Car manufacturing: Quotes have not yet finished


With the rapid deterioration of the broader market, automobile stocks have also come under fire, and Shanghai Auto and Changan Automobile have all declined to varying degrees. Whether or not the city will continue to perform will be the focus of the market.

From January to June, the cumulative sales of domestic cars increased by 23.3% year-on-year, with sales of heavy trucks, SUVs, micro-cards, China Cards, and cars surpassing industry averages, up 67.3%, 39%, 30.7%, 27.5%, and 25.9% respectively. . Judging from the year-on-year growth in sales volume, heavy trucks and cars are still the most eye-catching sub-sectors; in addition, sales of SUVs have risen in April-June. In the booming production and sales situation, the performance of major auto manufacturers also performed well. In the first quarter, 16 key companies (market share over 90%) realized a total profit of 12.8 billion yuan, an increase of 70% year-on-year. Far above the increase in sales over the same period. Among listed companies, China National Heavy Duty Truck achieved a net profit of RMB 127,717,800 in the first quarter, a year-on-year increase of 410.41%. At the same time, the mid-year report increased by more than 100. Shanghai Automotive achieved a net profit of RMB 1,159,776,800 in the first quarter, a year-on-year increase of 372.28%. Increased by more than 300% year-on-year. Although fierce competition in the industry will continue to exert pressure on profitability, in the next two years, the scale effect, the increase in the localization rate, and the continuous increase in the utilization rate of the production capacity will keep the industry's profit margin stable or declining, and the earnings growth outlook remains optimistic. .

The overall listing of SAIC Motors and Weichai Power has effectively improved the asset quality of listed companies. This is an important starting point for the government to promote the future integration of the auto industry, which undoubtedly has significant investment opportunities. Its deeper and significant significance lies in: optimizing corporate asset structure, improving corporate governance structure and operating mechanism, and improving the financing capabilities of listed companies' platforms. Enterprises not only have stronger and diversified financing channels, but also make the merger and acquisition of enterprises more abundant means of integration, creating conditions for the long-term growth of automotive companies. According to industry researchers, the companies expected to achieve overall A-share market listing before the end of 2008 include FAW Group, Beijing Automotive Group, Dongfeng Group, CNHTC Group, Southern Auto Group and Beiqi Holding. Recently, the activities of FAW-listed companies such as FAW Car are not unrelated to this.

On the whole, at the current valuation level, the overall valuation of the auto industry remains low, focusing on the long-term investment value of leading companies with international competitiveness and China's comparative advantages. (Tianxin Investment Wang Fei)

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