Profit growth of spare parts companies is lower than that of whole vehicle companies

Judging from the 2010 performance forecast announced by automobile listed companies in succession, although the net profit of parts and components companies has risen significantly, it will be increasingly at a disadvantage in terms of profitability compared with vehicle companies.

According to a consulting report issued by a consulting company in the United States in the past, in 2009, the profitability of China's auto parts companies nearly doubled, making it the most profitable company in the industry in the world. However, from the perspective of gross margins, the growth rate of China's vehicle companies is much higher than that of auto parts companies. Wanxiang Qianchao’s mid-year report released in mid-2010 showed that the company’s auto parts operating revenue reached 3,181,667,600 yuan, operating costs were 2,509,956,600 yuan and gross margin reached 21.22%. In recent years, Songzi Co., Ltd., which has an average air-conditioner market share of large and medium-sized passenger vehicles in China, pointed out in its half-year report in 2010 that its air-conditioned operating revenue for large and medium-sized passenger cars was 404,748,400 yuan, and its operating cost was 225,745,400 yuan. 44.52%. In the first half of 2010, the gross profit margin of Golden Dragon Motor (600686) was 11.76%. It can be seen that China's auto parts listed companies have relatively high gross profit margins and strong profitability. As listed companies, the companies themselves have certain advantages in terms of management and capital, and they have formed larger scale and stronger competitiveness. , However, the overall gross profit margin of listed auto parts companies is not high. Relevant data show that in recent years, the overall gross profit rate of listed auto parts companies has grown by less than 10%.

In contrast, the gross profit rate of vehicle companies increased significantly. Taking Jianghuai Automobile as an example, the company's semi-annual report for 2010 shows that its gross profit margin for the entire vehicle business in the first half of 2010 reached 14.23%, which was an increase of 2.93 percentage points from the same period in 2009. In the first half of 2010, SAIC's gross profit rate for auto manufacturing reached 19.07%, which was 6.24 percentage points higher than the same period in 2009. In 2010, Haima Co., Ltd., which is expected to turn a profit, has increased its gross profit margin from 1.8% to 9.45%, more than four times. On the whole, the profitability of vehicle companies has been greatly improved in recent years, and is higher than that of auto parts companies in profitability.

In terms of the industry itself, although the gross profit rate of auto parts currently seems to be high, its products are made from raw materials through deep processing. The entire vehicle company purchases a large number of finished parts and components for assembly during the manufacturing process. This part of the cost can be easily converted and sold at a higher price, and the profit rate can be accordingly increased.