As of April 1, 2011, the reporter learned from the 2010 annual report of a number of listed auto parts companies in the Shanghai and Shenzhen stock markets. As China's auto industry once again stood at the highest level of global production, the domestic auto parts industry also achieved With very good results, some of these companies have even far exceeded the growth rate of the entire vehicle company. Among the listed companies that have released the 2010 annual report, the reporter selected eight companies of different types as comparisons. The reporter noted that the operating revenues of these 8 companies were between 1 billion yuan and several billion yuan in 2010, and the total profit was basically at the 100 million yuan level. Simple comparisons can lead to some conclusions: Tire companies have considerable scale. Even if compared with Wanxiang Qianchao, a leading company in automotive general parts companies, an ordinary tire company, such as Aeolus, can also be in total Income is easily exceeded; another high-tech-based Weifu Hi-Tech Co., Ltd., due to its integration of the fuel injection system, auto after-treatment system, and air intake system, has three core businesses with operating revenues of more than 5 billion yuan. The company’s outstanding benefits from key parts and core businesses In terms of earnings, two companies based on automotive electronics—Weifu Gaoke and Dongfeng Technology—have the best returns. The 2010 weighted average ROE reached 38.32% and 37.04% respectively; other companies’ ROE was high. In more than 10% of the companies, Fengshen shares and Fengfan shares have net asset returns below 10%. From the operating income year-on-year, Tianrun Crankshaft, Dongfeng Technology, and Weifu Hi-Tech Co., Ltd. all recorded significant growth, which was significantly higher than the industry average growth rate; from the year-on-year growth of profits, Dongfeng Technology, Weifu Hi-Tech, Tianrun Crankshaft and Wanxiang Qian Chao also has a good performance. Among them, Dongfeng Technology's profit growth has nearly quadrupled, and Weifu Hi-Tech has doubled. Aeolus Co., Ltd. is the only company among these 8 companies whose profits have grown negative year-on-year. From the 2010 annual reports of various listed companies, it can also be seen that tire companies like Fengshen shares, despite their 49% increase in the production and sales volume of all-steel radial tires, have reached historical highs, and have maintained the leading position in the domestic industry of construction machinery tires. However, the price of raw materials such as natural rubber rose along the way in 2010 and the start of construction of its 5 million high-performance passenger radial tire project had in some sense dragged down the company's profit growth. Of course, the new project laid the foundation for the future development of the company. For companies with automotive electronics concepts such as Dongfeng Technology, despite the influence of market factors, the company’s sales expenses and management expenses have increased significantly compared to the previous year, but through the expansion of the scope of development of the market outside the Dongfeng system and strategic customer range Expanding, its key strategic products still maintain a good momentum of development. Weifu Hi-Tech's main businesses are all key auto parts projects. Its flagship product fuel injection system continued to meet the domestic heavy commercial vehicle market, while post-processing system products also maintained a high growth trend, and the market share of domestic independent brands exceeded 50%. Tianrun Crankshaft, with its single core competitiveness, fully utilized the heavy engine crankshaft as the company's most competitive product. With the increase in price of main raw material steel, the gross profit margin of heavy-duty engine crankshaft remained at a relatively high level. . The reason is that the company mainly supplies high-end crankshafts and connecting rod products for well-known engine manufacturers at home and abroad, and maintains long-term and close supporting relationships with customers. As a result, the company's supply scale is expanding, while its profit margin is still relatively stable; Through lean production management, the cost loss in the production process is reduced, and the extension of the company's industrial chain to the upstream also reduces the production cost to a great extent. While maintaining overall above the industry average growth rate, Wanxiang Qianchao has actively promoted the electric vehicle business in recent years and has invested heavily in the development of the constant velocity joint project for passenger cars and other accessory parts for passenger cars. Although affected by the global financial crisis, its overseas market business suffered a major setback, but the expansion of domestic new business provided favorable conditions for the continued development of the future market. Market environment makes future high growth risks While several listed companies have achieved good results at the same time, looking forward to the future, all companies also have sober thinking, and have maintained sufficient understanding of future market risks. Such as Dongfeng science and technology related people when talking about the company's future development of the unfavorable factors, said that the domestic environment and auto market major policy adjustment will form a severe test for companies, while the rapid growth of the cost of the company's profit margins have been squeezed. The related person of Wanxiang Qianchao mentioned that the large decline in international automobile output caused the continued decline in domestic auto parts exports. The output of the US market, one of the company's major export markets, fell by more than 47%, making it difficult for foreign businesses to grow. In particular, the financial crisis has led to a slump in the global automobile transportation industry, resulting in a large drop in the production of medium- and heavy-duty commercial vehicles, resulting in a decline in the demand for commercial vehicle parts. In the continuous price reduction of domestic vehicles, the OEM will transfer the pressure of price cuts to parts suppliers, which will put pressure on the company's profit margins. In addition, the gradual withdrawal of related domestic preferential policies in 2011 and the various “restricted orders†in some cities will affect the demand of terminals. There is a risk that the domestic auto market will continue to maintain high growth. Flow Packing Machine,Toy Packing Machine,Multi-Function Packing Machine,Card Packing Machine Dongguan Chanfer Intelligent Packing Technology Co., Ltd. , https://www.chanfer.com