At the red envelope popular House Year, SAIC group decides to send big red envelop to its investors.
SAIC (SSE 600104) has announces its annual financial reporter of year 2013 at present. According to financial report, SAIC group sales have exceeded 5 million last year. China made cars sales are 5.11 million, which has increased 13.7%. There into, passenger car sales are 3.96 million, which has increased 20.1%; commercial car sales are 1.15 million, which has declined 3.9%.
As SAIC explain, the reason for commercial car sales decline is because of segment decline as a whole. Therefore, mini commercial car, which takes a relative big percentage of its sales construction, has declined 6% over market performance of last year. However, contributed by the good performance of passenger car segment, SAIC revenue and its net profit have increased and hit the record hit again.
Last year, SAIC has realizedrevenue as 566 billion CNY, which has increased 17.64% over last year. Its net profit is 35.58 billion CNY, which has increased 6.1% over last year. However, its net profit delivered to parent shareholders has increased to 24.8 billion, which has increased 19.53%, which share per earning is up to 2.25 CNY. SAIC has the largest scale dividend delivery plan among its history, which is up to 12 CNY per share.
However, what’s worth notification, sales and revenue have hit the record high, but its net profit rate has declined for the recent 3 years. Its net profit rate among year 2011 to 2013 are 8.08%, 7.01% and 6.32%.
SAIC definitely notices the issues as well. The company plans a bigger schedule for year 2014. As the company expectation, the auto industry of year 2014 will remain stable. Automobile sales will hit 23.85 million this year, which has increased 7% over last year.
Based on the expectation, SAIC will try its best to increased sales to exceed 5.6 million, which expected revenue is 609 billion CNY, and operation cost is 535.1 billion CNY. It means that operation profit will be 73.9 billion CNY, which is 83.9% more than 40.18 billion CNY profit of this year. It will change its profit rate issues as well.
