Under the wave of lightweight new energy vehicles, the performance of aluminum alloy casting manufacturers has increased rapidly, setting off a new round of production expansion. On January 13, Aikedi (600933.SH) announced that it plans to issue 1.6 billion yuan of convertible bonds to expand production, and will add about 7.1 million new energy vehicle-related products. Expand to large structures.
As for whether the new product means higher gross profit, the relevant person in charge of the company told the Financial Associated Press that there are not many large-scale structural parts for new energy vehicles, and the industry still lacks accurate gross profit calculation. The profit in the early stage of the production of parts will be relatively high. After that, the profit will gradually decrease due to the cost reduction of the downstream OEMs, which is similar to the profit curve of traditional fuel vehicle parts, but considering the accelerated replacement of new energy vehicles, the cost pressure will be even greater.
The construction period of the new project is 36 months. After the project is completed and put into production, it is expected to increase the company’s annual operating income by 2.328 billion yuan. Aikedi said in the announcement that on the basis of continuing the competitive advantage of small and medium-sized products, it will strive to achieve more than 30% of new energy vehicle products represented by the core components and structural parts of the three-electric system of new energy vehicles by 2025. 70% by 2030.
Driven by the increase in the penetration rate of new energy vehicles, the industry has set off a new wave of production expansion. Before iKodi, Xusheng released a convertible bond plan in July 2021, raising 1.35 billion yuan to expand production.
As companies continue to expand in categories, product structure differentiation is gradually weakened, and manufacturers will face more intense competition. The person in charge of the aforementioned company said that the company believes that the market is in the stage of elimination and clearing, and will accelerate the clearing. In the future, the concentration of auto parts suppliers will increase, and downstream OEMs will also prefer group procurement in terms of cost and configuration, and the product structure of auto parts suppliers will tend to be richer.
Some people point out that there are many types of aluminum alloy structural parts in the automotive industry, and each product has its own characteristics, so the aluminum alloy die-casting industry is scattered. Industry reports show that Aikedi mainly focuses on small and medium-sized parts, with low unit price and large shipments as the main features. The products are supplied to many car companies. The core advantage of Xusheng Co., Ltd. lies in the mold. The unit price of the product is high but the shipment volume is small, and it is deeply bound to the major customer Tesla. The unit price and shipment volume of Wencan shares are between the first two.
In 2021, the performance of aluminum alloy die casting manufacturers will generally increase rapidly. In the first three quarters, Aikedi achieved revenue of 2.352 billion yuan, a year-on-year increase of 34.92%, and achieved attributable net profit of 279 million yuan, a year-on-year increase of 10.22%. In the same period, the revenue of Xusheng (603305.SH) was 2.012 billion yuan, an increase of 82.10% year-on-year, and the attributable net profit also increased by 43.67%. However, due to the increase in the price of raw material aluminum alloys, the industry’s Q3 earnings were generally under pressure. Wencan shares (603348.SH) performed significantly. In the first three quarters, revenue doubled year-on-year, but attributable net profit fell by 7.17%.