Gasgoo.com (Shanghai April 10) - SAIC Group’s price to earnings ratio has jumped from 6.4 times last year to 10.36 this year, the Securities Daily reported today. This jump in earnings is due in large part to SAIC Group CEO Chen Hong’s promise to strengthen the manufacturer’s market management. To this end, SAIC has taken steps like linking up with Alibaba to create a Internet connected vehicle.
According to the report, SAIC’s per-share stock price as of this month was 25.56 RMB ($4.172), The company’s total income last year totaled 630 billion RMB ($102.85b), up 11.35 percent from the previous year. The company’s total net profits that year totaled 28 billion RMB ($4.57b), up 12.78 percent from the previous year. While net profit growth exceeded income growth, income growth in turn exceeded sales growth, which was 10.1 percent.
SAIC’s two key joint ventures, Shanghai VW and Shanghai GM, managed to remain in the top three of the country’s joint ventures. Meanwhile its other JV, SAIC-GM-Wuling, managed to reach number four spot in the sales charts. SAIC-GM-Wuling benefited greatly from taking advantage of the country’s fledgling minivan segment.
SAIC’s sales target for 2015 is set at 6.2 million units. While the manufacturer’s current annual production capacity is just at 5.16 million units, its capacity usage rate is above the industry average.
