/ Daily News/July 25, 2022Guangzhou - The Chinese People's Federation of Passenger Transport said that the epidemic situation in July this year was generally stable, the supply chain and vehicle production were running normally, and the situation of short supply was improved. In addition to the improvement of supply, the acceptance of new energy vehicle products is gradually improved, and the new energy vehicle market is expected to continue to grow before the end of the year subsidy decline. It is expected that in July this year, China's narrow passenger car retail market in about 1.77 million units, among which, the retail sales of new energy vehicles reached 450,000 units, a year-on-year growth of 102.5%
Public information shows that since this year around the encouragement of automobile consumption policies continue to increase, New energy vehicle activities to the countryside, new energy vehicle subsidies and other related policies have been well implemented around the country. For example, in July this year, Shandong Province issued 200 million yuan of new passenger vehicle consumption coupons, and the total amount of commercial vehicle consumption coupons remains unchanged at 120 million yuan. The previous unverified funds will continue to be used to issue consumer coupons until the end of July. In addition, Hefei, Guangxi, Guangzhou and other places have introduced the second round of subsidy policies. In view of the favorable external environment, the China Association of Automobile Manufacturers estimates that annual new-energy vehicle sales in 2022 are expected to reach 5.5 million units, a year-on-year increase of more than 56%.
China Tai Securities Research Report believes that in the second half of the year, a number of new cars such as Nio ES7/ET5/ new 866, Ideal L9, XiaopengG9, Nezha S and Wen Jie M7 have been released in large numbers, and the sales of new energy vehicles are expected to continue to rise due to the combination of new energy vehicle activities in rural areas and local subsidies for new energy vehicles.
The strong performance of the new energy vehicle market is expected to drive the sales growth of listed upstream parts companies, and quality parts suppliers, including Changying Precision, Xiangxin Technology and Cordaly, are expected to fully benefit.Changying Precision (300115.SZ) is an industry-leading supplier of new energy vehicles and power battery parts. In the field of new energy vehicles, the company mainly provides voltage connectors, power battery structural parts and other products for downstream Oems or power battery manufacturers, and has accumulated a large number of high-quality customer resources in the downstream industry. The company is already in Shanghai. Yibin in Sichuan Province, Changzhou in Jiangsu Province and Ningde in Fujian Province have invested and built production bases for new-energy vehicles and power battery structural parts, providing structural parts for mainstream vehicle and battery manufacturers at home and abroad.
< /p>Some institutions are very optimistic about Changying Precision's growth prospects in the new energy sector. According to Xingxin Electronic Research Report, in the field of new energy business, Changying Precision mainly provides high-voltage connector BUSBAR and cell/module /PACK structural parts business based on the layout of well-known new energy vehicle factories and power battery factories. According to Gaeshi Automobile, Changying is the core supplier (electric connection busbar + battery pack box) of Wenjie Automobile. ASP is expected to exceed 3000 yuan. The new energy market has a broad space for growth. It is expected that the company's new energy business income will contribute more than 2 billion yuan this year, double that of last year, and will continue to maintain rapid growth in the next three years.
