Weichai engines will require a week-long heavy trucks to resume their orders in the second half of the year

Weichai is actively enriching its product range and expanding its industrial chain. The company has launched 5L/7L medium and low-power engines, entered the field of passenger cars, medium-duty trucks, heavy trucks and excavators. At the same time, it also acquired the French Boduuan engine company and obtained the research and development technology and production capacity of the 16L-33L engine. OEM mode exports lay the foundation. In general, the company is striving to move from a purely heavy-duty engine manufacturing company to a full range of engine manufacturers.

The sales prices of common-rail engines and EGR engines have been significantly reduced. At present, the three engines of the country are mainly divided into common-rail engines and EGR engines. As far as we know, when the common-rail engines and EGR engines were just introduced, they would be 25,000 yuan and 11,000 yuan more expensive than the similar two-country engines, but with the With the launch of the National 3 engines, the current common-rail engine and EGR engine are only 8,000 yuan and 0.5 million yuan more expensive than the comparable 2 engines. We believe that the decline in sales prices will play a positive role in the popularity of the country's 3 engines.

2Q09's product sales and product gross margin are expected to remain stable. In 1Q09, the company sold about 6.9-70,000 engines. Since the automaker did not collect a lot of goods before the peak season of the vehicle sales and more orders were ordered on-demand, we expect the 2Q09 sales volume to increase With a certain degree of growth, we expect that 2Q09's sales of engines will reach 7.3-7.6 million units. In terms of gross margin, 1Q09's product gross margin was 19.66%, representing a year-on-year decrease of 4.76 percentage points. We believe that the drop in gross profit margin is mainly caused by two factors. One is that the company’s engine sales fell by about 30% year-on-year. Another reason is that In this issue, the company promoted the common-rail engine. In 2Q09, the price of common rail accessories purchased by the company decreased by approximately 20%, but the company’s common rail engine products are still being promoted. Therefore, we expect the gross margin of 2Q09's products will increase slightly, and the gross margin level will increase to around 20%.

With the recovery of logistics demand, the industry's sales in the second half of the year may not be light in the off-season. At present, the order for the entire vehicle needs to be advanced 15 days in advance, and the order for the engine needs to be 7 days ahead of schedule. Therefore, from the perspective of the on-hand orders of the entire vehicle and engine plant, the future industry demand is still not clear, but we believe that with the real estate With the increase in start-up of enterprises and the recovery of domestic trade, the demand for logistics will gradually increase, which is likely to lead to the phenomenon that heavy truck sales will not fade in the off-season in the second half of the year, especially in 4Q09.