Comparison of leading enterprises in China's special-purpose vehicle industry in 2021: Who is better than Sinotruk VS Dongfeng Motor VS Foton Motor?

    Major listed companies for special purpose vehicles: Foton Motor , Jianghuai Automobile , Changan Automobile , Dongfeng Motor , Sany Heavy Industry , China National Heavy Duty Truck

    The core data of this article: R&D investment and proportion, operating income , net profit , special vehicle operating income, production and sales, and sales area proportion

1. Business layout history of leading companies in the special vehicle industry

    At present, in China's special-purpose vehicle market, there are three companies presenting a "three pillars" situation. They are China National Heavy Duty Truck (601989), Dongfeng Motor (600006) and Foton Motor (600166). The layout of the three companies in the special-purpose vehicle business The course is as follows: 

2. Special vehicle business layout and operating status

　(1) Integration of basic information of the three companies

    According to the company's official website, China National Heavy Duty Truck , Dongfeng Motor and Foton Motor the business or product types of are mainly special vehicles. Among them, China National Heavy Duty Truck mainly manufactures and sells heavy-duty special vehicles, while Dongfeng Motor's production focuses on light commercial vehicles, and Foton Motor has a full range of light, medium and heavy trucks. According to the company's 2020 annual report, Sinotruk 's heavy truck sales are in a leading position in the country, Foton Motor's light truck ranks first in the industry, and Dongfeng Motor is actively innovating related technologies for special vehicle manufacturing. 

    (2) Business areas: Dongfeng Motor has the most diverse business layout

    According to the information on the company’s official website, Sinotruk ’s products have a layout in logistics, engineering and operation special vehicles; Dongfeng Motor’s special vehicle products are concentrated in logistics and engineering; Foton Motor’s products are more extensive , Not only the layout of logistics, engineering and operation vehicles, but also more diverse vehicle products.

    It is worth noting that under my country's "carbon neutral" and "carbon peak" goals, relevant policies support the development of the new energy industry, and new energy special vehicles are also in this trend, gradually becoming a rising star in the market. Currently, China National Heavy Duty Truck has not deployed new energy special vehicles, while Dongfeng Motor and Foton Motor have deployed new energy special vehicles, and both have deployed pure electric new energy special vehicles.

    From the perspective of the upstream and downstream extension of the industrial chain, Sinotruk and Dongfeng Motor both have a layout in the upstream, while the three companies have no layout in the downstream.

    In the midstream market alone, Foton Motor has the most product types, but has not yet deployed the upstream and downstream of the industrial chain. It has weaker bargaining power for the upstream and does not have an advantage in the overall business layout; while Dongfeng Motor’s product types are more diverse than Sinotruk’s layout. New energy special vehicles, and the upstream layout is more abundant. Therefore, Dongfeng Motor's business layout is more diversified. 

(3) Investment in R&D: Foton Motor has invested the most in R&D

    From the perspective of the company's R&D investment, from 2018 to 2020, the R&D expenses of the three companies fluctuated and increased; the proportion of Dongfeng Motor and Foton Motor's R&D expenses fluctuated downward, and the proportion of China National Heavy Duty Truck's R&D expenses showed an upward trend.  In 2020, Foton Motor’s R&D investment reached 1.834 billion yuan, accounting for 3.17% of operating revenue; followed by China National Heavy Duty Truck, with R&D investment reaching 467 million yuan, accounting for 0.78% of operating revenue; Dongfeng Motor’s R&D investment reaching 387 million yuan, accounting for 2.82% of operating income.

    On the whole, Foton Motor's R&D investment amount and proportion are higher than Sinotruk and Dongfeng Motor. According to the company's annual report, Foton Motor has increased its technology in high-end heavy trucks, high-end medium-duty trucks, high-end light trucks, mid-range pickup trucks, mid-range light passenger vehicles and other new products, as well as new energy, intelligent network connection, lightweight, and scenario research. Research and development investment, so the largest amount of research and development. 

3. special vehicle business Performance comparison of

　　(1) Financial situation: Sinotruk’s financial performance is the best

    From 2018 to 2021, the operating income and net profit of the three companies fluctuated and increased.  In 2020, Sinotruk's operating income will be the highest, reaching 59.94 billion yuan; followed by Foton Motor's operating income of 57.77 billion yuan, and Dongfeng Motor's operating income of 13.73 billion yuan. In terms of net profit, China National Heavy Duty Truck has the highest net profit, reaching 1.88 billion yuan; followed by Dongfeng Motor with a net profit of 550 million yuan; Foton Motor's net profit has reached 150 million yuan.

    According to the company's annual report, in 2020, Sinotruk will overcome the impact of the epidemic and take the lead in resuming work and production. In the logistics vehicle segment, breakthroughs were made in the general cargo transportation and bulk raw material transportation markets. In the engineering vehicle segment, focus on standard-loaded urban construction slag, concrete transportation and road transportation dumping, and promote the regulated and lightweight models. Based on the above reasons, Sinotruk will perform well in 2020 revenue and net profit.

    On the whole, China National Heavy Duty Truck has the best financial performance. 

    (2) Sales area: Foton Motor goes international

    From the perspective of sales area, the main sales areas of the three companies are all in Mainland China. At present, Sinotruk and Dongfeng Motor only conduct business in mainland China, while Foton Motor has 8% of its sales from overseas markets.

    Therefore, Foton Motor's international layout is progressing well, and it has expanded its business to overseas markets; the overseas business of Sinotruk and Dongfeng Motor is in urgent need of development. 

    From the perspective of production and sales data, Foton Motor's production and sales performance is the best.  In 2020, Foton Motor's special-purpose vehicle production and sales were the highest, reaching 648,800 and 630,400 respectively. Followed by China National Heavy Duty Truck, the production and sales were 180,100 and 206,100 respectively; the production and sales of Dongfeng Motor were 153,300 and 149,900 respectively.

    From the perspective of product proportion, Foton Motor has the most abundant product categories. Light-duty special-purpose vehicles are the main products sold by Dongfeng Motor and Foton Motor, and Sinotruk’s entire vehicle sales are all heavy-duty special-purpose vehicles. To a certain extent, Sinotruk has a high degree of dependence on heavy-duty special vehicles, and combined with the above, Sinotruk has not yet deployed the field of new energy special-purpose vehicles. Therefore, the product layout of Sinotruk needs to be strengthened urgently.

    On the whole, Foton Motor's production and sales are the highest, and the products are the most expensive. 

(Source: Qianzhan Industry Research Institute)