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In the first half of the year, the company's revenue reached 30.2 billion yuan, an increase of 54% year-on-year, and gross profit margin increased by nearly two percentage points from the same period last year to 12.2%. The increase in profitability led to a doubling of company performance. Net profit attributable to the parent company increased by 153% year-on-year, an increase of 11% over the previous year. This year's high performance growth is a foregone conclusion. In the first half of the year, the company sold a total of 371,000 commercial vehicles and continued to maintain its position as the number one commercial vehicle manufacturer in China.
The growth of light trucks is lower than the industry level. In the first half of the year, the company sold 290,000 light trucks and continued to lead other competitors with a market share of 21%. However, sales of light trucks increased by 21% year-on-year, which was lower than the growth rate of 39% for the entire segment. In recent years, under the condition that the sales volume of light trucks has been large and the market share has been more difficult to improve, the company has actively improved the profitability of light trucks. In the first half of the year, the gross margin of the light truck business reached a historic high of 12.7%. As for the light truck engines, Foton Cummins is still showing little improvement in the first half of the year due to the limited number of its high-end light trucks.
There is a shortage of heavy truck capacity and supply of core components. In the first half of the year, the company sold 59,000 heavy trucks, an increase of 86% over the same period of last year. Although it is lower than the heavy truck industry, considering that the company currently has a design capacity of only 80,000 heavy truck bases, it is the company's ultimate capacity in the first half of the year. At the same time, because the company's heavy trucks are outsourced in terms of axles, engines, transmissions, transmission shafts and other core components, the shortage of external components has also had a certain impact on the development of heavy trucks. The diversification of suppliers and the self-alignment of core components have become an important way to solve this problem. The company has cooperated with Wanliyang and Far East transmission manufacturers to develop heavy-duty gearboxes and transmission shafts. In the second half of the year, the company's heavy-duty truck business merged with Daimler. Later, the Daimler engine will gradually embark on the Auman heavy truck. In the future, the company's heavy truck profitability will be further improved.
We expect the company's revenue for 10 years and 11 years will increase by 23% and 15%, respectively, and earnings per share will reach 2.2 yuan and 2.57 yuan. Although it is in a short-term downward phase, the company's various businesses will actively expand their industrial chains and improve their profitability. The effect of the company's “overweight†rating will be maintained.
Foton Motor: Light Trucks, Heavy Trucks Continue to Improve Profitability