Over 250 billion in comprehensive orders, Shanghai Electric continues to grow stronger

With more than 250 billion integrated orders in hand and new nuclear power projects restarting soon, Shanghai Electric, as an integrated equipment manufacturing group, has a steady pace of growth in the future and can almost completely ignore the complications of macroeconomic complexity.

The field of nuclear power is one of the core businesses of Shanghai Electric in the future. According to company sources, as of the end of December 2011, the company’s orders for nuclear power equipment were approximately 39 billion yuan, which is more than doubled in 2010. “The future development of nuclear power will not be tolerated. Ignore." The person said so.

Shanghai Electric, one of the largest integrated equipment manufacturing groups in China, has classified nuclear power as a new energy business in one of the company’s four major income sectors. The 2011 semi-annual report showed that the new energy business is the fastest growing among the four major revenues. Business, its operating income increased by 24.7% year-on-year.

With the global attention to nuclear safety caused by the outbreak of Japan's Fukushima nuclear power accident, the three-generation nuclear power technology represented by AP1000 will gradually become the main force for nuclear power construction in the next 10 or even 20 years. A large securities firm researcher points out that In 2010, Shanghai Electric's third-generation nuclear power AP1000 had achieved major breakthroughs and continued to receive orders. At present, it has already possessed the complete manufacturing capacity of the AP1000 third-generation technology and is also the most digested and absorbed enterprise in the domestic AP1000 technology, so it is expected to obtain more orders and increase overall revenue.

The Dongxing Securities Research Report pointed out that Shanghai Electric's plan has achieved full coverage of the industrial chain. If the follow-up nuclear power generation AP1000 is vigorously promoted, it is estimated that the company is expected to obtain a market share of about 45%.

The above research report further pointed out that the business scope of Shanghai Electric's thermal power and other businesses has been expanded to overseas, and the nuclear power field is also expected to move toward the internationalization in the future.

According to public information, the four main revenues of Shanghai Electric are: high-efficiency and clean energy, modern service industry, new energy, and industrial equipment. Among them, high-efficiency and clean energy mainly includes thermal power and gas engines. New energy includes wind power and nuclear power. The modern service industry mainly includes engineering projects and financial services. The most important industrial equipment is the elevator business.

In addition to the advantages demonstrated by the new energy nuclear power business, the thermal power equipment business of Shanghai Electric's traditional business also showed a steady growth trend. The reporter was informed that as of the end of December 2011, the company had orders for thermal power of about 90 billion yuan, gas engines of about 8 billion, nuclear power of about 39 billion, wind power of about 5.6 billion, and engineering projects of about 110 billion, totaling more than 250 billion. This is equivalent to four times the company’s main revenue of 63.1 billion in 2010.

Relevant persons of the company stated that at present, the company is advancing towards the internationalization process. For example, the engineering project mainly includes the general contracting related to thermal power, transmission and distribution at home and abroad. In the field of wind power, under the current intense competition in low-end wind power, Shanghai Electric cooperates with Siemens to develop high-end wind power markets such as offshore wind turbines.

Shanghai Electric's 2011 semi-annual report showed that it achieved operating revenue of 33.72 billion yuan, a year-on-year increase of 10.7%, and a net profit of 1.637 billion yuan, a year-on-year increase of 15.31%. Among them, the operating income of the high-efficiency clean energy business increased by 14% year-on-year, and the modern service industry increased by 19% year-on-year.

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