Huayu Automobile’s revenue in the first three quarters reached 113.3 billion yuan, a year-on-year increase of 12.94%

On October 28, Huayu Automobile released its third quarter report for 2022. According to the report, HASCO achieved operating income of 113.313 billion yuan in the first three quarters, a year-on-year increase of 12.94%, and net profit attributable to shareholders of listed companies was 4.878 billion yuan, a year-on-year increase of 3.74%. Among them, the operating income in the third quarter was 44.564 billion yuan, a year-on-year increase of 32.14%, and the net profit attributable to shareholders of listed companies was 2.36 billion yuan, a year-on-year increase of 19.7%.

HASCO’s third-quarter performance; Image source: Screenshot of the official announcement

HASCO said that from January to September this year, driven by the demand from vehicle customers, the company strived to overcome the impact of the new crown epidemic, fluctuations in chip supply and demand, and rising material prices, seized the opportunity for incremental supply of supporting supplies in the market, and achieved business performance. Better growth.

Looking back at the first half of this year, due to the sudden impact of the new crown epidemic in many places in China and Shanghai, domestic automobile production and sales were affected for a time. In addition, the fluctuation of chip supply and demand and the rise of material prices were disrupted, and the growth of the automobile market was sluggish. According to data from the China Automobile Association, in the first half of the year, my country’s automobile production and sales were 12.117 million and 12.057 million, down 3.7% and 6.6% year-on-year, respectively.

Fortunately, thanks to the continued promotion of the purchase tax preferential policies and local policies to promote automobile consumption, as well as the continuous release of demand due to the stagnant epidemic in April and May, the auto market showed a clear recovery in the second half of the year, especially from July to September. Better growth.

According to data from the China Automobile Association, the monthly production and sales in the third quarter increased rapidly, and the overall trend was “not weak in the off-season, but recurring in the peak season”. This boosted the overall performance of the auto market in the first nine months. From January to September, my country’s automobile production and sales reached 19.632 million and 19.47 million respectively, a year-on-year increase of 7.4% and 4.4%. percent.

The performance of Huayu Automobile is naturally related to the overall trend of the auto market, but relatively speaking, it is more affected by the production and sales of SAIC. You know, as the controlling shareholder of Huayu Automobile, SAIC has always been its main source of business, accounting for more than half of its revenue. According to official data, from January to September this year, SAIC Motor sold a total of 3.77 million new vehicles, a year-on-year increase of 4.2%, close to the industry average growth rate.

Of course, in addition to SAIC, after years of development and accumulation, HASCO also has many external customers. According to the data, Huayu Automobile has cooperated with FAW-Volkswagen, Changan Ford, Shenlong Automobile, Beijing Benz, BMW Brilliance, Beijing Hyundai, Dongfeng Nissan, Great Wall Motor, Jianghuai Automobile, GAC Group, BAIC Group, Geely Automobile, BYD, Tesla Shanghai and other major domestic vehicle companies to establish cooperative relations.

Since the beginning of this year, HASCO’s automotive interiors, seat frames, airbags, drive shafts and other new models have been supplied by BMW Brilliance, Beijing Benz, Volvo and other global platform-related models; automotive interiors, electric drive aluminum shell covers, Drive shafts, front subframes, brake calipers, lights, electric air-conditioning compressors, etc. newly obtained some supporting supplies for Tesla, NIO, BYD, Xiaopeng, Xiaomi and other related models; automotive lights , steering gears, transmission shafts, air-conditioning compressors, etc., have been newly supplied by Great Wall Motors, GAC Passenger Cars, Chery Automobiles, Geely Automobiles and other related models.

As a result, the contribution of customers outside SAIC to its performance has increased year by year. Relevant data shows that from 2015 to 2020, the proportion of customers outside of Huayu Automobile SAIC Group in the company’s revenue increased from 38.5% to 49.2%. According to official data, in the first half of this year, 49.38% of HASCO’s main business revenue came from vehicle customers other than SAIC. Although the proportion of SAIC Group is still more than half, the proportion of external customers has increased.

According to industry insiders, the promotion of the “neutralization” strategy and the continuous optimization of customer structure are important reasons for the stable performance of HASCO. Looking back, the increase in the proportion of new energy vehicle companies’ customers’ revenue and the heavy volume of new products are expected to continue to bring them growth opportunities.

It is reported that since the beginning of this year, under the trend of electric intelligence, HASCO has made continuous breakthroughs in various fields such as various radar products, intelligent cockpit collaborative integration, intelligent lighting systems, and new energy electric drive systems.

For example, Huayu Automotive’s 4D imaging millimeter-wave radar has achieved small-scale supply to related projects of Youdao Zhitu, and the development of solid-state lidar is progressing as planned; in the field of intelligent cockpit, it provides customers with zero-pressure seats and active pre-collision safety systems. , interior surface products, interactive lighting and other integrated solutions; Huayu Vision’s intelligent vehicle lamp interactive system products participate in the development of new generation models of Zhiji and Gaohe, and new products such as ARHUD are also gradually accelerating the R&D and promotion.