Sales continue to decline Chang'an car was even reduced

Threatened to reconfigure the capital layout and create "Great Chang'an," Xu Liuping encountered difficulties again.

Under the dual pressure of the recent decline in sales volume and the news of major asset replacement programs, Changan Automobile was even reduced in the secondary market. The report of the investment institution pointed out that facing the pressure of falling production and sales of the industry and the pressure of its own overcapacity, it may be difficult for Changan Automobile's investment projects to achieve the expected benefits.

After falling below the $9.74 increase price on the eve of January 10, the Changan Auto share price has been falling. As of March 31, Changan Automobile's closing price fell to 9.39 yuan, turnover was 94.7 million yuan, the month's drop was 5.91%.

Double negative stock price bears

The announcement of the resolution of the temporary shareholders meeting of ST Qingqi (600698) on March 24th revealed that the company and China Chang'an Automobile Group Co.

The announcement stated that “SASAC has agreed in principle that the Armed Services Group will transfer the entire equity of the company held by the company to Chang’an Automobile and Chang’an Automobile’s overall plan to replace all assets and liabilities of the company with a 100% equity held by Hunan Tianyan Machinery Co., Ltd. It was approved by ST Qingqi’s second extraordinary general meeting of shareholders in 2011, including the reorganization method and the subject matter of the transaction.

On March 11th, the production and sales bulletin announced by Changan Automobile (000625) showed that the company achieved 12.59 million vehicles in February 2011, a decrease of 19.31% year-on-year. In February, it achieved sales of 143,100 vehicles, a year-on-year decrease of 10.04%. In addition to the slight increase in sales volume of Changan Suzuki and Jiangling Holdings, the sales of all major subsidiaries of the company, including Changan Automobile Headquarters and Changan Ford Mazda, declined.

In addition, the announcement also showed that the company's total auto production reached 309,000 vehicles in January-February this year, a year-on-year decrease of 9.3%. In the January-February period, the cumulative sales of automobiles reached 342,700 units, a decrease of 4.12% year-on-year.

Affected by the above-mentioned double bad news, Changan Automobile continued to decline in the short-term and was even reduced in the secondary market.

"CSC Investment" data show that as of April 1, 2011 15:00, Changan Automobile a total turnover of 59.9731 million yuan, of which 28.37110 million yuan of funds inflows, capital outflow -302.6798 million yuan, and other transactions 123.32 million. Inflow and outflow of -189.97 million yuan, accounting for 3.17% of the total turnover.

Analysis of investment institutions believes that Changan Automobile lacked funds to care in the past two weeks, and the selling pressure remained large. The stock price was still on a bearish path in the short term. The recent main cost of the stock was 10.52 yuan, and the stock price was below the cost, and the trend was weak.

Microcars are under pressure

With the withdrawal of multiple preferential policies such as automobile going to the countryside, trade-in replacement, purchase tax, and car subsidy, the domestic auto market has experienced a sharp decline. The micro-vehicle was an important contributor to the dramatic increase in the number of passenger cars nationwide last year.

According to data released by the China Association of Automobile Manufacturers, in the first two months of this year, cumulative sales of domestic crossover passenger vehicles (ie, micro-cars) totaled 461,900, a year-on-year decrease of 3.09%, which was the only subdivided model with negative year-on-year growth. As one of the representative companies in the domestic micro-vehicle sector, Changan Automobile's sales fell more than ten percentage points in February.

Some auto industry analysts said that because micro-cars have low profits, they can only rely on economies of scale to earn revenue. Once micro-vehicle sales decline, micro-vehicle production companies will face operational difficulties in the future. The pressure of Changan Automobile, which accounts for nearly 30% of the mini vehicle market in China, is self-evident.

According to sales personnel of Beijing Lingmai Automobile Sales Co., Ltd., sales of Changan mini-vehicles have been unable to open up since the preferential policies were withdrawn early this year, and after the implementation of the shake number restriction in Beijing, the originally deserted market was even less optimistic.

In order to boost the market, manufacturers launched various preferential measures for different regions. According to the dealer, currently purchasing Changan Star can enjoy a 2000 yuan cash discount from the factory subsidy. In the Nanchang area, Chang’an Star’s upgraded version of the National IV can also enjoy direct subsidies of 3,000 yuan, with a minimum of only 27,800 yuan.

Experts predict that the impact on self-owned brands, especially cross-over passenger vehicles, will continue to emerge as a result of the 1.6-liter passenger vehicle purchase tax concession and the withdrawal of auto subsidy policies for the countryside.

Break below the increase price

What's even worse is that Chang'an Automobile has also been reduced in the capital market because of continued "diving" in sales.

Although Changan Automobile stated that “the current financial pressure is controllable”, its performance in the capital market has not been convincing.

Since the beginning of the year, in the case of a downtrend in the broader market, many stocks have encountered the dilemma of falling below the incremental price. Changan Automobile also quickly fell below the incremental price since it was added on January 11.

In accordance with the plan, Changan Automobile issued an additional 465 million A shares at an increase of 9.74 yuan. However, the stock fell to 9.23 yuan immediately before the increase. In order to ensure the smooth implementation of the issuance, the main force will pull up the stock price tenaciously and break through the increase price before the issuance. Helpless situation is not good, in the last day before the additional report to close 9.64 yuan, the increase in the price fell.

Changan Automobile disclosed the results of additional issuance on January 14th: The company actually issued 360 million shares and raised a total of 3.51 billion yuan, which was a drop of 23% and 12% respectively from the previously set upper limit target.

After the issuance of additional shares, Changan Automobile's share price remained weak due to factors such as slower growth of the industry and continued decline in sales of the company. As of April 1, Changan Automobile closed at 9.45 yuan, still lower than the additional issuance threshold.

Some investors believe that because the Changan Automobile broke through the issuance price on the eve of the public issuance at the end of last year, the market purchase was not active, and in the secondary market, affected by the investment bank, investors waited and watched strong emotions, and should be reduced by the city.

In this regard, Southwest Securities analysts believe that Changan Automobile's issuance can alleviate capital shortages and financing difficulties. However, it is currently facing the pressure of falling production and sales of the industry and overcapacity of its own. After the project invested with funds is put into production, there is no expected benefit. risk. "Chang'an's major projects to raise funds will take 5-6 years to reach the program. Therefore, as the share capital increases, the existing shareholders' equity will have certain uncertainties."