Car companies profit split car companies reported general performance decline

Recently, several car companies have successively released semi-annual reports or performance forecasts. As the market continues to adjust, the profitability of auto companies has been divided. Some auto makers have experienced a sharp decline in sales in the event of a decline in sales volume, while in the commercial vehicle sector, there has been a large area of ​​decline in profits. Among them, FAW Car had a loss situation in the first half of the year. According to the performance forecast released, the listed company’s net profit attributable to shareholders was a loss of 45 to 75 million yuan, and basic earnings per share was a loss of 0.03 to 0.05 yuan. FAW Car said that in the first half of 2012, affected by the fierce competition in the domestic auto market, the company sold a total of 91,700 vehicles, a decrease of 35.50% compared with the same period of last year, while the price of product sales fell, the gross profit margin decreased year-on-year, and the expenses during the period increased. Due to the combination of factors, the company's performance in the reporting period has decreased significantly compared with the same period of last year, and the profit index has suffered a loss.

The adjustment of the auto market has also given some auto companies an opportunity. Among them, FAW Xiali issued a pre-addition announcement, saying that it is expected that the net profit attributable to the shareholders of the listed company from January 1, 2012 to June 30, 2012 would be approximately 78.25 million yuan to 101.25 million yuan, an increase of 70 percent over the same period of last year. %-120% basic earnings per share ranged from approximately RMB 0.0491 to RMB 0.0635. The increase was mainly attributable to the increase in production and sales of Tianjin FAW Toyota Motor Co., Ltd., a company in which FAW Xiali took a share, as compared with the same period of last year, which contributed to a significant increase in investment income over the same period of last year. Great Wall Motor also released information, its operating income, operating profit, total profit, net profit showed an upward trend, the increase was: 28.79% 31.81% 30.98% 27.95%

The division of profit of different car companies also led to the adjustment of institutional expectations for different car companies. Recently, BOCOM International released a research report. Since the sales growth of the auto industry in the first half of the year was slightly lower than the market average, the policy aspect was generally negative for the industry and maintained the automotive industry's synchronous rating. At the same time, BOCOM International lowered the profit forecast and target price of BYD, GAC Group and Brilliance China, but maintained the original profit forecast of Great Wall Motors Geely Automobile and Dongfeng Group.

Compared with the profit differentiation of passenger car companies, commercial vehicles suffered heavy losses in the first half of the year, and the decline in profits brought about by the decline in sales volume was gradually reflected in the interim report. Among them, Dongfeng Motor Co., Ltd. announced that its pre-reduction of interim results announced that the net profit attributable to shareholders of listed companies in the middle of 2012 was down 60%-70% year-on-year. The net profit attributable to the parent company was 294 million yuan, and the earnings per share fell to 0.1473. yuan. Dongfeng Motor said that the decline in performance was mainly due to the overall decline in the mid- and heavy-duty truck market in the first half of the year, which led to a significant decrease in sales of Dongfeng Cummins Engine Co., Ltd., which resulted in a drop in the company’s investment income; and due to weak growth in the light-duty truck market in the first half of the year, sales of light trucks were higher than Year-on-year decline.

In addition, Jiangling Motors’ operating revenue for the first half of this year was RMB 8.72 billion, a year-on-year decrease of 5.42%. Operating profit was RMB 1.068 billion, a year-on-year decrease of 17.22%. Total profit was RMB 1.078 billion, a year-on-year decrease of 16.53% attributable to shareholders of the listed company of RMB 817 million. 24.18% decline Jiangling Motors said it sold a total of 102,614 vehicles in the first half of the year, a year-on-year decrease of approximately 3% including 26,902 Ford-brand commercial vehicles, 35,126 JMC brand trucks, 40,586 JMC brand pickup trucks, and Yusheng brand SUVs, with a drop in profits. This is mainly due to the increase in sales of promotional products, declines in sales due to the decline in the commercial vehicle industry, strategic price reductions, and changes in sales mix in response to a fierce competitive environment.