Auto Parts Companies Frequent Performance Exceeds Expectations


Release time:

2022-08-30

Yesterday, Dongmu shares released a three-quarter report with a 74% year-on-year increase in net profit, while the full-year performance is expected to increase by more than 50%. If you compare the expected three-quarter results in the report of Dongmu shares to increase by more than 50%, it can be seen that the three-quarter results exceeded expectations.
 
In this regard, Southwest Securities auto industry analyst Liu Feng said yesterday that this is just an example of the auto parts company's performance exceeding expectations is being fulfilled. The boom in passenger car sales this year and the rebound in commercial vehicle sales will cause parts companies to frequently report three quarters or exceed expectations for the whole year.
 
Last year the car market downturn, auto parts listed companies also poor performance. Wind data shows that among the 62 companies in this sector (excluding ST companies, the same below), excluding the newly listed company Zhejiang Shibao with no data, only 23 companies recorded positive growth in net profit in 2012, with more than 60% of the decline or loss.
 
Entering 2013, the auto market sales are booming, especially passenger cars, and commercial vehicles have also rebounded to a considerable extent, which is bound to continue to benefit the auto parts industry. In fact, of the 62 auto parts companies mentioned above, 37 have achieved positive net profit growth in the first quarter. When the industry reported this year, the number of companies with positive performance growth further rose to 41.
 
As of yesterday's close, 31 of the 47 auto parts companies that have issued three quarterly reports or reports are improving. Liu Feng believes that combined with the results of the remaining 16 companies, it is expected that the annual performance of the entire auto parts industry will be good. Reach about 70%. This means that the companies with good annual performance will go further from the 41 in the third quarter to 43, and form a reversal trend from last year's over 60% decline or loss.
 
Liu Feng further said that in the context of hot passenger car sales and a rebound in commercial vehicle sales this year, especially in the fourth quarter, which is the traditional peak season of the auto market, auto parts companies' third-quarter reports and even full-year performance will frequently exceed expectations.
 
As a staff member surnamed Zhang admitted to reporters yesterday, "Our three-quarter report and full-year results did exceed the original target. The sales growth of the auto parts piece has a great impact on the performance growth, and the gross profit margin of our products has also improved this year." Another example is Jinma shares, which has a pre-increase of 50%-100, saying that the growth momentum is mainly from sales expansion, and the year-on-year increase in gross profit margin this year has also become one of the reasons for the sharp increase in profits.
 
Liu Feng believes that the performance exceeded expectations, will obviously be the fourth quarter share price will form a support. In particular, the market has paid more attention to the changes in vehicle sales this year, and the future opportunities of the auto parts sector can be expected. Among them, the companies with high performance growth but small growth this year are worthy of attention. As of yesterday, there are 34 companies with an increase of less than 20% this year, of which Longji Machinery and Yunnei Power have been doing well this year.