From the results of the two previous tenders in 2011, the market concentration of smart meters has increased, but the competition is still fierce; the degree of market equilibrium has also been improved. We think this is a sign that market competition tends to be benign. We expect that the trend will be further stabilized after the third batch of tender results are announced.
Under the "sub-average bid price" model, we have judged that there is room for further improvement in smart meter prices, especially for leading companies that will gain greater room for price increase; the industry gross profit margin will continue to improve. It is predicted that the bid prices for the third batch of smart meters in 2011 will continue to increase.
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