Dealer Group last year's performance than expected to strengthen the capital market with the main theme

Posted on 3/2/2017 10:35:01 AM

Recently, it has been reported that as the Mercedes-Benz global distributor of the largest distributors of the Star Bank will be in Hong Kong IPO (Initial Public Offerings, initial public offering).
In this regard, NBD car (micro-signal: NBDAUTO) recently to the star line to verify. Lee Star said that the current inconvenience to comment on this news.
According to the China Automobile Dealers Association released the "2015 China Automotive Dealer Group hundred list", Lee Star line in the first five. The top four are Guanghui Automobile (600297, SH), Guotao Automobile (600335, SH), Zhongsheng Holding (00881, HK) and the huge group (601258, SH), have been listed.
NBD car learned that after the dealer financing means mainly through auto finance companies and bank loans, and this has some limitations.
"Through the capitalization operation, the dealer group can broaden the financing channels to further enhance the competitiveness." Automobile industry analyst Cao Tsai in an interview with NBD said that in the automotive market downward pressure on the background, the dealer must Seeking a wide range of financing channels.
Some analysts believe that dealers want to run around, expand the scale, in order to strengthen the ability to resist risks. "In the future, the dealer group will become more active in the capital market." Cao said.
Auto market rebound driven performance gains
From 2014 onwards, the relative downturn in the automobile market so that the performance of dealers also suffered no small blow. China Automobile Dealers Association released data show that for two consecutive years, the top 100 of the 84 auto dealers in 2015, the overall gross margin fell 25.79%. This situation was greatly improved in 2016.
Last year, China's auto market to achieve high growth, both production and marketing breakthrough 28 million, sales growth of 13.65% year on year. Not only car prices earned pours, even the dealer group has changed a few years ago in the doldrums, to achieve profit rose.
Guanghui Automobile announced the performance of pre-increase notice shows that in 2016, the company realized the attributable to shareholders of listed companies net profit will grow 40% to 45%.
The reason for the significant increase in performance, Guanghui Automobile said that the main benefit from the recovery in the automotive market to pick up, the company's business scale and profitability have been greatly improved. In addition, the company through the acquisition of the rapid expansion of business scale, and operational efficiency continued to play a synergistic effect.
In addition, the National Express performance report shows that 2016 attributable to shareholders of listed companies net profit reached 604 million yuan, an increase of 25.67%. Large group said it expects the company to achieve operating income of about 66 billion yuan in 2016, an increase of 17%; is expected to belong to the shareholders of listed companies in the same period net profit will grow 50% to 70%.
Zhongsheng Holdings also announced that the Group expects the consolidated net profit for the year 2016 to increase substantially, and it is expected that the net profit attributable to parent company owners will not be less than 350% of the same period last year.
Dealers profit pressure this year
"Last year, the dealer group profit performance highlights the biggest reason is the auto market recovery, car manufacturers are expected to lower than the actual growth, but this year there will be some risk." Zhonghai Tongchuang Investment Co., Ltd. Li Jinyong in an interview with NBD The
After experiencing high growth in the auto market last year, the industry this year, the auto market growth rate generally bearish. China Automotive Industry Association is expected in 2017 the auto market growth rate of about 5%.
Recently, the China Automobile Dealers Association issued in January 2017 "car dealer inventory survey results." Data show that the month, auto dealers integrated inventory coefficient of 1.60, the chain rose 95%, up 62%, dealer inventory level above the warning line, which is nearly six months, the dealer inventory coefficient for the first time back to the cordon on. March 1, China Automobile Dealers Association released the latest data show that in February this year, the stock early warning index was 66.6%, up 5.1 percentage points from the previous month. The stock early warning index is above the warning line.
In this case, Li Jinyong said that if the auto market this year, 10% growth, you can sell 30.8 million, there are 5 million production capacity idle. "If the target set by the manufacturers this year is higher than the actual growth, then bring the production capacity and sales are not equal, dealers will usher in a new round of inventory pressure, profit pressure will follow.
Prior to the China Automobile Dealers Association Shen Jinjun in an interview with NBD car pointed out that in the sale of new car profits gradually compressed environment, the dealer must deepen the sale, second - hand cars, auto finance, new energy vehicles and other business at the same time, Deep plowing fine management, improve profitability.
"For large dealers group, after the listing through capitalization operations to broaden the financing channels, through the acquisition of mergers and acquisitions to expand the scale, will become the future of the dealer group theme." Li Jinyong said.

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