FEATURES:
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In January 2011, under the strong demand from the downstream market and the replenishment of inventory by companies and dealers, the production and sales of heavy trucks both increased significantly year-on-year, and the sales season advanced earlier. Weichai Co., Ltd. is the largest independent supplier of heavy-duty engines in China. It has stronger bargaining power in the downstream and is less affected by industry competition and fluctuations in raw material prices. It is expected that profit margin will remain high in 2011, and the company will become the main beneficiary of heavy truck sales growth. .
In 2011, Weichai was in a period of rapid development and the growth rate would exceed the industry average. In the first half of 2010, Weichai's capacity was seriously insufficient, and more orders were lost. The matching share of construction machinery was declining. It is expected that Weichai will increase productivity through 2011. To achieve market share improvement. On the other hand, the two downstream customers of Weichai engines are expected to grow rapidly in 2011. After the production capacity of the Foton Auto Heavy Truck 2 plant opens capacity bottleneck, sales of heavy trucks are expected to increase by 30%; sales of Shaanxi Heavy Duty Truck in 2010 will reach 110,000 units in 2011. The annual target will be 130,000, and the target will be 150,000. The sales growth is expected to be around 30%. The rapid growth of sales of main customers will boost the profitability of the Weichai engine business.
The existing business advantages support diversified development, and mid- to long-term development is worth looking forward to. Weichai's existing heavy truck engine business can provide strong cash flow support, while its management capability is in the leading position in the industry. Its diversification and export to construction machinery engines, marine engines and other fields are expected to be successful. Medium and long-term development is worth looking forward to.
Shaanxi Heavy Industry entered a period of rapid development and Fast grew steadily. After product upgrades and continuous improvement in marketing and management, Shaanxi Automobile's newly launched product F3000 gradually gained consumer recognition. In 2010, sales volume increased by 61.3% to 109,000 units, which exceeded the industry average and is expected to enter the second round of rapid growth in the future. Fast at the same time in the field of stable heavy-duty transmission gearbox, through the diversification of passenger cars, small transmissions is expected to achieve steady growth.