TongDa Cable(002560)2022-12-08 01:08Company Overview - Henan Tongda Cable Co., Ltd. was successfully listed on the Shenzhen Stock Exchange on March 3, 2011 (stock code: 002560) [1] - The company specializes in producing overhead conductors for ultra and extra-high voltage transmission lines, with a significant portion of its products used in long-distance, high-capacity transmission lines [1] Customer Base and Sales Model - Major customers include State Grid Corporation of China and China Railway Corporation, along with their subsidiaries [2] - The sales model primarily involves bidding for projects organized by these major clients, with a production-to-order approach post-bid win [2] - The proportion of sales to State Grid has decreased from over 80% before listing to around 20% currently, while the railway and overseas markets are growing rapidly [2] Railway Market Outlook - The company has developed new copper alloy contact network wires and supporting cables for electrified railways since 2009, with products now in use domestically and some exported to South Korea [3] - The railway market has high entry barriers, requiring strict certifications; the company has obtained necessary certifications to expand into the rail transport market [3] - Increased national investment in railway construction and the promotion of high-speed rail projects abroad indicate a promising market outlook [4] Strategic Shift to Military Industry - The company has chosen to transition towards the military industry due to its high technical barriers, high product value, and long industry lifecycle [4] - The strategic focus has shifted to "rooted in the main business, deepening military industry," with plans for acquisitions in aviation and other military-civilian integration fields [4] - The company aims to achieve its "double hundred" goal through horizontal cooperation with military branches and vertical expansion in the military supply chain [4] Stock Incentive Plan - The recent stock incentive plan is based on past performance and future industry trends, aligning with national strategies such as the Belt and Road Initiative and increased investment in high-voltage construction and railway development [5]