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Benefit from "carbon Neutralization" Hengtong Optoelectronics Offshore Wind Power Business surge the company's performance stabilizes and improves

2021-09-02 14:23:41

on April 29, Hengtong Optoelectronics released its annual report for 2020 and the first quarter report for 2021. Data show that Hengtong Optoelectronics achieved an operating income of 32.384 billion yuan in 2020, an increase of 1.97% over the same period last year. In the first quarter of 2021, the company's revenue was 6.974 billion yuan, an increase of 17.29% over the same period last year, and the net profit was 264 million yuan, an increase of 13.14% over the same period last year. In addition, the company deducted non-net profit of 194 million yuan, an increase of 46.78% over the same period last year, nearly three times the increase in revenue.

In 2020, the goal of "carbon neutralization and carbon peak" has provided a power engine for China's economic and social development, while as the leader of domestic optical communications, Hengtong Optoelectronics continues to actively layout energy interconnection, new energy industry and silicon optical module business. for enterprises to win new opportunities for development.

On April 29, Hengtong Optoelectronics released its annual report for 2020 and the first quarter report for 2021. Data show that Hengtong Optoelectronics achieved an operating income of 32.384 billion yuan in 2020, an increase of 1.97% over the same period last year. In the first quarter of 2021, the company's revenue was 6.974 billion yuan, an increase of 17.29% over the same period last year, and the net profit was 264 million yuan, an increase of 13.14% over the same period last year. In addition, the company deducted non-net profit reached 194 million yuan, a year-on-year increase of 46.78% nearly three times the revenue growth, which also reflects the company's profitability has been greatly improved.

It is worth mentioning that in 2020, although the company was affected by the epidemic and collective mining prices and other factors, revenue remained stable, and net profit increased for the first time in the fourth quarter compared with the same period last year.

The main business has greatly increased.

From the perspective of business classification, the production and sales of Hengtong optoelectronic optical fiber, optical cable and other products have achieved year-on-year growth in 2020. When the collection scale of operators such as China Mobile and China Telecom is basically the same as the previous year, this means that the company's market share has been increased. At the same time, the company's gross profit margin is still 22.67%, reflecting the company's good cost control ability.

At the same time, Hentong Optoelectronics Intelligent Electroweb and system integration revenue reached 13.064 billion yuan, an increase of 12.58% over the same period last year. In addition, the company's marine power communications and system integration revenue of 3.314 billion yuan, an increase of 47.76% over the same period last year, has become the main source of revenue growth for the company in 2020.

It is understood that in 2020, Hengtong photoelectric submarine cable, offshore wind power project general contract, medium and high voltage series products all achieved a large increase compared with the same period last year, and the new submarine cable order for the whole year reached an all-time high. At the same time, the company made an effective breakthrough in the overseas market by undertaking the construction of the world's first semi-submersible floating offshore wind power farm, the Portuguese offshore floating wind power project, breaking the foreign monopoly and filling the gap in the construction and maintenance of offshore wind power output systems contracted by Chinese enterprises in Europe.

In this regard, people related to Hengtong Optoelectronics said that the proposal of the goal of "carbon neutralization and carbon peak" in 2020 has provided a major strategic opportunity for the energy and power industry to continue to maintain rapid growth in China's offshore wind power industry. Hengtong Optoelectronics has seized this opportunity and will increase investment in offshore wind power in the future.

The debt ratio has been greatly reduced.

It is worth noting that Hengtong Optoelectronics in recent years, investors pay more attention to the debt problem, but also a better change. According to the annual report, as of December 31, 2020, the company's asset-liability ratio was 51.86%, down 8.23 percentage points from the previous year. It is the only one of the five major optical communications leaders that have disclosed the annual report.

With regard to the decline in the debt ratio, Hengtong Optoelectronics said that since last year, the company has increased its equity financing and used fixed increase funds to ensure the sustainable development of the enterprise, thus reducing the debt ratio of the enterprise and the cost of capital of the company.

People in the industry believe that both communications business and cable business are sub-industries with fierce competition, and the competition for the enhancement of concentration has also entered a critical period, especially wires and cables. at this time, Hengtong Optoelectronics increases financing to expand production, seize the market and invest in research and development on a large scale, which is the only way for enterprises to develop in the future. And at present, the overall valuation of the company is low, and the future potential is greater.

Silicon optical module business is expected to become a new growth pole

In addition, while adhering to the traditional business, Hengtong Optoelectronics also pays attention to speed up the research and development of forward-looking market and layout of silicon module business.

On March 26th this year, Henton Optoelectronics held a new product launch, and its subsidiary Huntong Lockley launched a mass-produced 400G QSFP-DD DR4 silicon optical module and a 400G QSFP-DD FR4 optical module based on traditional solutions, further enriching the company's Datong high-speed module product line.

It is understood that the mass-produced 400G QSFP-DD DR4 silicon optical module uses the industry-leading 7nm DSP chip, and the power consumption of the product is less than 9 watts. At the same time, it has a cost advantage of 10-30% compared with traditional modules, and fully meets the needs of energy-saving, emission-reducing, green and environmentally friendly data center applications. Due to the use of silicon optical chips with unique design and technology, the manufacturing cost is greatly reduced.

With the rapid increase in the number of data centers, the market space of silicon optical modules is also "rising all boats". In 2019, the number of silicon optical modules used in the digital communication center reached nearly 3.5 million, generating revenue of $364 million. According to Yole, silicon modules will grow at a compound annual growth rate of 40% between 2019 and 2025, which is expected to grow from $480 million in 2019 to $3.9 billion in 2025. Shipments of silicon modules in the data center will reach 24 million in 2025, and the market space will reach $3.6 billion.

Hentong Optoelectronics said that the launch of a mass-production version of 400G QSFP-DD DR4 will further accelerate the mass production of the company's silicon optical modules.

Industry insiders said that as Hengtong Optoelectronics increases the development of silicon optical modules, the business sector is expected to become a new growth pole of the company in the future, providing important support for the development of the company.



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