BYD and Geely record strong profit growth

PUBLISHED : Wednesday, 19 March, 2014, 2:57pm
UPDATED : Thursday, 07 May, 2015, 1:03pm

BYD yesterday said net profit soared 579 per cent last year to 553.09 million yuan (HK$692.8 million) following improved performances in its car, phone components and battery businesses.

Turnover rose 12.1 per cent to 49.77 billion yuan.

The company last year sold 470,000 vehicles, 14.38 per cent more than in 2012, on stronger demand in mid-tier cities. Revenue from car sales grew 9.62 per cent to 27.02 billion yuan.

Meanwhile, stronger-than-expected sales saw Geely Automobile's profit grow 31 per cent last year. The carmaker said this year would be challenging amid rising competition.

Net profit jumped to 2.7 billion yuan, beating market estimates of about 2.6 billion yuan.

Revenue rose 17 per cent to 28.7 billion yuan, higher than the company expected, bolstered by improvements in its product mix and better margins, Geely said in a statement to the Hong Kong stock exchange.

Despite a lack of new products, Geely managed decent growth in car sales of 14 per cent, with 549,468 units sold.

A final dividend of 4.6 HK cents a share was declared.

The carmaker, which owns Swedish brand Volvo, has set a sales target of 580,000 vehicles for this year, representing slower growth of 5.6 per cent and below the 8 to 10 per cent growth rate forecast for the industry by the China Association of Automobile Manufacturers.

Analysts said Geely's sales target revealed its conservative view for this year amid uncertainty over its export markets.

BYD shares yesterday rose 1 per cent to HK$55.35 while Geely surged 15.3 per cent to HK$3.09.