Automotive low growth haze shaded parts

According to incomplete statistics by the China Securities Journal, as of October 19, a total of 33 listed companies in the automotive industry issued quarterly earnings forecasts, of which 27 were listed companies for parts and components. Of these companies, 16 are expected to see a year-on-year drop in net profit, 13 are expected to have a year-on-year increase in net profit of 0%-50%, and the impact of a slowdown in car sales has spread to auto parts companies.

It is worth noting that the pre-increase margins of Great Wall Motors (601633), Zhongtong Bus (000957) and parts of the Group in the vehicle category (002593) are all over 50%, and have a good market competitiveness; The pre-reduction margins of FAW Xiali (000927), BYD (002594) and FAW Car (000800) in the vehicle were all over 50%, and the performance of Xiyi (002265) in parts and components companies was expected to decline by 500%.

The third quarter was lower than expected Although many auto listed companies hoped to see improvement in the auto market and stable raw material prices in the second half of the year when the semi-annual report was disclosed, they gave optimistic estimates on the performance of the three quarterly reports. However, in the second half, auto production and sales increased. The slowdown has not been effectively alleviated, and it is the decline in profits in the third quarter that dragged down the performance of many component companies.

Xi Pump (002536) reported in the third quarter that from January to September this year, the company achieved a net profit of 55,373,600 yuan, a year-on-year decrease of 17.88%. Among them, from July to September the company only achieved a net profit of 375.56 million yuan, down 77.77% year-on-year, becoming the main reason for dragging down the performance, and the company's semi-annual report is expected to increase -10% to 10% hopes fail. The company said that due to the price increase of raw materials is higher than previous years and volatile, and the overall prosperity of the automotive industry declined, the company's business development rate is lower than expected. The company expects net profit growth for the full year of 2011 to be between -30% and 10%.

Wanfeng Aowei's three quarterly reports showed that the company's restructured retroactive net profit fell by 15.81% year-on-year in the first three quarters of this year, of which, from July to September, the company's net profit fell 33.53% year-on-year. However, unlike West Pump's shares, the company is relying on restructured injections of quality assets to improve its performance. The company's third quarterly report showed that during the reporting period, the company consolidated 75% of the assets of Zhejiang Wanfeng Morrison Co., Ltd. The net profit attributable to the shareholders of the listed company was 72,927,400 yuan, which reduced the company's net profit.

As of now, the best-performing third-quarter performance of listed companies in the automotive industry is the day group. The company expects net profit to increase by 60% to 80% from January to September this year. The company stated that the market share of tireless steel drum products has been further expanded with stable quality, excellent price/performance ratio, and relatively complete sales channels covering both OE and AM markets; at the same time, as the scale of production and sales expands, the unit's fixed production cost increases. As a result, the net profit is expected to increase significantly compared to the same period of last year.

The expansion of scale is difficult to manage. China's auto sales grew rapidly in 2009 and 2010. The rapid expansion has allowed many companies to share the “bull market” market. However, after the tide has receded, many companies have experienced the “naked swimming” paralysis.

Affected by the withdrawal of the automobile industry stimulus policies, the market share of self-owned brands declined. FAW Car expects the company's net profit in the third quarter will drop 50%-80% year-on-year. The aftermath of the blind expansion of BYD’s scale in the past few years has gradually emerged. The company’s net profit in the first half of the year dropped by 88.63% year-on-year, and it expects its net profit in the third quarter to fall by 85% to 95% year-on-year. During the period, the company also made significant layoffs to the sales team to cut expenses.

Upstream auto parts companies also have similar conditions. Asia Pacific Shares (002284) expects net profit attributable to shareholders of listed companies from January to September to decline by 0% to 30% year-on-year. The company said that due to rising raw material prices and continuing high operating costs, product costs are higher than expected and the industry The overall prosperity rate declined, and the company's business development rate was lower than expected. In fact, the company’s net profit in the first half of the year only slightly increased by 2.12%. In addition to the above reasons, the company has also set up subsidiaries in Chongqing, Anji, Changchun, Beijing, etc. The company set up is currently in the preparatory phase or the input phase. No profit has been generated in the short term, which has caused difficulties for the operation and has dragged down profits in the short term.

According to industry sources, the scale has a great impact on the profitability of auto parts listed companies. Under the background of the slowdown in the auto market, the decline in average output will cause the gross profit margin to decline and the cost rate to increase slightly. China's listed component companies should strengthen technological research and development, and gradually enter the upper reaches to achieve sustainable growth.