Analysis of the business and competition of China, Japan and South Korea international contractors

Japan and South Korea's foreign contracted engineering companies are important participants in the international engineering market. In recent years, Chinese companies have become more fierce in market competition with Japanese and Korean companies, and project cooperation has become increasingly frequent. The data of the top 250 ENR international contractors and the company's public financial statements are selected to compare and analyze the business conditions of several companies such as Kashima, Dalin Group, South Korea's Hyundai Engineering, and Samsung Engineering, as well as relevant indicators of ten key enterprises in China as follows:
I. Comparative analysis of ENR250 China, Japan and South Korea companies on the list

1. The number of Chinese companies on the list is dominant, and Japanese and Korean companies rank high. According to the latest results released in 2014, a total of 27 Japanese and Korean companies were on the list, including 14 Japanese companies, one less than the previous year, 13 Korean companies, two less than the previous year, accounting for 5.6% of the total and 5.2%; China has 62 companies on the list, a significant increase of 7 compared with the previous year, accounting for 24.8%. But from the perspective of the ranking, there are 10 Japanese and Korean companies in the top 50 of the ENR250 list, of which 3 are in Japan and 7 are in South Korea. Only 7 companies in China have entered the top 50, and most of them are in the list. rear.

2. The business scale of the Chinese Army Corps has grown steadily, and the business scale of a single enterprise still has a gap compared with Japanese and South Korean enterprises. From the list, Japanese companies achieved overseas operating income of US $ 22.244 billion, and Korean companies achieved overseas operating income of US $ 42.416 billion, an increase of 5.84% and 2.48% year-on-year, accounting for 4.09% and 7.8% of the overseas operating income of all listed companies; The average overseas operating income of Japanese and South Korean companies was US $ 1,589 million and US $ 3,263 million, an increase of 13.42% and 18.27% year-on-year, respectively. The 62 listed companies in China have achieved overseas operating income of US $ 79.013 billion, a year-on-year increase of 17.82%, accounting for 14.53% of the overseas operating income of all listed companies; the average overseas operating income of a single company is US $ 1.197 billion. It can be seen that with the acceleration of the "going global" pace of Chinese enterprises, the business scale of the Chinese Legion continues to grow steadily, and international market revenues have increased year by year. Japanese and Korean enterprises.

3. The internationalization level of Chinese enterprises needs to be improved. According to the data released in the 2014 ENR250 list, the internationalization rate of Japanese companies is 23.14%, that of Korean companies is 48.98%, and that of Chinese companies is only 13.91%. Although the internationalization rate of China's listed companies has increased year by year in the past two years, and the huge domestic business scale of Chinese enterprises has diluted the proportion of overseas performance of enterprises to a certain extent. To further increase the proportion of international income and expand the scale of overseas business of enterprises will eventually become an unavoidable challenge for Chinese enterprises to grow into multinational contracting engineering enterprises.

4. The business areas of China, Japan and South Korea have their own characteristics. According to the data provided by the ENR250 list, Japanese companies are outstanding in the field of equipment manufacturing, occupying 4 of the top 10 in this field; Korean companies have achieved good results in various fields such as oil, power, and industrial construction; Chinese enterprises have performed well in the fields of power, water conservancy construction, and transportation. Although the three countries' enterprises have their own business specialties, Japanese and South Korean companies have a more prominent level of business in the intensive and high-tech fields, and the number of leading companies in the professional field is more than China. In the next step, Chinese enterprises should pay more attention to the cultivation of specialized capabilities, continue to maintain their own advantages and gradually extend to technology-intensive businesses.

5. The market distribution of the three countries' enterprises overlaps with each other, and the Middle East, Asia and Africa are the main battlefields of the three countries. Japanese companies have a more balanced layout across continents. With their market share in the Middle East declining, Asia and North America have become their main markets. Korean companies have used the Middle East as a "base" and have taken advantage of geographical advantages to occupy some Asian markets. The market share in the African region has increased year by year; Chinese companies have taken Asia and Africa as their main markets, and have steadily occupied more than 40% of the African market share, and have continued to grow. The market share in the Middle East, Latin America, and Europe has also increased. situation. It is not difficult to see that with the continuous improvement of the strength of Chinese enterprises, the market in the Middle East, Asia and Africa will become the main "position" that China and Japan and South Korea will compete for next. How to continue to maintain the market advantage of Chinese enterprises in Asia and Africa and gradually increase The business capability of the Middle East has become a key issue facing Chinese enterprises.

Comparative analysis of business and financial situation of key Japanese and South Korean companies and Chinese key enterprises

We analyzed the key financial indicators of Kashima Group, Dalin Group, Hyundai Engineering Construction Co., Ltd. and Samsung Engineering Co., Ltd. in 2013 according to their financial statements for 2013, and compared them with relevant data of China's large-scale leading companies:

1. Business and financial situation of Japanese and Korean enterprises

In 2013, the assets of Japanese and Korean companies increased steadily, and their operating income rose and fell. South Korea ’s Samsung Engineering Co., Ltd. ’s assets reached US $ 5.336 billion, an increase of 4.49% year-on-year; but operating income was only US $ 8.825 billion, a year-on-year decrease of 14.28%; corporate assets and liabilities were 84.72%, and operating margin was 7.23%. Korea Hyundai Engineering & Construction Co., Ltd. ’s assets rose significantly to US $ 13,961 million, an increase of 15.58% year-on-year; operating income was US $ 13,208 million, an increase of 4.6% year-on-year; corporate assets and liabilities were 64.68%, and operating margin was 4.09%. Kashima Construction Co., Ltd. ’s assets were US $ 14.316 billion, an increase of 8.6% year-on-year; operating income was US $ 12.17 billion, an increase of 2.44% year-on-year; corporate assets and liabilities were 79.65%, and operating margin was 1.36%. Japan Co., Ltd. ’s Dalin Group ’s assets were US $ 17.611 billion, a year-on-year increase of 2.32%; operating income was US $ 15.4 billion, a year-on-year increase of 16.26%; corporate assets and liabilities were 74.97%, and operating margin was 0.91%.

From the perspective of business, Korean companies' businesses are mainly concentrated in petrochemical processing, civil engineering and environmental transformation, housing construction and energy development; their main markets are in the Gulf region and the CIS countries, and some of their businesses involve the United States, South America and Europe. Due to the limitations of the information collected, the business situation of Japanese companies cannot be analyzed here.

Figure 3 Business share of Hyundai Engineering and Construction Co., Ltd. in various fields in 2013

2. Comparison of several companies with Chinese companies

Compared with the leading enterprises in China, the asset-liability ratio of the four Japanese and South Korean companies is significantly lower, and the operating profit rate of Korean companies is higher than that of Chinese companies and Japanese companies are the lowest. From the perspective of business areas, Korean companies clearly focus on engineering business in the petrochemical industry, and overseas markets are also concentrated in countries with abundant energy-type mineral reserves such as oil-producing countries; while Chinese companies are better at infrastructure construction such as housing construction, road and bridge construction, etc. For construction projects, overseas markets are concentrated in countries and regions with weak infrastructure such as Asia and Africa.

Table 3 Financial and business situation of sample companies in China, Japan and South Korea