Bus shares: A steady-growing flagship of auto parts

The flagship bus share of the domestic auto parts industry is China's largest provincial long-distance passenger transport enterprises and Shanghai's largest public motor vehicle transportation enterprises, main public transport, taxis and tourism passenger transport. Through major asset restructuring has now become China's largest independent auto parts manufacturers, the company's main business from the bus passenger transport and other services to the independent supply of auto parts research and development, production and sales business. The main assets of the bus company are the 23 independent auto parts manufacturing companies that have purchased the shares from SAIC, covering three categories of passenger car interior and exterior finishes, functional assembly parts and hot-working parts.　　The company's assets are mainly joint ventures, most of these joint ventures in the Chinese market for the joint venture passenger car enterprises in the process of supporting the development, with the main joint venture passenger car enterprises have established a relatively solid supply relationship, and by virtue of the development of the first advantage gradually developed into the domestic market segments of the leading enterprises. Stable growth of the company January 14, the State Council executive Meeting to review and principles adopted the auto industry adjustment and revitalization plan, "from January 20, 2009 to December 31, the 1.6 litres and the following displacement passenger cars by 5% Levy vehicle purchase tax."　　"Our early analysis, the revitalization of the planning stimulus, small and medium displacement cars throughout the year to show a hot situation, driving the narrow demand for passenger cars to grow to about 10%;" From the recent two months, the market demand for the heat exceeded the general expectations, we raised the annual demand for domestic passenger car sales to 6.44 million, At present, the company's main business for passenger cars inside and outside decoration parts, functional assembly parts and hot processing parts matching, customer coverage of SVW, FAW Volkswagen, Shanghai GM, SAIC-GM Wuling, Shanghai Automotive, Changan Ford Mazda, Beijing Hyundai, Dongfeng Nissan, Beijing Mercedes-Dame, Brilliance Gold Cup, Chery Automobile, North automobile Fukuda,　　Jianghuai Automobile, Changan Suzuki, Great Wall Automobile and other domestic main passenger car manufacturers, the company will fully enjoy the passenger car market growth feast. Shanghai Automobile is the biggest beneficiary of automobile revitalization plan. Shanghai Auto 2008 Sales of 45% of the passenger car in the 1.6L, in addition to 583,000 of the micro-passenger cars (crossover passenger car) emissions are within 1.6L, the total accounted for the Shanghai automobile Passenger car sales of 65%. We believe that the company in the process of cooperation with the general public, has fostered a strong research and development capabilities, technical capabilities, management capabilities. With the continuous deepening of company integration, SAIC Independent brand is expected to step out of the loss and grow into a global market in China and a fresh force. At present, the independent brand under the leadership of the 550, has been driving on the fast lane, the annual 550 is expected to reach 60,000 sales.　　550 in the market downturn in the second half of the 2008-year listing, after the listing quickly rose to more than 2000, the January this year, the glory of 550 sales jumped from 2000 to 3,600, April sales have exceeded 5,000 vehicles. Three major growth pointsShow the Company A better future the current market for bus shares to become independent parts suppliers of the growth of doubt, we believe that commercial vehicle components, aftermarket and export market will be the future of the company's three major growth, the development of a broad space. At present, the company's spare parts business is concentrated in the passenger car industry, commercial vehicle parts matching is the next step for the company to expand growth. The company's parent company, SAIC, currently ranks first in the commercial vehicle market with a leading advantage of micro-cars, but from the market segment, SAIC in the heavy truck, light truck, large and medium-sized passenger cars and many other markets are in a backward position, SAIC will expand commercial vehicle business in recent years and in the next few years the focus of work.　　At present, the layout of SAIC in the Commercial vehicle field has been basically completed, one of the next priorities is to vigorously expand commercial vehicle business development; We believe that SAIC can make full use of its advantages to achieve the rise of commercial vehicle business, bus shares can fully use the development of SAIC commercial vehicles business vehicle parts supporting business successfully. Domestic parts and components enterprises face the whole market to taste after the market and the international market three major markets, of which the driving factors in the aftermarket car ownership, driving distance, the average age, and so on, the main factor is the number of car ownership. At the end of 2008, China's car ownership reached 49.75 million vehicles (excluding 14.92 million tricycle and low-speed vehicles), the next 5 years the National car sales will maintain more than 10% of the composite growth, car ownership will be stable growth, aftermarket market than the whole car market growth more clear and more stable.　　With the increase of people's income level and the improvement of supplier scale efficiency, users of large parts manufacturers to provide relatively high prices for high-quality components of the acceptance will continue to improve, once found can be matched with the whole plant can achieve a reasonable distribution of benefits of the business model, I believe that the company after the market development potential is very large. Cross-border procurement refers mainly to the procurement of parts or components in the production of products by manufacturers to other countries outside the country, especially low-cost countries. China is the most important low-cost target country in the auto industry's cross-border sourcing.　　In the next 3-5 years, in the growing Chinese market, the size effect of the company's component business will become more and more obvious, so as to maintain the cost advantage of manufacturing in China and make further growth in global sourcing of the automobile industry. As the flagship of passenger car parts, the performance will be stable growth, give the spare parts business 09 years 20 times times the value of PE, corresponding to 9.6 yuan per share, the company holds the Minsheng Bank equity and Societe Generale stock rights at present fair value of more than 1.4 billion yuan, equivalent to 0.56 yuan per share; Give the company a buy rating, the target price of 10.2 yuan.