China's BAIC Motor H1 revenue falls, posts net loss; hurt by price competition and lower sales
China's BAIC Motor H1 revenue falls, posts net loss; hurt by price competition and lower sales
Overview
China automaker's H1 revenue fell sharply yr/yr to RMB 57.7 bln
Company posted net loss attributable to owners of RMB 1.6 bln vs profit last year
Results reflect significant decline in sales and profitability from prior-year period
Outlook
Beijing Brand will launch luxury and light off-road sub-brands in H2, led by the new energy SUV Taitan 700
BAIC Motor will expand high-value and high-volume product sales to drive volume growth across market segments
Result Drivers
PRICE COMPETITION AND LOWER SALES – Revenue fell 29.9% to RMB57.7 bln, primarily due to price competition and declining sales
OFF-ROAD VEHICLE DEMAND – Beijing Brand's core boxy off-road vehicle terminal sales rose 24% yr/yr, while BJ30 reached a post-launch monthly sales record
HYUNDAI EXPORT GROWTH – Beijing Hyundai export sales rose 15.8% yr/yr to 47,000 vehicles, with overseas markets becoming a new sales-growth engine
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 57.73 bln |
|
H1 Net Loss Attributable |
| RMB 1.59 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy."
Wall Street's median 12-month price target for BAIC Motor Corp Ltd is HK$0.98, about 20.2% above its August 28 closing price of HK$0.82
Reuters Recommended Reads
Aug 26 - China's Li Auto Q2 revenue falls 15% on lower deliveries
Aug 26 - Chinese car dealership MeiDong Auto's H1 revenue falls 27% yr/yr amid weak demand
Aug 28 - BYD posts first quarterly profit rise in over a year
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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