The Shanghai Securities News learned yesterday that since the second quarter, domestic auto parts and components, which mainly consist of domestic demand, have been prosperous in both production and sales, and gross profit margin has increased significantly. It is expected that this trend is expected to continue.
Recently, a number of auto parts listed companies have issued profit announcements. On the 13th, Tianxing Instrument announced that it expects net profit for the first half of 2009 to be approximately RMB 4 million to RMB 5 million, which is an increase of 400% to 550%. The increase in performance was mainly due to the increase in the company’s auto parts volume and sales revenue.
“The recovery of automobile parts industry is an indisputable fact. In particular, the major customers are the parts and components companies of domestic passenger car companies.†Chen Wenkai, director of Gasgoo Automotive Research Institute, pointed out that domestic automobile consumption has recovered significantly in the first half of this year, and parts suppliers have The days will also be better.
An insider of the auto parts listed company FAW Fuwei stated yesterday that “the turning point of the company’s recovery appeared in March, and the heavy truck market was weak from January to February.†A number of auto parts companies reported that most auto companies in the first half of this year It was not expected that the recovery momentum will be so rapid that the scheduling plan for the first two months is still very cautious, and the demand for additional orders in March was passed on to major component companies.
Chen Zheng, an analyst at CITIC Securities, believes that the second quarter of this year may be the highest gross margin of automotive parts. Because raw material prices were much lower than the same period of last year, the demand growth was more pronounced and the prices of spare parts were relatively stable and did not drop sharply. In the first quarter of this year, the gross profit rate of listed auto parts companies was 18.1%.
FAW Fuwei, one of the beneficiaries, is backed by FAW Group. Its main customers are FAW-Volkswagen and FAW Car. In the first half of this year, FAW-Volkswagen Terminal sold more than 320,000 vehicles, a year-on-year increase of 21%.