Car stocks have grown unabated
The Ankai bus, which is intended to acquire a 41% stake in Jianghuai Buses held by the group through a private placement, has been firmly sealed on the daily limit board for 2 consecutive days. With the acceleration of the integration of the automotive industry and the increasing demand for automobiles, many people in the industry expect that the performance of auto stocks will maintain rapid growth. The industry is worthy of long-term appreciation.
Performance exceeds expectations
According to the data from the automobile industry in the first half of the year, from January to June, sales of passenger cars, commercial vehicles, and heavy trucks all showed good momentum, with sales increasing by more than 20%. The sales and sales of passenger cars and commercial vehicles were as high as 98%. Analysts said that the rapid growth in sales in the first half of the year, the performance of auto stocks is expected to greatly exceed market expectations.
Judging from the current semi-annual report, the performances of Haima, Yutong Bus and Dima have both made a decent appearance, and both have achieved good growth. The growth of Yutong Bus and Haima Shares is mainly due to the growth of the main business. At the same time, the performance forecast of some auto stocks is also very bright, with Shanghai Auto increasing by more than 300%, Changfeng Auto and China National Heavy Duty Truck increasing by more than 100%, and Ankai Bus is expected to increase by 50%-80%. In the first half of the year, the overall net profit growth of auto stocks has already been expected.
In the second half of the year, from July's data, the country’s passenger vehicle production increased by 26.7%, and its sales volume increased by 33% year-on-year. It is expected that after August, the consumer demand of the automobile will remain strong, which will greatly increase the annual profit of automobile stocks. Growth provides strong support.
Industry integration bustle
Industry researchers said that after the Shanghai Automotive Group's overall listing, the integration of the automotive industry is also accelerating, and the motivation for big shareholders to become bigger and stronger is ample, which will form a big trend in the coming years. For example, SAIC Motor has already joined hands with NAC, Foton Motor has also formed an alliance with Dai-ke Company through private placement, and FAW Car and FAW Xiali all have the possibility of integration. Once the integration is successful, the company's performance will be significantly improved.
For example, the semi-annual report of Haima’s shares indicated that the company’s performance has increased by 612.6%, mainly due to the completion of targeted additional issuance in December last year, the acquisition of 50% equity of FAW Haima, and Shanghai Haima’s research and development of 100% equity, and new profits have been reflected. Stimulated by the substantial growth in performance, the share price of Haima shares rose sharply from the end of July, and the accumulated increase has exceeded 68% yesterday.
A few days ago, Ankai Bus also plans to acquire 41% shares of Jianghuai Bus by issuing additional 10 million shares to the group company. If the private placement is completed, the company will increase the middle and low-end bus series in the product structure, and the industry status will be further enhanced. The stock price will naturally follow suit.
Still valuation
From the perspective of price-earnings ratio, the foreign-made mature market automobile industry earnings ratio is mostly about 10 times, compared to the valuation of China's auto stocks is indeed not low. Such as Shanghai Automotive, the market generally expects the company to achieve earnings per share of 0.8 yuan this year, its dynamic price-earnings ratio has been about 30 times; even beyond expectations, earnings per share of 1 yuan, the current price-earnings ratio is also about 25 times. Chang'an Automobile, boldly expects to achieve a profit of 0.65 yuan per share this year, according to the current stock price, price-earnings ratio is also 27 times.
However, market analysts have analyzed that the foreign auto industry is already in the sunset industry, and the prosperity of China's auto market has only just warmed up. The entire industry is in a period of rapid growth and accelerated integration, and at the same time as China's consumption continues to upgrade, the demand for cars. It will become more and more prosperous and the auto industry's performance in the next few years will maintain a relatively high-speed growth. Based on this background, China's automobile stocks should be given a higher P/E ratio than foreign ones. The current valuation level is not high, and it can still be optimistic in the long term.
EVA Sheet is the most basic material for many EVA foam product. It is widely used in toys, marine, automotive, sports, construction, education and etc.
We can provide different sizes, thickness, hardness and density for the EVA Foam Sheet to meet the different requirements from customers. And with our experience in EVA foam industry, we will also provide a professional EVA foam product solution to customers.
Eva Sheet,Eva Rubber Sheets,Educational Craft Sheet,Eva Packing Foam Sheet,Flexible Eva Foam Sheet,Eva Rubber Sheet
Huizhou City Melors Plastic Products Co., Limited , https://www.melorsfloor.com