In a positive turn of events for the automotive industry, auto parts companies have experienced a significant surge in net profits during the first quarter of 2024. This growth, driven by the rising demand for vehicles and a general uptick in the automotive market, has been felt across the board, with numerous companies reporting double-digit growth in both revenue and net income.
According to statistics from the China Association of Automobile Manufacturers (CAAM), China's auto production and sales reached 6.606 million and 6.72 million units in the first quarter, representing year-on-year growth of 6.4% and 10.6% respectively. This robust market environment has been a major catalyst for the strong financial performance of auto parts suppliers.
Among the 239 auto parts companies listed on the A-share market, 185 companies achieved positive growth in net profits, accounting for nearly 80% of the total. Notably, 14 companies achieved net profit growth of over 300% year-on-year, while 45 companies surpassed the 100% growth mark.
One of the standout performers was Fuyao Glass, a leading manufacturer of automotive glass. The company reported revenue of 8.83 billion yuan in the first quarter, representing a year-on-year increase of 25%. Net profits also reached a record high of 1.38 billion yuan, up 51% from the same period last year. The company attributed this growth to both revenue expansion and improvements in efficiency and product quality.
Similarly, leading tire manufacturer Sailun Tire also saw significant growth in the first quarter. The company achieved revenue of approximately 7.296 billion yuan, an increase of 35.84% year-on-year. Net profits also surged, reaching 1.034 billion yuan, a staggering 191.19% increase from the previous year.
Other auto parts companies, such as Junsheng Electronics and Top Group, also reported robust growth in both revenue and net profits. Junsheng Electronics, a global leader in automotive safety systems, saw significant growth in its core automotive safety business, especially in Europe. The company's total revenue from automotive safety reached 9.3 billion yuan in the first quarter.
Top Group, a long-standing player in the auto parts industry, reported revenue of 5.688 billion yuan, a 27.29% increase year-on-year. Net profits also grew by 43.46% to 645 million yuan. The company has capitalized on the rapid development of the robotics industry, investing in the production of robotic components and positioning itself for future growth.
Overall, the robust financial performance of auto parts companies in the first quarter of 2024 is a testament to the strength of the automotive market and the resilience of these companies in the face of challenges. With the continued growth of the automotive industry, these companies are expected to maintain their momentum and continue to deliver strong financial results in the coming quarters.
