Source | Lishi Business Review
Text | Liping
Although the new crown epidemic has brought unprecedented impact to the global economy, the performance of A-share technology stocks is still eye-catching, with the stock prices of many leading technology companies hitting record highs and surprising increases. At present, my country is in a critical period of transformation from infrastructure, real estate, export-driven to technological innovation and domestic demand-driven industries. The industries such as
G, biomedicine, new energy vehicles, and photovoltaics have been supported by policies, and the fundamentals and prosperity continue to improve. Although the trade frictions provoked by the United States to curb China's development are still increasing, gradually revealing the essence of a "technology war", under the background of the United States' continued chip supply cuts and technology blockade, the performance of domestic technology companies represented by Huawei still maintains stable growth. In the first three quarters of 2020, Huawei achieved sales revenue of 671.3 billion yuan, a year-on-year increase of 9.9%, and a net profit margin of 8.0%.
The reason why Huawei's performance has grown against the trend is related to its continued high R&D investment. According to the published list of corporate R&D investments in 2020, Huawei once again ranked first among domestic TMT companies with R&D funds of 131.7 billion yuan.
Technological progress is the fundamental driving force for economic development, and the times have also given enterprises that have deepened their technology. This is the inherent reason why the stock prices of many celebrity technology stocks continue to strengthen. In addition to Huawei, what other technology hard-core companies in China?
This article takes stock of the top 10 best-performing technology companies in 2020 from two dimensions: market value and increase, and analyzes the technical driving factors behind their stock price rise.
Character Times
World-class power battery giant
Latest market value: 942.3 billion yuan, 2020 increase: 230%, industry: power battery
In 2020, the most dazzling star in the world's technology stocks is Tesla, and in China it is CATL. As a leader in the global power battery industry, took only seven years to jump from the establishment of the company to the world's first product market share, and its advantages such as R&D investment and technology have built a broad moat for it.
, the former CATL, was the power battery business unit of ATL (New Energy Technology Co., Ltd.), and the core executives are all from ATL, and ATL is the main battery supplier of Apple mobile phones and has a deep technical foundation in the field of lithium batteries. As early as 2012, CATL received an order for power battery for BMW's first pure electric car, Zhinuo 1E. Subsequently, the company caught up with the golden age of China's vigorous development of new energy vehicles and grew into the absolute overlord of the power battery industry.
In the past three years, CATL's R&D investment was 1.632 billion yuan, 1.991 billion yuan and 2.992 billion yuan respectively. Up to now, CATL has a number of core technologies in various sub-fields such as battery cells, modules, battery packs, and BMS, and all technologies are at the industry-leading level. In 2019, CATL achieved an installed battery power of 32.91GWh, a year-on-year increase of 37%, and its domestic market share exceeded 50%.
018-2019, CATL defeated Japanese and Korean battery giants such as Panasonic and LG Chem for two consecutive years and became the global power battery installed capacity overlord. As of September 2020, the installed capacity reached 19.2GWh. CATL has continuously improved the level of equipment, production line and logistics automation, and has successively introduced application software such as management system (ERP), supplier relationship management (SRM), product life cycle management (PLM). Advanced intelligent manufacturing equipment and advanced digital layout also ensure the company's high quality and efficiency of battery production, which is another core competitive advantage of CATL.
Midea Group
China's first home appliance company with a R&D investment of more than 10 billion
Latest market value: 724.2 billion yuan, an increase of 73% in 2020. Industry: Household appliances
020, Midea Group finally distanced itself from its old rival Gree Electric: both in terms of performance and market value. In addition to channel changes and product line advantages, is closely related to Midea Group's emphasis on technology and investment in R&D. In fact, unlike Gree's own traffic, Dong Mingzhu, , which frequently appears in high profile, Midea Group has always shown itself as a low-key image.Since its transformation in 2011, Midea Group has continued to increase its R&D investment, attach importance to new product development, and focuses on R&D innovation. "Product Leadership" has become the first of the company's three major strategies.
In 2016, Midea Group acquired 94.55% of the shares of Germany Kuka, one of the world's four largest robot manufacturers, for a price of 29.2 billion yuan, allowing the world to feel the strength and appetite of "elephants in an invisible room". In 2019, Midea Group's R&D investment exceeded 10 billion yuan, and it is also the first home appliance company in China to invest more than 10 billion yuan in R&D.
is similar to Huawei. Midea Group not only attaches importance to practical technology research and development, but also pays attention to investment in basic research. At present, with the Central Research Institute as the core, the company has built a four-level R&D system from pioneering research to product development. In 2018, the company was selected as one of the top ten Chinese brands in the "100 Most Valuable Technology Brands in the World" and has successfully transformed from a traditional home appliance manufacturing company to a global technology innovation enterprise.
BYD
Power battery + new energy vehicle full vehicle doubles king
Latest market value: 620.7 billion yuan, 2020 increase: 308%, industry: new energy vehicle
As an early pioneer of domestic new energy vehicles, BYD was once the double champion in domestic power battery installation and new energy vehicle sales. However, the excessive persistence in the lithium iron phosphate technology route and the policy of battery supply have made the company passive in the subsequent rapid advancement of ternary lithium battery technology. After the installed capacity of power batteries was surpassed by CATL, the global new energy vehicle sales champion was also taken away by Tesla.
Since the beginning of 2020, BYD has launched a high-profile "blade battery" to announce the return of the king. There have always been two main technical routes in the field of power batteries, lithium iron phosphate and ternary lithium batteries. Relatively speaking, lithium iron phosphate battery has better security, but its energy density is low and its battery life is not as good as that of ternary lithium batteries. Since mileage anxiety is still the main pain point of new energy vehicles, ternary lithium batteries have gradually become the mainstream technical route for power batteries.
Through the new stacking process, BYD blade battery volume ratio and energy density are 50% higher than traditional iron lithium batteries and reduces the cost by 30%. Due to the cancellation of the module design, the size of the battery cell is no longer limited, and the battery length can reach up to 2500mm, which is more than 10 times that of traditional lithium iron phosphate batteries. Because the single cell is long and flat, it is named "blade battery". In addition to the energy density of
reaches the same level as mainstream ternary lithium batteries, the blade battery also maintains the advantage of good heat dissipation effect of lithium iron phosphate batteries, with high safety, long service life, and a trip life of more than 8 years and million kilometers. After the new generation of flagship model "Han" of
was launched, it has pushed the popularity of "blade battery" to a new level. And the facts have proved that BYD Han has become more and more brave with the new battery technology. The latest data shows that in December 2020, BYD Han sold 12,089 units, with sales exceeding 10,000 for two consecutive months, which is close to the total sales of two of , NIO , Xiaopeng and Ideal. With the launch of several new products such as Qin plus and Song plus, BYD in 2021 should create even greater surprises.
Hengrui Medicine
benchmark and role model for domestic innovative drug research and development
latest market value: 603.7 billion yuan, an increase of 53% in 2020, and its industry: Pharmaceutical
020, Hengrui Medicine rose by 53%, and its total market value exceeded 600 billion yuan. As the number one medicine in the secondary market, Hengrui Medicine has been adhering to innovative drugs for many years and has entered a harvest period. The company's carrilizumab, fluzoparib, pyrrolitinib, apatinib and other major products have been approved for marketing and have been successively included in medical insurance. Among them, the peak sales of carelilizumab covering four indications is expected to reach 20 billion yuan. With the continuous advancement of the commercialization of the above-mentioned new drugs, the company's future revenue is still in a period of rapid growth. According to the performance requirements of the company's equity incentives, Hengrui Medicine's net profit growth rate will not be less than 20%, 42%, and 67% in 2020, 2021 and 2022.While
maintains its domestic leading advantage, Hengrui Medicine is also continuing to promote its international layout. More than 10 popular targets such as PD-L1/TGF-β, URAT, JAK1, AR have been applied for FDA clinical trials, and the R&D progress is at the forefront of the industry, injecting new impetus into the company's subsequent performance growth.
In the first three quarters of 2020, Hengrui Medicine's R&D expenses reached 3.344 billion yuan, a year-on-year increase of 15.25%, accounting for 17.23% of sales, far ahead among domestic pharmaceutical companies. In fact, Hengrui Medicine has become a benchmark and model for domestic innovative drug research and development, which is also an important reason why the company continues to obtain valuation premium.
Mindray medical
elephant dancing medical device giant
latest market value: 546.9 billion yuan, an increase in 2020: 126%. Industry: Medical device
As an important sub-sector in the pharmaceutical manufacturing industry, the global medical device market capacity is as high as US$400 billion, and China has a 30-year generational difference compared with developed countries in Europe and the United States, which makes medical devices, especially innovative devices, one of the most valuable tracks.
In 2019, Mindray Medical's global operating income was 16.5 billion yuan, domestic revenue was 9.5 billion yuan, global market share was about 3%, accounting for about 9% in China, making it the third in Asia and the first medical device company in China. In fact, Mindray Medical's position in domestic medical devices is even better than Hengrui Medicine's leading advantage in the field of innovative drugs, and its revenue scale and net profit level are far higher than the second in the industry. In 2020, Mindray Medical's stock price rose 126%, making it the only medical device company with a market value of over 500 billion yuan. The achievement of
is also closely related to the company's technological leadership and its emphasis on R&D. In the past three years, Mindray Medical's R&D investment has reached 4.2 billion yuan, and the proportion of R&D investment remains above 10%, far higher than the industry average. In addition, in view of the characteristics of the medical device industry, the company has carried out more than 10 international mergers and acquisitions, further strengthening the company's product line advantages.
As of now, Mindray Medical ranks third in the world in the field of monitors and anesthetics, and ranks first in the domestic market; at the same time, the company's in vitro diagnostic business and medical imaging business are also in a rapid growth trend, and there is a broad space for domestic substitution in the future. During the epidemic in 2020, the company launched the MX and ME series high-end portable color ultrasound products, which were widely welcomed by domestic high-end hospitals and hospital chain groups, and its penetration and coverage rate have been greatly improved. So far, Mindray's medical products have covered more than 99% of the country's Grade A hospitals. In terms of the international market, the company's products basically cover large American hospitals with more than 500 beds in the United States, achieving coverage of thousands of terminal medical institutions in North America; in Europe and India, the company's product coverage rate reaches 45% and more than 70% respectively. Only by truly going abroad can the gap with international developed countries be quickly narrowed. The process of domestic substitution and internationalization will be the two highlights of Mindray Medical's future development.
Hikvision
The world's number one security giant
Latest market value: 535.8 billion yuan, an increase in 2020: 51%. Industry: Security
Although the United States has targeted the trade war, it has not stopped the company's growth. As the world's number one security field, Hikvision has ranked first in the global video surveillance market for nine consecutive years. 's products have achieved full coverage of the main hardware equipment of the video surveillance system, and are in a leading position in front-end acquisition, back-end storage, centralized control and storage equipment. In terms of
software, Hikvision continues to promote a unified software R&D system, improving compatibility between software. At present, more than 60 industry application software based on the unified software architecture platform have been launched, and the application of AI Cloud+ industry solutions has been launched. At the same time, the company is actively deploying eight major innovative businesses such as the Internet of Things, smart home, automotive electronics, and storage. In the first half of 2020, Hikvision's software added value accounted for 32.31%, setting a new high.
has gone from following the simulation era to surpassing the digital era. The technological leadership brought by high R&D investment is an important weapon of Hikvision.The company's core founding teams are all from China Electric Power Institute 52. The team of engineers from technical backgrounds gives the company a R&D and innovation gene. From 2017 to 2019, Hikvision's R&D expense ratio increased from 7.62% to 9.51%, and further increased to 11.28% in the first three quarters of 2020.
In 2020, Hikvision's stock price rose by 51%, and its market value has exceeded 500 billion yuan. The U.S. export control did not cause a serious impact on Hikvision, which indirectly reflects the company's core technology control and the comprehensive competitiveness of its products. With the continued replacement of U.S. materials and the continued increase in software business, the impact of U.S. sanctions on Hikvision is becoming weaker and weaker.
Luxshare Precision
New OEM factory that attaches great importance to R&D
Latest market value: 420.1 billion yuan, 2020 increase: 100%, industry: electronic manufacturing
020, working girl Wang Laichun counterattack the richest man Guo Taiming has become a hot topic for investors. Behind it is Luxshare Precision's market value overtaken Foxconn parent company Hon Hai Group . As one of the first 150 employees recruited by Foxconn's Shenzhen factory in 1998, Wang Laichun's net worth has reached 91 billion yuan in 2020. At the same time, Luxshare Precision, founded by Wang Laichun in 2004, is currently the world's largest OEM factory in AirPods. It has entered the iPhone assembly field through the acquisition of Wistron and has become a major rival of Foxconn Group.
As a rising star, Luxshare Precision can successfully break through in the field of fierce competition and meager profits, and R&D investment is still an important reason. In the past three years, Luxshare Precision's R&D expense rate has remained at around 7%, far exceeding Foxconn's average R&D expense rate of about 2%. In a sense, Luxshare Precision is breaking the traditional tradition of focusing on manufacturing and neglecting R&D, and has become a new type of foundry with more innovative spirit and stronger competitiveness.
Opportunities are always left to those who are prepared. After launched the AirPods product, its main OEM manufacturer Yingyeda has always faced the problem of low yield rate, which has become a bottleneck that seriously restricts the supply of AirPods. In desperation, Apple handed over some of the orders to Luxshare Precision to produce. After receiving the AirPods order, Luxshare Precision demonstrated an extremely high technical level, with an overall yield reaching a very high level, and the delivery level continued to exceed Apple's expectations. In 2019, Apple launched the AirPods Pro, a new generation of noise-cancelling Bluetooth headset, which was 100% OEM by Luxshare Precision.
From 2017 to 2019, Luxshare Precision's net profit growth rates reached 46.18%, 61.05% and 73.13% respectively, and its performance growth continued to accelerate. With the introduction of iPhone assembly, Luxshare Precision's future development is worth looking forward to.
Longi Green Energy Technology Co., Ltd.
The rapid development of the global photovoltaic king
The latest market value: 416.4 billion yuan, an increase of 277% in 2020. Industry: Photovoltaic
020, many industries have encountered a cold winter due to the new crown epidemic, and the photovoltaic industry has "unique scenery". From January to September 2020, Longi Green Energy Technology Co., Ltd. achieved operating income of 33.832 billion yuan, a year-on-year increase of 49.08%; net profit attributable to shareholders was 6.357 billion yuan, a year-on-year increase of 82.44%, once again proving the strength of its "Moutai" in the photovoltaic industry. adheres to the monocrystalline silicon route, the King Kong line revolution and the expansion of the entire photovoltaic industry chain have made Longi Green Energy Technology Co., Ltd. laugh at the end in the fierce industry competition. The company's current scale advantages and the heavy asset investment characteristics of the photovoltaic industry have effectively prevented the competitive pressure that potential latecomers may bring.
As of the end of 2019, Longi Green Energy Technology Co., Ltd.'s monocrystalline silicon wafer market share has risen to 62%, and its global market share has reached 24.3% (including polycrystalline silicon wafers). In the downstream component field, Longi module production capacity has surpassed traditional module manufacturers such as JAO and Artes, becoming the absolute leader in single crystal modules.
is different from most capital players in the industry. The founders and core executives of Longi Green Energy Technology Co., Ltd. are both technically born, which allows the company to be determined by the single crystal technology route and drive the monocrystalline silicon to overtake the polycrystalline silicon through diamond wire cutting. In a sense, Longi Green Energy Technology Co., Ltd. has used its own efforts to promote the early arrival of the era of photovoltaic parity, and has also made the company's current dominant position in the global photovoltaic industry.
Sany Heavy Industry
Digitally driven global engineering machinery giant
Latest market value: 387.5 billion yuan, an increase in 2020: 110%. Industry: Construction Machinery
If Sany Heavy Industry is also regarded as a traditional engineering machinery company, it is likely that it will miss an excellent investment opportunity. In 2020, Sany Heavy Industry's stock price rose 110%, again after 2019 (117% increase in 2019). The strong stock price performance of
is first due to the rapid growth of the company's performance. From 2018 to 2019, Sany Heavy Industry's main business income growth rates were 45.61% and 35.55% respectively, and its net profit growth rates reached 192.33% and 83.23%. In the first three quarters of 2020, the company achieved a net profit of 12.45 billion yuan, exceeding the net profit level of 11.207 billion yuan in the whole year of 2019, and still maintained a high growth of 35% under the impact of the epidemic.
In fact, the construction machinery industry has entered the stage of stock competition. The rapid growth of Sany Heavy Industry's net profit is mainly due to the continuous improvement of the company's profitability. The strong R&D investment ensures the continuous advancement of the company's digital and intelligent strategies, and thus brings about the continuous improvement of the company's operating dimensions such as cost reduction and efficiency enhancement.
data shows that from 2016 to 2019, Sany Heavy Industry's cumulative R&D investment reached 10.741 billion yuan. As of the end of 2019, the company had 3,204 R&D personnel, accounting for 17.37% of the total number of employees. Through long-term R&D accumulation and independent innovation, Sany Concrete Pump Truck has set a world record for long-arm pump trucks three times, and high-pressure concrete delivery pump has created a world high for single pump vertical pumping. Sany Heavy Industry excavators, concrete transport vehicles, concrete conveyor pumps and full hydraulic road rollers all rank first in China, while pump trucks are the first in the world.
The famous Changsha Sany Heavy Industry "No. 18 Factory" is currently the largest intelligent production workshop in Asia. Its production cycle is 40% reduced by 40% compared to ordinary factory buildings, its production capacity is increased by 50% and its automation rate is increased by 80%. With the improvement of intelligence, Sany Heavy Industry's per capita output value exceeded 4 million yuan in 2019, significantly exceeding the level of global engineering machinery giants such as Sandvik in Sweden and Komatsu in Japan during the same period. The efficiency improvement brought by technological investment has become another major competitive advantage of Sany Heavy Industry.
00 Hua Chemical
The world's king of chemical industry
The latest market value of
is 341.2 billion yuan, with an increase of 66% in 2020. Industry: Chemical
As one of the few global leaders in China's chemical industry, Wanhua Chemical is the world's largest MDI manufacturer, and is also the main supplier of TDI, ADI, polyether, TPU and other products. As of the end of 2019, Wanhua Chemical's MDI production capacity reached 2.1 million tons, accounting for 23% of the world, ranking first in the industry. The breakthrough of
MDI core technology has become the most critical link in Wanhua Chemical's development history, and has enabled the company to grow from the verge of bankruptcy of Yantai synthetic leather factory to the world's largest MDI manufacturer. MDI manufacturing process is complex, the production process will produce a large amount of high-risk toxic gases, and the technical barriers are extremely high. By absorbing and learning Japanese technology and after nearly ten years of independent research and development, Yantai Wanhua finally mastered all the technologies for producing MDI, breaking through the long-term technological blockade of Western countries.
As a latecomer in the industry, Wanhua Chemical has become the company with the lowest cost and the strongest comprehensive competitiveness of products in this field through continuous technological innovation. In the past few years, Wanhua Chemical's gross profit margin has continued to remain above 40%, far higher than competitors such as Covestro and Huntsman. The cost advantage is also a key factor in Wanhua Chemical's ability to significantly expand production globally and its market share continues to increase. It is worth mentioning that Wanhua Chemical's overseas market revenue has remained at around 50% in recent years.
At the same time, Wanhua Chemical has continuously expanded to both the upstream and downstream ends of the industrial chain with the competitive advantages of its core business MDI. With the continuous expansion of petrochemical industry clusters dominated by propylene and ethylene industries and new materials industry clusters dominated by highly absorbent resins and ternary lithium battery materials, Wanhua Chemical is rapidly growing into an important supplier of olefins and derivatives and core supplier of new materials in China.
data shows that from 2009 to 2019, Wanhua Chemical's operating income increased from 6.493 billion yuan to 68.051 billion yuan, and its net profit increased from 1.066 billion yuan to 10.13 billion yuan. The integrated layout of the industrial chain and the continuous breakthroughs in the international market have allowed the company to maintain a sustained and stable performance growth in the strong cycle of the chemical industry. Obviously, Wanhua's ten-fold growth performance in ten years is comparable to any consumer company, which is the fundamental reason why the company's stock price continues to be sought after.
