Responsive with the vehicle companies, this year, auto parts listed companies out of the broader market. According to statistics from the China Securities Journal, up to now, more than 80% of the listed auto parts companies have doubled their stock prices compared to the beginning of the year, and nearly 90% of the companies have outperformed the broader market. At the same time, the semi-annual performance announcements recently announced by listed auto parts companies indicate that despite the fact that the companies whose first-half performance declined year-on-year still accounted for the majority, the year-on-year decline rate has decreased significantly from the first quarter. This means that auto parts companies’ stock prices rose in the first half of the year and they have solid performance support. In the second quarter, auto parts companies are accelerating losses, and there is little doubt about the growth in the second half of the year. Obviously, the performance of auto parts companies is picking up, which is closely related to the “hot†of the domestic auto sales market in the first half of the year. However, some observers are concerned that China’s automobile market is thriving in the world and will inevitably accelerate the transfer of the global auto industry’s production capacity, including its huge component manufacturing capacity, to China. In the case that China's automobile core parts and components market has been monopolized by foreign capital, in the future, China's auto parts and components companies must keep up with the development speed of the domestic auto market. Bacheng’s share price doubled As a pioneer in the cyclical industry, the automotive industry has always reversed its economic recovery before other industries, which was revealed in the first half of the market. According to the statistics of China Association of Automobile Manufacturers, due to policy factors, in the first half of this year, domestic automobile production and sales were 5.9908 million and 6.088 million, respectively, an increase of 15.22% and 17.69% year-on-year. The strong growth in car sales has made the A-share market a full-fledged vehicle and component manufacturing listed company. According to Wind statistics, as of the close of July 22, among the 23 auto parts listed companies of the SWS Group, 17 listed companies’ share price increase has doubled from the beginning of the year, accounting for 80% of the listed auto parts companies. As much. Among them, Huayu Automobile, which was transformed from the bus shares, has become the “leader†in the rising share price of Shanghai Auto's component parts and components company. It rose from 3.33 yuan at the beginning of the year to 9.64 yuan, an increase of more than 200%. Behind Huayu Automobile were 196% of Fuyao Glass and 185% of FAW Fuwei. In addition, of the 23 parts and components listed companies, 20 companies have outperformed the stock market this year, approaching 90% of all parts-listed companies. Compared with the trend of "unprecedented" stock prices, the performance of auto parts companies in the first half of the year may be "slightly shabby". As of July 22, there were 11 auto parts companies that announced their first-half performance forecasts. Among them, there were seven pre-announcement year-on-year declines in performance and losses, which exceeded the forecasting company’s 60%. However, careful analysis of the comparison data can find that the auto parts companies' overall profitability in the second quarter has increased. All seven auto parts companies that reported that their first-half performance declined or lost in the first half of the year have realized losses in the second quarter. Take Dongfeng Science and Technology Co., Ltd., the biggest changer, as an example. In the first quarter, the loss of Dongfeng Technology was as high as 25.65 million yuan. However, in the interim performance forecast released on July 9, the accumulated loss in the first half of the year has dropped to 11 million yuan, that is, Said Dongfeng Technology in the second quarter profited about 14 million yuan. Great Wall Securities analyst Lu Lei believes that the auto parts company's second-quarter earnings rebound is in line with the rhythm of the auto market's sales. He believes: “In the first half of 2009, passenger car industry sales grew by 25.6% year-on-year, and the sedan industry grew by 22%. From April onwards, sales of mid- to high-end passenger cars recovered significantly, as domestic-listed parts and components companies are mainly middle- and high-end. Passenger car support, therefore, starting from April, the gradual recovery of mid- to high-grade passenger cars will significantly increase the orders of parts and components suppliers, thereby increasing their revenue and profits." Double increase in production margin At present, the profit growth of auto parts companies has entered a healthy orbit. Under normal circumstances, when the automotive industry is at a low point, the auto parts industry is under “two pressures.†On the one hand, raw material prices remain high, and on the other hand, vehicle manufacturers have to lower their parts procurement prices in order to cut prices. The performance of parts and components companies is often lower than investor expectations. In the recovery phase of the entire vehicle industry, due to the recovery of downstream demand and the low level of upstream raw materials, both the production capacity and gross profit of the parts and components companies resumed to rise, thus pushing up their profitability. According to experts from the China Association of Automobile Manufacturers, in the first half of the year, under the stimulation of a series of policies to promote automobile consumption, domestic vehicle sales have steadily increased. At one time, some vehicle models were also found to be out of stock, and vehicle manufacturers are currently producing at full capacity. In particular, some of the joint-venture vehicle manufacturers that have hot-selling, small-displacement models have a very high capacity utilization rate, and the related parts and components companies naturally work overtime. However, due to the fact that some overseas parts and components enterprises still have not recovered from overseas markets, the capacity utilization rate of the overall parts and components companies is roughly equal to about 80% of the peak period, but it has increased significantly compared to the beginning of the year. In addition, the low price of raw material prices in the first half of the year and the stable operation of vehicle prices also play a significant role in improving the gross profit margin of parts and components companies and improving profitability. According to a report recently released by the National Development and Reform Commission's Price Monitoring Center, in the first half of the year, domestic automobile prices generally remained steady and slightly upward. At the end of June, prices rose by 0.9% compared with the end of last year and rose by 0.37% in the first half of the year. The steady price of the entire vehicle has basically ensured the stability of the price of spare parts. At the same time, raw material prices remained low in the first half of the year. The upstream raw materials involved in the auto parts industry can basically be divided into metal raw materials and rubber and plastic raw materials. Steel accounts for nearly 64% of the entire industry's raw materials, while aluminum alloys account for 8.3%. Besides, PU, ​​PVC, PB, and other rubber and plastic materials also occupy a certain proportion. Take the Shanghai Aluminum 0908 contract listed in August 2008 as an example, the price at the time of listing is still close to 20,000 yuan/ton, and the price for this year has been between 11,000 yuan/ton and 14,000 yuan/ton. In addition, auto parts such as glass and tires also benefited from the drop in prices of chemical products. Industrial Securities Wang Jinxiang said that taking Fuyao Glass as an example, the company's average price of heavy oil and soda purchases is expected to drop by 20-30% in 2009. The gross sales margin in the first quarter has increased from 31.32% at the end of last year to 33.92%, with the use of capacity. With the increase in the rate, gross profit margin is expected to continue to rise. Accelerate R&D "not leave the team" It can be said that along with another wave of automobile consumption, domestic parts and components companies have re-entered the booming cycle, and their production scale and profitability will all be improved. However, the financial crisis and the rise of China's auto market will also accelerate the transfer of production capacity and supporting needs of international auto companies to the domestic market, which will inevitably cause impact on domestic parts and components companies that lack core competitiveness. How to make the domestic parts and components industry "not to quit" in the current tide, keep up with the development speed of the whole vehicle market, and achieve positive interaction with vehicle companies to jointly enhance the manufacturing and research and development capabilities of the Chinese automobile industry is a matter of immediate concern problem. According to statistics, in China, auto parts companies with foreign investment background account for 72% of the entire industry. Of these foreign suppliers, wholly-owned enterprises account for 55% and Sino-foreign joint ventures account for 45%. At the same time, foreign capital also controls Most of the market share, the sales revenue of domestic-funded parts and components only accounted for 20% to 25% of the entire industry. In addition, key technology markets are almost monopolized by foreign companies. The data shows that in the production of key components such as automotive EFI systems, engine management systems, ABS and airbags, the proportion of foreign-funded enterprises is 100%, 100%, 91% and 69% respectively. Imported automatic transmissions are The share on the domestic market is also as high as 78%. From the product system of parts-listed companies, it can also be seen that with the exception of a few companies such as Fuyao Glass, most domestic companies’ products are concentrated on low value-added products such as interiors and bearings, relying on low labor costs. Instead of research and development capabilities. To solve the problem of “not falling behindâ€, the key is to attach importance to and increase R&D investment. However, the domestic parts and components companies are now trapped in a “profitable meager money and no research and developmentâ€, and “the more money is not available for R&D, the more profitable the industry isâ€. The data shows that the ratio of R&D input from domestic auto parts companies to sales revenue is only about 0.6% for several consecutive years, but the proportion of multinational parts companies can reach 7% to 10%. Nowadays, some vehicle manufacturers that have paid a lot of money for the purchase of foreign parts and components have realized this problem. The independent R&D approach of domestic parts and components companies is too narrow and too slow. Therefore, Geely Automobile has acquired Australia's DSI Corporation to make up for it. The case of a short board on the automatic transmission itself. However, the investment in R&D is not the end of the acquisition. If China's component companies really want to keep up with the global automotive industry, it is only necessary to continuously increase R&D. This is especially true in the upswing of the economy. Otherwise, the "hollowing out" of the Chinese auto industry will intensify. ARC MMA Welding Machine Songshi Electric Appliance Factory , http://www.ykweldingmachine.com