Most Battery Producers Reported Profit Margins below 20%-Shanghai Metals Market

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Most Battery Producers Reported Profit Margins below 20%

SMM Insight 10:49:16AM Apr 07, 2013 Source:SMM

SHANGHAI, Apr. 7 (SMM) – Eight of the nine listed battery companies have released their annual reports, and their profit margins in 2012 were basically reported between 10%-20%.

Profits, particularly those for electric vehicle batteries, fell sharply in 2012 due to overcapacity caused by massive expansion and the price war. Profits at Tianneng Power and Chaowei Power were 18.76% and 19.80% in 2012, respectively, down 7.63% and 8.7% YoY. Meanwhile, profits for motive batteries of Sacredsun and Narada Batteries fell 0.88% and 7.28% to 10.67% and 12.68%.
 

 
Stock
Company
Stock Code
Major Business
Profit
YoY
1
A Share
Sacredsun
002580
Storage, backup, motive batteries
17.12%
0.72%
2
   A Share
Dynavolt Power
002684
Motorcycle batteries
25.86%
-0.17%
3
A Share
Narada Batteries
300068
Backup, motive, storage batteries
15.35%
-3.19%
4
A Share
Fengfan
600482
Automotive batteries
14.52%
1.98%
5
A Share
Wolong Electric
600580
Electric machinery, transformer, communicative batteries, UPS
12.94%
2.82%
6
A Share
Wanli New Energy
600847
Automotive and motorcycle lead-acid batteries
19.06%
0.81%
7
A Share
Camel Group
601311
Automotive, ignition, and electric vehicle batteries
Unpublished
Unpublished
8
H Share
Tianneng Power
00819
Electric vehicle batteries
18.76%
-7.63%
9
H Share
Chaowei Power
00951
Electric vehicle batteries
19.80%
-8.70%

The intensifying competition and rising costs for lead-acid battery industry caused many battery producers to develop products with high added value, accelerating industry transformation.

Nevertheless, the profits for backup and ignition batteries did not fall significantly, but ignition battery sales were weighed on due to slowing growth in automobile industry last year.

The profits for backup batteries of Narada and Sacredsun rose 2.61% and 1.72% to 23% and 19.45%, respectively.

Dynavolt Power Technology which primarily exports batteries to overseas market and focuses on nano gel batteries with high technical content, reported its profit at 25.86%.

The weakening demand and falling prices caused profit margins for lead-acid batteries to fall last year, but the margin was still above that for nonferrous metals industry.

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Most Battery Producers Reported Profit Margins below 20%

SMM Insight 10:49:16AM Apr 07, 2013 Source:SMM

SHANGHAI, Apr. 7 (SMM) – Eight of the nine listed battery companies have released their annual reports, and their profit margins in 2012 were basically reported between 10%-20%.

Profits, particularly those for electric vehicle batteries, fell sharply in 2012 due to overcapacity caused by massive expansion and the price war. Profits at Tianneng Power and Chaowei Power were 18.76% and 19.80% in 2012, respectively, down 7.63% and 8.7% YoY. Meanwhile, profits for motive batteries of Sacredsun and Narada Batteries fell 0.88% and 7.28% to 10.67% and 12.68%.
 

 
Stock
Company
Stock Code
Major Business
Profit
YoY
1
A Share
Sacredsun
002580
Storage, backup, motive batteries
17.12%
0.72%
2
   A Share
Dynavolt Power
002684
Motorcycle batteries
25.86%
-0.17%
3
A Share
Narada Batteries
300068
Backup, motive, storage batteries
15.35%
-3.19%
4
A Share
Fengfan
600482
Automotive batteries
14.52%
1.98%
5
A Share
Wolong Electric
600580
Electric machinery, transformer, communicative batteries, UPS
12.94%
2.82%
6
A Share
Wanli New Energy
600847
Automotive and motorcycle lead-acid batteries
19.06%
0.81%
7
A Share
Camel Group
601311
Automotive, ignition, and electric vehicle batteries
Unpublished
Unpublished
8
H Share
Tianneng Power
00819
Electric vehicle batteries
18.76%
-7.63%
9
H Share
Chaowei Power
00951
Electric vehicle batteries
19.80%
-8.70%

The intensifying competition and rising costs for lead-acid battery industry caused many battery producers to develop products with high added value, accelerating industry transformation.

Nevertheless, the profits for backup and ignition batteries did not fall significantly, but ignition battery sales were weighed on due to slowing growth in automobile industry last year.

The profits for backup batteries of Narada and Sacredsun rose 2.61% and 1.72% to 23% and 19.45%, respectively.

Dynavolt Power Technology which primarily exports batteries to overseas market and focuses on nano gel batteries with high technical content, reported its profit at 25.86%.

The weakening demand and falling prices caused profit margins for lead-acid batteries to fall last year, but the margin was still above that for nonferrous metals industry.