China

Great Wall Motor Expects 49.4%% Decrease in Net Profit for 1H 2017 to RMB 2.5 Bln

Summary:

  • In a preliminary earnings statement to the Shanghai Stock Exchange, Great Wall Motor (601633.SS/2333.HK) said it expects its net profit for the first half of 2017 to decrease 49.42% compared with the first half of 2016 to RMB 2.49 billion.
  • Revenue is estimated at RMB 41.26 billion, down 1% on the same comparison basis.
  • EPS for the first half is estimated to be RMB 0.273.

Why It Matters:

  • Great Wall Motor explained that the decline in both net profit and revenue was mainly due to an increase in research costs and marketing expenses.
  • The company recently announced the launch of a new product series, H6, and Great Wall Motors believes that the launch of new products will improve its performance in the latter half of the year.
  • Earlier, Great Wall Motor posted a 18.42% decrease in net profit for the first quarter of 2017 to RMB 1.95 billion, and a 11.68% increase in revenue to RMB 23.32 billion.