On March 22, at the Fuyao Glass Industry Group Co.Ltd(600660) 2021 online performance briefing, the reporter of Securities Daily asked the company’s management how to treat the performance “overtaking” of Xinyi Glass in 2021, the dispute over “Glass King” and the change trend of the company’s gross profit margin. Li Xiaoxi, Secretary of the board of directors, responded that at present, the company mainly produces and sells automotive glass, ranking first in the world, “We also congratulate Xinyi Glass on its achievements in its field.”
Li Xiaoxi said that the gross profit margin of the company is relatively stable. As always, the company will strengthen operation and management, constantly expand the boundary of “one piece of glass”, promote the upgrading of product structure, enhance product added value and enhance the company’s comprehensive competitiveness.
a person in the industry who asked not to be named told the reporter of Securities Daily that at present, the top five manufacturers in the automotive glass industry account for more than 80% of the global market share, and Fuyao Glass Industry Group Co.Ltd(600660) has reached more than 60% of the market share in China. The automotive glass industry has entered the stock market competition automotive glass is a high penetration industry. For the development of enterprises, it is necessary to enter new fields while continuously improving the global market position.
global automotive glass market accounts for nearly 31%
march 17, Fuyao Glass Industry Group Co.Ltd(600660) released the annual report of 2021. The company’s operating revenue in 2021 was about 23.603 billion yuan, a year-on-year increase of 18.57%; The net profit was 3.146 billion yuan, a year-on-year increase of 20.97% although the company achieved good results in 2021, its share price fell 5.85% on March 18. According to statistics, as of the closing on March 22, Fuyao Glass Industry Group Co.Ltd(600660) from the beginning of 2021 to the present, the share price has decreased by 26.51%.
it is worth mentioning that Xinyi Glass, one of the world’s five largest automotive glasses, also released an annual report. Several media reported that there were new changes in the dispute over “Glass King” by comparing the data of two major glass manufacturers
according to the 2021 annual report of Xinyi Glass, the company achieved an operating revenue of HK $30.459 billion, about 24.761 billion yuan, a significant increase of 63.6% year-on-year; The net profit was HK $11.556 billion, about RMB 9.394 billion, a year-on-year increase of 79.9% and the gross profit margin of the company also reached 51.8%. Insiders believe that this is the first time that Xinyi Glass has surpassed Fuyao Glass Industry Group Co.Ltd(600660) .
The reporter combed the public data and showed that from the perspective of the company’s main business, there are certain differences between Xinyi Glass and Fuyao Glass Industry Group Co.Ltd(600660) glass Lutheran glass’s main products include automotive glass, architectural glass and float glass, of which float glass accounts for 71.9%, automotive glass 17.9% and architectural glass 10.2% ; The company’s production capacity covers Guangdong, Anhui, Tianjin, Liaoning, Sichuan and other places. In addition, the company also has a production base in Malaysia. Among them, the income from China and Hong Kong accounted for 77.8%.
In contrast to Fuyao Glass Industry Group Co.Ltd(600660) , the company stripped off the building glass business and focused on the automobile stripping business since 2008. Its revenue once accounted for 96% of the total revenue in 2018 in recent years, the company has launched a global strategy to build production and marketing bases in 9 countries and regions such as the United States, Russia, Germany, Japan and South Korea. At present, the company’s overseas sales revenue accounts for about half it is worth mentioning that the gross profit margin of 26.96% of Fuyao Glass Industry Group Co.Ltd(600660) overseas revenue is significantly lower than that of 42.95% in China, which also lowers the overall gross profit margin of the company to 35.34%
at the performance presentation meeting on March 22, Li Xiaoxi believed that the company mainly produces and sells automobile glass, ranking first in the world
“According to the company’s internal data, in 2021, the company’s market share in the global automotive glass industry was nearly 31%, ranking first in the world.” Ye Shu, the director and general manager of the company, said that the gross profit margin of the company was relatively stable, the company maintained strong performance ability, the company maintained a leading position in the global automotive glass industry, and its value appeared. In 2021, the company maintained an efficient dividend rate and gave rich returns to shareholders. The share price in the secondary market is affected by many factors, and the company keeps a cautious focus on the price performance of the stock in the secondary market.
will it be able to maintain high growth in the future
According to the statistics of the prospective industry research institute, the international automotive glass industry is highly concentrated, and the market share of the top five manufacturers exceeds 80%. The market presents a typical oligopoly competition pattern. According to the data, the top five global suppliers of automotive glass in 2020 are Fuyao Glass Industry Group Co.Ltd(600660) (28%), Asahi Salter (26%), Salter (17%), Saint Gobain (15%) and Xinyi Glass (8%).
Some market views believe that the current automotive glass is an era of stock competition, and some investors asked at the online performance explanation meeting on March 22 whether there will be high growth expectations for the company’s performance in the future?
The management of the company replied that after four years of building a platform, China’s automobile industry recovered from a growth of 3.4% last year. The per capita GDP exceeds 12000 US dollars / year. According to international experience, there will be another growth in consumer demand. At present, the share of 100 people’s cars in China is only 21, which is far from developed countries. The new four modernizations of the automobile industry will provide new opportunities for the company.
in addition, Fuyao Glass Industry Group Co.Ltd(600660) also pointed out that the company’s high value-added products HUD and ceiling glass accounted for 3.85% and 1.9% of its revenue in 2021. It is expected that there will be a substantial increase this year
However, with regard to the performance growth of Fuyao Glass Industry Group Co.Ltd(600660) this year, a number of institutions released research reports that the cost side factors put some pressure on the company’s performance Soochow Securities Co.Ltd(601555) the latest research report pointed out that the performance of Fuyao Glass Industry Group Co.Ltd(600660) in the fourth quarter of 2021 was lower than expected, mainly due to the increase of exchange loss, sea freight and soda price. In 2021, the unit price of the company’s automotive glass was 180.5 yuan / m2, up 3.84% year-on-year; In the fourth quarter, the gross profit margin of a single quarter was 23.58%, with a significant year-on-year decline; The annual gross profit margin was 35.9%, a year-on-year decrease, and the company faced certain cost pressure in the short term.
According to the analysis of the above-mentioned insiders to the reporter of Securities Daily, automotive glass belongs to an industry with high penetration rate. Although it can improve the value of single cars, it also has certain limitations because it involves the increase of vehicle costs, which is very necessary for enterprises to enter new fieldsp align=”center”>
