The Zhitong Finance App learned that the earnings forecasts for the 2023 semi-annual performance of A-share listed companies are being disclosed in an orderly manner. The auto parts industry is “blossoming more” and the overall results are impressive. According to statistics, as of July 19, out of 225 A-share auto parts companies, a total of 81 companies had disclosed their interim reports, with a disclosure rate of over one-third. Among them, a total of 60 companies reported net profit forecasting and 21 forecasting losses. In total, they account for more than 70% of companies that have disclosed their semi-annual performance forecasts. According to reports,Increased orders and strong overseas demand are the main reasons for the growth in the performance of most auto parts companies.Looking ahead to the second half of the year, many parts companies reported “full orders on hand.”
Specifically, in terms of individual stocks, a total of 7 companies are expected to increase their net profit by more than 500%, while 31 companies are expected to exceed 100%. Among them, Linglong Tire's net profit is expected to increase by 373%-445% year-on-year during the period; Junsheng Electronics expects a maximum increase of 552.38% in net profit.
Linglong Tire expects net profit of 520 million yuan to 600 million yuan in the first half of 2023, an increase of 410 million yuan to 490 million yuan, an increase of 373% to 445% over the previous year; net profit after deducting non-recurring profit and loss will be 490 million yuan to 530 million yuan, an increase of 4800%-5200% over the previous year.
Linglong Tire said that in the first half of 2023, benefiting from the continued recovery of domestic economic activity and rising demand in overseas markets, compounded by falling raw material prices and shipping costs, the company seized market opportunities and actively explored the market. Product sales achieved significant growth. Sales volume increased 23.2% year-on-year in the first half of the year, of which semi-steel tires with higher gross profit increased 28.11% year-on-year.
Junsheng Electronics expects to reverse losses in January-June 2023. Net profit attributable to shareholders of listed companies will be 475 million yuan, net profit will increase 552.38% year on year, and estimated operating income of 27.00 billion yuan. Junsheng Electronics announced that with the gradual recovery of demand in major global automobile markets, the gradual stabilization of supply chains, and the rapid development of smart electric vehicles, the business environment of the industry has improved, and the company's various businesses continued to grow steadily in the first half of 2023.
According to information, in the first half of 2023, Junsheng Electronics continued to deploy in advanced autonomous driving, etc. During this period, Junsheng Electronics released nDriveH, the first autonomous driving domain controller based on Qualcomm chips, and signed a strategic cooperation agreement with Horizon to jointly help promote the development and implementation of high-level autonomous driving solutions.
According to the Forward-looking Industry Research Institute, China's auto parts are currently in the transformation stage. The main strategies of enterprises are also focused on the localization of core components. R&D investment in automotive electronic systems, automotive semiconductor chips, and engine sets has continued to expand, and the amount of investment in core spare parts manufacturers has also continued to increase in the past two years. As the level of product development and technological breakthroughs in China's domestic auto parts industry continues to rise in the future, the trend of import substitution of domestic auto parts will become more obvious.
Cinda Securities pointed out,Benefiting from the Tesla industry chain and intelligent sector, which is a leading NEV company, the auto parts sector will show higher growth elasticity.Judging from the market transaction situation, the auto parts sector has continued to be strong in the past month, and sales volume has increased. The sector's performance is superior to that of passenger cars and commercial vehicles.
Anxin Securities suggests focusing on high performance alpha companies from the two perspectives of high growth tracks and strong driving forces:1) Prefer segmented tracks with good growth,It is recommended to focus on low penetration rate tracks and low domestic replacement rate tracks;2) Be optimistic about individual stocks that have a strong driving force for their own growth,It is recommended to focus on the following 3 types of parts companies. First, strong autonomous vehicle companies and new energy vehicle supply chain companies; second, companies with an early and perfect global layout; and third, companies that have successfully pioneered a second growth curve.
Focus on the following targets:Mingxin Xuteng (benefiting from increased penetration rate of suede microfiber), Songyuan Co., Ltd. (benefiting from domestic replacement of passive automotive safety systems), Jifeng Co., Ltd. (benefiting from domestic seat replacement), Baolong Technology (benefiting from domestic sensor replacement), Xinquan Co., Ltd. (excellent customer structure), Ruihu Mold (rapid expansion of parts business), etc.
Related concept stocks:
Zhejiang Shibao (01057): Since its establishment, the company has focused on the development and production of automobile steering systems. In line with the trend of automobile steering system upgrades, it has successively developed mechanical steering systems, hydraulic power steering systems, and electric power steering systems.
Nexteer (01316): Haitong Securities previously stated that the shift to wire control is expected to become an important growth point for the company. More and more existing and potential customers are showing interest in the company's SBW technology and are seeking the company's leading technology.
Tianrui Auto Interior (06162): The company is the largest manufacturer of heavy truck interior parts in northwest China. The company's products mainly include various automotive interior parts used in heavy trucks or passenger cars, followed by exterior parts.
Yingheng Technology (01760): The company mainly provides original equipment manufacturers and their suppliers in the automotive industry with key automotive electronic component solutions for new energy, body control, safety and power transmission systems.