[Text/Caiquan Society& Brother Dao Says Car Ma Jianyu] April is coming to an end, and the "achievements" of domestic listed car companies in 2023 are gradually revealed. In 2023, the production and sales of automobiles in mainland China will both exceed 30 million units, reaching a new historical level, so how many benefits have domestic listed car companies reaped in the soaring auto market?
The editors of "Caiquan Society & Daoge Talking Car" have counted the revenue/profit of many listed car companies in A/H shares in 2023 and found that the revenue of listed car companies has generally risen in the past year, but the profit situation is not peaceful, and the performance of car companies is obviously differentiated, and even Dongfeng Group shares have a rare loss.
At the same time, some A/H-share listed car companies have also released their performance for the first quarter of 2024, and unlike 2023, their revenue has not generally risen, and their profit performance also has its own "characteristics". It is worth noting that the profit change of one of the car companies in the first quarter of 2024 is amazing, with a year-on-year increase of more than 1700%......
In 2023, the revenue of listed car companies will rise, and the profit performance will be differentiated
From the perspective of the car companies in the statistics, their revenue has increased in 2023, of which BAIC Blue Valley's revenue will increase by more than 50% in 2023, the fastest growth rate in this statistics, and SAIC's revenue will increase by 0.72%, which is the lowest in this statistics. However, SAIC is still the largest revenue among domestic listed car companies, while BAIC Blue Valley has not yet gotten rid of the loss.
From the perspective of the domestic auto market in 2023, the growth of production and sales may be one of the reasons for the general increase in sales of listed car companies. According to the China Association of Automobile Manufacturers, in 2023, the production and sales of automobiles in mainland China will reach 30.161 million and 30.094 million respectively, an increase of 11.6% and 12% year-on-year, respectively, and the annual production and sales will both hit a record high.
However, in parallel with the growth of the domestic auto market in 2023, there is a "price war", which also further weakens the profit margins of car companies. At the same time, the "offensive and defensive rotation" of joint venture brands, independent brands, and the proportion of new energy vehicle sales also seem to have affected the profit performance of several large automobile groups.
Judging from several large-scale car companies in the statistics, the profits have increased by BYD, Geely Automobile, and Changan Automobile. Among them, BYD is the sales champion in the domestic new energy vehicle market, while Geely and Changan Automobile are both automakers with their own brands as their main competitiveness, and they have also achieved considerable profit growth in 2023.
Of course, Great Wall Motors, which has seen a decline in profits, is also a car company with its own brand as its main competitiveness, but profits have declined, and Great Wall Motors explained that the net profit in the reporting period was lower than that of the same period last year mainly due to the impact of exchange rate gains in the same period. In addition, the larger car companies with declining profits in statistics include SAIC, GAC Group, Dongfeng Group and BAIC, and they may be affected by the "offensive and defensive rotation" of joint venture brands and independent brands.
Taking Dongfeng Group as an example, its net profit attributable to the parent company turned from profit to loss, with a loss of 3.996 billion yuan, a decrease of about 14.261 billion yuan from 10.265 billion yuan in the same period last year. Dongfeng Group Co., Ltd. mentioned two main reasons when issuing a profit warning: first, the market space of joint venture non-luxury brands has been greatly squeezed, and product prices have been declining; second, the group's new energy business is in a strategic investment period, and the investment in R&D, brand, and channel construction in the field of new energy and intelligence will continue to increase in 2023.
The squeezing of the market space of joint venture brands is actually a common problem of SAIC, GAC and BAIC.
In the first quarter, the Great Wall was supported by Jiangling Motors, and the performance was also impressive
After the release of the 2023 annual report, some car companies also announced their performance for the first quarter of 2024. According to its financial report, in the first quarter of 2024, Great Wall Motors achieved an operating income of 42.86 billion yuan, a year-on-year increase of 47.6%, and a net profit of 3.228 billion yuan, a year-on-year increase of 1752.55%.
How long has it been since you saw the figure of "1752.55%" in the income statement of automobile companies? In this regard, Great Wall Motor said that during the reporting period, vehicle sales increased and single vehicle revenue increased. From the sales of Great Wall Motor's two "high-end brands", there has indeed been a lot of improvement, data show that Wei brand sold 9,608 vehicles from January to March, a year-on-year increase of 182.34%. From January to March, 49,184 tanks were sold, a year-on-year increase of 103.16%.
However, if you take a closer look at Great Wall Motor's sales data in the first quarter, it is not difficult to find that Great Wall Motor's business in overseas markets should also make a large contribution. According to the data, in the first quarter of this year, Great Wall Motors sold 92,800 overseas vehicles and 35,800 vehicles in March, both of which maintained a high growth trend. In addition, according to the data of Great Wall Motor's 2023 annual report, "the gross profit margin of domestic business is 15.5%, and overseas business is 26%", overseas business has become an important growth point for Great Wall Motor's performance.
In the first quarter of this year, another outstanding car company was Jiangling Motors, with a net profit of about 482 million yuan in the first quarter, an increase of 163.95% year-on-year, and the profit growth rate was second only to Great Wall Motors, and even the only one in this statistics to achieve profit growth except for Great Wall Motors. Jiangling Motors said that the increase in profit was mainly due to the increase in net profit attributable to shareholders of listed companies due to changes in the profit and loss of minority shareholders.
However, judging from the changes in recent years, Jiangling Motors has made great progress in the passenger car business, especially after Jiangling Ford continues to enrich SUV products, according to the data released by Jiangling Motors, SUV sales in the first quarter have reached 33%.