Recently, a number of international component companies, such as Magna, ZF, Denso, Valeo, Schaeffler, BorgWarner, etc., have successively announced their financial reports for the second quarter and the first half of the year. Benefiting from the improvement of the world's major auto markets, especially the strong recovery in the North American market, coupled with the relatively low base due to the weak market in the same period last year, most of the multinational parts giants have achieved strong growth in revenue and profits.
■ The performance of Toyota and Hyundai suppliers has improved significantly
In the first half of this year, global auto production reached 43.3 million units, an increase of 11% year-on-year, driven by the continued recovery in demand and the gradual improvement in semiconductor supply. With the recovery of automobile production, parts suppliers have also ushered in a rebound in performance, especially for Japanese and Korean suppliers that are closely related to vehicle manufacturers. The depreciation of the Japanese Yen and South Korean Won further stimulated their performance.
Companies such as Denso and Aisin are Toyota’s component suppliers. According to official data, last quarter (that is, from April to June this year), the Toyota Group (including Toyota, Hino, Daihatsu, etc.) contributed to Denso’s revenue. The rate reached 52%, and the contribution rate to Aisin was even as high as 67%. Toyota's production decline has effectively improved in the first half of this year, and it posted a quarterly profit of more than 1 trillion yen for the first time in the April-June period. Toyota's good performance has also led to an improvement in the performance of its core component suppliers.
Denso's financial report shows that from April to June this year, the company's revenue increased by 21% year-on-year to 171.29 billion yen (approximately RMB 86 billion), while its net profit was 85.5 billion yen (approximately RMB 86 billion). RMB 4.3 billion), a year-on-year increase of 65%. In view of this, Denso raised its revenue and profit forecast for the entire fiscal year 2023 (that is, from April 2023 to March 2024).
Aisin also performed well. Its revenue from April to June this year was 119.17 billion yen (approximately RMB 60 billion), a year-on-year increase of 19%, and its net profit was 40.9 billion yen (approximately RMB 2.1 billion). , an increase of 89% year-on-year. Aisin also expects its net profit in fiscal 2023 to reach 125 billion yen, a year-on-year increase of 232%. In addition, other Toyota-based core component suppliers, such as Aisan Industry and Tokai Rika, have also achieved growth in performance.
Looking at Hyundai Mobis, about 90% of the company's revenue comes from Hyundai Motor and Kia Motors. Hyundai Mobis pointed out: "As the shortage of semiconductors gradually eased, the quarterly results were driven by increased production of modules and key components. The demand for high-margin components in electric vehicles and SUVs was particularly strong." The Korean parts maker In the first half of the year, the company achieved a revenue of more than 30 trillion won, and its net profit reached 177.38 billion won (about 9.7 billion yuan). In addition, on August 9, Hyundai Mobis announced that it has received a "large-scale" order from the Volkswagen Group and will provide the latter with core components for electric vehicles.
■ Cost transfer, divestiture
With the recovery of global automobile production, European and American veteran parts giants have also received huge orders. Freya revealed that its total orders in the first half of the year exceeded 15 billion euros (approximately RMB 119 billion), of which orders from Chinese customers totaled 3.8 billion euros (approximately RMB 30.1 billion). 25%, including the new project of producing luxury package for BYD.
According to the data, Freya's revenue in the first half of the year increased by 21% year-on-year to 13.6 billion euros (about 107.9 billion yuan), while its operating profit increased by 70% year-on-year to 675 million euros (about 107.9 billion yuan). 5.35 billion yuan). As a result, Freya raised its full-year revenue and operating margin forecasts. In addition, in the first half of the year, Freya signed three agreements, which finally completed the 1 billion euro asset divestment plan starting in 2022. "We are negotiating with our customers to increase the pass-through of inflation costs in the second half of the year," Feria added.
All along, rising raw material costs have put pressure on auto parts suppliers. Autoliv is also aggressively passing on inflation costs. Autoliv CEO Mikael Blatter said: "We have seen an increase in light vehicle production year-on-year, progress in our negotiations with customers on compensation for inflation and raw material costs, coupled with our cost Concerned, our adjusted EBIT has improved significantly.” According to the data, Autoliv’s net revenue in the first half of the year increased by 22% year-on-year, while adjusted operating profit increased by 79% year-on-year to reach 343 million euros (about 2.7 billion yuan). In addition, in order to cut costs, Autoliv announced in June this year that it will lay off 8,000 employees worldwide by 2025 and close several European factories.
Looking at BorgWarner again, although its revenue has shown strong growth, its net profit fell slightly in the second quarter and the first half of the year due to a sharp increase in expenses for mergers, acquisitions and divestitures. It is understood that, on the one hand, BorgWarner spun off its non-core internal combustion engine business, including the fuel system and the aftermarket, and established a listed company; on the other hand, BorgWarner successively acquired Santroll’s light vehicle business , Rhombus Energy Solutions, an electric vehicle charging solution provider, Drivetek, and the charging business of Sunrise Electric, etc., to expand its electrification product lineup.
■ The proportion of electrification has increased
It is worth noting that in the reports of many established component manufacturers, the proportion of electrification and smart business is rising. Taking Valeo as an example, in the first half of this year, its revenue reached 11.2 billion euros (about 88.89 billion yuan), a year-on-year increase of 19%, and its operating profit margin was 3.2%, which also increased. Valeo's CEO Christopher Perilat pointed out that the growth of the group's revenue reflects the strong momentum of the development of ADAS advanced driver assistance systems and electrification, while the improvement of profit margins is due to the strong growth of revenue, The success of the cost containment program, the revival of the high-voltage electric powertrain business, and the completion of inflation-related negotiations. It is understood that in the first half of the year, the company's ADAS business increased by 26% year-on-year, and the power system electrification business increased by 108% year-on-year, with orders reaching 18.8 billion euros (about 149.2 billion yuan).
ZF has a similar situation, with revenue of 23.3 billion euros (about 184.9 billion yuan) in the first half of the year, a year-on-year increase of 10%. The revenue of the Asia-Pacific market, especially the Chinese market, reached 52.76 billion euros (about 41.87 billion yuan), a year-on-year increase of 16%. The adjusted profit before interest and taxes was 9.41 billion euros (approximately RMB 7.47 billion), an increase of 11% year-on-year. In order to promote the next generation of travel, ZF has made large-scale investments in China in the past two years, especially in the fields of electrification and intelligence.
Looking at the electric drive business, Schaeffler is a good example. In the first half of the year, its revenue increased by 9% year-on-year to 8.2 billion euros (approximately RMB 65.08 billion), and its profit before interest and taxes excluding special items increased by 36% year-on-year to 625 million euros. The situation of Vitesco Technology is even more significant. Among the new orders of about 5 billion euros (about 39.68 billion yuan) in the second quarter, 4.5 billion euros were related to electrification products. Although Vitesco Technology had a net loss of 64.5 million euros in the first half of the year, this was not because of poor performance, but because of the impairment caused by the sale of non-core business units.
Large and established parts manufacturers such as Magna, Lear, and Dana have also achieved soaring profits. Among them, Continental has turned around and achieved a net profit of 590 million euros (about 4.68 billion yuan) in the first half of the year. This compares with a loss of 11.2 million euros in the same period last year.
In addition, as the global demand for electric vehicles continues to grow, the financial performance of battery manufacturers such as Panasonic and LG New Energy is also significant. For example, in the first half of the year, LG New Energy's revenue increased by 86% year-on-year to 1.75 trillion won (about 95.6 billion yuan), and its net profit more than doubled year-on-year to 1 trillion won (about 95.6 billion yuan). RMB 5.6 billion).
Overall, in the first half of the year, with the recovery of automobile production and the recovery of the automobile market, the performance of large parts manufacturers showed a good momentum of development. Benefiting from the rising demand for electrification and intelligent products, suppliers have won more orders, laying a solid foundation for future development.
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