In the first quarter of this year, the sales profit rate of the automotive industry reached 7.3%, a decrease of 0.5 percentage points from 2017. In 2017, the sales profit margin has dropped by 0.4 percentage points compared with 2016. As a whole, the profit rate of the automobile industry has been declining in the past two years]

Affected by rising raw material prices, the statistics of the Bureau of Statistics show that the profit of the automobile manufacturing industry fell by 4.7% in the first quarter of this year, which affected the profit performance of car companies and parts companies to some extent.

A quarterly report released by FAW Car (000800.SZ) shows that its operating income increased by 1.03% from January to March this year, reaching 7.146 billion yuan, and the average operating income growth rate of the automobile industry was 13.84%; belonging to shareholders of listed companies. The net profit was 52.22 million yuan, a year-on-year decrease of 67.71%.

In the cause of the decline in performance, FAW Car said that fluctuations in raw material prices have affected the company's earnings to some extent. Coincidentally, another component company, Ningbo Huaxiang (002048.SZ), in the quarterly report released, also highlighted the impact of the price increase of raw materials on the performance of the company. Ningbo Huaxiang's net profit for the first quarter of this year fell 45.64% year-on-year. The company said that the proportion of raw material price increases to performance should account for 1/3.

Raw materials rise affects profits

Since the beginning of 2017, the prices of domestic steel, non-ferrous metals and other raw materials have continued to rise, and the automobile industry chain is facing cost pressures. Xiang Xingchu, the general manager of Jianghuai Passenger Vehicle Company, said in an interview with reporters about the cost of the construction of Jianghuai Weilai. Fortunately, the factory has been completed. Otherwise, if it is rebuilt this year, the estimated cost will increase by about 30%. Over the years, the cost of construction steel has doubled.

The price of cold-rolled steel commonly used in the automobile manufacturing industry has also been rising in the past year. Due to the price of materials, some companies in the heavy truck industry have announced an increase in prices last year. Affected by the overall competitive environment, the gross profit margin of listed passenger car companies in the first quarter fell year-on-year. Shen Wan Hongyuan's research report data shows that in the first quarter, the passenger car revenue of listed companies increased by 16.7% year-on-year, which performed well, but the gross profit margin fell by 0.9 percentage points. In addition, the impact on the net profit of listed companies also included the increase in interest rates. The financial costs have risen. According to data from the National Federation, the sales profit rate of the automotive industry in the first quarter of this year reached 7.3%, a decrease of 0.5 percentage points from 2017. In 2017, the sales profit margin has dropped by 0.4 percentage points compared with 2016. As a whole, the profit rate of the automobile industry has been declining in the past two years.

However, compared with the heavy truck and parts industry, the profit performance of passenger car listed companies generally exceeds the former two. First, compared with the heavy truck industry, raw materials account for a relatively small proportion of the cost of passenger car companies. According to the data of GF Securities, a car and heavy truck with the same price of about 100,000 yuan, the former's raw materials in the total cost of 5% to 15%, the latter is 20% to 30%, of which steel accounts for the proportion of raw materials costs It is 70%. In addition, compared with component companies, vehicle manufacturers have the ability to pass on costs to suppliers. Therefore, the former's profit margin is higher than the latter.

Car enterprise profit differentiation accelerates

Although cost is one of the direct factors affecting profit, in the long run, the profitability and cost of the automotive industry are not significantly correlated. GF Securities believes that factors directly affecting the profitability of the automotive industry are affected by the inventory cycle in the short term and by the capacity cycle in the medium term. The long-term core influencing factors are demand and competition.

In other words, in essence, the profit performance of car companies is still closely related to sales volume and market competitiveness. Because of this, it is also facing cost pressure. SAIC Group (600104.SH) still handed over a bright financial report in the first quarter, with operating income of 234.853 billion yuan, up 21.7% year-on-year; net profit of 9.707 billion yuan, up 17.5 year-on-year. %. Excluding the part of the consolidated statement of equity acquisitions, SAIC’s net profit in the first quarter still increased by about 8%. Correspondingly, SAIC Group's sales in the first quarter rose by 10% year-on-year to 1.822 million units. The sales of self-owned brands Roewe and MG increased by 54% to 182,000.

Guotai Junan analysts are optimistic about SAIC's performance this year. The reason is that although the investment contribution of GM and Volkswagen joint ventures is expected to be flat in 2018, independent brands have begun to boost their performance. In the first quarter, when the investment and income of the joint venture company were flat, the main performance still contributed 440 million yuan in profits. In the other quarter, with the sales of independent new cars RX3 and MG6 reaching scale effect, R&D expenses began to be capitalized. The sales rate of SAIC Group in the first quarter also decreased slightly, from 6.48% in 2017 to 6.28%.

At this year's Beijing Auto Show, Roewe's 7-seat SUV model RX8 was officially launched. Wang Xiaoqiu, vice president of SAIC Group, general manager of passenger car company and director of technology center, said in an interview that Roewe has gradually formed a large, medium and small product layout in the SUV market with the launch of this seven-seat model. In addition, Roewe The average selling price of RX5 is more than 200,000 yuan. SAIC is the only car company in its own brand that can achieve 20,000 monthly sales in the SUV market of more than 200,000 yuan. According to official data, Roewe RX8 has received more than 6,000 orders from its release at the end of last year. Guotai Junan expects that the growth rate of SAIC Group will reach more than 12% in 2018 under the sales increase of its own brands and the capitalization of development expenses.

Due to the adjustment of net profit last year, GAC Group's profit of 3.88 billion yuan in the first quarter seems a bit unsightly, with a growth rate of only 1.34%. However, the self-owned brands performed well. The sales volume in the first quarter increased by 23% year-on-year to 150,000. Due to the good performance of independent brands, the gross profit margin of Guangzhou Automobile Group continued to rise to 24.52% in the first quarter, an increase of 1.52 percentage points from the previous quarter. Compared with GAC, Dongfeng Group's own brand performance was flat. Therefore, although the financial report was bright, the profit in the first quarter rose by 84%, but only 129 million yuan.

Fuel consumption integration pressure drags down the Great Wall

Among the autonomous car companies, the Great Wall profit recovery. Net profit for the first quarter reached 2.08 billion yuan, a year-on-year increase of 6.46%. Although Jianghuai Automobile (600418.SH) has improved its performance, it still fell by 23.46% to 209 million yuan in the first quarter. Although Zhongtai Automobile expects net profit in the first quarter to increase by 3-4 times to 125 million yuan to 156 million yuan. However, they are all due to the acquisition of equity.

In fact, the profit differentiation of car companies has become more and more obvious in the past two years. The joint venture car companies in SAIC and GAC have grown steadily. The self-owned brands have a strong rise in the Geely, and the Great Wall has also recovered quickly after adjustment, but including Dongfeng, Chang'an and Jianghuai. Zhongtai and so on are relatively depressed.

Beginning in 2018, with the official implementation of fuel consumption points, the new policy will further affect the profitability of car companies. Great Wall Motor said in a quarterly report that the sales expenses in the first quarter increased by about 50% to 1.17 billion yuan. The increase in expenses was due to the accrued fuel consumption and negative points. 2017 Great Wall Motor's fuel consumption has a negative score of 159,800 points. Even if it offsets 9848 new energy positive points, Great Wall needs to purchase a large number of points to offset 150,000 fuel points. In addition, in 2016, the Great Wall has 234,500 negative points to be offset. Outside the Great Wall, 2017 Changan Ford, Dongfeng, FAW Toyota and GAC Fiat Chrysler all have more than 140,000 negative points that need to be offset by new energy points or purchase points. It is foreseeable that this will also affect the enterprises. The performance of listed companies.

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