Automotive Aftermarket Parts

Per ton to 1,000 yuan from 3,800 yuan per ton, auto glass since the beginning of 2009, after a way to climb rapidly from the historical “minimum” to the history of the “highest” major domestic auto glass manufacturers are actively brewing further

Further price increases. In addition to the price of auto glass, metal parts from cars to steel prices are rising channel, the raw materials will be transmitted to the vehicle up if businesses?

        Automotive glass margin

        ”With further increases in the price of various raw materials, the automotive market to improve, and is expected to automotive glass, there will be further room to rise.” Yesterday, the largest automotive glass export enterprises, Xinyi Glass Holdings Limited (“the Xinyi Glass “, 00868.HK) insiders told,” First Financial Daily “said an interview. Conservative estimates, the domestic automobile production in 2010 will reach 15 million, which means that the domestic auto market auto glass 1,500 million; and maintain the market in accordance with the automotive aftermarket replacement rate of 8%, by the end of 2009, China’s car ownership volume of 76.19 million, will need 6.09 million vehicles glass.

        In the market, Fuyao Glass (600660.SH) occupy 56% of pre-installed market, Xinyi Glass holds 10%, out the top one or two. The after-sales service market, Xinyi Glass holds 45%.

        The manufacture of glass in the car, the fuel cost of the largest heavy oil, accounting for about 40%, soda ash followed, accounting for about 25%. Both raw material prices this year have occurred in a substantial increase is expected to post higher prices will be maintained. The price changes greatly affected the gross margin level of the glass manufacturer.

        Since 2009, the domestic automobile industry, a record growth rate, production and sales were more than 13.6 million, making automotive glass production efficiency of enterprises also hit a record high. Fuyao 6.08 billion in revenue, Xinyi Glass 3.5 billion in revenue, gross margin of two companies, respectively 42% and 36.9%, can be said to earn pours.

        However, this year due to rising raw material prices, “Our gross margins have dropped by 10 points.” Xinyi Glass insiders said.

        Gross margin declined 10 points, would mean that the level of corporate profits back to the level of the end of 2008, for the entire automotive glass industry, is low.

        China Building Materials Information General Network Statistics show the first quarter of 2010, key contacts across the board price increases of raw materials of glass companies, including heavy oil (tar) the average purchase price of 2668.32 yuan / ton, the quarter rose 10.65% year on year increase was 22.97%; Soda The average purchase price of 1319.67 yuan / ton, the quarter rose 10.61%, up 16.43 percent year on year, while coal, oil, PVB film, ink, transportation costs, labor costs are all there in the first quarter of this year soared.

        ”Automobile demand growth slowdown, heavy oil and soda ash price fluctuations, will give a risk of domestic glass manufacturers.” CITIC Securities analyst, told reporters that one.

        Not be passed on to the price of

        ”From iron ore to steel price increases are not related, from iron ore to steel, to automotive steel, automotive metal parts, there are a number of buffer areas. With steel materials in the proportion of motor vehicles not great, manufacturers will control costs by reducing cost and increasing, and I think the short term, the prices of raw material prices will not be passed on to. “Ding Lei, general manager of Shanghai GM, said the reporter.

        For the upstream price pressures, the majority of vehicle manufacturers reporters have said that as purchases in the past is quite different, their bargaining power of suppliers downstream will rise, and will not factor into the prices of raw materials upstream to vehicle retail sectors.

        ”Since the beginning of the year, we have the purchase price of steel rose by 20% to 30%, we have done in the retail part of the corresponding price adjustments. This adjustment is approved by the relevant OEMs.” Yesterday, Jin billion industry (601 002 . SH) secretaries to directorate Tu Zhiqing told this newspaper that, because the company has a large inventory of steel, should be said that the current fluctuations in steel prices “can not hurt.”

        As the largest manufacturer of automotive fasteners, Jin-billion industry last year, sales of automotive fasteners over 97 million yuan, is expected to more than 200 million yuan this year. To double power auto sales is an increasingly large scale.

        ”Automotive glass in the automobile manufacturing’s share of the cost to occupy a small, car manufacturers more affected by other [review image] parts and steel raw material prices pressures, we have little effect on vehicle factory.” Xinyi Glass side said.