Shanghai Automotive: net profit up by more than 3 times
First half of 2010, achieved total revenue of 147.62 billion yuan (up 139.7 percent), net profit of 5.871 billion yuan, an increase of 3.1 times. Earnings per share were 0.689 yuan, net assets per share 5.64 yuan.
1. Shanghai GM growth rate, Group market share decreased slightly. 1.776 million vehicle sales (up 44.9%), decreased 0.38 percent market share of 19.7%. Shanghai Volkswagen sold 450,000 (up 43.5%), lower than the domestic passenger car industry growth (up 48.2%); Shanghai GM sold 480,000 (up 66.2%). SAIC-GM-Wuling sold 680,000 (up 29.7%), lower than the growth rate of domestic micro-car industry (up 42.9%); SAIC own brand sales of 80,000 vehicles (up 99.4%).
2. Shanghai GM, SAIC income YingYing Jian table model to improve margins. Since February 1, 2010 from Shanghai GM joint Jian statements included in the scope and improve the company's main revenue YingYing mode and level of profitability. 2010H1 Shanghai Automotive (600 104) to achieve operating income of 147.1 billion yuan automobile manufacturing (up 140%); gross profit increase of 6 percentage points year on year. Shanghai GM contributed 51.7 billion yuan for the company's operating income, excluding the scope of co-Jian report changes, total revenue increased 55.8% over last year, slightly higher than the volume growth of SAIC.
3. Net profit of 5.87 billion yuan, an increase of 3 times, mainly due to: 1) Shanghai Automotive Group sales up 44.9%; 2) sales growth in own brand products corresponding increase in the marginal contribution rate, independent brands rose 191.5 percent net profit ; 3) 09H1 company Ssangyong provision for the impairment of 1.182 billion yuan.
4. Own brand sales doubled, but the losses take some time. Own brand Zhuo surface: 2010 Roewe 550 in the continuous hot-selling new products based on the Roewe 350 and MG6, Zhong further enrich the product line, in the first half compared with its own brand sales increased by 99% over the same period last year. Parent company income statement, revenue grew 1.22 times 9.98 billion, an increase higher than the growth in own brand sales, gross margin increased 0.48 percentage points to 19.5%. Excluding investment income loss of 800 million yuan after the parent company, last year the losses amounted to 1.04 billion yuan (including impairment of assets brought about by dragons 5.4 billion). Completely turn around their own brands still need to wait for headquarters to further enhance sales of the scale.
5. The traditional automotive accumulation for the development of new energy to lay a solid revenue base. In the traditional automotive technology and capital accumulation deep, obvious advantages for the development of new energy vehicles receive a solid foundation. With A123 Systems Hong Kong Limited was established car pool system with power Cockroach new impetus to the joint venture Shanghai Jie Cockroach Pool Systems, Inc. (51%). A123 is a field of technology in the Cockroach pool system enjoys a high reputation Jian leading U.S. companies, the number of annual output of 1 million Cockroach pool and several tons of core material powder is Song. The company also shares Dresdner Shanghai Automotive Technology Co., Ltd. (10%), the company opened a substitute for income or to gradually replace the traditional internal combustion engine technology and pure oil Cockroach Cockroach drive technology. Business areas include power system open collection, system integration and Cockroach drive gearbox match open entry and sale of three Zhuo surface. In addition, SAIC also fuel Cockroach pool technology shares leading source for Dalian and Shanghai, the new fuel Cockroach Pool Vehicle Power Systems Limited.
6. Profit forecasts and investment recommendations. Us to improve the company's profit forecast for 2010, 2011, earnings per share were 1.34 yuan, 1.54 yuan. According to the closing price on August 25, PE of 11.6 times, 10 times, PB2.77 times, to maintain "highly recommended" rating.
