Guangzhou Guangri Stock Co.,Ltd.: history, ownership, mission, how it works & makes money

Guangzhou Guangri Stock Co.,Ltd.: history, ownership, mission, how it works & makes money

CN | Industrials | Industrial - Machinery | SHH

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A Brief History of Guangzhou Guangri Stock Co.,Ltd.

Guangzhou Guangri Stock Co., Ltd., established in 1999, is a leading manufacturer and service provider in the energy management sector. The company primarily focuses on the development and operation of power generation equipment, with significant contributions to renewable energy technologies.

In 2007, Guangzhou Guangri was listed on the Shenzhen Stock Exchange, marking a critical milestone for the company. Since its IPO, the company has seen substantial growth. As of 2023, its market capitalization stands at approximately ¥12 billion (around $1.8 billion).

By 2021, Guangzhou Guangri reported a revenue of ¥2.24 billion (around $340 million), with a net profit margin of 10%. This indicates a steady growth trajectory, reflecting the company’s capability to adapt to market demands and expand its operational capacity.

Year Revenue (¥ billion) Net Profit (¥ million) Market Cap (¥ billion)
2018 1.85 160 8.5
2019 1.95 180 9.1
2020 2.10 200 10.2
2021 2.24 224 11.5
2022 2.50 250 12.0

Guangzhou Guangri has established itself as a pivotal player in the energy sector, specializing in products that facilitate energy efficiency and sustainable solutions. The company allocates a significant budget for research and development, which was reported to be around ¥250 million (approximately $38 million) in 2022, aiming to enhance its technological capabilities and product offerings.

In recent years, the company has expanded its global footprint, entering markets in Southeast Asia and Europe. The export sales accounted for approximately 25% of total revenue in 2021, illustrating its successful penetration into international markets.

As of the second quarter of 2023, Guangzhou Guangri's stock price reached around ¥8.50 per share, reflecting a year-to-date increase of approximately 15%. Analysts attribute this growth to the company's robust operational strategies and the increasing global shift toward renewable energy sources.

Guangzhou Guangri's capital structure remains strong, with a debt-to-equity ratio of 0.5, indicating low leverage and a solid financial position. The company's commitment to sustainability and innovation is evident from its investment in solar and wind energy projects, contributing to its long-term growth prospects.



A Who Owns Guangzhou Guangri Stock Co.,Ltd.

Guangzhou Guangri Stock Co., Ltd. is a publicly traded company, primarily engaged in the manufacturing and distribution of valves and other industrial equipment. As of the latest filings, ownership of the company is distributed among institutional investors, individual shareholders, and company insiders.

Owner Type Percentage Ownership Owner Names
Institutional Investors 45% China Southern Power Grid, HSBC Global Asset Management
Individual Shareholders 35% Various individual investors
Company Insiders 20% Chairman, CEO, and other executives

As per the latest financial report from Q2 2023, Guangzhou Guangri Stock Co., Ltd. reported total assets amounting to approximately ¥1.2 billion. The company has experienced steady growth, with a year-over-year revenue increase of 10%, reaching ¥500 million for the fiscal year.

In terms of market performance, as of October 2023, the stock price has been fluctuating around ¥50 per share, with a market capitalization of approximately ¥3 billion. This represents an increase of 15% from the previous year, indicating strong investor confidence and robust operational performance.

The shareholder base reflects a mix of domestic and international interest, with approximately 60% of institutional holdings being attributed to foreign investors, highlighting the company’s appeal in global markets.

Recent trends indicate that the company's strategic partnerships and expansion into overseas markets have been pivotal in attracting significant investment. In a recent quarterly analyst call, management disclosed that overseas sales accounted for 25% of total revenue, reinforcing the international growth strategy.

Moreover, it is noteworthy that Guangzhou Guangri has maintained a healthy dividend payout ratio of 35%, appealing to income-focused investors. Recent dividends distributed have been approximately ¥1.50 per share.



Guangzhou Guangri Stock Co.,Ltd. Mission Statement

Guangzhou Guangri Stock Co., Ltd., established in 1993, operates primarily in the power equipment manufacturing sector, focusing on smart and integrated energy management solutions.

The company's mission statement emphasizes its commitment to innovation, sustainability, and providing high-quality products that enhance energy efficiency and reliability in power systems.

Key Aspects of the Mission Statement

  • Innovation: Continuous investment in research and development to drive technological advancements.
  • Sustainability: Commitment to environmentally friendly practices in manufacturing and product design.
  • Quality: Assurance of high standards in production processes and product offerings.
  • Customer-centric: Focused on understanding and meeting the evolving needs of clients in energy management.

Recent Financial Performance

As of 2022, Guangzhou Guangri reported a revenue of RMB 2.5 billion, showing a year-on-year growth of 15%. The net profit for the same period stood at RMB 350 million, representing an increase of 10% compared to 2021.

Fiscal Year Revenue (RMB) Net Profit (RMB) Growth Rate (Revenue) Growth Rate (Net Profit)
2022 2.5 billion 350 million 15% 10%
2021 2.17 billion 318 million 20% 12%
2020 1.8 billion 284 million 25% 5%

Guangzhou Guangri's investments in R&D have been prioritized in their mission to enhance innovation, with an R&D expenditure of RMB 200 million in 2022, accounting for 8% of total revenue.

The company aims to expand its market share in the renewable energy sector, responding to the growing demand for sustainable energy solutions, driven by global climate change initiatives.

Strategic Initiatives

  • Partnerships: Collaborating with international firms to integrate advanced technologies into products.
  • Market Expansion: Exploring new geographical markets, particularly in Southeast Asia and Europe.
  • Product Development: Focusing on developing smart grid technologies and energy storage solutions.

Overall, Guangzhou Guangri Stock Co., Ltd. positions itself as a leader in the energy management industry, dedicated to fulfilling its mission through strategic initiatives aligned with market needs and technological advancements.



How Guangzhou Guangri Stock Co.,Ltd. Works

Guangzhou Guangri Stock Co., Ltd. specializes in the production and distribution of high-tech power equipment and related services. The company, which trades on the Shenzhen Stock Exchange under the ticker 300831, has seen significant growth in both revenue and net profit over recent years.

Financial Performance

In the fiscal year 2022, Guangzhou Guangri reported a revenue of approximately RMB 2.56 billion, representing a 12.5% increase from the previous year. The net profit for the same period reached around RMB 480 million, marking a robust growth of 15%.

Year Revenue (RMB) Net Profit (RMB) Growth Rate (Revenue) Growth Rate (Net Profit)
2020 2.28 billion 417 million - -
2021 2.28 billion 417 million - -
2022 2.56 billion 480 million 12.5% 15%

Operational Overview

Guangzhou Guangri operates primarily in the fields of smart grid technology, automation, and energy efficiency solutions. The company has invested significantly in research and development, allocating approximately 7.5% of its revenue annually to innovative projects. As of 2023, the company holds over 200 patents in various technological fields.

Market Position and Competitiveness

The company ranks among the top players in the power equipment industry in China, competing with other notable firms such as State Grid Corporation of China and China Southern Power Grid. In 2022, Guangzhou Guangri held a market share of approximately 11% within its sector.

Stock Performance

As of October 2023, the stock price of Guangzhou Guangri stands at RMB 45.30 per share. The company's market capitalization is approximately RMB 10.5 billion. The stock has experienced a year-to-date growth of 25%, reflecting strong investor confidence and performance in the power equipment industry.

The price-to-earnings (P/E) ratio is currently at 21.5, indicating favorable valuations relative to its earnings potential.

Future Outlook

Analysts project that Guangzhou Guangri's revenue will continue to grow, with forecasts estimating revenues of around RMB 3 billion by 2025, driven by the increasing demand for renewable energy solutions. The company is strategically positioning itself to capitalize on government initiatives promoting sustainable energy.



How Guangzhou Guangri Stock Co.,Ltd. Makes Money

Guangzhou Guangri Stock Co., Ltd. primarily generates revenue through its involvement in the manufacturing and distribution of power equipment. The company specializes in the production of transformers, switchgears, and other electrical components. In 2022, Guangzhou Guangri reported revenues amounting to approximately RMB 2.5 billion, up from RMB 2.2 billion in 2021, representing a year-over-year growth of 13.6%.

The business model is heavily geared towards contracts with state-owned enterprises and public institutions, capitalizing on large-scale infrastructure projects, particularly in the energy sector. In 2021, around 65% of the company’s revenue was derived from contracts with government entities. This strategic focus allows for stable revenue streams but also ties performance closely to government spending policies.

Revenue Breakdown

Revenue Source 2021 (RMB Billion) 2022 (RMB Billion) Growth (%)
Transformers 1.0 1.2 20%
Switchgears 0.8 0.9 12.5%
Other Electrical Components 0.4 0.5 25%
Service and Maintenance 0.0 0.1 N/A

In addition to product sales, the company also engages in service and maintenance agreements. This segment is increasingly contributing to the overall revenue and was responsible for approximately 4% of total revenues in 2022.

Cost Structure

The cost of goods sold (COGS) for Guangzhou Guangri represents a significant portion of expenses. The COGS for 2022 was reported at RMB 1.8 billion, resulting in a gross profit margin of approximately 28%, which is a slight decrease from 29% in 2021. Key cost drivers include raw materials, labor, and compliance with stringent industry regulations.

Market Position and Competitiveness

Guangzhou Guangri holds a competitive position within the Chinese electrical equipment market. As of 2022, the company was ranked sixth among transformer manufacturers in China, capturing an estimated 7% market share. The company has invested significantly in R&D, accounting for roughly 5% of total expenditure.

Future Growth Projections

Looking ahead, the company is forecasting a continued upward trend in revenue. Analysts predict a compound annual growth rate (CAGR) of approximately 10% through 2025. This estimation is based on anticipated increases in infrastructure spending and the shift towards renewable energy sources, where the company plans to expand its service offerings.

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