Automotive parts company delivers strong performance in the first three quarters

Benefiting from the robust performance of the automotive industry, listed auto parts companies delivered impressive results in the first three quarters. According to Wind data, as of October 27, 102 listed auto parts companies had already released their Q3 reports. Among them, over 90% reported positive net profits attributable to shareholders, with 13 companies experiencing year-on-year profit growth exceeding 50%. Analysts believe that, based on the Q3 earnings performance, segments such as lightweight components (including integrated die-casting), wire-controlled chassis systems, and domain controllers within the auto parts sector may outperform the overall vehicle manufacturing sector. Of the 102 auto parts companies that have disclosed their Q3 reports, 43 saw double-digit year-on-year growth in revenue for the first three quarters—accounting for more than 40%—while 33 companies recorded double-digit year-on-year increases in net profits attributable to shareholders during the same period—representing over 30%.
Among them, Junsheng Electronics, Jingu Shares, and Lihu Shares led the entire sector in terms of year-on-year growth rate of net profits attributable to parent company in the first three quarters, with figures of 625.56%, 620.87%, and 373.11%, respectively. Junsheng Electronics stated that, driven by the rapid advancement of new energy and intelligent technologies in the automotive industry, coupled with the robust recovery of the Chinese market, the company achieved operating revenue of approximately RMB 12.8 billion in the third quarter of this year, representing a year-on-year increase of about 23%. Notably, the company's automotive electronics business continued to maintain strong growth, generating operating revenue of roughly RMB 4.1 billion—up nearly 30% compared to the same period last year—while its gross margin remained steady and even climbed slightly, reaching around 21.3%.
Looking at the segmented market, companies involved in the integrated die-casting sector delivered particularly strong performance in the first three quarters, with quarterly results showing rapid growth. Take Wanfeng Aowei as an example: the company achieved operating revenue of 11.676 billion yuan in the first three quarters, a year-on-year increase of 37.05%; net profit attributable to shareholders reached 594 million yuan, up 152.12% compared to the same period last year. Notably, the company’s net profit attributable to shareholders in the third quarter surged to 243 million yuan, representing a staggering year-on-year growth of 9,772.23%. It’s worth noting that during the first three quarters, Wanfeng Aowei’s automotive lightweighting business generated operating revenue of 10.215 billion yuan, reflecting a robust 39.64% increase over the prior year. In particular, the company’s automotive aluminum alloy wheel business saw a 44.75% rise in revenue, while its magnesium alloy business recorded a remarkable 67.44% jump, leading to a significant rebound in profitability.
In the wire-control chassis segment, Bertelli achieved operating revenue of 3.684 billion yuan in the first three quarters, representing a year-on-year increase of 58.23%; net profit attributable to shareholders stood at 478 million yuan, up 29.70% from the same period last year. Notably, third-quarter revenue reached 1.570 billion yuan, a robust 99.49% rise compared to the previous year, while net profit attributable to shareholders hit 198 million yuan, growing by 54.73% annually. It’s worth mentioning that from June to September this year, the company delivered 925,600 sets of steering system products, generating revenue of 305 million yuan. As the automotive industry continues to thrive—particularly with new energy vehicles consistently breaking sales records—the profitability of auto parts companies has been further strengthened.
Some companies have seen their automotive components businesses become the primary driver of growth in corporate performance. Take Jinli Permanent Magnet as an example: In the first three quarters of this year, both its operating revenue and net profit attributable to shareholders achieved robust growth, increasing by 78.66% and 95.41% year-on-year, respectively. Notably, during the same period, the company’s revenue from new-energy vehicle and automotive components businesses reached RMB 1.91 billion, representing a remarkable 189.75% increase compared to the previous year—far outpacing the growth of the company’s other business segments. Guangda Securities noted that domestic demand for new-energy passenger vehicles remains strong, further supported by region-specific subsidy policies tailored to promote the adoption of such vehicles. Combined with year-end sales surges driven by promotional incentives, the firm expects China’s new-energy passenger vehicle sales to reach 6 million units this year.
As sales and production of new-energy vehicles continue to grow rapidly, automotive component companies are enjoying robust order books, which is expected to further boost their financial performance. In its third-quarter report, Wanxiang Electronics noted that the company has maintained strong momentum in securing new business orders this year, with cumulative new orders now exceeding 70 billion yuan. Notably, new orders from the new-energy vehicle sector already account for more than 50% of the total new orders acquired, reflecting rapid growth in this key area. Meanwhile, Huaan Securities highlighted that Wanxiang Electronics' cockpit domain controller products are steadily maturing and gaining traction in the domestic market. Additionally, the firm’s strategic partnership with Huawei is set to unlock even greater growth potential.
Notably, integrated die casting has introduced a new model for automotive lightweighting and the application of aluminum alloys, further boosting optimism about the performance of related companies. Western Securities noted that the trend toward integrated die casting is already underway, with companies in the supporting industry chain benefiting from strong market demand. They expressed particular confidence in aluminum die-casting component suppliers that maintain close partnerships with high-quality automakers. Against the backdrop of robust industry growth, automotive parts manufacturers are also accelerating their expansion efforts. Wenchan Shares, which specializes in the R&D, production, and sales of precision castings made from automotive aluminum alloys, recently announced its plan to issue non-public shares, aiming to raise up to 3.5 billion yuan. These funds will be allocated to projects such as the Anhui New Energy Vehicle Components Intelligent Manufacturing Project and the Chongqing New Energy Vehicle Components Intelligent Manufacturing Project.

Translated from Sina Auto

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