Shanghai Automotive reports positive outlook

Shanghai Automotive Co. Ltd.<600104> reported a 358.1% surge in first half net profit, China Daily reported Wednesday.

China's top carmaker said it had strong gains in net profit due to a major asset injection from its parents and buoyant sales. The carmaker's parent SAIC Motor co. had completed a US$2.4 billion deal injecting its core assets into the listed company, including assets from its two joint ventures with Volkswagen and General Motors. Shanghai Automotive also moved 840,000 vehicles, an increase from last years 682,000 units.

SAIC holds 83.83% of Shanghai Automotive.

Shanghai Automotive said in a statement to the Shanghai Stock Exchange that the company had earned a net profit of RMB 2.72 billion in the first half of 2007, ending Jun. 30, 2007. This figure was a RMB 592.82 million increase from the corresponding period in 2006.

Shanghai Automotive's earnings per share had jumped to hit RMB 0.415 from RMB 0.181 over the same period last year.

China Daily reported Shanghai Automotive's January-June turnover had rocketed by 2,202.4% to RMB 51.07 billion.

Analysts said they are optimistic of the carmaker's full-year results. They predict the sales of locally-made automobiles to increase to 8.5 million units in 2007 from 7.22 million units in 2006.