The market value evaporated 700 billion! How is the auto industry, which has been growing at a high speed for 30 years, cold?
In 2018, China’s auto sales showed negative growth for the first time in 28 years. This news seems to have pushed down the dominoes and triggered a series of events in the auto industry.
SAIC Group: What if the chairman asks the shareholders?
As the largest automobile group in China, SAIC (600104.SH) is the benchmark for the entire industry. It has maintained good results in revenue and net profit growth over the past decade, but even such a top student has encountered this year. Growing troubles.
According to data released by the China Association of Automobile Manufacturers, in the first four months of this year, China's automobile production was 8,838,600 units, down 10.98% year-on-year; sales were 8,533,300 units, down 12.12% year-on-year.
Among them, automobile production in April was 2.0520 million, down 19.78% from the previous month and down 14.45% year-on-year; sales were 1,800,500 units, down 21.41% from the previous month and down 14.61% from the same period last year.
With the overall downturn of the auto industry, SAIC Group has to face the embarrassment of sales decline. In the first quarter of this year, SAIC Group sold 1.533 million vehicles, down 15.88% year-on-year.
The sales volume has experienced double-digit decline, and the company's performance has also been dragged down. In the first quarter of this year, SAIC Group's total revenue was 2001.92 billion, down 16.18% year-on-year; net profit was 8.251 billion, down 15% year-on-year.
More than the decline in performance is the company's stock price. In May this year, SAIC's share price fell to a minimum of 22.69 yuan, compared with the highest price of 35.83 yuan in March 2018, has fallen by nearly 40%, the company's total market value has also fallen from the peak of 400 billion. It has fallen by 100 billion a year.
At this year's shareholders meeting, when the reporter mentioned how to maintain sales and profit growth this year, the chairman of SAIC Group Chen Hongyi changed the style of the past, frankly: "The demand for me is too high, this year SAIC strives to achieve market share. The lead in the rate."
When investors asked about the stock price falling and the SAIC plan to maintain stock price and market value, Chen Hong asked: "We also want shareholders to give us an idea. This stock price, what do you say?"
(Chen Hong, Chairman of SAIC Group)
Geely Automobile: The sales champion can't sit still.
The SAIC Group, which is in the first echelon of the Chinese auto industry, is still self-sufficient. The members of the second echelon are also having a hard time. For example, Geely Automobile (00175.HK) has recently been exposed to disguised layoffs.
On the evening of May 14, I learned that a car blogger broke the document of a suspected Geely car internal application. The document shows: As a Geely person, I voluntarily share the company's management and work together to promote the realization of the Group's strategic goals.
Although the authenticity of the documents has not yet been determined, but there is no wind and no waves, once the documents are exposed, they have caused an uproar in the online world. The netizens questioned Geely that this is a disguised layoff. It is too ugly to eat, which is simply a bad pass.
On the afternoon of May 14, Geely, the vice president of Geely, rumored on Weibo, saying that Geely's various business indicators were good and the development was stable. There was no such thing as “reduction of salaryâ€. Geely will officially start the 2019 annual salary adjustment work from May and attach relevant notices.
As the leader in the domestic passenger car market, Geely has performed well in the past. In 2018, in the context of the overall downturn of the automotive industry, Geely's sales exceeded 1.5 million units, and it was ranked as the champion of its own brand sales. The growth against the trend is very eye-catching.
However, in the past April, Geely's performance in the terminal market was not satisfactory. In April, Geely Automobile sold 96,836 units, down 23.7% year-on-year.
Geely's market value also shrank sharply. At the beginning of this year, Geely's share price fell to a minimum of 10.08 Hong Kong dollars. Compared with the highest price of 29.51 Hong Kong dollars at the end of 2017, the stock price has long been swayed, and the company's total market value has evaporated by more than 170 billion Hong Kong dollars.
Hippocampus: Selling shells, struggling on the brink of delisting
The SAIC Group and Geely Automobile, which are in the first and second echelons of the domestic auto industry, have their own troubles, and the hippocampus (000572.SZ) in the third echelon has more troubles, that is, the shell.
Haima Motor has been famous in the industry for its “Mazda†brand, and it has a special world in the domestic auto industry due to the blessing of two star models, “Pulma†and “Fumeilaiâ€.
However, in the past two years, Haima Motors has fallen into a quagmire of losses and has become deeper and deeper. In 2017 and 2018, the net profit attributable to Haima Automobile was -9.94 billion and -1.64 billion respectively. Even if the total profit of the listed company was filled in, it would not make up for the shortfall in performance.
The performance loss also dragged down the company's stock price. At the beginning of this year, Haima Motor's share price fell to a minimum of 1.91 yuan, which was more than 65% higher than the high price of 6.98 yuan at the beginning of 2017. The company's total market value fell below the 10 billion mark, and the current market value is only 3 billion. .
To make matters worse, the hippocampus has lost money for two consecutive years, and the stock code has been reduced from “Hai Ma Auto†to “*ST Seahorseâ€. If it continues to lose money in 2019, there will be only one way to leave the market.
The hippocampus struggling on the brink of delisting thought of “selling the house and keeping the shellâ€. In April and May this year, Haima Motor issued several announcements for selling houses, saying that it would sell the company’s properties in Shanghai and Haikou in batches, with a total of 401 sets.
The Shenzhen Stock Exchange issued a letter of concern. Haima Motors replied that the company's finance department has measured the income from the sale of the property. The company expects to realize an asset disposal amount of approximately RMB 334 million and a cumulative impact on the company's net profit of approximately RMB 170 million.
At present, Shanghai and Haikou are all in a restricted state, and it is not realistic to realize the rapid realization of the 401 suites of Haima Automobile. Moreover, even if the 401 property production is smoothly realized, it is only a drop in the amount of the loss, and it is entirely possible to make the case.
Global car market: large layoffs, newspaper group heating
In fact, not only are Chinese car companies sad, but global car companies are experiencing an unprecedented rigorous test. Under the cold winter of capital, some car companies have cut jobs significantly to cut costs, while others have reported that the group is heating up to overcome the difficulties.
On May 20 this year, Ford Motor announced that the company's restructuring plan has entered the final stage. A total of 2,300 white-collar workers in the US are affected, including nearly 20% of the company's higher-level managers.
In addition, Ford's restructuring in Europe, Asia, South America and other markets is still continuing. It is expected that about 7,000 white-collar workers will be laid off globally by the end of August, accounting for 10% of the company's 70,000 paid employees worldwide. It is expected to save the company every year. $600 million in costs.
This is not the first large-scale layoffs for Ford. In February, Ford Motor announced that it plans to lay off more than 5,000 people in Germany. It also plans to close some factories and cancel the production of low-profit models.
Wall Street analyst Adam Jonas predicts that Ford will lay off 20,000 people worldwide. As the only old American car company that has not broken the production so far, Ford has been the "God" of the global auto market. Can it not even hold it?
In fact, layoffs are not just for Ford. According to Bloomberg News on May 23, due to the decline in global car sales, in the past six months, several well-known car companies around the world have announced that they will lay off at least 38,000 people, including the United States, Germany, the United Kingdom and Asia.
In addition to layoffs, there are also car companies choose to report to the group to warm. On May 27th, Italy's Fiat Chrysler Automobile Company extended an olive branch to the rival French Renault Group and proposed a merger proposal.
If the proposal is accepted, it will produce a car company with a total size of about 37 billion US dollars and an annual output of nearly 9 million passenger cars and light trucks. It will be the world's third largest automaker after Volkswagen and Toyota.
According to the proposal, Fiat Chrysler and Renault each hold half of the shares in the new company. After the merger, they will not close any factories and expect a positive cash flow synergy within two years after the merger.
Conclusion
Year-to-date, of the more than 160 auto concept stocks in A-shares, more than 150 stock market values ​​have shrunk, accounting for over 90% of the total. The total market value of the auto sector has surpassed 700 billion yuan at the end of 2017.
In this context, management is also trying to promote auto sales. On May 28, Guangdong Province issued 29 New Deal promotion fees, gradually relaxing the Guangshen car lottery and bidding indicators.
Or stimulated by this good news, on May 28, auto stocks rose across the board. On the disk, Great Wall Motor rose more than 8%, Jiangling Motors and Changan Automobile rose more than 4%, and Guangzhou Automobile Group and SAIC Group rose more than 3%.
The Hong Kong stock market also rose, the Wulong electric car rose more than 20%, Yongda Auto rose more than 11%, Zhongsheng Holdings, Guangzhou Automobile Group and Meidong Auto rose more than 7%, Zhengtong Auto rose more than 6%, Geely Automobile, Great Wall Motor Beijing Auto and Brilliance China rose more than 5%.
However, the auto sector only saw a trading day, and it began to fall on May 29. The market brought by the New Deal’s positive situation has warmed up, and it has become a short-lived one in the face of reality.
After nearly 30 years of development, China's auto industry has entered the stage of elimination. Innovation and inheritance, survival and development, investment and departure... all are full of uncertainty. It is time for Chinese auto companies to stand at the crossroads. Seriously do a summary.
I hope that Chinese car companies will remember a rumor: this is the best era and the worst. Is it a crisis? Look at your choice.
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