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JAC predicts year-on-year growth of 60% in the first half of 2013.
JAC releases an announcement about sales increase in which it predicts the net profit in the first half year will be 60%, far more than previous expectation 40%. There are two reasons for this: 1) the growth of truck business is beyond expectation: 126,000 light-duty (LD) trucks and 177,000 heavy-duty (HD) trucks are sold, up by 12% and 29% respectively; 2) costs of raw materials and parts are at a lowest level, and gross profits increases because JAC improves its sales structure by upgrading products.
With the launch of new products, the growth remains strong
In March, 2013, JAC launches brand new SUV Ruifeng S5. The current sales volume maintains 3,000 units a month. As there are more options for S5 (2.0T automatic transmission and 1.5T automatic transmission), the sales volume per month will reach 5,000 units. In addition, from the second half year till the beginning of 2014, JAC plans to launch Heyue A30, A20 and small SUV S3; hence, the profit will remain grow steadily with the launch of new products.
Raise profit forecast
JAC raises the forecast on sales volume of LD and HD trucks to 235,000 units and 32,000 units from previous 215,000 units and 26,000 units respectively, and the forecast on gross profit rate to 16% from previous 15.5%, and therefore, EPS from 2013 to 1025 is raised to 0.73/0.81/0.94 RMB from previous 0.67/0.80/0.93 RMB.
