wall Development: A Look at the Smart Meter Market

Vice President of Great Wall Development Chen Zhujiang stated at the interim performance briefing that with the further promotion of the domestic smart grid construction project, the domestic smart meter business has grown steadily. In the first half of 2013, the company has received new orders from the State Grid and South China Network for many times. The development of overseas markets in Europe, Africa and other countries has also seen many successes. Several new orders are expected to measure output in the third and fourth quarters.

According to Chen Zhujiang, “The company has actively invested in product research and development, and several newly-developed smart meters and power automation system acquisition technology solutions have reached the leading level among similar products in the world, and have won the favor and praise of customers in many markets in Europe. , among the list of purchases of many power companies, the meter market is expected to achieve greater growth this year."

Chen Zhujiang also pointed out that Great Wall Development has maintained a leading position in the international market in smart meters, and the company has occupied half of the Italian smart meter market. With the recovery of the international economy, the global smart meter market is facing unprecedented opportunities for development. Great Wall's development of an international smart meter metering terminal and management system project, one of the non-public fundraising projects, will have a far-reaching impact on the company's continued competitiveness in this field in the future.

Hongyuan Securities pointed out in its research report that the domestic market has entered the smart meter replacement stage since 2010. It is expected that the domestic annual demand will reach 100 million by 2015, and the total installed capacity will be close to 400 million. The future will have huge space for substitution and market size. Tens of billions. As the company’s own products, smart meters have continued to obtain domestic and foreign orders in recent years. With the company’s capacity expansion and product mix adjustment, the future profitability is expected to increase.

Some analysts said to the GreatSmart News Service, “From the perspective of current orders, smart meter business will show a steady growth trend in the second half of the year, but if it is said that the contribution to the performance may obviously not be realistic, after all, this part of the revenue ratio is still very small. Pulling action still depends on the hard disk business. "And after the disc substrate business provided an asset impairment loss, this negative factor was completely eliminated. In the second half of the year, the overall performance is gradually improving."

According to the statistics, Great Wall Development achieved a total revenue of RMB 7.429 billion in the first six months of 2013, a year-on-year decrease of 11.8%, and a net profit of RMB 87.469 million, an increase of 32.25% over the same period of the previous year. Among them, self-owned product operating income of 285 million yuan, accounting for 3.84% of total revenue, gross margin level of 10.84%, an increase of 7.25%.