Smart meter project enters large-scale production growth rate of 30%

Recently announced the successful bid for the third batch of smart meter projects this year. Judging from the timing of the bidding, this year's bidding is more intensive than last year. Orient Securities predicts that the amount of tenders for smart meters will continue to grow rapidly this year, and the annual growth rate is expected to exceed 30%. However, with the gradual investment of large-scale investment projects in the smart meter industry, we must be alert to the overcapacity in the entire industry.

Orient Securities analysts said that there will be 5 centralized biddings for smart meters this year, and the annual growth rate of total tenders will reach more than 30%. At the same time, we found that the tender price has increased significantly year-on-year, and the market concentration of the smart meter industry has shown a downward trend. Compared with the second batch of winning bids, the top ten manufacturers' share of this bid won a certain degree of decline.

Orient Securities believes that the gradual production of fund-raising projects will lead to excess capacity in the industry. By sorting out the investment projects of multiple smart meter listed companies, 2011 and 2012 will be the large-scale commissioning and production of smart meter projects. According to the analysis data of the manufacturers of electricity meters, the current domestic smart meter manufacturers have a total capacity of 16.68 million units, and the total capacity for future expansion will be 18.48 million units, an increase of more than 100%. Orient Securities expects that as the investment projects of large manufacturers are gradually put into production, consolidation within the industry may be a new trend.