Domestic bearing industry slows down

According to the China Bearing Industry Association, due to the lack of supporting demand from many domestic host industries, the profit growth of the bearing industry in the first half of the year significantly slowed down, and the inventory level increased significantly. An industry analyst in Shanghai told the reporter: “If the bearing industry is to get better, the demand must first have a big increase. At present, there is no indication that the bearing industry has improved.”

It is understood that in the first half of this year, China's bearing industry realized a total profit of 1.45 billion yuan, a decrease of 41.87% compared to the same period of last year, and bearing stocks also increased from 4.70 billion yuan in the same period last year to 5.23 billion yuan, an increase of 11.30%. In the macro industry, the industry is sluggish. On the micro level, the listed companies that mainly deal with bearings have had a hard time this year.

It is understood that the bearing industry, Tianma shares first announced the 2012 interim report, exposing the sluggish industry insider. In the first half of this year, the company's operating income was 1.3 billion yuan, a year-on-year decrease of 22.25%; net profit was 153 million yuan, a year-on-year decrease of 45.48%. Among them, in the first half of the production core of Tianma shares bearing business - Chengdu base achieved an income of 391 million yuan, a year-on-year decline of 9%; a net profit of 25.3777 million yuan, a sharp drop of 78% year-on-year. At the same time, the Zhongbiao also disclosed that the performance of the company from January to September this year will be reduced by 20%-50%.

In response to the decline in Tianma's performance, the company’s Securities Department told reporters: “In the first half of the year, the company’s wind turbine bearing sales were not good, and prices have been falling, mainly due to the lack of demand for wind power host market. It is estimated that the price of wind power hosts in the second half of the year. Will go down, then the price of our bearing parts will also fall." In addition, the person also revealed: "As the bearing prices have been falling, the company has taken measures to reduce production."

In addition to Tianma shares, the performance of other listed companies in the bearing industry also fell. For example, Fuyang Bearing announced in mid-July that “the company’s total semi-annual profit has dropped substantially, with a net profit loss of approximately 7 million yuan”. The net profit of Wanxiang Qianchao in the first quarter was RMB 91.797 million, a decrease of 28.20% year-on-year. Wanxiang Qianchao Securities Department said that from January to June this year, the market demand for bearings has been very sluggish. Subsidiaries have always been the strategy of 'distribution by sales', and output in the first half of the year has dropped more.