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CRI as Industry Consultant or Time Interconnect (1729.HK) on HKEx

CRI served as Industry Consultant for Time Interconnect Technology in its listing and provided research, data and forecast on the industry. CRI has been focusing in industry research and consulting for corporate listing for more than 10 years. Time Interconnect Technology (1729.HK) is a company that produces wiring harness. Wiring harness has a wide variety and is applied in computers, communication equipment, vehicles, household appliances, industrial equipment, medical equipment, etc.

According to CRI, the global market size of wiring harness was about USD 156.9 billion in 2016, with a CAGR of 5.4% during 2012 to 2016. Among that, the market size of communication equipment and data center segment reached USD 18.4 billion, with the CAGR growing to 10.7% during 2012 to 2016. The market developed fast as global mobile subscribers and Internet subscribers grew largely, which promoted the demand for relevant equipment.

Rapid development in global communication industry in the past two decades results in an increasing demand in cables for communication equipment. Development and increased access in Internet in the world is promoting construction in data centers as well as demand for cables. In the past two decades, China witnessed the highest economy growth in the world. Its growth in industry, communication and the Internet are also prominent across the world. According to CRI, the market size of wiring harness was approximately CNY 402.9 billion in 2016 in China, with a CAGR of 8.5% during 2012 to 2016. Of which, market size of cables for communication equipment and data center segment reached CNY 28.6 billion, with the CAGR growing to 13.7% during 2012 to 2016. The rapid growth mainly comes from: (1) China’s high growth rate in industry in the world; (2) the largest and ever-growing number of mobile subscribers and Internet subscribers in the world; (3) large export from China as the world’s major producer each year.

A number of production bases are established in China by global major manufacturers of communication equipment and data center segment. After development for over 20 years, China’s manufacturing industry of communication equipment and data center segment presents high barriers including capital, technology and client. Among all, barriers of clients are particularly formidable. Communication equipment giants as Huawei and ZTE have been in long-term relationship with their suppliers. For example, Huawei has been working with Time Interconnect Technology for more than 20 years. Time Interconnect Technology was listed on HKEx on February 13th, 2018. As a major supplier to Huawei, the company offers products with high technology and quality, and involves in R&D of new products on customer requirement. Since quality instability leads to heavy loss, communication equipment manufacturers normally avoid change in their wire & cable suppliers. Time Interconnect Technology has been a market leader in communication equipment and data center segment in China for serving Huawei and many other quality customers.

According to CRI, the global market size of wiring harness will reach USD 220.3 billion in 2021, with a CAGR of approximately 7.0% during 2017 to 2021. Of which, market size of communication equipment and data center segment will reach USD 39 billion, with a CAGR of approximately 16.2% during the same period. CRI expects that China’s market size of wiring harness will reach CNY 614.3 billion in 2021, with a CAGR of 8.8% during 2017 to 2021. Of which, the market size of communication equipment and data center segment will reach CNY 64.5 billion, with a CAGR of 17.7% during the same period. in the next few years, global market size of communication equipment and data center segment will maintain a rapid growth, primarily due to: (1) constantly growing numbers in Internet subscribers and communication subscribers; (2) raising demand of apps for bandwidth and data as a result of development in mobile Internet; (3) growing demand for communication equipment and data centers along with development in new technologies such as cloud computing and IOT

CRI expects a consistent growth in wiring harness industry both in China and the world during 2018 to 2021. It is also expected that investment opportunities will emerge constantly throughout the industry chain. Growth potential for communication equipment and data center segment, vehicle segment and industrial automation segment remain positive.

Source: https://www.cri-report.com/blogs/4-company-news/135-cri-as-industry-consultant-or-time-interconnect-1729-hk-on-hkex.html

 

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