Capital value of Great Wall Motor vanishes dozen billion dollar, losing position because of too heavy bet on SUV

Gasgoo.com (Shanghai, July 9) - At night of July 4, Great Wall Motor announced its production and sales data of June. Both of them have decreased. Production and sales of Great Wall Motor have reduced 6.6% and 5.6% from Jan to June. Price of Great Wall Motor of SSE and HSE have dropped together on July 7. Price of SSE was closed with slight 0.56%, and HSE was closed with 3.32% decrease.

In fact, Harvard H8 has been delayed delivery for some times. Production and sales have reduced as well. Capital value of Great Wall Motor of SSE and HSE has vanished dozen of billion dollars up to July 7.

Meanwhile, opinions of institution are divided. Some of them, such as Sinolink Securities and CITICS believe it is the time to buy in. However, CICC says it still needs some time to release all risks. Some others say it is still not the bottom position of Great Wall Motor, and situation shall base on middle term fiancé report.

Market performance reduces. Meanwhile, Great Wall Motor adjust frequently, such as senior managers are demotion, staff cut of passenger car and reduce research budget of passenger car etc. some analyst believe it refers that Great Wall Motor fights for its last stand, but query about its strategy which ignore risk of walking by one leg only.

According to statistics, price of Great Wall Motor was as high as 52.85 CNY, which equal to 8.5 dollar on Oct 11 2013. Capital value of Great Wall Motor has exceeded 15 billion CNY, which equal to 2.5 billion dollar. It has exceeded the largest listed auto company SAIC. Price of Great Wall Motor on HSE hit the record high as 52.98 HKD, which equal to 10 dollar.

However, capital value of SSE and HSE of Great Wall Motor is large reduced for the next 9 months. Closed price of SSE of Great Wall Motor on July 7 is 26.57 CNY, which equals to 4.3 dollar; and price of HSE of Great Wall Motor is30.4 CNY, which equals to 4.9 dollar. It has vanished about 70 billion CNY, which equals to 1.13 billion dollar.

An analyst of auto industry comments that Great Wall Motor has entered adjustment period since the next half year of 2013. H8, which is great expected, delayed market launching for several times. IPO is stopped as well. It makes a long way to go for Great Wall Motor. “We do not recommend the stock in short time.”