Intensive listing of auto parts companies

The low boom of the auto industry does not prevent the car companies from listing their enthusiasm. According to the statistics of the weekly updated IPO data of the China Securities Regulatory Commission, a total of 11 auto parts, automobile distribution services and auto aftermarket enterprises have entered the listing stage in the two cities. However, a number of industry experts interviewed said that apart from individual automotive electronics and car dealerships, most of the companies listed on the stock market are still concentrated in the manufacture of traditional auto parts such as automotive plastic parts, steering gear, and automobile wheels. The technical content is not high. , Competitiveness is not strong, belonging to the second and third line of parts suppliers, its growth is doubtful.

The Issuance Supervision Department's initial public offering of stocks for the company's basic information (as of February 9, 2012) shows that the main board is in the "implementation feedback" of a total of eight companies, and there is one enterprise under "initial review." There are two companies in which GEM is in "implementing feedback."

Tian Yongqiu, a senior expert in the automotive industry, said that the reasons behind the listing of Chinese automotive parts and components are manifold, but overall, this is an era in which China’s auto parts industry faces bank credit tightening and private lending. One of the reflections of the financing difficulties of SMEs in the background. Listing is one of the few financing channels currently available to Chinese auto parts companies.

Tian Yongqiu believes that China currently has tens of thousands of auto parts companies. Excluding parts and components that are individually attached to the Grand National Automobile Group, the vast majority are smaller. China’s auto parts industry has a typical “20:80” phenomenon because it does not have a 50:50 ratio limit, that is, the profits of Chinese auto parts companies that account for more than 80% of the profits are only about 20%, because The core technology that does not own key parts and components, profits are taken away by foreign monopoly of technology, and in the dialogue with the main engine plant, they basically have to “install grandchildren” and have no right to speak.

On the other hand, Tian Yongqiu said that on the one hand, the domestic parts and components industry also has to bear the technical pressure from foreign funded and technologically-owned parts and components companies, and is also increasingly receiving low prices in terms of product costs from South Asian countries such as Vietnam and India. competition. Faced with many challenges, affiliating with the OEM's "big tree", aggressively expanding production capacity, and overseas mergers and acquisitions have become options that component companies can consider. To achieve this, it is urgently needed to achieve financing through listing.

For the entire automotive industry, Tian Yongqiu also mentioned that after experiencing two years of ultra-high growth in 2009 and 2010, vehicle sales in 2011 only increased by 2.45% year-on-year, the lowest in 13 years. In the event of a sluggish market, it is common for the entire automobile industry to lower market risks, such as lowering prices of automobile companies and increasing prices of raw material companies. Last year, the A-share vehicle segment fell 23% throughout the year, while the parts and components segment fell by 27%.

China Merchants Securities (10.96, 0.02, 0.18%) Wang Susheng, chief analyst of the automotive industry, told reporters that the current auto industry is still continuing the "weak market" situation since the second half of last year. With the recovery of rigid consumer demand this year, the Chinese auto market is expected to show Recovery growth, annual sales growth is expected to reach 5% to 10%.

"But the current valuation of mid-sized companies in the auto sector is about 15 to 20 times, only half of the peak in the second half of 2010, and the pricing of new listed companies is not ideal." Wang Liusheng said, "In addition, under the weak market, The survival and development of spare parts suppliers, but also a specific analysis of the "resilience" of large customers in the joint venture brand and the proportion of foreign brands."

Fu Wuwu, executive vice chairman and secretary-general of the China Association of Automobile Engineers, said that the search for parts and components companies is not necessarily related to the current industry boom, and more is to seek standard management and long-term development. Fu Yuwu also admitted that the “money shortage” of parts and components companies still exists, and their profitability is poor, which is lagging behind the development of vehicle companies.