华域汽车2023年营收达1685.94亿元，净利润仅增长0.15%。今年一季度营收为370.21亿元，净利润下滑11.93%。公司股票表现受影响，动态市盈率排名倒数第9。股价为16.11元，市值507.9亿元。营收增长乏力，盈利下滑。华域汽车市场占有率高，主要客户为上汽集团。近5年营收波动大，2021-2023年有增长，今年一季度营收增速仅0.56%，盈利下滑。 In 2020, Huayu Automobile’s gross profit margin reached a recent high of 15.23%. Since then, the gross profit margin of Huayu Automobile has steadily declined to 13.32% in 2023, and further dropped to 12.54% in the first quarter of this year. In terms of net profit margin, Huayu Automobile reached a historical peak of 80.27 billion yuan in net profit in 2018, with a net profit margin of 6.65% that year. However, in the following five years, Huayu Automobile’s net profit margin decreased significantly, with 5.91% in 2019, 5.22% in 2020, and 5.71%, 5.09%, and 4.80% from 2021 to 2023. In the first quarter of this year, Huayu Automobile’s net profit margin was only 3.87%. In 2023, Huayu Automobile’s interior and exterior parts business revenue, including products such as dashboards, door panels, bumpers, seats, and car lights, was 113.07 billion yuan, with a year-on-year growth rate of 8.56%. The gross profit margin was 12.99%, a decrease of 1.85 percentage points compared to the previous year. In 2023, Huayu Automobile’s interior and exterior parts products achieved a net profit of 4.27 billion yuan attributable to the parent company, with a year-on-year growth rate of only 1.85%, the smallest increase in net profit margin among all businesses except for the loss-making electronic components. With rising competition and intensifying competition in the main business, the market competition is becoming increasingly fierce, especially in the seat and car light markets, which is a major reason for the slowdown in Huayu Automobile’s revenue growth. In Huayu Automobile’s interior and exterior parts business, seats and car lights are core products, and Huayu is undoubtedly the leader in the domestic seat and car light market. With the rapid growth of the domestic high-end new energy vehicle market, car companies have higher requirements for the comfort and cost-effectiveness of seats. New forces in the automotive industry often bypass seat assembly companies like Huayu Automobile and directly connect with suppliers of seat frames, headrests, fabrics, or cultivate new seat suppliers, thereby driving the rapid rise of new automotive seat companies. For example, Jifeng shares, which previously focused on headrests, armrests, and other seat components, have become suppliers to new forces such as NIO and Li Auto. In 2019, Jifeng Group acquired German automotive interior giant Grammer, entering the passenger car seat track. By 2023, Jifeng Group’s first passenger car seat project successfully entered mass production, achieving annual sales of 655 million yuan. As of the end of the first quarter of this year, Jifeng Group has a total of 9 designated passenger car seat projects on hand, with a total estimated sales of 56.3-61 billion yuan. At the same time, another domestic seat company, Tiancheng Auto Control, has already entered the headquarters of Huayu Automotive, entering the SAIC supply chain and becoming a supplier to BAIC, Dongfeng, Chery, and JAC. In 2023, Tiancheng Auto Control’s passenger car seat business revenue was 473 million yuan, and added projects from SAIC, Chery, Geely, and other leading new energy vehicle companies. Recently, Tiancheng Auto Control announced the acquisition of 48% equity of Changsha Andaotuo Automotive Parts Co., Ltd., in order to enter the GAC Group supply system. Although these new seat companies are currently small in scale, they have not only taken a portion of Huayu Automotive’s original market share but are also rapidly seizing new orders in the market. In the car light market, with the gradual popularization of intelligent car lights in recent years, Huayu Automotive is also facing challenges from companies specializing in car lights such as Xingyu and Kebo Da. In 2023, Xingyu undertook new product development projects for 58 models, achieving a revenue scale of 10.248 billion yuan from mass production of 50 models, a year-on-year increase of 24.25%. Net profit was 1.102 billion yuan, a year-on-year increase of 17.07%. In 2023, Xingyu sold a total of 22.0411 million front and rear combination light products, which is almost the same as Huayu Automotive’s sales of 23.42 million pieces. A similar situation occurred with Kebo Da. In 2023, Kebo Da’s revenue was 4.625 billion yuan, an increase of 36.68% year-on-year. Net profit reached 609 million yuan, a year-on-year increase of 35.26%. By the end of 2023, Kebo Da had a total of 145 ongoing car light projects. Slow transformation to intelligence and electrification In addition to intensified market competition, another major reason for Huayu Automotive’s weak growth is falling behind in transformation. In terms of timing, Huayu Automotive’s transformation to intelligence and electrification is not late. In its 2016 annual report, Huayu Automotive stated its technical development roadmap of “strengthening product development process, cultivating core technical team, forming engineering verification capability, manufacturing engineering capability, product engineering capability, and striving to become a component supplier that provides system integration solutions” based on the development trend of electrification, networking, intelligence, and sharing in the automotive industry. In 2015, Huayu Automotive announced increased investment in independent research and development in core business areas such as intelligent driving and new energy vehicle drive systems. They successfully developed a series of new energy vehicle drive motors and motor controllers, and entered the intelligent driving system with on-board millimeter-wave radar. However, the transformation of Huayu Automotive towards intelligence and electrification has been relatively slow over the past nine years. Despite being the first domestically developed millimeter-wave radar supplier to achieve mass production and stable supply, their intelligent strategy has remained at the product level and has not successfully transitioned towards intelligent cockpits and intelligent driving like Desay SV and Joyson Electronics. Although Huayu Automotive is involved in intelligent cockpit business, their intelligent cockpit solutions have not yet been implemented based on publicly available information. In terms of electrification, their drive motor sales reached 360,000 units in 2023, with a 21.48% year-on-year growth, maintaining an increasing trend. However, their market share in the drive motor business is steadily declining. According to NE Times statistics, in 2018, Huayu Automotive’s drive motor installation volume was 44,100 units, ranking 7th in the industry with a market share of 5%. In 2019, the installation volume increased to 45,500 units, ranking 5th with a market share of 8%. However, starting from 2020, Huayu Automotive’s drive motor has dropped out of the top 10 list for four consecutive years. In 2023, they ranked 10th with a market share of 3%, indicating a decrease in market share compared to the previous year. With the rapid development of new energy vehicles, automotive component companies must either progress or regress. Whether Huayu Automotive can successfully transform and return to high growth is worth market attention.
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