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Beiqi net may up 150 pct in Q1
SHARES of Beiqi Foton Motor Co rose 4.56 percent yesterday after the nation’s largest light commercial vehicle maker estimated its first-quarter net profit will increase at least 150 percent from a year earlier.
The truck maker said the profit surge was a result of increasing sales revenue from high-end products as well as government financial assistance and a share sale project, according to a statement filed with the Shanghai Stock Exchange yesterday.
Excluding extraordinary income, the company said the profit is likely to grow over 50 percent.
Beiqi Foton earned a net profit of 66.28 million yuan (US$9.34 million) for the first quarter last year with earnings per share at 0.082 yuan, the statement added. Foton’s shares closed at 9.64 yuan yesterday.
Beiqi Foton has also agreed to pay 124.58 million yuan to boost its stake in Beijing Foton Cummins Engine Co, an engine-manufacturing venture with US company Cummins Inc.
Beiqi Foton will raise its stake to 37.45 percent from 25 percent after buying the shares from its affiliate.
The affiliate will still hold 12.55 percent in the venture while the US diesel engine maker Cummins and its Chinese subsidiary will have the remainder.
The move underscored its efforts to strengthen its control of Asian’s largest engine plant while lifting management efficiency and lowering costs.
Beiqi Foton is on track to establish a joint venture with Daimler AG to enhance its position in the light commercial vehicle market.
The truck maker said the profit surge was a result of increasing sales revenue from high-end products as well as government financial assistance and a share sale project, according to a statement filed with the Shanghai Stock Exchange yesterday.
Excluding extraordinary income, the company said the profit is likely to grow over 50 percent.
Beiqi Foton earned a net profit of 66.28 million yuan (US$9.34 million) for the first quarter last year with earnings per share at 0.082 yuan, the statement added. Foton’s shares closed at 9.64 yuan yesterday.
Beiqi Foton has also agreed to pay 124.58 million yuan to boost its stake in Beijing Foton Cummins Engine Co, an engine-manufacturing venture with US company Cummins Inc.
Beiqi Foton will raise its stake to 37.45 percent from 25 percent after buying the shares from its affiliate.
The affiliate will still hold 12.55 percent in the venture while the US diesel engine maker Cummins and its Chinese subsidiary will have the remainder.
The move underscored its efforts to strengthen its control of Asian’s largest engine plant while lifting management efficiency and lowering costs.
Beiqi Foton is on track to establish a joint venture with Daimler AG to enhance its position in the light commercial vehicle market.
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