First-year performance report of listed companies in the automotive industry

In the first half of the year, China's auto market has seen a clear trend of recovery, but the performance of listed companies of different types of vehicles is not the same. According to the first-half performance announcement issued by listed companies in nearly 40 automotive industries, the performance of most vehicle companies has soared, and 7 of them have increased by more than 60%. Compared to the overall performance of OEMs, component parts and distributors Listed companies are not out. These data indicate that the auto industry seems to be deciding on the performance of the right to speak, and the OEMs, which have always dominated the auto industry, are clearly more deterministic.

In the first half of this year, the demand for the automotive market picked up. According to data from the China Association of Automobile Manufacturers, the production and sales volume of automobiles in the first half of the year reached 10.7517 million vehicles and 107.8822 million vehicles, respectively, an increase of 12.83% and 12.34% year-on-year, respectively, which were higher than the 8.75 percentage points and 9.41 percentage points respectively in the same period of last year. At the same time, it is expected that the annual automobile production and sales will exceed 20 million.

Benefiting from the increase in sales of products, the performance of vehicle-listed vehicles is generally good. According to the data, the net profits of BYD and FAW Car increased more than 10 times year-on-year; the net profits of Sinotruk, Changan Automobile and Haima Motor increased more than 1 times year-on-year; the net profits of Zhongtong Bus, Great Wall Motors, and JAC Auto increased year-on-year. More than 50%. These companies said that the increase in sales was mainly due to the increase in sales volume in the first half of the year and the increase in gross profit margin.

Overall, the growth rate of net profit of listed vehicle companies is faster than that of sales. Sales of JAC Motors increased by 21% in the first half of the year, while net profit is expected to increase by around 60%. In the first half of the year, Great Wall Motor’s operating revenue was RMB26.417 billion, an increase of 44.45% year-on-year; net profit attributable to shareholders of the parent company increased by 73.70% year-on-year to RMB4,088 million. Changan Automobile's sales growth in the first half of the year was 22.5%, while profit growth was expected to increase by 121.04%-138.58%.

However, there are also a small number of listed car companies in the first half of the performance reduction. Foton Motor stated that in the same period of last year, the company and Daimler formed a joint venture company, resulting in greater profits, and it is expected that net profit will drop sharply in the first half of the year. FAW Xiali’s performance in the first half of the year was reduced by 78%-100% due to the decline in production and sales volume of FAW Toyota and the company’s product structure adjustment to shut down some of the old Xiali products. Dongfeng Motor Co., Ltd. said that sales of its products declined in the first half of the year and its net profit decreased by more than 50%.

The mainstream performance of OEMs in the first half of the year is a substantial increase. In contrast, listed companies, such as parts and distributors, are performing in a general manner. Overall, although their performance has increased, the increase has been relatively small.

According to statistics, of the 47 auto parts companies that have posted performance forecasts, there are 27 pre-increase results, accounting for 57.45%. Only a small number of companies have significantly increased their performance, but these increases are mostly due to non-recurring factors. Taking molding technology and Yunnei as an example, their first-half results have increased by 400%-450% and 83.83%-95.62%, respectively, but profits have increased substantially through the sale of their companies. The gross profit of the main business of Sailing Co. in the first half of the year saw a significant increase, thanks to the company's new consolidation scope and investment income from its associates.

In addition, some companies have poor performance due to poor product sales. Dongan Power said that despite the profits generated by the company’s profit growth in the first half of the year, the company’s micro-vehicle engine sales decreased by 50% from the same period of last year, making the company’s overall performance a loss. Jingwei Co., Ltd. said that due to the fact that some of the company's products did not meet sales expectations, the company's sales growth slowed down and it is expected that net profit will increase by -19% to -10%.

In the first half of the year, distributors listed companies also performed poorly: Yaxia Auto said that it expects its profit for the first half of the year to be 428,000.68 million yuan - 535.210 million yuan, which is 20% - 0% lower than the same period of last year; BOCOM International recently released its report; It is pointed out that the growth of Yongda Auto’s sales in the first half of the year was in line with expectations, but due to the higher average price and gross profit margin in the same period of last year, the bank expects its interim net profit to decline by approximately 0.9% year-on-year. At present, only the performance of SINOMACH has significantly increased and is expected to increase by 70% in the first half of the year. Bank of Communications International believes that dealers are faced with problems such as high inventory, excessive network expansion, and overcapacity by automakers, making the business environment increasingly difficult.

Recently, the China Automobile Dealers Association released a report showing that in June the dealer's comprehensive inventory coefficient fell to 1.53, a decrease of 0.05 from the previous month and a year-on-year decrease of 0.45. Although the coefficient has declined slightly, it is still higher than the warning line.

According to data released by the China Automobile Dealers Association, the overall market automobile inventory coefficient was 1.83 in the first half of this year. According to international practice, the inventory coefficient is between 0.8 and 1.2 is a reasonable range; if it is greater than 1.5, it has reached the alert level.

In addition to the declining demand caused by the economic slowdown, the rapid expansion of the car dealer network is an important reason for high inventory. According to statistics, the total number of franchise stores in China reached 21,140 in 2012, an increase of about 17% year-on-year. The growth rate is much higher than the growth rate of the auto market (China's auto sales increased by only 4.3% last year), making competition in the industry even more intense. Not only does competition between different brands of distributors, but also competition among distributors of brands.

Luo Lei, deputy secretary-general of the China Automobile Dealers Association, believes that the retail market is not as good as the wholesale data, and it is expected that the dealer inventory pressure will be even greater in the second half of the year. Most dealers also look at the trend of the auto market in the second half of the year. Among them, 40% of dealers believe that the auto market growth rate is less than 5% this year. They think that the percentage of dealers at 5%-10% is 43%, and another 11% are distributed. Businesses believe that there will be negative growth, and only 6% of dealers believe that the auto market will grow by more than 10%.