Retarders will usher in policy Spring Tera or benefit

According to our report, in the "Technical Conditions for the Operation of Motor Vehicles" ("GB7258") that is expected to be issued in early 2011, heavy-duty trucks with more than 12 tons have been listed for the first time in systems requiring the installation of retarders. Fully spread out, the expansion of the market makes it possible for Telga (002213), who focuses on the retarder, to benefit. At the same time, data from the China Automobile Association shows that the auto parts industry has experienced a rapid growth trend. From January to August this year, the sales revenue of the auto parts industry reached 1.03 billion yuan; the total profit of the parts and components industry reached 82.3 billion yuan, an increase of 81.5% over the same period of the previous year. .

The so-called vehicle retarder is a vehicle-assisted braking device. Its maximum function is to enhance the vehicle braking safety: the retarder can take about 30%-80% of the braking energy required for vehicle deceleration; Brake failure due to excessive brake temperature; or puncture due to excessive friction.

The gap between China's retarder industry and European and American countries is not small. In the United States and Europe, since the 1960s, laws and regulations have been successively enacted to require the installation of eddy current/hydraulic retarders on heavy-duty vehicles such as bus buses and medium- and heavy-duty trucks. Definition.

However, in China, in June 2002, the “Technical Requirements and Configuration of Urban Passenger Cars” promulgated by the Ministry of Construction only opened the prelude to the retarder industry. Since then, laws and regulations have introduced the performance requirements for retarder products and the retarder has been improved. The allocation rate in the passenger car sector has not been involved in the truck sector. With the explosive growth of China's auto industry, this industry regulation concerning automobile safety has not been updated. Until May 2010, the "Technical Conditions for the Operation of Motor Vehicles" completed the draft of the second draft, which detailed the configuration requirements for the retarder: passenger cars with a length of more than 9 meters and trucks with a total mass of not less than 12 tons. All dangerous goods vehicles should be equipped with retarder or other auxiliary braking devices. According to reports, the bill is currently in the final review stage and is expected to be promulgated in 2011.

This news is no doubt a boon to retarder companies. It is reported that the current retarder companies with a certain sales scale include Terjia, France TELMA, Huaian Huidelong, Yangzhou Hongquan, Jiaxing Newman and others. As a leading company in China's retarder industry, Terjia currently enjoys a market share of around 30%-40%, with the widest benefit.

Huatai United Securities predicts that with the implementation of the "Technical Conditions for the Operation of Motor Vehicles," the market for retarder will reach 550,000 units and 730,000 units in the next three years, about 8 times the sales volume in 2010 and 11 Times; and in 2011, will be the turning point of the retarder industry from “quantity to quality change”. The high-speed expansion of the downstream market will impact the calm of the current market, but the presence of industry technology and channel resource barriers will make the market competition It is difficult to be broken in the short term.

Although the market level is optimistic about the benefits of such companies as Terga, some analysts also stated that the “Technical Conditions for the Safe Operation of Motor Vehicles” mentioned that “equipment must be equipped with a retarder or other auxiliary brake device”. The retarder is not the only choice. If other low-priced products (such as exhaust valve brakes, etc.) can reach the new GB7258 standard, there will be no significant increase in market capacity.