High-speed Railway Traction Power Supply Industry Chain: 8 Listed Companies Share the Pie
On July 25, the Jinghu High-speed Railway experienced its sixth malfunction since its opening, causing over 20 trains to be delayed by an average of three hours. The reason was a piece of iron sheet from the rain shelter above the power supply facility near Dingyuan station being blown off by the wind, which severed the power supply line for the EMU (Electric Multiple Unit), resulting in a power outage for the high-speed rail.
The official investigation results of this accident have yet to come out. However, regarding the previous multiple malfunctions of the Jinghu High-speed Railway, a relevant person in charge of Dinghan Technology answered investors' questions on July 15 on the Shenzhen Stock Exchange listed company investor relations interactive platform, stating that the main reasons for the Jinghu High-speed Railway malfunctions were equipment failures in the traction power supply field of the four-electric integration ground station post equipment and vehicle equipment failures.
Currently, it seems that behind several accidents of the Jinghu High-speed Railway, the traction power supply system is suspected to be involved. And I learned that the high-speed railway traction power supply system is provided by multiple listed companies.
Data shows that all the electricity required for railway electrification is supplied entirely by traction substations. Among them, traction substation equipment can be divided into two major categories: all electrical equipment in the primary high-voltage circuit, namely primary equipment; and all electrical equipment in the secondary control, signal, and measurement circuits, namely secondary equipment.
So far, among the primary equipment enterprises in the Shanghai and Shenzhen stock markets, the subsidiary under the control of Wolong Electric has become one of the main domestic railway traction transformer manufacturers. Changji Transformer Plant, controlled by Tebian Electric, has also begun to enter the railway transformer market.
In addition, TERADA Electric Industries Co., Ltd., the first stock of the Growth Enterprise Market, mainly engages in the production of box-type substation equipment inside railways; Dinghan Technology mainly provides technologically advanced digital power supply systems, electrical automation control systems, intelligent monitoring systems, and other series of products and solutions for intelligent rail transit. Both of these companies have joined the ranks of primary equipment producers for traction substations.
As for the secondary equipment of traction substations, apart from being undertaken by relevant institutions under the Ministry of Railways, secondary equipment manufacturing enterprises under the power system are another absolute main force. Including Guodian Nanzi, XJ Electric, Chuantou Energy, and other listed companies, they have all shared in the "cake" of secondary equipment for traction substations.
Primary Equipment Enterprise Overview
From the investment ratio of railway electrification, primary equipment accounts for approximately 80% of the entire investment, while secondary equipment and monitoring equipment account for 20%.
Specifically, primary equipment mainly refers to transformer switches, current actual throughputs, and the main equipment providing energy to the railway grid. Secondary equipment is placed between these main devices, used for monitoring and ensuring the safe and effective operation of the railway electric system via microcomputer or computer monitoring systems.
According to relevant data calculations, 2011-2014 will be the peak period for railway construction completion mileage, and the high prosperity of high-speed railway electrical equipment can last until 2014. From 2011 to 2014, the annual demand for traction transformers alone in the high-speed railway section will be around 1.1 billion yuan.
In this regard, Wolong Electric mentioned in its 2010 annual report that the company's transformer products occupy a relatively high share in the special transformer market such as railway and urban rail transit transformers, and will continue to maintain its leading advantage in railway traction transformers, sharing the fruits of high-speed railway construction.
Previously, Wolong Electric acquired Beijing Huatai in 2009, using its advantages in complete rectification traction equipment for urban rail transit to further improve the company's transformer business structure. In early 2011, the company acquired Dongyuan Transformer, enriching the company's transformer product chain and improving regional layout.
During the reporting period, Hangzhou Wolong Electric Research Institute Co., Ltd. achieved operating revenue of 75.3552 million yuan and net profit of 10.1919 million yuan in 2010; Beijing Huatai Transformer Co., Ltd. achieved operating revenue of 101.4039 million yuan and net profit of 0.9286 million yuan in 2010.
Our reporter noticed that Sanbian Technology also developed typical products DQY-40000/220 for electrified railways targeting the high-speed rail market, adopting full insulation structure to meet the requirement of high short-circuit resistance. Currently, this equipment has passed all tests including sudden short-circuit test at the National Transformer Quality Supervision and Inspection Center.
TERADA Electric Industries Co., Ltd.'s railway marketing network has fully covered all 18 railway bureaus nationwide. In 2010, the company won bids for high-speed railway passenger dedicated line projects such as Jinghu Line, Hadalin Line, Jingshi Line, Hanyi Line, Ninghang Line, Changji Line, and Xiamen-Shenzhen Line, as well as the West-to-East Gas Transmission Line II project where box-type substations were used on a large scale for the first time in oil pipeline systems. In TERADA Electric Industries Co., Ltd.'s important contracts signed in the first half of last year, orders related to high-speed rail or passenger dedicated lines accounted for 74.4%.
TERADA Electric Industries Co., Ltd.'s 2010 annual report showed that the company's operating revenue from the railway system alone reached as high as 303 million yuan, with a year-on-year increase of 27.98%.
Similarly, Dinghan Technology, which mainly produces signal communication intelligent power supply systems, has also benefited from the rapid development of the railway industry and high-speed railways.
In 2010, the company achieved operating revenue of 295.3619 million yuan, an increase of 20.37% compared to the previous year, realized operating profit of 69.1066 million yuan, a decrease of 1.17% compared to the previous year, realized total profit of 77.8314 million yuan, an increase of 9.32% compared to the previous year, and realized net profit attributable to the company's shareholders of 69.3812 million yuan, an increase of 14.97% compared to the previous year.
Sharing the Secondary Equipment Pie
Our reporter noticed that among the teams vying for the "cake" of secondary equipment for high-speed railway traction substations, Guodian Nanzi and XJ Electric undoubtedly are powerful competitors.
According to Guodian Nanzi's disclosed 2010 annual report, throughout 2010, the company's urban rail transit automation business accumulated orders worth 1.782448 billion yuan, achieving operating revenue of 1.691017 billion yuan. Compared to the previous year, the company's urban rail transit automation professional product orders grew significantly by 65.16%.
During the reporting period, the company simultaneously implemented high-speed rail projects including the Jinan section of the Jinghu High-speed Railway, the Harbin section of the Hadalin Passenger Dedicated Line, the Ninghang Intercity Railway, the Hangzhou-Ningbo Intercity Railway, and the Han-Yi High-speed Railway.
Guodian Nanzi stated that the opening of the Shanghai-Nanjing Intercity Railway marked that Guodian Nanzi had obtained product performance records at speeds of 350 km/h; the pilot section of the Jinghu High-speed Railway created the world's highest speed record of 486.1 km/h for railway operational testing, and as the electrical equipment supplier for this project, Guodian Nanzi completed the comprehensive automation system project for traction substations and power distribution stations of the Jinghu High-speed Railway.
Similarly, XJ Electric also made significant gains in the high-speed rail market. In 2010, the company achieved operating revenue of 3.856 billion yuan, an increase of 26.84% compared to the same period last year; realized net profit of 147 million yuan, an increase of 12.65% compared to the same period last year.
During the reporting period, the company closely followed the pace of national high-speed railway construction, continuously winning major projects in urban rail transit such as Wuhan EMU Depot, Changji Intercity Railway, Xilonghai Line, Hadalin Passenger Dedicated Line, Jingshiwu Passenger Dedicated Line, and Wuhan Metro. The bid success rate for major projects ranked among the top in the industry.
In addition, XJ Electric stated that the company's automatic phase separation system without breaking the pantograph passed the review organized by the Ministry of Railways, leading domestically, and will soon be widely applied in high-speed rail projects.
Chuantou Energy also shared the "cake" of secondary equipment for traction substations through its subsidiary Jiaodaguang.
Chuantou Energy stated that its holding subsidiary Jiaodaguang is the leading enterprise in the automation control system of China's urban rail transit industry, maintaining technical leadership in the industry. The large-scale development of China's urban rail transit industry during the "12th Five-Year Plan" will bring unprecedented development opportunities to Jiaodaguang, and this field will become the main growth point of future performance for listed companies.
Chuantou Energy's 2010 annual report showed that Jiaodaguang achieved 1.120386 billion yuan throughout the year, completing a net profit of 28.9609 million yuan.
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