Performance competition! SAIC Motor is actually the "double material king" of the automotive industry, how are other companies performing?

Recently, the 2021 annual reports and the first quarterly reports of 2022 have been released. In 2021, when the automotive industry is challenged by the epidemic, chip shortages and rising raw material prices, how are the performance of listed companies, including car companies and auto parts? How has it been this year?

The net profit of the 5 car companies exceeded 5 billion

Although last year's car market was surrounded by "lack of cores", various auto parts, raw materials and other costs, market sales have declined, but the vast majority of car companies' financial reports are basically "good news". According to the data, in 2021, among the 244 listed companies in the Shenwan automotive industry, a total of 213 companies had positive net profits, accounting for nearly 90%; and even the net profits of SAIC Motor, Weichai Power, Huayu Automobile, GAC Group, Great Wall Motors and other companies exceeded the threshold of 5 billion yuan.

Chart 1 Automotive Industry 2021 Annual Reports of Listed Companies (Partial)

Specifically, in 2021, SAIC Ranked First with a net profit attributable to the mother of 24.533 billion yuan, an increase of 20.1% year-on-year; achieved a total operating income of 779.85 billion yuan, an increase of 5.1% year-on-year, and also ranked first. This may be due to its own brands, new energy vehicles, overseas markets and other "new troika".

It is reported that SAIC Motor's annual sales of its own brand vehicles in 2021 reached 2.857 million units, an increase of 10% year-on-year, accounting for 52.3% of the company's total sales; new energy vehicle sales of 733,000 units, an increase of 128.9% year-on-year, ranking first in China and the top three in the world; overseas sales reached 697,000 units, an increase of 78.9% year-on-year, and vehicle exports remained the first in the domestic industry for six consecutive years.

Weichai Power, the leader of auto parts, ranked second in 2021 with a net profit attributable to the mother of 9.25 billion yuan, an increase of 0.3% year-on-year. It should be pointed out that in the past three years, Weichai Power's net profit attributable to the mother has always remained at about 9 billion, and it has not been able to further break through the 10 billion mark.

In 2021, GAC Group ranked third with a net profit attributable to the mother of 7.335 billion yuan, an increase of 22.95% year-on-year; Great Wall Motor ranked fourth with a net profit attributable to the mother of 6.726 billion yuan, an increase of 25.43% year-on-year. There are also Changan Automobile, Yutong Bus, Jiangling Motors, Haima Automobile and other car companies have reaped good profits.

The revenue of 7 companies exceeds 100 billion yuan

From the perspective of revenue, the revenue of the above 244 listed companies in 2021 is positive. Among them, 11 companies have revenues of more than 50 billion yuan; and even 7 companies have revenues of more than 100 billion yuan, including SAIC, BYD, Weichai Power, Guanghui Automobile, Huayu Automobile, Great Wall Motors, Changan Automobile, etc.

Specifically, SAIC Motor group not only ranked first with a net profit attributable to the mother of 24.533 billion yuan, but also ranked first among 244 automotive industry chain companies with a revenue of 759.914 billion yuan, which can be called the "double king" of revenue and net profit.

Chart 2 Automotive Industry 2021 Annual Reports of Listed Companies (Partial)

As the leader in the field of new energy vehicles in China, BYD ranked second with a revenue of 216.1 billion yuan, an increase of 38% year-on-year. It is reported that automotive-related products are still BYD's main source of income. In 2021, BYD's revenue from automobiles, automotive-related products and other products was 112.5 billion yuan, an increase of 33.9% year-on-year, and this revenue accounted for 52% of the company's revenue.

Weichai Power ranked third with a revenue of 203.5 billion yuan, and Weichai Power was able to break through among many companies mainly due to its diversified business layout and advanced core technologies. Weichai Power's four major businesses develop in synergy, namely power system, commercial vehicles, intelligent logistics and new formats, new energy, and new technology. According to the data, in the past five years, its cumulative R & D investment has exceeded 36 billion yuan, and by the end of 2021, the number of R & D people has exceeded 10,000.

In addition, there are Guanghui Automobile, Huayu Automobile, Great Wall Motor, Changan Automobile and other companies with revenues of more than 100 billion, but there is not much gap between them.

According to data from the China Automobile Association, domestic automobile production and sales in 2021 reached 26.082 million units and 26.275 million units, up 3.4% and 3.8% year-on-year, respectively, ending the decline for three consecutive years since 2018. In that year, the production and sales of new energy vehicles reached 3.545 million units and 3.521 million units respectively, an increase of 1.6 times year-on-year, and the market share reached 13.4%, and the new energy vehicle market has shifted from policy-driven to market-driven.

The performance of car companies in the first quarter was uneven

Different from last year's overall annual report, the performance of car companies in the first quarter of this year is uneven. Bydir, Changan Automobile, GAC Group and other companies have made steady progress in performance, while SAIC Group, Beiqi Blue Valley, Great Wall Motors and other companies have declined to varying degrees, which can be described as several joys and several sorrows.

Specifically, BYD, as a leading domestic new energy vehicle sales enterprise, has gone all the way up with the dongfeng performance of new energy, with a net profit of 808 million yuan in the first quarter, an increase of 240.59%; achieved revenue of 66.825 billion yuan, an increase of 63.02% year-on-year.

Chart 3 Automotive Industry Q1 2022 Listed Companies Quarterly Report (Partial)

Changan Automobile achieved operating income of 34.576 billion yuan in the first quarter, an increase of 7.96% year-on-year; net profit attributable to the mother was 4.536 billion yuan, an increase of 431.45% year-on-year. With the acceleration of operating income and the continuous improvement of profitability, Changan Automobile has undoubtedly entered the fast lane of development with both scale and efficiency.

It is worth mentioning that in the first quarter of this year, SAIC Motor achieved a total revenue of 182.471 billion yuan, down 3.5% year-on-year; the net profit attributable to shareholders of listed companies was 5.516 billion yuan, down 19.44% year-on-year. This is mainly due to the impact of the epidemic, SAIC Volkswagen, SAIC Passenger Vehicles, SAIC-GM and other brands under SAIC Group have stopped production, which has adversely affected revenue and sales to a certain extent.

Although SAIC's revenue and net profit fell year-on-year, SAIC motor was still the only group with a revenue of more than 100 billion yuan in the first quarter, and its net profit reached 5.516 billion yuan.

Another company affected by the epidemic is Great Wall Motors. According to the financial report, Great Wall Motor achieved operating income of 33.619 billion yuan in the first quarter, an increase of 8.04% year-on-year; net profit attributable to listed shareholders was 1.634 billion yuan, down 0.34% year-on-year. This is the third consecutive quarter of net profit decline for Great Wall Motors after the third and fourth quarters of 2021.

In addition, although the revenue of Xiaokang Shares, Beiqi Blue Valley and Haima Automobile in the first quarter of this year increased year-on-year, the net profit declined to varying degrees.

Combined with the recent 2021 annual reports and 2022 first quarter reports released by a number of listed car companies, the domestic auto market has steadily picked up, and the performance of car companies has been good and bad, and there are more joys than worries. In the complex environment in recent years, the above-mentioned car companies can still deliver such a bright answer sheet, which is enough to explain its advantageous position.