Wind data show that as of 15 October press release, A-share market auto parts plate has 12 listed companies released 2024 the first three quarters of performance forecast, of which, 10 are expected to the first three quarters of net profit year-on-year growth.

Industry insiders believe that the rapid growth of the new energy vehicle market for auto parts enterprises has brought new growth opportunities, while the expansion of overseas markets has become another key driver of industry growth. With the continued increase in exports, the auto parts industry's overseas market is expected to further expand.

Specifically, Shanghai Yanpu, for example, the company is expected to achieve net profit attributable to shareholders of listed companies in the first three quarters of 2024 is about 107 million yuan, is expected to increase by about 68% year-on-year. The company said that the main reason for the increase in performance is due to the increase in the number of new projects of the company's mass production during the reporting period, the market order quantity is sufficient, the company's capacity utilisation rate is improved, and the cost is reduced accordingly.

Bojun science and technology, the company expects the first three quarters of this year to achieve net profit attributable to shareholders of listed companies for 345 million yuan to 400 million yuan, an increase of 90% to 120%. Performance change is due to the company's orders during the reporting period, hybrid vehicles, pure electric vehicles rapid volume, the company's new energy vehicle body modular products revenue steadily increased.

International Association of Intelligent Transportation Science and Technology Secretary General Zhang Xiang said in an interview with the reporter, given that the new energy industry is currently in a phase of rapid growth, early layout of the enterprise in the first three quarters of the financial performance will be more eye-catching, ‘coupled with a number of policies introduced by the state, such as the old for the new, new energy vehicles to the countryside, etc., are on new energy automobile related industries have a positive impact, is expected to The overall growth rate of auto parts companies in the second half of the year will exceed the first half.’

It is noteworthy that a number of auto parts companies in the performance forecast emphasised its positive progress in overseas markets.

For example, Yinlun shares mentioned in the announcement, the company actively expand the international market, continue to promote the operational excellence of overseas operations, the profitability of overseas operations significantly improved; Sailun tyre said that the company according to the established strategy to continuously increase investment in research and development and continue to carry out technological innovation, etc., corporate globalization strategy, scientific and technological innovation and brand building and other work effects continue to appear; Linglong tyre said that in 2024 The company actively carries out product upgrading, and continues to carry out structural adjustment in domestic and international retail and supporting markets, while the second overseas base releases production capacity one after another, providing support for the growth of production and sales in overseas markets; Shuanghuan Transmission said that the company will focus its resources on expanding the overseas market, striving for more business landings, and further enhancing the share of the global market.

Ji Xuehong, director of the Automotive Industry Innovation Research Centre of the Northern Polytechnic University, said to the reporter that the expansion of overseas markets for automotive parts and components will become a key opportunity to promote the growth of the industry. With the continuous increase in exports, the overseas market for auto parts is expected to expand further. In the long run, going overseas will be one of the biggest highlights of China's auto industry in the next decade.

‘Those companies that have established solid supporting relationships with OEMs, as well as those that provide new energy and intelligent-related parts, such as suppliers of triple-electric systems (batteries, electronic controls, motors), intelligent cockpits and intelligent driving technologies, will show stronger growth momentum, and exports of products in these areas will grow at a relatively fast pace.’ Ji Xuehong said.

Source: Securities Daily