The dealer's profit margin fell to the cold hard profits alone murderer

Posted on 5/26/2015 5:41:37 PM

Spring Plumbing ducks. Similarly, when the automobile market growth from a return to rationality "new normal", the first to feel the chill of it is in the forefront of market dealers. It is part of the listed dealer group released a quarterly report shows that a quarter of the dealer is still in decline year on year earnings range, terminal prices fall further diluted so that the dealer profits, meanwhile, although manufacturers have invariably started to relax the dealer " Yaku ", but the financing and financial costs resulting from high inventory increase still further eroded already slim profits.
Gross profit fell to dealer profit "killer"
Large group (601258.SH) recently released a quarterly report, a quarter of the huge revenues of 13.713 billion yuan, down 17.34 percent; attributable to shareholders of listed companies net profit was 0.36 billion yuan, down 54.7 percent. In this regard, a large group, said group profit was mainly due to the decrease. Tommaso Padoa-car (002607.SZ) financial results, operating income reached 1.406 billion yuan, growth of 8.57%, based on the 011 million yuan loss still occurs, up 159.32 percent year on year decline. Tommaso Padoa-car represents the performance loss is due to government subsidies compared with the same period in 2014 to reduce the 021 million yuan; the same time in recent years due to increased scale of investment and new investment 4S shop operating below expectations, the corresponding increase in amortization of fixed costs, staff Salary increases and financial expenses increased.
Reported from Shenhua Holdings (600653.SH), a quarter of its revenue grew slightly year 3.19%, but attributable to shareholders of listed companies net profit was nearly 43.6 million yuan, an increase of 204.59%. However, if the net government subsidies as well as the disposal of assets, including non-recurring items, the company's first quarter net profit was down 108.4%, a loss of nearly 109 million yuan. Focus on the country's imported car business unit Automotive (600335.SH) first quarter operating income fell 27.5% to 16.94 billion yuan, but attributable to shareholders of listed companies net profit rose 9.5 percent, reaching 160 million yuan. However, CITIC Securities analysts believe that the National Machine enhance profitability cars mainly to benefit from part of the brand's 2014 update service agreement, increasing subsidies to bring high income stocks. Meanwhile, CITIC Securities analysts also believe that the end of the first quarter, the National Machine car inventory is still high 18.6 billion yuan, the follow-up also faced pressure to the stock.
Inventory and declining gross margins higher prices further affected the focus on the luxury car brand dealers. And said the company disclosed a quarterly report almost equal time, in late April to the end, Hong Kong stock market dealer group have released 2014 annual reports. Baoxin Auto side said, although Group sales are still growing, but new car sales margins have declined compared with 2013 full-year 1.2 percentage points to 4.8 percent, luxury and ultra-luxury car brand gross margins fell 1.2 percentage points to 5.1% . Thus, while Baoxin 2014 operating income increased slightly by 2 percent to 30.723 billion yuan, but gross margin fell 0.6 percentage point to 9.1%, the annual gross profit of 2.788 billion yuan. Zhongsheng Holdings in 2014 operating income of 54.787 billion yuan, an increase of 4.3%. However, gross profit of only 4.775 billion yuan, an increase of only 0.3%, car sales gross margin decreased from 4.2% in 2013 to 3.3%.
Compared with the above-mentioned companies, has just reached with the cooperation of the Green Group equity Rundong car (01365.HK) as well as another car is listed harmony dealers rare car sales, operating income, gross profit and net profit to achieve substantial growth business. Rundong car released in 2014 showed a profit in 2014, its operating income was 15.469 billion yuan, an increase of 33.5%, net profit of 313 million yuan, an increase of 26%, while the gross profit margin by 0.7 percentage points year on year upgrade. While operating income rose harmony cars by 22.4%, reaching 10.2 billion yuan, while net profit reached 546 million yuan, an increase of 34%.
Dealer "downsizing" as Transformation
From a fundamental point of view, although the decline in gross profit margin for all dealers, not a good thing, but the sort of financial data above clearly found that Hong Kong stock market dealers generally better earnings in Shanghai and Shenzhen listed dealer groups.
Some analysts have pointed out that the main reasons for this phenomenon are two, one Hong Kong listed company operating mainly in the ultra-luxury and luxury brands, these brands have a relatively higher margin; second, from the volume point of view, Hong Kong the number of listed companies and other distributors and large dealer groups is relatively small compared to, it has certain advantages in operating costs; and, especially important, a number of distributors Group Hong Kong stock market, the aftermarket and automotive finance and other industries chain business has a certain size, it is possible to further enhance the Group's profitability. Seen from earnings, a number of Hong Kong said gross margin aftermarket business of listed companies reached 4 to 5 times the new car, so although its small scale business, but profits fueled not be underestimated.
"In contrast, it includes a large dealer groups including, before too much of the focus on the front end of the new car sales and the expansion of the scale, at the expense of aftermarket business of mining and penetration." There would not anonymity analysts believe. In Rundong car, for example, in 2013 China auto hundred standings, only less than 70 of its dealers Rundong Group's passenger car business income 13.023 billion yuan ranked No. 21, ranked first Although CGA revenue reached 84.063 billion yuan, but its distributors as of the end of 2013 has been close to 500.

Post a comment

Hello guest, care to post a comment?