As the economic prospects of countries around the world continue to diverge, commodities are now becoming the "outcast" of financial markets. After crude oil, copper has become the target of short selling in the market. Affected by the news that London copper futures prices plummeted by 6%, yesterday the price of Shanghai copper futures in the domestic market fell to the limit across the board, shocking the futures industry.
Affected by the news of the sharp drop in the external market overnight, the domestic futures market was also filled with the sound of air force bombing yesterday. As of the close, the prices of all Shanghai copper contracts closed at the lower limit. The latest price of the main contract Shanghai Copper 1503 was 41,190 yuan/ton. At the same time, Shanghai aluminum, Shanghai zinc, Shanghai lead and other products also experienced varying degrees of decline.
Some analysts believe that the electrical products with the largest proportion of copper in production costs are wires and cables, followed by transformers, switches, and finally household appliances such as air conditioners. The order of impact of falling copper prices on electrical appliance companies should also be the same as the above order.
Specific to listed companies, it has the greatest impact on cable manufacturing companies such as Far East Cable and Baosheng Co., Ltd., followed by transformer and switch manufacturing companies such as Tianwei Baobian, TBEA, and Pinggao Electric, and finally Gree Electric, Midea, and Haier and other air-conditioning manufacturing companies.
Smart Energy (formerly known as Far East Cable) is the largest cable company in my country!
If you missed out on the companies that benefited from the plummeting oil prices and continued skyrocketing: aviation (601111, 600029), shipping (600026, 601872), etc., don’t miss the major opportunities brought about by the plummeting copper prices! After benefiting from a wave of short selling in crude oil, short sellers became more and more enthusiastic as they did so. Don’t expect a sharp rebound immediately. This is not the stock market!
Far East CEO Jiang Xipei: Even if the Far East cable industry reaches 10 billion US dollars, I am not satisfied.
Far East, as the largest wire and cable manufacturer in China, why does it need to carry out strategic transformation? Jiang Xipei gave his own explanation: Prysmian, the world's largest manufacturer of wires and cables, has an output value of about US$9 billion (approximately 55.3 billion yuan), and the second largest manufacturer has an output value of US$8 billion (approximately 492 billion yuan). 100 million yuan), I would not be satisfied even if the Far East Holding Group reaches a scale of 10 billion U.S. dollars (approximately 61.5 billion yuan) in the wire and cable industry. He said, I hope the company can have better room for development. Today, Far East Holding Group takes the world-class Schneider, ABB and Siemens as benchmarks and learns from their development strategies. It hopes to surpass the benchmarks and develop in depth by learning from the benchmarks.
Smart energy benefits railway investment strategy
In the past half month, in accordance with the national strategic deployment, the National Development and Reform Commission has intensively approved the Liaoning Jinzhou Port to Inner Mongolia Baiyinhua Railway Capacity Expansion Project, Yuxi to Mohan and Dali to Ruili, Qianjiang to Zhangjiajie to Changde and Shangqiu The total investment in six railway infrastructure projects from Hefei to Hangzhou and Zhengzhou to Wanzhou is close to 250 billion yuan, setting off a new round of railway investment boom in China.
The rapidly growing demand for railway investment has directly benefited related companies in the railway infrastructure industry chain. Related concept stocks in the A-share market will also take the opportunity to develop, and Smart Energy (600869) is one of them. It is understood that Taixing Shengda Copper Co., Ltd. (abbreviation: Shengda Copper), a subsidiary of Smart Energy, mainly focuses on the research and development, production and sales of copper for smart railways, copper alloy contact wires and other smart transportation cables. It has the "National The title of "Key New Product" and the "Railway Transportation Infrastructure Equipment Manufacturing Enterprise License" issued by the National Railway Administration are among the best among the more than ten enterprises in the country that have the railway transportation infrastructure equipment manufacturing enterprise license issued by the Railway Administration. It is also the first contact with high-speed railways. Web smart wire market leader .
According to the company announcement on October 29, Smart Energy has won a total of 821 million yuan in bids for the State Grid, China Southern Power Grid, and railway systems. Among them, Shengda Copper won a bid of 75.1808 million yuan for the Shenyang Railway Bureau’s smart transportation cable. It is expected to be in the new round Driven by the investment boom in railways, high-speed railways and light rails, it will be a long-term positive for Shengda Copper.
Cable is showing its power, and the main sideways market will explode at any time.
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