800 million net inflows of Weichai Power rose by more than 21%
Since the opening of the Rabbit, the first six trading days, Weichai Power's net inflows of institutional funds amounted to 852 million yuan, ranking second, with an increase of 21.11%, ranking the top ten companies in net capital inflows.
Analysts pointed out that with the stable development of the industry, as the leading domestic engine manufacturer for heavy trucks, Weichai Power has already had a monopoly in the industry, but also formed a certain industry barriers, and the threshold for those who want to enter has increased. Therefore, the advantages of Weichai Power are beyond doubt, and at the same time, the steady growth of the company in the next few years will continue.
Heavy truck engine leader shakes
“The price is basically the final say for them. Because Weichai has a leading position in heavy-duty engines, it has strong pricing power.†On February 16, 2011, Deng Xue, an analyst at China Investment, told reporters that the heavy truck During the period of rapid development, Weichai Power has benefited the most obvious companies.
"More than half of the engines have to get goods from them." Deng Xue analysts said that with the strong demand, in the first half of 2010, Weichai Power even had a tight production capacity. The leading position in heavy-duty truck engines makes Weichai Power worry about sales.
In 2010, the company sold 55-60,000 sets of various engines, including about 400,000 heavy-duty engines, with a market share of nearly 40%; more than 100,000 loader engines with a capacity of more than 5 tons, and a market share of more than 80%; Big Bus Engine 4 Million units or so, the market share of 50%. Weichai Power's leading position in the engine sector is unshakable.
In recent years, with the upgrading of consumption in China, heavy trucks will continue to develop rapidly. Deng Xue analysts believe that consumption drives logistics demand. Trucks are important logistics tools because of their light and flexible characteristics.
Qin Xuwen, analyst of Orient Securities Automotive Industry Group, said that with the view of the demand for road freight heavy trucks, with the gradual strengthening of national governance overload, transporters will have the incentive to achieve higher transport efficiency by replacing high-capacity, high-tonnage heavy-duty trucks. More economic benefits. This will drive the sales structure of heavy-duty truck products to move upwards, and the industry growth model will begin to enter the stage of connotative growth with extensive quantitative expansion.
The Weichai Power's high-powered engine and more gearbox transmissions are well suited to meet the new needs of the road freight industry. They have advanced technology advantages and first-mover advantage, and will obviously benefit from the technical upgrading of the heavy-duty truck industry. process.
With the formation of monopoly position of Weichai Power in the engine sector and the formation of certain industry barriers, it is difficult for future market players to compete with Weichai Power. Although competitors have gradually increased in recent years, the company has occupied an absolute leading position and scale advantages, coupled with the obvious price advantage and economical use of products, and has the most complete service network, said Qin Xuwen, the leading position of heavy-duty truck engines. It cannot be shaken for a long time in the future. With the further increase in the sales volume of the 12-liter engine and the 12-speed/16-speed transmission, the company's position and profitability in the heavy truck industry chain will further increase.
Construction Machinery Engine Becomes New Power
"Not only heavy truck engines, but also a good growth in construction machinery." February 15, 2011, Weichai Power officials told reporters.
In fact, the company’s engineering machinery engine accounts for more than 20% of the total sales. The main downstream product is a 5-ton loader with a market share of around 80%. Due to strong demand, in the first half of 2010, even the phenomenon of not getting the goods appeared. At the same time, due to tight production capacity in the first half of 2010, the market share of the company’s construction machinery engines has declined to 73.2%. However, the company has currently increased its production capacity through various measures such as technological transformation and process planning, which is expected to meet the future. 2 years of production needs.
The commencement of the construction of 10 million units of affordable housing in 2011 will largely offset the decline in investment in commercial housing, investment in infrastructure for infrastructure construction and investment in infrastructure revitalization plans will be gradually implemented, and it is expected that the downstream demand for construction machinery will remain above 15%. The settlement of production capacity will help the company to seize the opportunity of strong downstream, and the proportion of sales of construction machinery engines will further increase, providing significant support for the company's performance.
At the same time, Weichai Power's product line will be further expanded. Currently, the company's products are mainly concentrated on 8-12 liters of engines. In the future, 5-7 liters of market will be developed. The market for medium and small excavators and medium and small passenger cars will be mainly used for trials.
The market believes that the profitability of small and medium-sized engines is relatively low, but it can help the company avoid market risks, further increase the scale of production and sales, reduce the company's raw material procurement costs, and increase the company's total profit.
The existing business advantages of Weichai Power support diversified development and it is worth looking forward to long-term development. Looking back, the company’s existing heavy truck engine business can provide strong cash flow support, while its management capabilities are in the leading position in the industry. Its diversification and export to construction machinery engines, marine engines, etc. are expected to be successful. Medium and long-term development is worth looking forward to. .
Guaranteed growth in performance
On February 16, 2011, China National Heavy Duty Truck announced the production and sales report for January. Heavy truck output increased by 10.70% year-on-year, while sales volume increased by 73.83% year-on-year, exceeding expectations. Spurred by this news, China National Heavy Duty Trucks soared 7.87% on that day.
With the sales of heavy trucks rising sharply and the downstream demand being strong, the production and sales of Weichai Power, the main manufacturer of heavy truck engines, will also increase substantially. Deng Xue analysts believe that the inventory of the heavy truck engine industry is generally very small, usually a month, it is basically "set by production," so the production and sales of Weichai Power will also exceed the expected growth. According to market analysis, in January, under the strong demand from the downstream market and the replenishment of inventory by companies and dealers, the production and sales of heavy trucks both increased significantly year-on-year, and the sales season advanced earlier. With higher bargaining power and profitability, the company will become the biggest beneficiary of heavy truck production and sales exceeding expectations. On February 16, Weichai Power's share price also rose by 4.78%.
In the coming years, the company will still benefit from the rising market demand. With the expansion of production, the profit growth of Weichai Power will exceed the growth rate of main income.
The trend of high-speed heavy-duty and heavy-duty heavy-duty trucks for road freight has become increasingly apparent. The demand for renewal is strong. It is therefore expected that heavy-duty truck sales in 2011 will still achieve about a 10% increase. Weichai Power, as a leading company in the heavy chain core component industrial chain, has deep technology accumulation and high market share; under the impetus of the rapid growth of construction machinery engines, profit growth will be significantly higher than that of the entire vehicle and exceed the industry average. Level.
"Weichai Power's products are leading and have formed a certain monopoly. The company's management team is not a problem. Therefore, there is no doubt that the company will have stable growth in the next few years."
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