The off-season of vehicle sales is not short, and the “Three Guarantees Law†for automobiles will soon implement the threshold for increasing the value of parts and components companies. There are many opportunities for overseas mergers and acquisitions of competitive parts and components companies. All these positives highlight the fact that domestic auto parts companies have entered a new era of prosperity. cycle. A number of fund managers interviewed by reporters all expressed their determination to look at more auto parts and components.
Domestic auto hot-selling components industry
Although exports of auto parts were relatively bleak in the first half of the year, the domestic market was warm and concentrated, which was primarily due to the unexpected increase in domestic vehicle sales. Statistics from the CLUCC show that since the beginning of the year, the year-on-year increase in the retail sales volume of passenger cars has always been higher than the year-on-year increase in wholesale volume, indicating that the terminal demand is strong, which is also confirmed by the lower inventory coefficient. In July, the retail sales volume of narrow passenger cars increased by 18% year-on-year, two percentage points higher than the increase in wholesale sales. July's total sales slightly exceeded expectations, while retail sales grew faster than wholesale sales, further reflecting the current strong domestic demand.
According to the latest statistics from China Association of Automobile Manufacturers, in July, the national automobile production and sales were 1,583,300 and 1,516,300, respectively, an increase of 10.2% and 9.9% respectively year-on-year. From January to July, the production and sales of automobiles were 12.335 million vehicles and 12.2986 million vehicles, respectively, an increase of 12.5% ​​and 12.0% year-on-year respectively.
Looking to the future, some analysts pointed out that residents in third and fourth-tier cities are currently very enthusiastic about car purchases, and car consumption has become a “just-neededâ€, so there is more room for cars to look after.
The exceeding sales of vehicle sales will support the performance of listed auto parts companies. A public fund manager reported to the Securities and Exchange Commission that due to the lagging nature of the parts and components market, auto sales in 2013 will extend to parts and components listed companies. The future growth rate of parts and components listed companies will be relatively clear, and industry capacity will expand to create room for growth. .
In addition, according to the investment manager's report to the Securities and Exchange Commission, at present, the prices of raw materials for auto parts, such as rubber and steel, will continue to decline, which will reduce the company’s cost pressure and increase profits, and will also constitute new components for auto parts companies. Good.
"Three Guarantees" Improves the Threshold of Parts and Components Enterprises
The "Three Guarantees Law" for cars that has been planned for seven years will be officially implemented on October 1 this year. This will help parts and components listed companies to obtain orders and maintain gross margins, and achieve strong and consistent.
After studying the “Three Guarantees Lawâ€, it can be seen that the three packs of components include the two major engine and transmission assemblies, steering systems, brake systems, suspension systems, bodywork, front/rear axles, and 13 fragile parts. . The above-mentioned laws and regulations have made clear and inflexible provisions for parts and components in these areas. Obviously, strict regulations on parts and components must have a profound effect on the industry. Even some companies shouted the fear that the wolf really came. Of course, this is only for those who take advantage of counterfeiting to gain market interest. Good for quality companies.
The "Three Guarantees Law" clearly stipulates the quality of auto parts. Parts used for the repair of home auto products should be qualified parts provided or approved by the manufacturer, and the quality should not be lower than that of a production line for a domestic auto product. . This will be a big challenge for companies whose technical level and quality control capabilities are relatively different from the original ones. Therefore, if you want to obtain a market, you must comply with the relevant standards. This will inevitably enable related companies to improve their internal management, product technology, and quality. Some companies that are incapable or mainly fake and shoddy will be eliminated and returned to the industry. It is a healthy and orderly market.
Overseas mergers and acquisitions help Chinese companies overtake the curve
The acquisition of European engine technology from Boyion Investment, the cooperation between Zhongding Group and foreign investment in the construction of super-environmental engines, and the acquisition of European and American parts giants in Ningbo Huaxiang, the domestic parts and components companies launched a wave of ambitious expansion and expansion. upgrade.
China's parts and components industry is still quite fragmented. How to get rid of homogenous competition, achieve higher quality production, and move toward the top of the value chain is the key to achieving healthy growth in the industry. M&A, including the acquisition of overseas assets, is also one of the shortest ways for the industry to achieve transformation and upgrading in the future.
In the investigation, the reporter learned that many Chinese companies eagerly looking for technologies such as engines, brakes, and transmissions are hiring investment banks, management consultants and law firms, and are studying possible mergers and acquisitions.
M&A combat expert and senior investment banker Wang Shijun said recently that due to the economic crisis that occurred in 2008, it was caused by the release of the dividends of the second industrial revolution in the West. Therefore, there is no longer any periodicity. “We cannot see it now. Where is the end of the European crisis?†This has given the global mergers and acquisitions a great deal of business opportunities and formed an underestimation of assets. “In this context, the loss of the advantages of some companies in the Western market does not mean that their advantages are lost.†While China has a huge market, there are also cost spaces that can be reduced, so global mergers and acquisitions, markets huge.
In addition, due to the bankruptcy of some parts companies in Europe and the United States, part of the market share was withdrawn, and China's spare parts company will fill the vacant market share. Through mergers and acquisitions, these parts and components companies will undoubtedly obtain "admission tickets" for these higher-margin markets.
Another high-level domestic parts manufacturers believe that even if the slow recovery in Europe and the United States, domestic enterprises can still develop and seize the Southeast Asian and Indian markets, especially the Indian market is very broad, enough Chinese parts and components companies to "share" more than a decade.
Collets and Collet Bodies
Collets directly hold the tungsten in place when you tighten the back cap and create the electrical contact necessary for good current transfer. They are generally made of standard grade copper or tellurium copper.
Collet bodies screw into the TIG torch and accommodate various size tungsten and their respective collets, each of which range in size from .020 to 1/4 inches. They are also made of standard grade copper or tellurium copper.
When choosing collets and collet bodies, you need to consider two main factors.
First is price. Standard grade copper collets and collet bodies are less expensive, but they also tend to be less durable. Less expensive collet and collet bodies are also prone to failure under high temperature applications. After extended use, they do not secure the tungsten as reliably.
Conversely, the more expensive tellurium copper collets and collet bodies have better heat resistance on higher amperage applications. These consumables generally resist twisting or elongating and hold the tungsten more securely after extended periods of use. They also have more tensile strength and less ductility.
You also need to decide between a single- or two-piece system (See figure 1). Typically, manufacturers sell collets and collet bodies separately to match a specific tungsten size. For example, you would purchase a 1/16-inch Collet And Collet Body to match a 1/16-inch tungsten. This system works well and accommodates a wide range of tungsten sizes, especially smaller ones.
Fig. 1 Choosing between a standard two-piece system (top) or a single-piece system (bottom) is one of the factors in determining which collets and collet bodies are best for you.
There are also single piece systems that combine the collet and collet body together. From a performance standpoint, they provide better securing force and are easier to remove when used in a demanding application. The reason for this factor is because the collet mechanism is further away from the heat and less susceptible to heat distortion. They also reduce the possibility of mismatching collet and collet body sizes, allow for quicker tungsten changeover and help simplify parts management.
Collet And Collet Body
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Changzhou Edaweld Trading Company Limited , http://www.edaweld.com