SAIC Motor Chairman Says Carmaker Concerned About Share PriceBloomberg News
SAIC Motor Corp. Chairman Hu Maoyuan said he is concerned about the company’s share price, which has declined this year for the worst return among Chinese carmakers.
SAIC’s stock has declined 11 percent this year in Shanghai trading, compared with the 2.1 percent gain in the Shanghai Composite Index. Great Wall Motor Co., China’s biggest SUV maker, has climbed 59 percent in the same period.
“Our company has investment value,” SAIC Chairman Hu Maoyuan said today, responding to a shareholder’s comparison of the Shanghai-based automaker with Great Wall. “We’re discussing the issue. We also want our share price to go up.”
SAIC, which operates joint ventures with General Motors Co. and Volkswagen AG, has forecast revenue will increase at the slowest pace in five years to 490 billion yuan ($80 billion) this year and for deliveries to rise 9.1 percent to 4.9 million units. The automaker reported full-year profit in March that missed analysts’ estimates after earnings growth stalled at its venture with GM.
Hu said SAIC will push ahead with plans to expand in Thailand and is considering other markets including South America and the Middle East.
The automaker targets to sell 240,000 units of its Roewe and MG brands this year and for exports to exceed 10,000, President Chen Hong said at the same meeting today. SAIC’s growth may be slower than other Chinese automakers because it focuses on the mid- to high-end vehicle segments, Chen said.
The maker of the Roewe E50 has sold more than 280 of the electric vehicles, though demand depends on government subsidies as the costs are high, Chen said. Many rental companies are interested in the E50 for their fleet, he said.
— With assistance by Alexandra Ho