Yunnei Engine provides diesel-powered engines for light trucks and construction vehicles. It is the largest independent supplier of light commercial vehicle engines in China. At present, the company's main supporting customers in China are light commercial vehicle manufacturers including Foton Motor. As a result, the increase in domestic sales of major light trucks such as Foton Motor has directly led to strong demand for Yunnei’s traditional products. As the country will arrange special funds to provide financial subsidies for the low-end vehicles to the countryside for 5 billion yuan, the industry expects that the sales of light trucks, micro-cards, and micro-substances will be expected to increase with the stimulation of this policy. % to 50%. This opened up the room for continuous growth for Yunnei Dynamics' traditional business in 2009.
Investment highlights:
1. During the “Eleventh Five-Year Plan†period, it is the golden period for the industrialization of diesel cars in China. The development policy of diesel cars is gradually clear. With the development and application of advanced diesel technology, consumers’ prejudice against diesel cars is changing. The willingness to consume diesel cars is gradually increasing, coupled with the continued rise in oil prices and the expected implementation of the fuel tax, which will push diesel cars into the expansion phase. With the continuous advancement of the car dieselization process, the company's new generation of diesel engines will enter a rapid development channel.
2. The company's new products for diesel engine application calibration, domestic parts matching, and vehicle application matching work are steadily advancing. The technical performance indicators of new products have been recognized by automobile manufacturers, and with the acceleration of the dieselization process of domestic passenger vehicles, With the improvement and implementation of policies and regulations and the maturity of the consumer environment, the company's new products will gradually enter the fast development channel as the industry develops, and it is expected to become its new growth point.
3. By 2010, China's car production will reach around 6 million vehicles. According to the estimate of 10% of the new car's dieselization ratio, there will be nearly 600,000 units of diesel engines for use in 2010. The huge market provides the company with sufficient room for development. The advantages of the company's products also provide more assurances for the optimistic expectations of the company's wood project.
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