The main function of the bearing is to support the rotating shaft or other moving bodies, guide the rotational motion or moving motion and bear the load transmitted by the shaft or the parts on the shaft. Bearing is the part of the bearing shaft, known as the "joint of machinery", which has a decisive impact on the performance, quality and reliability of mechanical equipment, and is widely used in industrial production and manufacturing fields such as automobiles, home appliances, wind power generation, mineral metallurgy, aerospace and so on.
According to whether there are rolling elements in the structure, bearings can be divided into sliding bearings and rolling bearings.
Plain bearings have no rolling elements, are generally made of wear-resistant materials, and are often used for low-speed, light-loaded, and difficult-to-maintain mechanical rotating parts.
The rolling bearing is equipped with a rolling element, which turns the sliding friction between the running shaft and the shaft seat into rolling friction, thereby greatly reducing the friction loss, and is mainly used for high-speed, high-precision mechanical rotation parts. According to the different shapes of rolling elements, rolling bearings can be divided into ball bearings, cylindrical roller bearings, needle roller bearings, tapered roller bearings, spherical roller bearings and other types.
The increase in downstream demand has driven the growth of the industry, and the domestic bearing industry has a broad market space. Except for the decline in revenue due to the decline in the automotive industry in 2019, the overall revenue scale of the industry has maintained continuous and stable growth in each year, with a CAGR of 7.02% in the five years from 2016 to 2021. According to the "14th Five-Year Plan" development plan of China Bearing Industry Association, it is expected that the business revenue of China's bearing industry will reach 223.7-258.3 billion yuan in 2025, with an average annual growth rate of 3%-6% from 2020 to 2025.
A car usually needs dozens of different bearings to be installed in different rotating parts, and can be divided into engine bearings, drive train bearings, steering system bearings, air conditioner bearings, etc. according to the installed parts. According to the data of Zhiyan Consulting, the sales volume of automotive bearings will account for 42.1% of the total demand for bearings in 2022, which is the most important application field of bearing products.
After three consecutive years of decline from 2018 to 2020, China's automotive industry has gradually recovered, with automobile sales in 2021/2022 being 26.275/26.864 million units, a year-on-year increase of 3.8%/2.1%, and output of 26.082/27.021 million units, respectively, a year-on-year increase of 3.4%/3.4%, driving the demand for upstream bearings to gradually recover.
Compared with traditional fuel vehicles, new energy vehicles have canceled the engine and gearbox, increased the three-electric system and other intelligent configurations, according to the Wuzhou New Year announcement, the number of new energy vehicles with bearing bicycles is about 20 less than the number of traditional fuel vehicles, but due to higher technical requirements, the price is also slightly higher, it is estimated that the total value of new energy bicycle bearings is comparable to that of traditional fuel vehicles.
The world's major bearing producers are mainly Germany, the United States, Japan, Sweden and China, and the main players are eight multinational bearing group companies, including INA and FAG under the German Schaeffler Group, Timken (TIMKEN) in the United States, NSK (NSK), NTN (NTN), Koyo Seiko (KOYO), Minebea (Minebea), Nachi Fujikoshi (Nachi), Sweden's SKF and other bearing groups, among them, the bearing groups involved in the competition in the needle roller bearing market include INA of the Schaeffler Group of Germany, Timken of the United States, and NSK of Japan. At the same time, the high-end market of the global bearing industry is also monopolized by the above eight multinational companies, and the global low-end bearing market is mainly concentrated in China.
According to the output of bearing products of each enterprise in 2021.
In the first echelon are C&U and Wuzhou Xinchun, with an output of more than 100 million sets, of which 1.756 billion sets are produced by C&U and 468 million sets are produced by Wuzhou Xinchun.
In the second echelon are Koyo Co., Ltd., Wanxiang Qianchao, Xiangyang Bearing, ZWZ Group, and Longxi Co., Ltd., with an output of more than 10 million sets.
In the third echelon are companies with a production capacity of less than 10 million units.
According to the data of Zhiyan Consulting, the output of continental bearings in 2022 will be 23.3 billion sets, and it is calculated that the CR2 of the continental bearing industry is less than 10%, and the CR7 is only 10.63%, and the market is highly fragmented.
The independent leader in the subdivision represented by Suzhou Co., Ltd. is expected to increase its market share through domestic substitution.
In the field of needle roller bearing segmentation, the future industry competition will gradually enter the competition at the comprehensive level of brand, network, service, talent, management and enterprise scale from the single competition of product price, and the industry concentration will gradually increase. Domestic bearing head enterprises are expected to benefit from domestic substitution and industry concentration.
The company is a leading supplier in the domestic needle roller bearing industry. The company's main business is the research and development, production and sales of needle roller bearings and rolling elements, which are widely used in steering systems, braking systems, torque management systems, active safety systems, intelligent seat systems, electric drive systems, engine systems, gearboxes and air conditioning compressors and other important assemblies of automobiles and parts, and are also used in industrial automation, high-end equipment, robots, construction machinery, reducers, hydraulic transmission systems, household appliances, power tools, textile machinery, agricultural and forestry machinery, national defense and other fields. According to the statistics of China Bearing Industry Association, from 2017 to 2020, the output of needle roller bearings produced by the company ranked first among similar products in the bearing industry, and it was a leading enterprise in the needle roller bearing segment industry.
The company's products mainly include various types of needle roller bearings and rolling elements. Among them, the needle roller bearing can be subdivided into five categories: radial needle roller bearing, thrust needle roller bearing, roller needle roller bearing, unidirectional bearing, cylindrical roller bearing;
The product has a wide range of application scenarios. The company's products are widely used in automotive transmissions, engines, transfer cases and other powertrain systems, new energy vehicle electric drive systems, steering systems, braking systems, drive shaft systems, air conditioning compressors and other automotive fields, but also for construction machinery, reducers, power tools, household appliances and national defense industry and other industries.
The company's operating income has grown steadily in recent years, with a CGAR of 10.46% from 2017 to 2022. From 2018 to 2020, in the context of the recession of the domestic automobile market, the company's revenue still maintained contrarian growth, mainly because the company fully tapped the market potential, strengthened the cultivation of core customers, and improved the market layout. Since 2021, with the gradual recovery of the automotive industry, the company has accelerated the development of new products and new customers, and accelerated the growth of revenue, achieving operating income of 466 million yuan in 2023Q1-Q3, +10.6% year-on-year.
In terms of business, bearing products are the company's main source of revenue, and the company's bearing products will account for 88% of the company's revenue in 2022.
On the profit side, since 2022, the net profit attributable to the parent company has returned to an upward channel.
With the depreciation of RMB in 2022 and the high decline in steel prices, the company's profitability has returned to the upward channel by continuing to reduce costs and increase efficiency, expand capacity and speed up.
The company's main customers include Bosch, BorgWarner, ZF, Aviation Industry Corporation of China, Magna, ThyssenKrupp, Huayu Automotive, Danfoss and GTEF and other well-known domestic and foreign auto parts and construction machinery enterprises.
In recent years, with the development of the new energy vehicle industry, the company has vigorously developed new energy customers, and some products have been supplied to Tesla through parts manufacturers for the supporting of new energy vehicles.
The domestic business mainly covers the north, north and central south and southwest regions, and the foreign trade business is mainly in Europe, North America, South America and Asia-Pacific, and has set up a subsidiary in Germany, which is mainly responsible for providing services and consulting services and consulting for existing customers in the European market and developing new customers, while purchasing some raw materials for the company.
As a domestic veteran bearing enterprise, the company has a wide range of products, covering the field of automation & robotics.
Although needle roller bearings are the company's fist products, the company, as a domestic veteran bearing enterprise, has a complete range of products, and crossed roller bearings for robot reducers are also covered. In the past, due to the lack of production capacity, the company focused its business on the automotive field, but with the vigorous development of the industrial robot & future humanoid robot industry, as well as the company's production capacity climbing, the company began to focus on the field of automation & robots, which is expected to create the company's second growth curve.
The company is the leader in the bearing industry, the rolling element business maintains steady growth, benefiting from the expansion of the automotive & robot industry, the company's bearings will usher in a period of rapid growth.
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