Major public-listed truck makers and related suppliers recently released their financial performance for the first half of 2014.
Data shows that heavy-duty truck sales were higher than those of light trucks while supplier sales were higher than those of OEMs. The higher financial performance of Weichai Power and Weifu High Technology indicates that suppliers were winners in the market with large fluctuations in emissions standards policy instead of OEMs.
According to the statistics, financial performances of truck makers were better than that of light truck makers in the first six months this year.
Benefiting from lower pricing of raw materials and growing trend in the first half of heavy-duty truck market with growth rate of 6.5 percent on a yearly basis, Sinotruk (Hong Kong) and CNHTC Jinan Truck both saw dynamic growths.
Focusing on heavy-duty truck and engine businesses, Weichai Power also performed well in the first half.
However, CAMC Hualing went against market trend mainly because it was busy in promoting other products last year such as engines, transmissions and special-purpose vehicles. The company performed poorer mainly due to the downturn in special-purpose vehicle sales affected by the slowdown in fixed asset investment.
Financial performance of light truck makers, unlike that of heavy-duty truck makers, showed a decline, which may be caused by slowdown in macro economy and sluggish domestic consumption. Fake State-IV emissions standards products were rectified by the government from this May under the pressure of media exposure, resulting in medium and light truck sales decline from May to July. JMC is the only light truck maker experiencing a sales increase. Truck makers cannot predict the trend in such a policy-driven market.
Promoted by short demand of after treatment systems meeting State-IV emissions standards and High Pressure Common Rail System, Weifu High Technology saw sharp increase in sales.
Commercial vehicle producers will have different development trends under the current policy environment. Weichai Power will hardly see increase in the second half as the heavy-duty truck industry will experience a milder growth or possibly even a decline, while Weifu High Technology is expected to maintain rapid growth in sales and profits benefiting from stricter emissions standards.
The following table shows relevant sales and financial data from the truck makers and suppliers.
|Roundup of truck and related parts makers’ interim results in H1 2014|
|Make||Sales (in units)||Revenue (¥)||Operating profit (¥)||Gross profit margin||Net profit (¥)||Earnings per share (¥)||Asset-liability ratio (%)||Weighted average rate of return on common stockholders’ equity (%)|
|Sinotruk (Hong Kong)||51,130 heavy-duty trucks, up 9.7 percent; 27,830 light trucks, up 13.5 percent; 660 buses, up 26.9 percent||16.75 billion, up 12.7 percent||696 million, up 27 percent||16.6 percent, flat||322 million, up 66.8 percent, with net profit margin 2.5 percent, up 0.7 percentage point||0.12, up 71.4 percent||58.7||N/A|
|CNHTC Jinan Truck||45,884 heavy-duty trucks, up 14.03 percent||12.24 billion, up 19.12 percent||469 million, up 55.32 percent||10.03 percent for vehicles, up 0.22 percentage point; 15.68 percent for parts sales, up 0.62 percentage point||284 million, up 53.4 percent||0.68, up 54.55 percent||72.1||6.89, up 2.02 percentage points|
|Beiqi-Foton||326,117 vehicles in total (including Auman), down 6.1 percent; 70,972 medium and heavy-duty trucks, up 9.5 percent; 230,070 light trucks, down 12.3 percent (including micro vans); 3,367 large and medium buses, up 93.8 percent; 17,446 light buses, up 18.9 percent; 26,708 vehicles exported, up 9.7 percent.||18.8 billion, up 4.71 percent||12.34 million, down 95.3 percent||12.17 percent for light truck, down 1.04 percentage points; 9.27 percent for medium and heavy-duty trucks, up 0.17 percentage point; 13.77 percent for light bus, up 3.59 percentage points; 11.71 percent for large and medium bus, up 3.07 percentage points||288 million, down 29.31 percent||0.103, down 28.97 percent||56.2||1.9, down 0.83 percentage point|
|JAC||242,671 vehicles and chassis (accounting for 44.13 percent of the whole year plan), down 11.27 percent||18.11 billion (taking up 47.64 percent of the whole year plan), up 0.67 percent||359 million, up 32.82 percent||15.17 percent for vehicle, down 1.12 percentage points; 16.27 percent for chassis, up 1.06 percentage points||460 million, down 11.58 percent||0.36, down 12.2 percent||72.6||6.59, down 1.75 percentage points|
|Dongfeng||129,000 vehicles, down 8.3 percent: 83,000 light trucks (including pickup trucks), down 8.8 percent; 28,000 SUVs and MPVs, up 1.1 percent; 16,000 buses and chassis, down 2.6 percent; 100,000 diesel engines, up 9.7 percent||8.96 billion, down 11.08 percent||183 million, 54.55 percent, (investment profit was 234 million, up 21.64 percent)||12.42 percent for SUV and MPV, up 2.37 percentage points; 18.75 percent for pickup truck, down 1.04 percentage points; 11.4 percent for light vehicle, down 2.18 percentage pointst; 12.32 percent for bus and chassis, up 1.91 percentage points||122 million, up 182.73 percent||0.06, up 182.73 percent||60.3||2.03, up 1.31 percentage points|
|JMC||132,938 vehiles, up 21 percent, including 48,353 trucks, 35,511 pickup trucks, 15,369 SUVs, 33,671 light buses and 34 heavy-duty trucks||12.28 billion, up 26.93 percent||1.07 billion, down 2.59 percent||24.9 percent for vehicle, down 1.1 percentage points; 26 percent for parts and components, down 1.9 percentage points||1.16 billion, up 24.2 percent||1.35, up 24.2 percent||45.8||11.93, up 0.97 percentage point|
|CAMC Hualing||11,810 heavy-duty trucks, down 11.48 percent||3.04 billion, down 19.06 percent||101 million, down 28.32 percent||10.42 percent for vehicle and chassis, down 0.76 percentage point; 17.43 percent for special-purpose vehicle, down 0.81 percentage point; 40.02 percent for parts and components, down 0.13 percentage point; 3.29 percent for transporation business, down 0.07 percentage point||90.56 million, down 46.17 percent||0.16, down 60.98 percent||57.6||2.2, down 3.88 percentage points|
|Jinbei Auto||46,362 vehicles, down 16.66 percent||2.72 billion, down 4.5 percent||80.42 million, up 25.23 percent||6.77 percent for vehicle, up 0.19 percentage point; 23.42 percent for parts and components, up 3.66 percentage points||7.01 million, down 79 percent||0.006, down 80.65 percent||89.6||1.74, down 6.89 percentage points|
|Weichai Power||168,300 heavy-duty engines, up 8.5 percent, accounting for 39.2 percent in heavy-duty truck engine market, up 0.7 percent; 10,100 bus engines, up 11.3 percent, accounting for 14.2 percent in large and medium bus engine market, up 2.6 percent||34.11 billion, up 10.32 percent||4.414 billion, up 62.83 percent||23.02 percent for vehicle and key components, up 2.6 percentage points; 13.3 percent for off- highway engine, down 8.15 percentage points; 13.92 percent for other components, down 8.78 percentage points||3.77 billion, up 80.57 percent||1.88, up 80.77 percent||68.4||12.64, up 4.58 percentage points|
|Shaanxi Auto||49,500 heavy-duty trucks, up 5.3 percent||N/A||N/A||N/A||N/A||N/A||N/A||N/A|
|Fast Gear||390,000 transmissions, up 21.8 percent||N/A||N/A||N/A||N/A||N/A||N/A||N/A|
|Weifu High Technology||N/A||3.53 billion, up 22.61 percent||935 million, up 53.58 percent||27.37 percent for gasoline injection system, up 1.04 percentage points; 26.19 percent for air intake system, down 0.79 percentage point; 17.19 percent for aftertreatment system, up 3.13 percentage points||841 million, up 58.02 percent||0.82, up 57.69 percent||26.3||8.41, up 2.47 percentage points|
Source: Company financial performance reports