By Gong Zhengzheng (China Daily)
Updated: 2007-08-22 09:33

Shanghai Automotive Co, China's top carmaker, yesterday posted a 358.1 percent surge in first-half net profit, boosted by a major asset injection from its parent late last year and buoyant sales.

The partner of Volkswagen and General Motors said in a statement to the Shanghai Stock Exchange that it earned 2.72 billion yuan ($358 million) in net profit in the first six months, up from 592.82 million yuan in the same period last year. Its earnings per share jumped to 0.415 yuan from 0.181 yuan over the period.

Parent SAIC Motor Co, which holds 83.83 percent of Shanghai Automotive, in December completed a $2.4 billion deal injecting its core assets into the listed company, including those from its two joint ventures with Volkswagen and General Motors.

Shanghai Automotive's January-June turnover, including that from its South Korean unit Ssangyong Motors, rocketed by 2,202.4 percent to 51.07 billion yuan.

The company moved 840,000 vehicles in the period, up from 682,000 units.

Analysts are optimistic about Shanghai Automotive's full-year results as it is the leader in China's booming vehicle market, with sales of domestically made automobiles expected to grow to 8.5 million units in 2007 from 7.22 million units last year.

Li Chunbo, from CITIC Securities Co, estimated the carmaker's 2007 earnings per share would be over 0.8 yuan.

In the first half, Shanghai Automotive's operating profit jumped to 3.44 billion yuan from 595.36 million yuan.