In recent days, major listed commercial vehicle companies have released their 2007 annual reports. Benefiting from a strong performance in the overall commercial vehicle market last year, these companies saw significant improvements in their financial results, with net profits rising sharply. However, there remains a notable disparity in earnings per share among different firms. Industry analysts generally expect that the growth trend will continue this year, although the overall growth rate of commercial vehicle sales is expected to slow down.
Last year's overall profitability exceeded expectations. Among over 30 listed auto companies, more than 10 are primarily engaged in commercial vehicle manufacturing, making them a key segment of the industry. Their financial performances provide a good reflection of the sector’s health. According to the 2007 annual reports, commercial vehicle companies achieved solid returns.
Zhongtong Bus (000957) reported a year-end shareholders' equity of 497.64 million yuan and a net profit of 26.72 million yuan, representing a 397.47% increase compared to the previous year. The basic earnings per share was 0.11 yuan. In 2007, the company produced and sold 6,512 buses, generating revenue of 1.333 billion yuan.
Foton Motor (600166) reported a main business income of 27.865 billion yuan, up 40.53%, and a net profit of 388 million yuan, up 642.88%. Earnings per share were 0.479 yuan. For 2008, Foton Motor plans to sell 440,000 vehicles, generate 29.2 billion yuan in revenue, and achieve a total profit of 310 million yuan.
Jianghuai Automobile (600418) recorded operating income of 14.371 billion yuan, up 31.93%, but net profit dropped by 15.12% to 372.62 million yuan. Earnings per share were 0.27 yuan. The company produced 204,937 vehicles, up 19.45%, with growth in commercial vehicles and heavy trucks reaching 19% and 236%, respectively. The profit decline was attributed to delays in car listings and high costs from the previous period.
Jiangling Motors (000550) reported sales revenue of 8.456 billion yuan, up 10.46%, and a net profit of 759 million yuan, up 20.71%. Earnings per share were 0.88 yuan. The company sold 95,059 vehicles, an 11.55% increase from the previous year.
Xingma Automobile also showed strong results, with operating income of 2.17 billion yuan, up 20.24%, and a net profit of 382.52 million yuan, up 21.82%. EPS was 0.21 yuan.
Several other listed companies had previously announced positive pre-earnings forecasts. China National Heavy Duty Truck Co., Ltd. expects a 150% to 200% increase in net profit, reaching 224 million yuan. Zhengzhou Yutong Motor anticipates a 50% increase in net profit, while Xiamen Golden Dragon and Ankai Bus also expect similar growth.
Looking ahead, analysts believe the commercial vehicle industry will maintain growth in 2008, though at a slower pace. Ping An Securities noted that large buses and heavy trucks will remain the main drivers, with estimated growth rates of 25% and 20%, respectively. However, challenges include tighter monetary policies, rising steel prices, and increased production costs. These factors may lead to price hikes, which could affect market share.
Additionally, the appreciation of the RMB poses a challenge for export-oriented commercial vehicle companies, potentially reducing their profit margins. The implementation of the national III emission standard on July 1 will also impact the market, as companies focus on clearing inventory before the deadline. This could lead to a drop in sales during the second half of the year, creating uncertainty in the market outlook.
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