Dongfeng's partner Yueda expects massive increase in 2010 profits

Gasgoo.com (Shanghai January 28) - The Jiangsu Yueda Investment Co., a co-partner of the Dongfeng Yueda Kia Automobiles joint venture, estimated a 120% increase in its 2010 net profit. The company made 324 million yuan ($49.3m) the previous year, with a per-stock value of 0.59 yuan ($0.09).

The company said it primarily owes the impressive rise in its profits to the over 330,000 vehicles sold last year by Dongfeng Yueda Kia, of which Yueda owns a 25% share. The company's expressway and coal mine enterprises also played a part in helping its profits increase.

An analyst from Ping An Securities said that Yueda, being an comprehensive company whose business ranges from automobile, expressways, coal mines, tractors and textiles, gained a lot from its automobile sales, which have been increasing dramatically from 2008 and have since become the company's primary source of income. The company's expressway enterprise also provides a steady flow of funds for the company, while its other businesses are either very small or making losses. Ping An believes that as its automobile industry expands, and expressway and coal mine businesses become more stable, Yueda will maintain strong growth in the new year.