In 2016, the auto production and sales completed the answer sheet of 28 million cars, with a rapid growth year-on-year. Under the background of stable development of the industry, not only the preference of the whole vehicle industry, but also the demand scale of the auto parts market is growing. According to the performance forecast, as of January 22, more than 90% of the 55 auto parts companies that issued annual report forecasts had achieved profit growth in 2016.
Cui Dongshu, the secretary-general of the Passenger Transport Federation, said that the number of auto parts enterprises in China is small and the market concentration is low. With the market competition, auto parts enterprises are facing the pressure of lower prices of downstream finished vehicles and higher prices of upstream raw materials, thus reducing the overall profit level of the industry. According to the market competition, large and medium-sized enterprises will further occupy the market share by virtue of their technological and product advantages, and the market concentration will be further improved.
The automobile industry is in a boom cycle
According to the statistics, the production and sales of automobiles in 2016 were 28118800 and 28028200 respectively, with year-on-year growth of 14.46% and 13.65%. The reasons for the sharp increase in profits are mainly affected by three factors. First of all, the company's sales channel expansion and product quality improvement have won more customers' recognition, and the sales volume has increased significantly; Second, with the change of product structure, the proportion of products with strong profitability is expanding; Third, the company vigorously promoted cost reduction and efficiency enhancement activities, and effectively controlled costs and expenses.
Cui Dongshu said. First, the development of the overall economy provides a good external environment for the automobile industry; Secondly, in the past year, the relevant national policies have promoted the development of the automobile industry; In addition, the automobile brands control hot spots such as new energy, and timely launch new products to enter the market, which has made the automobile industry perform well last year.
Performance of parts companies
According to the statistics, as of January 22, 2017, 55 listed auto parts enterprises in Shanghai and Shenzhen stock markets had announced the performance forecast of their annual reports in 2016, and 51 of them had reported good results. In terms of specific performance, 48 of the above 55 auto parts enterprises have released estimated net profits, of which Weichai Power ranks first.
Weichai Power, when analyzing the reasons for the pre increase of its annual performance in 2016, said that the implementation of the national overload and load limit policy, the improvement of the demand for thermal coal transportation, the recovery of the heavy truck industry and the increase of the market share of the company's traditional business had an impact on the growth of the company's performance. The increase of the sales volume of the company's main products was an important reason for the year-on-year increase of the company's performance.
Parts enterprises need to transform and upgrade
In addition, Great Wall Motors, the most profitable vehicle industry, is expected to have a net profit of 10 billion yuan to 10.6 billion yuan; Weichai Power, which has the largest net profit among auto parts companies, has a profit of about 2.15 billion yuan to 2.5 billion yuan. By comparison, the estimated net profits of the two companies are four to five times different. As an auto parts enterprise, Wanfeng Aowei (19.600, - 0.15, - 0.76%), which is expected to rank the second in terms of net profit, is expected to make a profit of about 957 million yuan - 1196 million yuan, which is equivalent to half of the first place Weichai Power. The gap is so big that people can't help thinking.
As we all know, the auto parts industry is located in the middle of the entire auto industry chain. Its upstream industries are steel, rubber, plastics, chemicals, etc., while its downstream industries are vehicle manufacturers and their accessory suppliers. Against the background of the overall improvement of the auto industry last year, although the auto parts enterprises achieved profit growth, the profit space was constantly squeezed, and the revenue difference between enterprises was huge.
With the profit of traditional auto parts products getting thinner and thinner, it is an inevitable choice for auto parts companies to find new profit points and seek transformation and upgrading.
(Extract of He Tianshi from the Testing Center)