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Affected by factors such as the industry cycle and industrial slowdown, the overall performance of China's commercial vehicle companies in 2012 was poor. The industry experienced negative growth for two consecutive years after reaching the highest point in 2010 and entered a low period. However, in 2013, from the quarterly report of related companies, commercial vehicles began to show signs of bottoming out.
Recently, Foton Motor released a quarterly report. In the first quarter, the company sold 171,100 vehicles, and its core product, heavy trucks, achieved sales of 27,000 units, a year-on-year increase of 8.7%. The company's market share reached 11.3%, up 2.1% from the same period of last year. During the reporting period, the company exported 10,700 vehicles, an increase of 17.8% over the same period of last year.
“The long-term potential growth rate of commercial vehicles is closely related to the country’s economic growth and industrialization process. From the fundamental observation, after the first three quarters of 2012, in December of last year, the sales of commercial vehicles in China increased by 8.2% year-on-year. On the basis of this, the positive growth of the industry in 2013 will be a high probability event,†said an auto industry researcher who declined to be named in an interview.
Fukuda's 173,100 Sales Leading Industries
According to the quarterly report of the company, Foton Motor achieved operating revenue of RMB 8.4 billion in the first quarter, but with the Auman business, Foton Motor will achieve a revenue of RMB 13 billion in the first quarter, which is basically the same as RMB 13.5 billion in the same period of last year. From a profit perspective, Foton Motor achieved a profit of 220 million yuan in the first quarter, and Auman’s business was approximately 350 million yuan, which was lower than the 4.9 billion yuan operating profit after deducting 1.17 billion Auman’s joint venture restructuring profits in the same period of last year. About 140 million yuan.
“The operating costs of the new plant will have a decisive impact on the profit of Foton Motor in the first quarter, but with the gradual formal operation of the Beijing multi-functional automobile plant and the Ouhui Bus Factory II, it is expected that it will have a positive effect on Futian’s follow-up profit improvement.†The person said.
According to him, Fukuda's sales volume of 171,100 units in the first quarter was nearly 40,000 higher than that of Dongfeng Motor, and its sales of JAC's commercial vehicles nearly doubled. It is also known that under the situation in the market where the commercial vehicle market continues to be sluggish, Foton Motor has achieved the first domestic sales of commercial vehicles for nine consecutive years.
The above sources added that due to the industrial recovery and the optimization of the Futian business structure, the period in which the company’s main profit earners fell into disappointment has passed. In the future, the company is expected to benefit from the continued recovery in the heavy truck market and the expansion of the mid- to high-end light truck market.
Orient Securities also said that due to improved demand for heavy trucks, Foton Motor's earnings in 2013 will continue to improve. It is estimated that in 2013 the heavy truck industry sales will grow by more than 10% year-on-year. The sales growth of Foton Motor's heavy truck sales will still be higher than the industry growth rate; the production and sales of joint ventures such as Foton Cummins Engine will continue to increase, and the self-supply ratio of key components is expected to increase. At the same time, the utilization rate of Foton Motor's capacity will improve with the improvement of the trend of the commercial vehicle industry, and the development prospects will be considerable.
Commercial vehicle industry will bottom out
In 2012, the sales of commercial vehicles in the national automotive industry fell by 5.49% year-on-year, and the sales volume in the commercial vehicle market fell by more than 5% for two consecutive years. Have to say, "The commercial vehicle industry is at a historical low for 20 years." The above researcher frankly said.
However, he added that from the sales data of the companies in the fourth quarter of 2012, the commercial vehicle market has shown signs of stabilizing. Since last year, the number of major projects approved by the National Development and Reform Commission has approached one hundred, and the launch of such projects will open up space for the development of the medium and heavy truck market in 2013.
At the same time, the Ministry of Environmental Protection requires that, starting on July 1, 2013, all vehicle compression ignition engines and vehicles produced, imported, sold, and registered must meet the national standards. According to this announcement, "the first half of this year will be the final transition time before the implementation of diesel vehicle standards, which may stimulate sales of national products." The above said.
In other words, after experiencing the industry downturn, the 2013 commercial vehicle is not far from dawn! Recently, the China Automobile Association released data show that from January to March 2013, China's passenger car sales of 108,900, an increase of 6.67%. Among the main varieties of passenger cars, medium-sized passenger cars have fallen slightly, large passenger cars have slightly increased, and light passenger cars have maintained rapid growth. From January to March, the number of large passenger cars sold was 17,300, an increase of 1.02% year-on-year; medium-sized passenger cars sold 15,600, a year-on-year decrease of 3.75%; light passenger cars sold 7,600, an increase of 10.53% year-on-year.
In addition, from the nature of fuel, passenger cars and other fuel vehicles continue to maintain a relatively rapid growth, diesel passenger cars have declined. From January to March, the number of gasoline passenger cars sold was 32,500, a year-on-year increase of 32.80%; sales of diesel passenger cars were 65,800, a year-on-year decrease of 8.29%; sales of other fuel buses were 10,600, an increase of 80.62% year-on-year.
"It is expected that China's economy will recover moderately in 2013. Commercial vehicle companies will continue to tap new growth points, a large number of infrastructure projects will be launched, and the National IV standard will be fully implemented on July 1, which will make China's commercial vehicle market especially successful. The heavy-duty card market is gradually showing a warming trend, said Ma Ying, an analyst at Yintong Zhili.