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The pace of "going out" of the cable industry accelerates, and overseas M & A remains to be broken through

Date:2020/9/6 22:49:49

Hengtong optoelectronics announced in successive announcements that the company's business in India, Cambodia and other overseas markets has made significant progress, at the same time, the company announced to give up the acquisition of American general cable, which caused widespread concern. Some people in the industry said that for the domestic cable industry which has been emphasizing "going out", the leading enterprise Hengtong optoelectronics has released a positive signal. Chinese products are winning more voice in the world. The company's abandonment of this overseas merger and acquisition also reminds the whole industry that the road of "going out" still has to face waves.

 

Listed companies go out to sea

 

&#According to the announcement issued by Hengtong optoelectronics on December 5 and 8, in India, the company plans to jointly invest in the construction of optical fiber and cable plant with aberdale Europe Holding Co., Ltd., a wholly-owned subsidiary; in Cambodia, the company has signed a 200MW photovoltaic EPC project contract with inner company, with a total project amount of US $200 million.

 

&#Wen Xiaojie, director of Hengtong optoelectronics, told China Securities News that at present, the company has more than 5000 overseas employees, registered international trademarks in 119 countries, and two overseas R & D centers are speeding up the construction, and the Hengtong optical fiber network has covered more than 130 countries and regions. In the first half of 2017, the company's overseas revenue was 2.593 billion yuan, with a year-on-year increase of 102%.

 

&#At the same time, the listed companies in the cable industry have expanded their business overseas. According to the incomplete statistics of wind data, among the 18 listed companies mainly engaged in cable business in A-share, 13 disclosed their overseas business income in the annual report of 2016. Among them, Zhongtian Technology ranks first in the industry with 2.04 billion yuan, followed by Hengtong optoelectronics with 1.93 billion yuan. The data also shows that the overseas business income of eight listed companies, including Baosheng, Yongding and hancable, exceeded 100 million yuan in 2016.

 

&#A business director of Baosheng told China Securities News that the company had won the bid for the cable procurement project of Singapore electric power authority as early as 2014, and realized the export of RMB 505 million in 2016, including RMB 455 million of direct export. At present, the company has also established overseas offices in the Middle East, expanded foreign trade channels and enhanced the ability to participate in international market competition.

 

Scientific and technological innovation is the core

 

&#"Different from the traditional labor-intensive industry's" going out "path, it belongs to the technology intensive domestic cable industry, which relies more on technology to win the overseas market." Huang Han, an analyst of Northeast Securities and communication industry, told China Securities News that in developed regions such as Europe and the United States, the price of Chinese enterprises is often not much lower than that of local enterprises due to the inability to obtain advantages in labor costs. "To seize the market, we have to rely on real efforts."

 

&#In such a market environment, every "going out" enterprise must be a leader in scientific and technological innovation, among which Hengtong optoelectronics is one of the representatives. Recently, the world's first large-length AC 500kV cross-linked polyethylene insulated submarine cable was launched in Hengtong optoelectronics. The technology was identified as the world's first by Jiangsu Provincial Commission of information technology.

 

&#It is understood that the world's first large length 500kV submarine cable developed this time has made innovations in production process and manufacturing equipment, and has been able to replace imported products in terms of main performance indicators, thus promoting the development process of China's submarine composite cable. Wen Xiaojie told the China Securities Journal that in the past three years, the R & D expenses of Hengtong optoelectronics accounted for more than 4% of the main business income, far higher than the proportion of R & D investment in GDP of major developed countries.

 

&#"Scientific and technological innovation not only improves the competitiveness of domestic enterprises, but also gives birth to the upsurge of overseas factory building of industry leaders." One belt, one road, is China's one belt, one road to the world. Huang Han told China Securities Daily reporter that Zhongtian Technology was an example. Since 2013, the company has built factories in India, Uzbekistan, Indonesia and other countries. The start of these factories not only realized the total factor output of products, technologies and services, but also optimized the infrastructure of communications and power grids in the countries along the belt, one way and one road. Positive significance.

 

&#According to the analysis by China Securities Journal, nearly 10 listed companies in the cable industry have already built or are preparing to build factories overseas. Shen Xiaoping, the actual controller of Tongding Internet and chairman of Tongding group, said recently that the company will build optical fiber and power cable plants in Africa, and has plans to invest in Southeast Asia and Europe. At present, only about 30% of the company's resources are abroad. In the future, this figure will reach more than 50%.

 

Overseas M & A tends to be rational

 

&#Although the "routine" operation of building factories overseas is increasing, we have not observed many cases of further overseas M & A Huang Han told the reporter of China Securities News that Hengtong optoelectronics had previously acquired the shares of Indonesia FOSS, aberdale of South Africa, Zaragoza of Spain, alcabra of Portugal and other companies. At present, only a few listed companies in the industry are contacting overseas, but it is difficult to implement the estimation in the short term. "Therefore, although Hengtong optoelectronics announced that it would give up the acquisition of general cable, it was still right The industry still has the leading demonstration effect. "

 

&#The announcement issued by Hengtong optoelectronics on December 7 showed that as an international cable product and turnkey service provider with global operation ability, American general cable has an important market position in many fields of the world. Under the premise that the shareholders of general cable intend to sell all their shares in the company, Hengtong optoelectronics plans to acquire the equity of general cable company in full. However, with

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