The car market is still in the middle of winter, and some of the pressure accepted by the whole car enterprises is transferred to the parts enterprises in the industrial chain.
(Related data drawing)
On October 29, Huayu Car released the third quarter report of 2019. In the first three quarters of 2019, the operating income of Huayu Car was about 105.596 billion yuan, down 11.11% year on year; The net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit") was 4.927 billion yuan, a year-on-year decrease of 22.58%.
Although the performance of Huayu Car was slightly better than expected, due to the impact of the decline in the domestic occupational output in the third quarter and the output value of its main customer SAIC Motor Group, the impact on parts companies was relatively large, and the recovery speed of the career itself was still less than expected, which made many parts enterprises under pressure.
The situation of Huayu car is a microcosm. When collecting the financial reports of more than 10 parts enterprises, it was found that most parts enterprises were "cool". Zhang Qiang, an analyst of the car industry, believes that in the future, with the acceleration of the innovation of the car industry itself, the movement from the era of striving for quantity to the era of striving for quality will inevitably lead to the screening of some low-end parts enterprises.
At present, there are about 100000 car parts and related industrial chain enterprises in China, among which there are only 13000 enterprises with sales revenue of more than 20 million yuan. Small, zero and scattered "guerrilla" enterprises still account for more than half of China's parts industry.
General decline in scores
Now, except for a small number of enterprises in Ningde era, Ningbo Huaxiang and Daimei, other parts enterprises are showing a year-on-year decline in profits in the first three quarters, while the fluctuations are in single digits at least, and nearly 90% at most.
The net profit of Dong'an Power, Desai Siwei and other parts enterprises in the first three quarters also declined by more than 50%.
For the reason of loss, many enterprises mentioned the decline of passenger car sales and fierce professional competition in their quarterly reports. The current professional situation has a negative impact on profitability.
In the first nine months of 2019, the pressure on parts enterprises was unprecedented. On the one hand, affected by the decline of subsidies and other factors, the cost of vehicle manufacturers increased, which naturally transferred some of the cost pressure to parts enterprises; On the other hand, the country's skill requirements in environmental protection policies such as "National VI" have been strengthened, which has increased the pressure on some parts enterprises that do not have skill reserves.
Even for some foreign parts giants, the situation is not optimistic. The financial report in the first half of 2019 shows that the revenue and net profit of overseas mainstream parts enterprises such as ZF, Denso, Continental, Valeo, Autoliv, etc. are showing a "double decline".
In addition, even battery enterprises standing at the electrification "wind outlet" are difficult to be independent. LG Chemical, one of the three largest power battery companies in the world, released financial reports showing that in the third quarter, LG Chemical's operating profit was 380.3 billion won (about 2.304 billion yuan), down 37% year on year, and its net profit was 137.2 billion won, down 60.4% year on year. The company's battery sales from January to September were 5.869 trillion won (about 35.558 billion yuan), There is still a gap between LG Chem's policy of selling 10 trillion won (about 60.585 billion yuan) globally in 2019.
No matter the world's giants, traditional parts enterprises, local enterprises and new enterprises, their profits are declining. If you want to change the situation of parts enterprises from the original source, you still need the whole car market to recover.
The parts enterprises are closely connected with the whole vehicle factory from production to interest chain, and most of the parts enterprises are B-end enterprises, so the whole vehicle sales have not been significantly broken, and the occupation will still be in the adjustment period in the short term.
Increased pressure
Previously, China's car parts stores have always been in the stage of high-speed development. According to the research data of the China Automobile Association, even in 2018, when the car market began to appear in the depths of winter, China's car parts sales revenue still broke the threshold of 4 trillion yuan, with a growth rate of 7.1%, far exceeding the growth rate of car sales in the same period.
However, as the cold wave in the car market continues, the pressure on parts enterprises is increasing. After the fall of Guowei Technology, which served more than 20 main engine plants, a car parts company in Hangzhou that produced body sheet metal parts for Chunfeng Yulong and Zotye cars was also exposed to the suspension of operations.
Since 2018, there have been 188 cases involving the bankruptcy of the car parts profession, during which there have been 25 bankrupt and closed tire enterprises.
"Parts enterprises have always been highly dependent on vehicle enterprises, and many parts enterprises only rely on one or two vehicle enterprises to make a living. But now many enterprises are facing the test of life and death, and the difficulty of payment collection is improving year by year. In the future, the glue and litigation war surrounding the whole parts connection will also become more frequent." The above parts responsible person guessed.
The company in its location provides materials for the whole vehicle enterprises and parts suppliers together. Especially since 2019, the pressure of the whole vehicle factory has been pushed down layer by layer and transferred to suppliers of different levels, which has become more intense. "Although from the perspective of customer protection, spare parts enterprises will reduce certain costs every year, in recent years, more and more automobile enterprises require to write down certain costs in the contract, ranging from 5% to 15% or more. Since we supply for many companies together, we can also have a certain say, but the competition for many small and medium-sized parts enterprises is becoming more and more fierce."
In the early days, many Korean auto parts enterprises followed Hyundai, Kia and other local auto enterprises to our shopping malls. However, since two or three years ago, it was difficult to maintain normal operation of the enterprise only relying on one auto enterprise. Therefore, many enterprises are now seeking cooperation with our auto enterprises to complete sales and dangerous diversification.
How to surround
However, there are also some enterprises whose achievements have increased against the trend. Taking the Ningde era as an example, the company's revenue in the first three quarters of 2019 was 32.856 billion yuan, a year-on-year increase of 71.7%; The net profit was 3.464 billion yuan, up 45.65% year on year.
The survival of the fittest has become more serious, thanks to China's opening up and the support of the country's industrial chain, which has trained China's leading parts enterprises and played an active role in promoting the development of industry.
China's spare parts enterprises should "adapt to changes" and work hard at the level of research and development and globalization to complete structural optimization and ensure that they can compete with foreign spare parts enterprises in the process of continuing opening up.
Japanese car industry chain enterprises such as Toyota car and Japanese Denso are all at the forefront of Japanese enterprises' research and development investment, during which the research and development expenditure of Japanese Denso accounts for 9.5% of the revenue. The average research and development investment of Bosch and other world leading parts enterprises also exceeded 6%~7%. Although the R&D investment ratio of Ningde in the s exceeded 6%, the R&D investment of most domestic parts enterprises now accounts for less than 5% of the revenue.
Some parts enterprises have entered into overseas stores through overseas mergers and acquisitions, opening up sales channels and other methods. In 2019, Ningde pursued the opportunity of being in overseas shopping malls by increasing production capacity, buying overseas enterprises, cooperating with multinational automobile enterprises and other methods. SNEResearch, the research organization of world power battery stores, shows that in August 2019, the installed capacity of power batteries in global stores in Ningde Era was 2.4Gwh, up 49.4% compared with the same period in 2018. In this regard, SNEResearch believes that the sales of domestic cars carrying the Ningde era have increased, and the Ningde era itself is also expanding to commercial vehicles and overseas shopping malls, which also enables it to respond more effectively when the Chinese shopping malls are adjusted.
On the one hand, local parts enterprises should put themselves in the position of global enterprises and improve their own requirements; On the other hand, local brand enterprises can also appropriately give some independent parts enterprises the opportunity to complete the upgrading of the entire industrial chain in the township.
