This year's annual production and sales of domestic automobiles are expected to hit a new record of 12 million vehicles. It seems that the stimulus to auto stocks is not small. In the past few days, the automotive sector has continued to outperform the broader market, and quietly, some companies have also targeted the “cross-border” investment in the automotive sector.

A few days ago, Jingshan light machine, which was originally engaged in paper product packaging machinery, suddenly announced that it had “significantly” entered the production of automobile castings. The company said it will invest 690 million yuan to build an annual production of 100,000 tons of casting production lines, the products mainly include brakes, clutches, cylinders, cylinder heads and other series of parts castings, the main business will be in addition to paper products packaging machinery plus casting business.

Then, Jingshan light machine chooses this time to intervene, whether it has chosen the right time, whether it can taste the “sweetness” of rising production and sales? How large is the current industry opportunity for auto and parts listed companies?

According to the latest data, the performance of domestic auto parts listed companies is lower than that of the entire vehicle industry. 27 listed manufacturing companies have realized operating revenue of 34.592 billion yuan, a year-on-year decrease of 17.79%, and net profit of 2.393 billion yuan, a year-on-year decrease of 23.82%. Both revenue and profit fell.

But the opportunity is not there. Insiders pointed out that although the parts and components industry appeared to have the above situation, the gross profit margin remained stable. At the same time, the share of total exports of auto parts and components, the overall share of exports of listed companies is not large, the performance is more dependent on the domestic market demand, and the auto industry is facing the optimistic situation of demand release in the second half.

Judging from the current situation, the domestic auto market will enter the traditional sales season from “September to December” in the second half of the year. According to a report from China Gold Securities, the fundamentals of the auto industry have not changed in the near future and are in second and third-tier cities. Driven by the combination of rural demand and export recovery, there are still many investment opportunities in the automotive industry in 2010.

However, the incentive to halve purchase tax in the current revitalization plan is implemented until December 31 this year. Whether or not it will continue to be implemented next year still has many uncertainties. There may be a certain concentration of car purchases in the fourth quarter, so the automotive industry has more opportunities. Focus on the short term. Insiders pointed out that the current situation in which the auto industry is in short supply will not continue for a long time. In particular, domestic parts and components manufacturers must face fierce competition, and they must also have the ability to cope with joint ventures and vehicle companies.

However, for Jingshan Light Engine, as the company has just started investing, it cannot enjoy short-term benefits. Therefore, the analyst's view is that for companies like Jingshan Qingji, this investment is not a short-term opportunity. Jingshan Light Machine also stated that this “starting another” move is in the future of the domestic automotive industry. The company stated that its focus is on the steady growth of China's automobile production in the next 5 to 10 years. In particular, the proportion of cars and heavy-duty vehicles will grow faster, and this trend is bound to strongly stimulate the development of the automotive foundry industry. The prospects are very broad.

This judgment has also been affirmed by people in the industry. “In the long run, the auto industry is good for 10 to 20 years, and it is normal for companies to continue to intervene.” Insiders told reporters that the accumulation and release of auto consumption itself has a certain periodicity, generally 1.5 Years to two years or so, and as a component manufacturing company, the production line construction time also depends on the cast parts. Therefore, the "sweetness" of Jingshan Light Engine should be behind.

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Hangzhou Yibo Machinery Co.,Ltd, founded in 2003 is an professional machinery manufacturer for design, produce, service and trade.

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