Lithium listed companies' net profits have risen by up to 22 times.

If the automobile industry is the largest cake with the most profitable cream, then this big cake has been re-divided by the new energy automotive industry. Judging from the listed companies that have released the first three quarters of earnings forecasts and official financial reports, the decline in the net profit of more than half of the listed car companies in the first half of the year further worsened in the third quarter, and the range of losses also expanded. As of October 26, the number of mainstream listed car companies that have released the first three quarters of their performance has exceeded ten, but eight companies have experienced a decline or loss.

Among them, only FAW Car and CNHTC expect net profit to increase year-on-year. Jianghuai Automobile, Changan Automobile, Jiangling Motors, Lifan Motors and Zhongtong Bus all issued warnings of declining performance. In addition to FAW Xiali, Haima Motors, which had already lost money in the first half of the year. Ankai bus also joined the loss team.

However, contrary to the general decline in the profits of vehicle-listed companies, driven by the concept of new energy vehicles, the upstream lithium battery and materials and equipment companies have achieved a comprehensive harvest. Among the more than 30 lithium-ion listed companies that have announced their results, the net profit has increased by more than 20 times. According to statistics, in the newly released Hurun Rich List, there are 42 people in the lithium power industry, of which 38 companies have doubled their net profit in the first half of the year.

In the new energy automotive industry chain, the profit margin of the vehicle manufacturing industry has been removed in the face of an upstream company whose net profit has increased exponentially several times. The intensified market competition in the field of new energy vehicles, subsidy retreat, policy fluctuations and other factors are becoming the main indicator of profit distribution for the auto industry.

FAW Xiali is no longer the only losing car company

In addition to several car companies listed in Hong Kong and the SAIC Group, most listed car companies have already announced the first three quarters of earnings forecasts or official financial reports. Although the black horse FAW Car as a bright spot, but more unstoppable car companies into the decline channel.

Driven by counterattack sales of FAW's Mazda and Pentium brands, FAW Car made a substantial turnaround in the first three quarters, net profit increased to 275 million yuan to 305 million yuan, but FAW Xiali, which is a listed auto company affiliated with FAW Group, has continued to decline. From the first half of 686 million yuan will be expanded to 1.095 billion yuan to 1.155 billion yuan.

In the first half of the year, net profit declined by 86% to only 24 million yuan. In the third quarter, sales of the Haima Motor continued to decline, eventually falling into a loss-making quagmire. The estimated net profit loss was 40 million yuan to 90 million yuan, and the profit for the same period last year was 209 million yuan. The Ankai bus also predicts that it will lose 77 million yuan to 89 million yuan from January to September, which is more than 4 times lower than the profit of 257.860 million yuan in the same period last year. The announcement said that the rapid decline in performance came from three reasons. First, due to policies, the sales of passenger cars declined. Second, the change in sales product structure led to a lower gross profit margin. Third, due to the impact of the national new energy policy, bank liabilities With the increase, financial expenses have increased significantly from the same period of last year.

The impact of the subsidy for new energy vehicles and the decline in the sales volume of passenger cars and the decline in the number of passenger cars has affected many car companies. This affected Jianghuai Automobile and predicts that the net profit will drop by around 80% in the first nine months. Zhongtong Bus also expects its January-September performance to drop by 71.45%-75.84% year-on-year, and its net profit attributable to its parent company will drop to approximately 110 million to 130 million yuan. It is reported that in the week following the release of the third quarterly report on October 10th, the share price of Zhongtong Bus has dropped by more than 17%.

In the one day on October 26, the three car companies Changan Automobile, Jiangling Motors, and Lifan Motors had successively released the third-quarter financial reports, and their profits had declined. Among them, Changan Automobile's revenue for the first three quarters of the period fell by 4% to RMB51.431 billion, and net profit of RMB5.811 billion fell by 25%. Among the many financial indicators, the increase in inventory by 35% and the net cash flow from operating activities dropped by 88.48% caused concern and the alleged risk was high. The first three quarters of Jiangling Motor's operating income was 22.435 billion yuan, an increase of 30.21% year-on-year, but the net profit attributable to shareholders of listed companies was 644 million yuan, a year-on-year decrease of 41.15%. Lifan lost sales of traditional models and 35.9% of sales of new energy vehicles. In the first three quarters, operating income was 9.081 billion yuan, an increase of 15.62% year-on-year; however, net profit decreased 12.2% year-on-year to 164 million yuan.

Many car companies have seen revenue growth, but the drop in net profit means that the cost of the entire vehicle business is increasing, while the profit caused by the decrease in selling price is declining. At the same time, the increase in investment in new energy sources also results in lower profits. One of the reasons.

Although there are several listed car companies that have not announced their performance expectations, they can also be seen from the sales figures released in the first nine months of the year. Among them, Great Wall Motor sold 680,800 vehicles in the first nine months, a decrease of 3.19% from 760,300 units in the same period last year. Leading passenger vehicle company Yutong’s sales in the first three quarters were also not optimistic, which was down 3.65% year-on-year. Zotye’s sales in September were 183,400 units in September, a decrease of 19.91% year-on-year. Only electric-only passenger vehicles in all categories achieved growth.

According to the analysis data from the securities analysts, the average net profit growth rate of the auto vehicle industry in 2017 was -3.66%. Industry trends show that the downturn in the field of traditional passenger vehicles has not seen a significant improvement. It is worth noting that while large- and medium-sized SUVs are still selling well, they have begun to appear as “partially ebbing in the SUV sector”. More importantly, with increasingly fierce price wars, the SUV's ability to support corporate profits has also been different. Taking Jiangling as an example, although still relying on SUV sales to double, the total sales volume has increased by nearly 20% year-on-year. However, net profit still fell by more than 40%.

Lithium power industry is full of surplus power battery shuffle speed up

In stark contrast to the net profit growth of the entire vehicle industry, the lithium battery-related materials and equipment industry closely associated with new energy vehicles is steadily growing. With the increase in demand and the increase in the price of materials, the profit growth of related listed companies continues to hit new highs.

In the first half of the year, more than 30 lithium companies listed on the basis of the highest net profit growth of 562%, has announced the first three quarters of the performance of lithium-ion listed companies, Yiwei Lithium, Lunshi Technology, Keheng shares, Yan Feng Liye, Peng Hui The net profit gains of energy, energy, and Glory Energy were all above 100%, of which Keheng's net profit for the first three quarters was RMB 135 million, an increase of 2218.75% year-on-year. The main reason was that the company’s main product lithium battery cathode material sales orders increased significantly year-on-year. In the first three quarters, Lunshi Technology earned 926 million yuan, an increase of 1670.47% over the same period last year. Kennedy also continued to perform most prominently, and it is expected that net profit will reach 729 million to 754 million yuan, which is an increase of 800% compared with last year's 83.56 million yuan. According to the announcement, the main reasons for the increase in performance were the production and sales of lithium-ion batteries (groups), the rental and sales of new energy vehicles and the increase in service business. In fact, after the completion of the acquisition of Waterma Battery in 2016, the company has seen rapid growth in the new energy field.

In fact, the performance growth rate of lithium-listed companies has also continued to innovate since 2016. There have been statistics on 130 lithium-ion battery concept stocks listed on A-shares at the beginning of the year, and 129 of them were in profit in 2016, only 1 The home is at a loss. In this state, the lithium battery industry has also become an area in which the "demon stock" continues to appear.

But the division of the cake is clearly changing. The power battery industry, which soared in the past two years, has begun to diverge under the influence of new energy vehicle subsidies for retreats and postponements, as well as market competition and policy fluctuations.

Among them, there are more power battery companies investing in technology upgrades and business expansion, such as Chengfei Integration (Zhonghang Lithium Battery), Fluoride, Guoxuan Hi-Tech, etc. This year, there have been different degrees of decline in performance, and in the financial report, These power battery companies all mentioned that due to the general decline in the prices of domestic new energy vehicle power batteries in 2017, the gross profit margin of power battery products dropped significantly, which affected the overall profitability.

As a listed car company covering the entire vehicle and battery industries, BYD has become a trend sample. In the first half of this year, BYD's three major businesses, including automotive and rechargeable battery and photovoltaic business, all experienced declines of different magnitudes. Only the mobile phone business experienced significant growth, and its mobile phone business mainly came from BYD Electronics.

Overall, due to the acceleration of 20% subsidy for new energy vehicles, the industry’s sense of crisis and window period have been strengthened unprecedentedly. Power battery companies have to accelerate the shuffling of downstream vehicle companies’ requests for lower battery prices and upstream raw material price increases. And more mergers and acquisitions will continue to be presented.