Make a successful turnaround. The company's main revenue in 2006 was 2 billion, an increase of 40.3% over the same period last year, and its net profit was 85.02 million, an increase of 111.3% over the same period last year. The company made a successful turnaround and avoided delisting.
Brilliance Gold Cup is the profit growth point in the future. The company holds a 39.1% stake in brilliance Gold Cup, which lost about 700 million in 2006. However, there was a big increase in sales, with sales of 27000 cars, up 172% from the same period last year, and Gerris 10, 000, up 99% from the same period last year.
Sales of the new car Junjie are 36000. Considering that the engine project has been put into production, a number of new cars will be launched this year and next. Brilliance Gold Cup will become the main profit growth point of the company after 2008.
The probability of listing as a whole in the future is very high. The actual controller of the company is brilliance China, which holds a 90.1% stake in the company. Brilliance China is listed in Hong Kong and has premium assets such as brilliance BMW.
In the case of SAIC and FAW listing in A shares one after another, brilliance has a high probability of listing through the company as a whole in the future.
Both ends of the investment industry. According to Soros' experience, when investing in an industry, you can choose the best and worst companies. The best companies are the industry leaders and will get above-average returns, while the worst companies are likely to have explosive growth. The company is in trouble after the Yangrong incident and is now on the eve of the outbreak.
Maintain a neutral rating. The company's main products are light trucks and spare parts, etc., the growth is poor. Brilliance Gold Cup in 2007 is still in the stage of opening up a stable market and creating a brand, so it is difficult to produce large profits. At present, what supports the stock price is not the company's performance but the expectation of the company's rapid growth and the overall listing. Consider comprehensively, give the rating of increasing holdings.
