China

Great Wall Motor Posts a 2.2% Decrease in Net Profit for 2014

This article was originally published on March 23, 2015, at 11:47 pm.

Summary:

  • Great Wall Motor (2333.HK) has posted a 2.2% decrease in net profit for 2014 to RMB 8.04 billion, as reported by Securities Times.
  • The company also posted a 10.2% increase in revenue to RMB 62.6 billion.
  • Great Wall Motor announced a dividend of RMB 0.8 per share.

Why It Matters:

  • Great Wall Motor attributes the decrease in net profit to poor sales of passenger cars. The company has two product lines, passenger cars and SUVs. While sales of passenger cars were poor, SUV sales increased 25%, and the company plans to focus solely on selling SUVs in the future.
  • Great Wall Motor announced it has solved the technical issue related to the H8 SUV model, and sales will commence in April. The new model was expected to launch in January 2014, and the failure to deliver the vehicle has placed the company’s share price under pressure.
  • Chinese investment bank BOCOM International has increased its price target for Great Wall Motor to HK$ 58.4 and maintains an overweight rating.