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DCEC driven Dongfeng's profit rise

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Benefit from Dongfeng Cummins Engine in the second half of the force, Dongfeng Motor 2009 net profit to achieve a slight increase year on year. 10 years the company will continue to benefit from the heavy truck industry, the economy continued, while Division light truck business profitability is expected to be flat with 2009.

Dongfeng Motor released March 29, 2009 report, the company achieved annual revenue of 14.311 billion yuan, up 15.12%; total profit of 421 million yuan, down 2.02% year on year; attributable to shareholders of listed companies net profit of 318 million yuan, up by 0.78%, diluted earnings per share of 0.16 yuan.

Dongfeng Cummins recovery drive full-year earnings growth. Company holds 50% stake in Dongfeng Cummins, primarily through its contribution to profits to reflect investment income, Dongfeng Cummins engine products mainly for supporting heavy truck, and a considerable proportion of the Group's heavy truck business services (50%). Cummins 2009 net profit of about 537 million yuan, profit of the parent company contributed about 269 million yuan, of which the profit contribution of each quarter, and $ 99 million, respectively 1,400,5,700,9,900. It is by virtue of the second half of the force, the company full-year earnings growth rate of -31.77% from the first three quarters of a slight increase to 0.78%.

Cummins profit contribution is still room for improvement. Compare 2009 and 2008, investment income from Dongfeng Cummins proportion of total profit accounted for respectively 64% and 92%, mainly due to differences in the contribution of its downstream re-Karyo is the tractor trailer industry recovery in 2009 nodes industry than any other car segment later. Heavy truck industry in 2010 forecast growth rate of about 19%, and stronger than the automotive industry as a whole is expected, therefore, Cummins earnings growth outlook remains relatively uncertain.

Growth is expected in 2010 Division light truck industry as a whole still lags behind. Dongfeng Motor light truck production base located in Xiangfan and Changzhou, the company's 2009 light-vehicle sales of 14.6 million, year on year growth of 22%, compared to comparable industry growth of 34% market share decline is mainly due to the company The bias light truck product positioning in the mid-range and high-end, low end for the industry's major incremental economic ill-prepared and light truck products at the county level and below, the network sink far enough. However, steel and other raw material prices continue to remain low, the company's light truck 2009 gross margin was 10.21%, compared with 2008 increased by about 1.3 percentage points, there is a certain level of profitability improvement. 10 years is expected to have a certain degree of steel prices rose, light truck may slightly depress the company's gross margin business; 10 younger Card Industry and Dongfeng Motor light truck forecasts sales growth of 22% and 15%, light truck business headquarters The profit contribution of roughly flat with 2009.

Zhengzhou Nissan force in 2011. Zhengzhou Nissan currently has 60,000 units of capacity, the main production pickup, SUV and MPV products, in 2009 the company sold 6.14 million vehicles, up 20.16%, capacity utilization at record levels. The company is stepping up investment to build new capacity to address the capacity constraints, 09 and 10 years of planned investment of roughly 800 million and 5 billion yuan, optimistic to the end of 2010 is expected to increase about 12 million units of new capacity. Together with the existing production through expansion to 8 million units, the company's total production capacity in 2011 is expected to reach 20 million units. 2009, Zhengzhou Nissan to Dongfeng Motor contribution investment income of approximately $ 50 million. With the vast expansion of production capacity is expected to contribute to its earnings in 2011 will be significantly increased, but may decline in 2010 because of the short term turn solid construction will raise the level of the company's costs.

News from ET Power Machinery Co.,Ltd
Edited by Siren

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