Significant downward pressure in the internal combustion engine industry

Recently, listed companies of internal combustion engines have successively released the 2015 annual report. From the data of several major internal combustion engine companies, the downward pressure on the industry is significant due to factors such as the macroeconomic and emission regulations.

Significant downward pressure in the internal combustion engine industry

Weichai Power achieves stable and healthy development

Last year, Weichai Power (000338) achieved operating income of approximately RMB 73.72 billion, a decrease of 7.43% from 2014. The net profit attributable to shareholders of listed companies was approximately 1.391 billion yuan, a decrease of 72.2% from 2014.

Affected by macroeconomic and emission regulations, the domestic heavy truck market was sluggish and sales continued to decline. The annual sales reached 551,000 vehicles, down 25.98% year-on-year. Affected by this, last year, Weichai sold a total of 118,000 heavy-duty truck engines, down 56.5% year-on-year, and the industry's leading position was stable; sales of 10L, 12L traditional engine products 164,000, heavy-duty engine products in the heavy truck market, 5 tons loader The dominant position of the market and the passenger car market of 11 meters or more is still stable. At the same time, sales of strategic products increased significantly, Yangchai VM engine sales of 11,000 units, a year-on-year increase of 6 times; WP13 engine sales of 1237 units, an increase of 133%; new energy power system sales of 495 units, a year-on-year increase of 6 times; forklift engine sales 1544 units, an increase of nearly ten times.

In 2015, Weichai focused on “quality improvement, efficiency, reform and transformation”, adhered to endogenous growth, adhered to innovation drive, accelerated its transformation and upgrading, comprehensively improved development quality, and achieved stable and healthy development. First, starting from the whole process of the value chain, we will strive to create products with three core competitiveness of cost, technology and quality, meet the differentiated needs of customers, and actively respond to the increasingly severe vertical integration trend of the industry. Second, based on customer demand, it has set a goal-oriented management thinking, further rationalized and optimized the R&D process, standardized the R&D operation control order, and further enhanced the scientific and technological innovation capability. In 2015, the Weichai Power Internal Combustion Engine Reliability Key Laboratory was selected into the State Key Laboratory and became the only national key laboratory for enterprise internal combustion engine reliability. The third is to build the Weichai WOS operation management and control system, unify the enterprise management language through the KPI system, standardize the management order through the hierarchical meeting, and build a management model that can be landed, exported, and promoted, in order to continuously improve the operational performance of the enterprise. Laid a solid foundation. The fourth is to accelerate the integration of the two industries, promote the transformation and upgrading of the enterprise, complete the strategic planning of the company's informationization, clarify the blueprint of the information strategy, the overall framework and the implementation roadmap, and the “digital workshop of the automobile engine” successfully passed the acceptance test. The pilot demonstration project was successfully selected for the national smart manufacturing pilot demonstration project.

Cloud power growth against the trend

Yunnei Power (000903) achieved operating income of 2.832 billion yuan last year, an increase of 16.97% year-on-year, of which the main business income was 2.705 billion yuan, an increase of 21.43%. During the reporting period, the gross profit margin of the main products decreased by 3.07% year-on-year, mainly due to the impact of industrial economic development, passenger and freight industry situation, and emission regulations. The competition in the industry has intensified and the profit margin of the diesel engine industry has declined. Last year, the total profit reached 202 million yuan, a year-on-year increase of 11.07%; the net profit attributable to shareholders of listed companies was 176 million yuan, an increase of 8.81%.

In the face of an extremely severe external environment, Yunnei Power will review the situation and plan layout, lead all employees and subsidiaries to unite and forge ahead, closely focus on the strategy of “innovation-driven, transformation and upgrading” to “adjust structure and promote transformation; management” And benefit improvement; lean management; lean management of value-added in the whole value chain system is the main theme of development theme, and continue to carry out the "five major battles", continuously strengthen the "five kinds of consciousness", further increase the adjustment of product structure, and accelerate the product The innovation and upgrading, through the adjustment of marketing strategies, improve the quality of after-sales service and other measures, the company's product sales growth against the trend, product market share increased by 1.88 percentage points over the same period of the previous year, the industry's status further improved. During the reporting period, the company sold a total of 217,966 diesel engines of various types, an increase of 2.20% over the same period last year.

Yunnei Power has always adopted the “sales by sales” model. The company's procurement department purchases raw materials from upstream suppliers according to orders and production needs. The production department issues production plans according to downstream customer orders, and each production workshop is manufactured according to the production plan. Sales are completed by the sales department.

Following the pace of national industrial policies and environmental protection requirements, by accelerating product innovation and upgrading, YN series products are leading the industry in performance and structure optimization. With the recovery of the automotive industry, sales will further increase in the future; D series products will become the driving force for passenger cars and commercial vehicles. The promoters and guides have become the company's new profit growth point; the natural gas engine is firmly grasping the market development opportunities and is expected to usher in rapid development; with the future diesel engine automatic transmission powertrain products put on the market, the company will become the domestic diesel engine automatic The pioneer of the gearbox; the company's new energy vehicle powertrain follows the national policy, and as the product is further put into the market, it will become a new engine for the company's rapid development.

Shangchai's operating income and net profit declined

Last year, Shangchai Co., Ltd. (600841) realized operating income of 2.163 billion yuan, down 22.1% year-on-year, and realized net profit of 92.932 million yuan, down 38.12% year-on-year. Shangchai mainly manufactures diesel engines and their accessories. The sales of diesel engines are greatly affected by the national capital construction and downstream commercial machinery, heavy trucks and other commercial vehicle industries. With the structural adjustment of the national economy and the slowdown in growth, the construction machinery and heavy truck industry still showed an overall downward trend. Shangchai achieved 52,158 diesel engine sales last year, a year-on-year decrease of 18.24%.

Facing the sluggish industry market environment and complex and ever-changing market, Shangchai adheres to the scientific development concept, actively adapts to the new normal of economic development, seeks development with innovation, looks at the long-term, adheres to the strategy of innovation-driven and transformational development, and further enhances the sense of crisis in coping with challenges. Enhance the sense of urgency driven by innovation, enhance the sense of mission to accelerate development, focus on the theme of innovation, strive to expand market share, consolidate the expansion of new and old markets, promote product support and lean production in an orderly manner, continue to improve products and improve product technology. Competitive advantage, continuous improvement of product quality, focus on strengthening management budget control, deep tapping potential, reducing costs and increasing efficiency to cope with market decline.

This year, China will still face a complicated domestic and international economic operating environment. The economic development will shift from high-speed growth to medium-high-speed growth. The economic development momentum is shifting from the traditional growth point to the new growth point. The investment growth slows down and has a greater impact on the industry. The corresponding supporting construction machinery and commercial vehicle enterprise market will still be consolidating at a low level.

However, in the long run, with the strict implementation of environmental protection emission standards, it is conducive to the elimination of backward production capacity in the market. The deeper structural reform of the supply side and the more active fiscal policy and the increase of tax reduction will also benefit the future development of Shangchai. At the same time, with the implementation of the new national non-road country three emission reduction standards, it will also bring new development opportunities for Shangchai's construction machinery products. The company will actively upgrade its products with supporting factories and strive to increase market share.

Full firewood power to achieve growth

Quanchai Power (600218) achieved sales of 298,300 units of multi-cylinder diesel engines last year, down 11.59% year-on-year; realized annual operating income of 2.856 billion yuan, up 7.78% over the previous year; net profit (net profit attributable to shareholders of the parent company) 70.73 million yuan, an increase of 147.31% over the previous year.

The whole brand relies on the market brand advantage, and under the circumstance of the downward pressure of the industry, it still achieves growth. Quanchai is a national high-tech enterprise and a leading enterprise in China's internal combustion engine industry. It has been selected as one of the top 500 enterprises in China's machinery industry for many years. At present, Quanchai has become one of the large-scale R&D and manufacturing bases for small and medium-sized diesel engines in China, and has won the “Anhui Trademark”, “Top 100 Enterprises in Anhui Province” and “The Top 100 Enterprises of Top Ten Auto Parts Suppliers” "The "Thirty Best Agricultural Machinery Parts" and other honorary titles enjoy a high reputation in the domestic internal combustion engine industry.

Last year, the production and sales of all-wood products have been in the domestic four-cylinder diesel engine industry for eight consecutive years, and the market share has been expanding. The whole firewood has formed a power supporting system mainly for vehicles, agricultural equipment, construction machinery and generator sets. The products have passed the EU CE and US EPA4 certification, and the power coverage is 8~280kW. It has established strategic partnership with many well-known domestic enterprises. Products are also exported to Southeast Asia, Europe, Africa and other regions. The product market has more than 3 million units.

Steyr's comprehensive development capability has achieved initial results

Steyr (00760) completed a total operating income of 347 million yuan, a decrease of 53.21% over the same period of last year, and the net profit attributable to shareholders of listed companies was 193 million yuan. In the face of the intricate international environment and increasing economic downward pressure, Steyr continuously integrates resources, optimizes asset allocation, and increases research and development of diesel engine Euro V products and new energy products based on the business objectives and business plans formulated at the beginning of the year. We will actively explore the potential customers of mature products in the military and civilian products markets, while focusing on promoting basic capacity building.

Due to the changes in diesel engine emission regulations and the overall downturn in the industry, the company timely adjusted the investment plan for the product assembly line in the 2015 business plan, resulting in the failure to have an assembly capacity of 30,000 units (duplex) per year at the end of 2015. .

Last year, Steyr increased investment in product technology innovation and R&D according to the three-year product plan formulated by the Board of Directors at the beginning of the year, focusing on improving the technical content and added value of products, and striving to promote the development of diesel engine products. In terms of R&D capacity building, the company accelerated the construction of the application engineering center, expanded the staffing of each technical module, improved the R&D management system, and formulated and improved the “New Product Development Process”, “Engine Trial Process”, “Product Verification Process”, R&D process such as simulation and analysis process.

At present, Steyr's comprehensive development capabilities have achieved initial results: including component design, UI system calibration, piggybacking and testing, prototype trials, and bench verification. While focusing on the construction of domestic R&D team, the company used the form of project management to promote technical exchanges between China and Austria, and reached consensus in major aspects such as R&D process, time node, task division, and personnel cooperation, effectively improving the integration of the company and Austria. . In addition, the company has continuously increased cooperation with relevant research institutes, using the technological advantages of scientific research institutes and the qualifications of special industries, jointly researching and developing diesel engine technology, and quickly achieving breakthroughs in the military products market, striving to quickly transform technological advantages into Strong productivity.