AHP score-Witten Electric 2.69, 42.6% of the total score. After taking into account the liquidity premium, we estimate that the AHP score of Witeng Electric is 2.69, which is located in the 42.6% of the total score of the AHP model of the science and technology innovation system, and in the upper level of the middle reaches. Assuming that the inclusion rate is 80%, in the case of neutral expectations, the placing ratios of categories A, B and C under the Witeng Electric Network are 0.0298%, 0.0289% and 0.0131%, respectively.
Witeng Electric: well-known domestic busbar products. The company is a well-known enterprise in the domestic transmission and distribution and control equipment manufacturing industry, and is one of the main production suppliers of domestic bus products. The products include low voltage busbar, high voltage busbar, tinned copper strip, medium and low voltage complete equipment, copper and aluminum products, which are widely used in electric power, electronics, automobile manufacturing, rail transit, data center, metallurgical and chemical industry, commercial real estate, new energy and other application fields. The core technologies of the company, such as the structure and processing technology of dense busbar shell, the formula and pouring technology of resin pouring busbar, and the automatic powder fluidization coating technology of busbar conductor, are advanced in the industry. The company has high popularity and brand influence in the domestic bus industry. In 2015, the company's "WETOWN" trademark was recognized as "China's well-known trademark" by the State Administration for Industry and Commerce. The products have been used in many national key projects such as the National Stadium (Bird's Nest), Hong Kong-Zhuhai-Macao Bridge, Beijing Daxing International Airport, Shanghai World Expo Park, Guangzhou Asian Games venues and so on. Become a supplier to State Grid, China Mobile Limited, Huawei, ABB, General Electric Co, BABA, Longji Leye, Chongqing Changan Automobile and other large enterprises. The company is in the second echelon in the domestic busbar industry, in which the main product tin-coated copper strip has an income of 219 million yuan in 2019 and a market share of about 4.79%. The company expects operating income to grow by 22.67% to 34.46% from January to June 2021, and net profit to be 16.67% to 34.62% year-on-year after deducting non-return.
The compound growth rates of the company's operating income and net profit attributable to the parent company from 2018 to 2020 were 0.72% and-3.19%, respectively.
From 2018 to 2020, the absolute scale of Witeng Electric's revenue and return net profit were lower than the comparable average. In 2020, mainly affected by the COVID-19 epidemic and other factors, the net profit fell 13.19% year on year, the gross profit margin was higher than the comparable average, and the R & D investment was lower than the comparable average.
Risk hint: Weiteng Electric should be on guard against risks such as continuous decline in performance, intensified market competition, influence of photovoltaic industry on tinned copper belt products, decline of gross profit margin, growth of related transactions with related party Nord Logistics, uncertainty of brand license renewal, and so on.