Changan Automobile Market Performance of Frist Season Exceeds Expectation

Changan Automobile has realized operating income of 38.48 billion CNY of year 2013, which includes net profit of 3.5 billion CNY, and investment profit confirmed is 4.5 billion CNY. EPS is 0.752. Operating income of the fourth quarter is 10.45 billion CNY, and net profit is 1.22 billion CNY. The large growth over last season is because low base caused by hot weather maintain of third season. Growth over last year is because that Changan owned passenger car sales go well. Besides, Changan Ford investment gain contributes a lot as well.

Changan Ford sales of year 2014 exceed 800 thousand. It is contributed by Focus stable sales, and Escape and new Mondeo profitability and market performance are going well. Changan- Ford has contributed 4.1 billion CNY by investment gain. In year 2013, Changan- Ford has sold 6.83 million car sales. At present of year 2014, Escape “Crack Wheel Door” event does not influence too much. Changan- Ford has realized 800 thousand car sales based on Mondeo and Escape sales and growth. In year 2013, Changan owned brand passenger car sales income increase 105% over last year. Changan owned passenger car has double over last year based on Eado, Alsvin and SUV CS35 good market performance. The company will introduce new SUV CS75 into market this year. It benefits much onto product line, sales and profit improve. It is expected that Changan owned brand would narrow further its loss in year 2014.

Market performance of first season of year 2014 is exceeded expectation. Company forecasts that Changan owned brand sales would remain growth in first season of year 2014. Profit growth of Changan Ford fast increase as well. It has realized net profit between 1.82 billion to 2.05 billion CNY for first season. JAM sales of year 2014 reaches 2.46 million. It expects 2.46 million sales based on it owned brand CS35, Eado good growth, and new cars such as CX-5, new Mondeo, Kintion and Raeton quantity increased. It is expected opiating income of Changan of year 2014 and 2015 will reach 45.29 billion and 51.74 billion CNY; net profit realize is 6.84 and 8.3 billion CNY respectively; EPS are 1.466 and 1.781 CNY. Remain “Buy Rating”