"Securities Daily" reporters compiled data from Tonghuashun iFinD. As of April 22, among the 113 listed auto parts companies in A-shares that have disclosed their 2023 annual reports, 89 have achieved year-on-year net profit growth (excluding loss reduction), accounting for Nearly 80%, among which 16 companies including Weifu High-Tech, Bojun Technology, Kehua Holdings, Zhejiang Shibao, Feilong Technology, and Wanan Technology achieved a year-on-year growth of more than 100% in net profit last year.
Zhang Yue, chairman of Aoyou International, told a reporter from Securities Daily: "Companies that have achieved high performance growth are mainly concentrated in the fields of auto parts, electronic appliances, rubber products, engine parts, etc. The market demand in these fields continues to grow, and technology Fast updates and high value-added products help related companies gain higher profits."
Exports are booming
Among the 113 companies mentioned above, the net profits of Weifu High-tech, ST Baling, and Kehua Holdings in 2023 will increase by 1446.28%, 680.46%, and 530.94% respectively year-on-year, ranking among the top three in net profit growth.
The net profits of Zhejiang Shibao, Wanan Technology, Soling, Yingboer, and Feilong in 2023 will increase by 387.91%, 346.07%, 270.64%, 234.33%, and 211.14% respectively year-on-year; in addition, Bojun Technology, Changyuan Donggu, Dengyun Holdings, Joyson Electronics, etc. also achieved net profit growth of more than 100% year-on-year last year.
According to the review, many companies mentioned "keywords" such as order growth, sales growth, and export growth among the reasons for changes in performance.
Weifu High-Tech stated that in 2023, the company's four-cylinder supercharger product sales hit a record high; the annual sales of motor shaft products were nearly 1.4 million pieces, a year-on-year increase of nearly 1.5 times; in-line pumps and other products continue to grow in overseas markets.
Kehua Holdings said that domestic and foreign customer demand will steadily increase in 2023, and sales will increase compared with the same period last year, thus bringing incremental revenue and incremental gross profit.
Feilong shares said that in 2023, the company has sufficient orders, new energy thermal management products have increased; the penetration rate of turbochargers has increased, the volume of hybrid vehicles has increased rapidly, and exports have increased simultaneously.
Zhan Junhao, a brand positioning expert from Fujian Huace, told a reporter from Securities Daily: "The above-mentioned companies have strong R&D capabilities and technical advantages in the field of auto parts, and can improve profitability by optimizing production processes and reducing costs. In addition, due to Export demand is strong, orders and shipments of many companies have increased significantly, and overseas markets have opened up room for growth for some companies."
Competition in traditional fields is fierce
Of the 113 companies, 9 suffered losses last year. Among them, Huayang Transmission said that due to multiple factors such as shrinking market demand, orders for traditional auto parts products will decline slightly in 2023; at the same time, the company's parts revenue has not yet formed an effect of scale, and fixed costs will not be diluted.
Dynamic Xinke said that in 2023, the company's subsidiary product dump truck heavy trucks will be affected by the sharp decline in the growth rate of real estate and other infrastructure investments. The market competition will be fierce and the collection of accounts receivable will be slow; at the same time, the decline in vehicle sales will also have a relatively large impact. Big impact.
Some companies also stated that performance losses in 2023 are mainly due to restrictions on overseas market expansion, which have affected truck and bus tire orders; overseas economic inflation has caused gross profit margins to decline, etc.
"Manufacturers with poor performance are mainly concentrated in the field of traditional auto parts. The market competition in this field is fierce, the added value of products is low, and technology updates are slow, resulting in declining profitability." Hong Shibin, an industry observer on the Economic Platform, told a reporter from Securities Daily , "These data reflect that the current auto parts industry is in a critical period of transformation and upgrading. Competition in the field of traditional parts has become more intense, while the market demand for new technologies and new products is gradually growing, and the industry is moving towards high-quality development. Transformation."
The trend of internationalization is irreversible
In recent years, China's auto parts "going overseas" has accelerated. According to customs data compiled by the Passenger Car Association, my country's auto parts exports will reach US$87.7 billion in 2023, a year-on-year increase of 9%.
It is understood that in the auto parts industry, companies such as Feilong, Qingdao Doublestar, General Motors, and Top Group are also accelerating overseas expansion while deeply exploring the domestic market.
For example, Qingdao Doublestar officially announced in 2023 that it will build a factory in Cambodia and invest in tire production projects. Recently, the company stated: "It will focus on improving the overall global production capacity layout through the construction of Cambodian factories and quickly enter high-yield markets such as Europe and the United States."
At the end of 2023, General Motors Co., Ltd. will launch the second phase of the Cambodia project; recently, Feilong Co., Ltd. laid the foundation for its first overseas factory in Thailand, and plans to complete construction and put into production in September 2025.
Zhan Junhao believes: "Relevant companies have expanded overseas markets one after another, which is an important manifestation of the implementation of globalization strategies. This may not only create growth points, but also further improve their own technical level and management capabilities through learning and reference. The 'going overseas' boom may continued."
Zhu Keli, the founding president of the Guoyan New Economic Research Institute, told a reporter from Securities Daily: "With the transformation and upgrading of the global automobile industry, the demand for related parts will continue to grow. At the same time, with the improvement of environmental protection, safety, intelligence and other requirements, automobiles The quality, technical content and added value of parts will also continue to improve. In the future, the prosperity of the auto parts industry is expected to continue to increase, and the trend of corporate internationalization is irreversible."
