Auto parts industry in the current round of rebounding performance in the eye-catching

On October 26th, under the background of the broader market volatility in Shanghai and Shenzhen, the SWS equipment industry index fell slightly by 0.28%. However, sub-sector auto parts and components performed relatively well, China Aviation Precision Machinery Co., Ltd. hit a daily limit, Sailing shares, and universal wave of money. ST Songliao rose 6.73%, 4.32%, 3.20%, but the industry leader Huayu Automobile and FAW Fuwei fell 3.61%, 3.02%.

The auto parts industry has performed well in this round of rally. Since October, the auto parts index has increased by 16.5%. Weichai Power, Sailing, SAIC Precision Machinery, and FAW Fuwei surged 41.22%, 37.83%, 33.13% and 24.33%, respectively.

In terms of industry fundamentals, industry experts stated that with the development of China's economy, the automotive industry has ushered in a period of rapid development, and the industrial upgrading trend is irreversible. In 2009 and 2010, China's auto production and sales all showed rapid growth. With the gradual development of the new energy automotive industry in the Twelfth Five-Year Economic Plan, the automotive industry will face more room for development, which also puts forward better requirements for auto parts manufacturers.

As far as the current automobile industry is concerned, the entire vehicle production and sales market is expanding, but there is still much room for development in related maintenance and service. Shanxi Securities analyst Bai Yu issued a report pointing out that at present, China's spare parts industry is very different from the international level, and the rise of excellent parts and components enterprises is an inevitable outcome of the industrial upgrading process. The future parts industry will develop faster than the entire vehicle industry. .

Chen Yin, Monita Industry Analyst, believes that as the income of residents increases, cars tend to be closer to ordinary consumer goods than high-end consumer goods. In this large market environment, the auto industry cycle will Gradually get rid of the typical cycle of the past, and then enter a "new normal." The volatility of future sales will tend to be stable, and the stable level of gross margins in the industry will also become one of the new normal conditions in the automotive market.

Bai Yu pointed out in the report that as the most typical manufacturing industry, the efficiency increase brought about by the economies of scale is very obvious, and an important way of doing large-scale production is to supply goods independently. At the same time, vehicle manufacturers have imposed higher requirements on the integration and modularization of component products for reasons such as cost and technology, and the industry trend has prompted the component industry to be expected to create large international companies in the future.