Machinery / Industrial Parts & Tools

Halfway through 2021, the performance of domestic industrial control listed companies in the first half of the year is gradually unveiled.

According to data from the National Bureau of Statistics, from January to June 2021, the national industrial enterprises above designated size achieved a total profit of 4,218.33 billion yuan, a year-on-year increase of 66.9%. The value added increased by 17.1% year-on-year, an average growth rate of 7.5% in two years, faster than the overall industry.

As of mid-August, the semi-annual reports of domestic industrial control listed companies have been released one after another. The data shows that the revenue of each company is different year-on-year. However, from the perspective of the company's automation business data, most of the companies have shown a year-on-year growth trend. The industry is showing a steady development trend.

Inovance Technology

Inovance Technology released its performance forecast, stating that in the first half of 2021, revenue was 7.65 billion-8.61 billion yuan, a year-on-year increase of 60-80%; net profit attributable to the parent was 1.51 billion-17.4 billion yuan, a year-on-year increase of 95-125%.

Benefiting from the investment in new infrastructure, the increase in production line automation rate, and the increase in the penetration rate of new energy passenger vehicles, downstream demand is strong, and the company's general automation business, new energy vehicle business and industrial robot business have achieved rapid growth.

Xinjie Electric

In the first half of 2021, operating income was approximately 634 million yuan, a year-on-year increase of 27.59%; net profit attributable to shareholders of listed companies was approximately 155 million yuan, an increase of 8.51% year-on-year, mainly due to the company's increase in sales of servo-driven products.

The company's servo system technology has made certain breakthroughs, and the DS5 product series has achieved overall market recognition. After years of technical reserves, industry solutions have gradually matured and been recognized by customers, driving overall business growth.

Hollysys

Hollysys expects revenue for the 2021 fiscal year ending June 30, 2021 will be between 560 million and 595 million US dollars, an increase of 11%-18% year-on-year, and its industrial automation business revenue is expected to increase by 30% year-on-year above.

Central Control Technology

Supcon Technology released a semi-annual report performance forecast. The company expects its performance to increase from January to June 2021. The net profit attributable to shareholders of the listed company will be 200 million to 215 million yuan, and the net profit will increase by 44.58%-55.43% year-on-year. The expected operating income is 1.697 billion-1800 million.

The petrochemical, chemical and other process industries have continued to increase their demand for automation and digitalization. In the first half of 2021, the company will maintain a growth trend in industrial automation and intelligent manufacturing solutions and achieve growth in company performance.

Keyuan Wisdom

Keyuan Wisdom issued a mid-term report that in the first half of 2021, it achieved total operating income of 448 million yuan, a year-on-year increase of 19.96%; net profit attributable to shareholders of the parent company was 36.471 million yuan, a year-on-year decrease of 46.88%. Mainly due to the low gross profit margin of the energy and power sales segment during the reporting period.

Dayang Electric

Dayang Electric recently released a 2021 semi-annual performance forecast, showing that the net profit attributable to shareholders of listed companies during the reporting period was 215 million-285 million yuan, an increase of 181.65%-273.35% over the same period of the previous year.

During the reporting period, the company strengthened internal management, improved lean manufacturing capabilities, optimized product structure, and promoted further expansion of the construction and household electrical appliances and vehicle business groups, and achieved a substantial increase in sales revenue.

Jiangte Motor

In the first half of 2021, Jiangte Electric achieved operating income of 1.365 billion yuan, a year-on-year increase of 50.02%; net profit attributable to shareholders of listed companies was 181 million yuan, a year-on-year increase of 644.229%.

The significant increase in profit was mainly due to the development of the new energy vehicle market. The company's lithium carbonate business grew substantially, followed by the recovery of downstream industries and the growth in demand for manufacturing equipment. The boom in the small and medium-sized motor industry was high and market sales were relatively satisfactory.

Xu Ji Electric

In the first half of 2021, the company realized total operating income of 4.95 billion yuan, a year-on-year increase of 19.6%; realized a net profit of 430 million yuan attributable to the parent, a year-on-year increase of 21.2%.

From the perspective of business structure, the "intelligent transformation and distribution system" is the main source of business income. Specifically, the operating income of the "intelligent transformation and distribution system" was 1.78 billion yuan, the revenue accounted for 35.9%, and the gross profit margin was 28%.

Chongqing Chuanyi

In the first half of the year, operating income is expected to be 2.536 billion yuan, an increase of 751 million yuan over the same period last year, an increase of 42.04%; the net profit attributable to shareholders of listed companies is expected to be 304 million yuan, an increase of 223 million yuan over the same period last year, an increase of 273.37%.

The company continued to implement its core customer strategy and strengthened its pre-sales, in-sales, and after-sales support capabilities. Contract orders increased year-on-year. Sales of main products in the chemical, metallurgical, electromechanical, light industry and building materials industries increased year-on-year, and main business profits increased year-on-year.

Weihong Electronics

Weihong Electronics' 2021 mid-year report showed that the company's main operating income was 217 million yuan, a year-on-year increase of 156.54%; net profit attributable to the parent company was 44 million yuan, a year-on-year increase of 989.18%; non-net profit was 38 million yuan, a year-on-year increase of 861.24%.

During the reporting period, the company's main product control cards, all-in-ones, and drives achieved operating income of 62.828 million yuan, 114 million yuan, and 34.684 million yuan respectively; gross profit margins were 78.62%, 52.41%, and 28.46%, respectively.

New Times

Newstar expects the net profit attributable to shareholders of listed companies in the first half of 2021 will be 80 million to 100 million yuan, a year-on-year increase of 84.60%-130.76%.

During the reporting period, the operating income of each business segment of the company has increased compared with the same period last year. In particular, the company's robotics business and elevator control business have increased significantly compared with the same period last year.

Note: The above companies are ranked in no particular order

●The highlights of the financial report

In the first half of 2021, in the context of stable domestic epidemic prevention and control, the demand for downstream industries has improved, and the recovery of the national economy has accelerated. This is also well illustrated by the mid-year performance of local industrial automation companies. It can be seen from the year-end performance of the above-mentioned companies that, whether it is control, drive, electrical, or inspection type industrial control companies, the revenue has achieved positive growth, and most of the growth rates are relatively large. From the perspective of corporate net profit, The vast majority of profitability has increased significantly, and there are many companies with ultra-high growth rates, such as Jiangte Electric. On the whole, the industrial automation market in the first half of 2021 has been relatively moist after experiencing a boom on the demand side.

Previously, gongkong® pointed out in the article "High growth in the second quarter, optimism can hardly conceal anxiety" that the API index of China's industrial automation market in the second quarter of 2021 was 126.3, a slight slowdown in year-on-year growth compared to the first quarter. China's automation market has entered the second half of 2021 in "panic" and "anxiety". The shortage of parts and components, the price increase of raw materials, and various uncertainties on the demand side have increased the anxiety of the market.

In the second half of 2021, the automation market may face a more severe market test. How will the performance of local industrial control companies perform? What do you think? Welcome to leave a message at the end of the article~