What's New

As of April 22, 113 A-share auto parts listed companies that have disclosed the 2023 annual report, nearly 80% of the companies achieved A year-on-year increase in net profit, including 16 companies such as Weifu High-tech, Bojun Technology, Kehua Holdings, and more than 100% net profit growth, showing the strong growth momentum in the industry.

Industry experts pointed out that the companies with high performance growth are mainly concentrated in the fields of auto parts, electronic and electrical appliances, rubber products, and engine parts. These areas of market demand continues to grow, rapid technological update, high value-added products, for the company has brought higher profits.

In terms of net profit growth, Weifu High-tech, ST Paling and Kehua Holdings ranked among the top three, with growth rates as high as 1446.28%, 680.46% and 530.94%, respectively. In addition, Zhejiang Shibao, Wan 'an Technology, Soling Shares, Yingbo, Feilong Shares and other companies have also achieved more than double digit net profit growth.

Many companies in the annual report mentioned the growth of orders, sales growth, export growth and other reasons for performance changes. Weifu Hi-Tech said that its sales of four-cylinder supercharger products hit a record high, sales of motor shaft products increased by nearly 1.5 times year-on-year, and overseas markets also maintained growth. Kehua Holdings and Feilong Shares also mentioned a steady increase in domestic and international customer demand, sales volume increased from the same period last year, and benefited from the growth of new energy thermal management products and the simultaneous growth of export markets.

Industry analysts believe that these companies have strong research and development strength and technical advantages in the field of auto parts, and can improve profitability by optimizing production processes and reducing costs. At the same time, with the transformation and upgrading of the global automotive industry, the export demand for auto parts is also continuing to grow, opening up new growth space for the company.

However, not all companies have achieved good results. Nine out of 113 listed companies lost money last year. These companies are mainly concentrated in the traditional auto parts sector, which is affected by multiple factors such as shrinking market demand, fierce competition and lack of scale.

Despite the performance differentiation, the internationalization trend of the auto parts industry is becoming increasingly significant. According to the customs data organized by the Passenger Association, China's auto parts exports reached 87.7 billion US dollars in 2023, an increase of 9%. Many companies such as Feilong shares, Qingdao Double Star, General shares, etc., are accelerating overseas expansion, further expanding overseas markets by building overseas factories and improving global production capacity layout.

Industry experts pointed out that the expansion of overseas markets by relevant companies is an important embodiment of the implementation of globalization strategy, which helps to create new growth points, improve technical level and management capabilities. With the transformation and upgrading of the global automotive industry and the improvement of environmental protection, safety, intelligence and other requirements, the future prosperity of the auto parts industry is expected to continue to increase, and the trend of enterprise internationalization will be irreversible.

Article from "World Wide Web"

___________________________________________________________________________________________________________________________________________

2024 China (Taizhou) Int'lAUTO PARTS &SERVICE SUPPLIESExpo will be held in 2024.9.19-22,Taizhou International Expo Center(558 Xinhai Road, Jiaojiang District, Taizhou)

 Three new energy pure tram technology supply chain display, three traditional auto parts product display NIO, Geely, GAC and other dozens of automakers participated.