China lighting industry related A-share listed in 2020

2020-07-23 15:07 admin
The novel coronavirus pneumonia epidemic began to rage in the world in the beginning of 2020. The ferocity of the outbreak, the widespread spread, and the far-reaching impact were unexpected. It had a great impact on the social and economic development. According to the National Bureau of statistics, GDP in the first quarter of 2020 will drop by 6.8% year on year. The added value of industries above designated size decreased by 8.4% year-on-year, and the total profit realized was 781.45 billion yuan, a year-on-year decrease of 36.7%. Among them, the added value of electrical machinery and equipment manufacturing industry of lighting products decreased by 12.9%. In terms of exports, according to the General Administration of customs, exports in the first quarter of 2020 were 3.33 trillion yuan, down 11.4% year-on-year, and 13.3% in US dollar terms. Although the impact of the epidemic on the manufacturing industry is not as severe as that of the service industry, it is undoubtedly a grim situation.
 
The so-called "under the cover of the nest, there is no complete egg." As one of the means of living related to the national economy and people's livelihood, lighting products can not be immune. With the first quarter performance of lighting industry related A-share listed companies in 2020, no accident, the performance indicators of the vast majority of listed companies have different degrees of decline. It is rare that a small number of enterprises with growth did not lack those who rebounded from the fall last year, and some of them were successful in returning to work quickly and responding in a timely manner.
 
The core of the impact of the epidemic on the industry is production, capital and orders. From the reasons for the decline of performance of many listed companies in the first quarter, the impact of the epidemic on production is more prominent, because the first quarter, especially February, is the most serious period in China. First of all, it is more difficult for manufacturers to return to work. After gradually starting work, due to multiple factors such as insufficient epidemic prevention supplies, traffic and logistics restrictions, and local closure policy, the rework rate of workers is insufficient Moreover, the lighting industry is a deep supply chain industry. Due to the different epidemic situation in different places, the corresponding resumption policies are different, and the conditions of manufacturers at each end of the supply chain are not the same, resulting in the inconsistent resumption time. In addition, the insufficient supply of raw materials and components, rising prices, and poor transportation and logistics in the same period, all affected the smooth operation of the whole supply chain, and thus led to a widespread trend It's difficult to deliver. The impact of capital is that it can only go out but not in. The continuation of the epidemic in the first quarter makes it impossible for relevant manufacturers to start normal operation. However, the corresponding labor costs, loan interest and site rent will continue to be paid, which will have an adverse impact on the cash flow of manufacturers.
 
In fact, with the stability of the domestic epidemic situation, enterprises are returning to work one after another. China has a relatively complete industrial chain in the upstream and downstream of the lighting industry, and the production and capital problems have been alleviated to a certain extent. The next step is to pay more attention to the issue of orders. In the first half of the epidemic, the domestic epidemic not only affected the supply side, but also seriously affected domestic sales. The flow of population caused by the epidemic was limited, terminal consumption was hindered, consumer demand was restrained, and manufacturers' inventory remained high. In addition, almost all domestic exhibitions as domestic business development platform in the first half of the year were postponed or even cancelled, which had a negative impact on the domestic market. The next step is to increase investment and stimulate consumption in order to restore the national economy. Therefore, domestic sales should pay attention to national policies.
 
In the second half of the epidemic, the supply side of the export market suffered a lot. In terms of export orders during the outbreak of the domestic epidemic, based on the prediction of the short and medium-term production capacity affected by the epidemic, many customers will occupy the supplier's production capacity in the following single form. Therefore, insufficient early production capacity and difficult delivery are the main problems. This problem has been gradually alleviated with the gradual resumption of work in China's factories and complete supporting facilities in the whole industrial chain. The immediate and delayed effects brought about by the global epidemic outbreak are a great test for export enterprises. In the first quarter, China's lighting products, except for scientific research and medical light source products and ultraviolet lamp tubes, almost all declined, and the export value decreased by 22.75%. At present, countries in the epidemic situation, like China in the early stage, have taken similar measures to close cities, greatly limiting the flow of personnel, and almost all related exhibitions have been cancelled or postponed, which has caused great hindrance to consumer demand. Therefore, the export situation still depends on the international epidemic situation.
 
As the saying goes, the crisis is that both risks and opportunities coexist, but this opportunity is relatively weak. The pressure from both sides of the production and market demand of the lighting industry is highlighted. It is undoubtedly a comprehensive test of the management and operation ability and reserves of lighting manufacturers. Although lighting products have the property of rigid demand, the epidemic situation will not eliminate the demand, only delay the demand, but still need the whole industry to go all out to deal with it. At this time, we can't simply compare with our own past development vertically, but we should make a horizontal comparison to see who can do better and hold on better in difficult times. Because "it's not about healing, it's about living with the pain."

Source: China Association of lighting appliances