The reorganization of FAW car completes the replacement of assets and the overall listing or restart of FAW Group

category:Finance
 The reorganization of FAW car completes the replacement of assets and the overall listing or restart of FAW Group


This replacement plan is good for FAW Group, Pentium brand and Jiefang commercial vehicle. FAW Pentium insiders told reporters that for the group, the industry competition problems to be solved for many years have finally been solved. For listed companies, the most high-quality commercial vehicle resources in the current independent plate of FAW Group are packaged and injected, which is conducive to the market value of FAW cars.

FAW Jiefangs insiders also told reporters that since last year, FAW Jiefang has been combing its internal resources, listing is good for us, but it also means more pressure on performance.

At the internal meeting in January this year, FAW Jiefang put forward the goal of quadrupling by 2025: first, the sales volume of commercial vehicles will be 550000, and the overall market share will be doubled from 7% to 14%; second, the total profit will be 9 billion yuan, and the profit rate will be doubled from less than 3% to more than 6%; third, the business income will be doubled from 75 billion yuan to 150 billion yuan; fourth, the annual per capita income will be doubled from 13% RMB 0.6 million was increased to RMB 0.26 million. In 2019, FAW Jiefang heavy, medium and light trucks sold 335700 vehicles in total. Zhongzhong heavy truck ranked first in the industry for three consecutive years, with a net profit of 1.66 billion yuan in the first half of the year.

Returning to FAW, FAW Group can give more support to Pentium brand on the one hand, and on the other hand pay less attention to short-term performance and focus on long-term development on the decision-making. In July last year, FAW Group gave specific indicators and support plans for the future development of Hongqi and Pentium brands at its internal meeting. For Pentium brand, FAW will support 500 million yuan and 300 million yuan each year in brand and R & D, and a total of 2.4 billion yuan in the next three years, striving to achieve the goal of 310 (1 million vehicles in three years, zero profit margin, i.e. turning loss).

An analyst who has long paid attention to FAW Group believes that the replacement plan and the subsequent profit of FAW Groups independent passenger vehicle sector are crucial for the overall listing of FAW Group. In his opinion, the next important task of FAW Group will be to mix transformation to achieve the improvement of its core competitiveness. At present, the profit-making sectors of FAW Group are mainly joint-venture passenger vehicles and self owned commercial vehicles. In the future, it is necessary to improve the profitability of self owned passenger vehicles, and then realize the overall listing after the profit of passenger vehicles is improved. FAW Pentium and FAW Hongqi, another independent passenger vehicle brand of FAW Group, both sold more than 100000 vehicles last year, with a target of 200000 vehicles this year. According to the data released by FAW Group, in 2019, the total vehicle sales reached 3.464 million, an increase of 1.3% year-on-year, and the operating revenue was 620 billion yuan, an increase of 4.4% year-on-year. In terms of profit, net profit reached 44.05 billion yuan, up 2.2% year on year. Source: First Financial Editor: Guo Chenqi, nbj9931

An analyst who has long paid attention to FAW Group believes that the replacement plan and the subsequent profit of FAW Groups independent passenger vehicle sector are crucial for the overall listing of FAW Group. In his opinion, the next important task of FAW Group will be to mix transformation to achieve the improvement of its core competitiveness. At present, the profit-making sectors of FAW Group are mainly joint-venture passenger vehicles and self owned commercial vehicles. In the future, it is necessary to improve the profitability of self owned passenger vehicles, and then realize the overall listing after the profit of passenger vehicles is improved.