China

Great Wall Motor Posts 26.5% Increase in Net Profit for 1Q 2015

This article was originally published on May 5, 2015, at 11:52 pm.

Summary:

  • Great Wall Motor (601633.SS/2333.HK) recently announced it has recorded a 26.45% increase in net profit for the first quarter of 2015 to RMB 2.54 billion.
  • The company also posted a 31% increase in revenue to RMB 19.33 billion.
  • EPS for 1Q 2015 was RMB 0.83.

Why It Matters:

  • In 1Q, the number of cars sold increased 18% compared with 1Q 2014. Great Wall Motor was more reliant on the sale of SUVs, which command higher prices; consequently, revenue increased 31%. Sales of the H2 and H6 models, which have a price tag of more than RMB 100,000, were the largest contributor to Great Wall Motor’s income.
  • In 1Q, the gross profit margin decreased 1 percentage point due to limited sales of the newly launched H1 and H2 models. Apart from expanding the sales of current models, Great Wall Motor also plans to launch new models such as the H8, H7 and CouperC. Compared with 2014, Great Wall Motor expects the number of cars sold to increase 16% in 2015.
  • According to Chinese financial information platform 10jqka, Chinese analysts’ consensus estimate for Great Wall Motor’s 2015 EPS is RMB 4.24. Analysts also expect net profit to increase 60.51% to RMB 12.91 billion in 2015.