According to incomplete statistics, as of January 22, 2013, a total of 38 listed companies in the auto parts industry released 2012 annual performance forecast, 22 companies forecasted net profit to decline year-on-year, accounting for nearly 60%, with a single product and customer structure. The decline in corporate performance is even more serious.
Changchun Yidong, which manufactures and sells automotive clutches, expects net profit to decline by more than 50% year-on-year in 2012; Wanan Technology expects 2012 net profit to decline by 50% to 80% year-over-year; Meichen Technology expects net profit for 2012 It was 18 million to 23 million yuan, down 54.29% to 64.23% year-on-year; Shunrong shares also experienced significant declines in performance.
Of course, there are also a few auto parts companies whose performance is rising in a contrarian direction. However, the increase in performance is not due to business reasons, or the sale or transfer of shares in a loss-controlled subsidiary company increases profits, or shares are issued to purchase assets, and the operating performance of newly added companies is included in the report. range.
According to the latest statistics from the Ministry of Commerce, China's auto parts industry has suffered a substantial decline in profits due to the downturn in the entire vehicle industry and rising costs of raw materials. Relevant research shows that the high profits of the domestic auto parts industry will never return and will develop in the direction of meager profits in the future.
The reason for this is that there are four major factors in the auto parts industry's move towards a "low profit era."
First, the entire vehicle industry passed on costs, resulting in a sharp decline in profits of parts and components companies. In recent years, vehicle companies have expanded their scale, stimulated consumption, and waged a price war. Most of the parts and components companies are seriously affected by this, because the entire vehicle company will transfer part of the cost of the price reduction to its supporting parts and components companies. In particular, some vehicle manufacturers have announced that they will reduce the prices of some vehicle parts and components. The average loss of commonly used vulnerable parts and components is nearly 21%, with the highest drop of 50%. Although parts and components companies have taken a variety of measures to remedy the situation, unprecedented pressure to reduce prices has made it difficult for related parts and components companies to prevent them.
The second is that parts and components companies lower prices each other and reduce profits by themselves. In general, there are 1 to 4 parts suppliers for each part of the vehicle company and the main engine plant. In recent years, in order to expand their own market share, some parts and components companies have begun to push each other to compete in the market while spelling out technology, quality, brand, and after-sales service. Once one has a slight flaw, its opponents will use various means to squeeze it. This will inevitably lead to a decrease in the respective profits of competing companies.
Third, raw material prices rose sharply and squeezed the profits of spare parts companies. In recent years, raw materials used for automobile production have soared, which has added to the cost burden of the entire vehicle industry and auto parts companies. In particular, parts and components manufacturers have been hit hard by the double attack of price cuts by mainframe factories and raw material prices. In addition, the performance decline was not only affected by the economic and industry slowdown, but also due to the reduction of financial subsidies during the same period, resulting in increased input and amortization.
Fourth, the international auto parts giants have occupied the market share. With advanced technology, quality, brand and after-sales service, they have entered the domestic supply chain of major autos and OEMs, seizing market share at all costs, and gradually realizing localization. For domestic parts and components companies, competition with international giants on the same stage, due to technical, management and other aspects of the enemy, the pressure to survive increased, the profits decreased.
In summary, the price reduction of the entire vehicle industry, the competing price cuts among the industries, the price increase of raw materials, and the impact of international giants have brought unprecedented pressure and challenges to Chinese auto parts companies. With the intensification of competition, the industrial clusters are highly concentrated and the scale continues to expand. In the future, auto parts companies will only be able to obtain meager profits by increasing their volume. A group of auto parts companies with small technical strength and no brand will be eliminated. .
Centrifugal Pump,Self-Priming Pump,Self-Priming Centrifugal Pump
Bosin Pump & Valve Manufacturing Co., Ltd. , http://www.durrex-pumps.com