SAIC Motor’s revenue in the third quarter increased by more than 13%, saying that it will consolidate the good momentum of recovery in the fourth quarter

Affected by factors such as the sharp rise in raw material prices, SAIC Motor’s profitability was under pressure.

On October 28, SAIC Motor Corporation Limited (600104, SAIC) released its 2022 third quarter report. According to the report, SAIC Group achieved total revenue of 211.416 billion yuan in the third quarter, a year-on-year increase of 13.29%; net profit was 5.74 billion yuan, a year-on-year decrease of 18.43%.

In terms of sales volume, in the third quarter of this year, SAIC Motor achieved vehicle sales of 1.536 million units, a year-on-year increase of 16.2% and a quarter-on-quarter increase of 51.5%. Among them, SAIC’s own brand sales exceeded 794,000 units, a year-on-year increase of 17.5%, accounting for more than 50% of the company’s total sales; new energy vehicle sales were 306,000 units, a year-on-year increase of 66.7%; overseas sales were 307,000 units, a year-on-year increase 67.2%.

From January to September this year, SAIC achieved a total revenue of 527.409 billion yuan, a year-on-year decrease of 4.58%; net profit was 12.649 billion yuan, a year-on-year decrease of 37.84%. In terms of quarters, SAIC’s net profit in the first three quarters was 5.52 billion yuan, 1.39 billion yuan and 5.74 billion yuan respectively.

In response to the decline in net profit in the first three quarters, SAIC Motor stated that since the beginning of this year, the company’s profitability has been greatly under pressure due to the combination of multiple unfavorable factors such as the shortage of supply resources such as chips and the sharp rise in the price of raw materials such as power batteries. Although the company’s vehicle sales and operating income increased significantly year-on-year and month-on-month in the third quarter, the improvement of the production and sales structure and the recovery of product gross profit margins still lag.

Huaxi Securities predicted in a recent research report that SAIC’s total revenue this year will be 797.846 billion yuan and its net profit will be 17.683 billion yuan; Soochow Securities has given a higher net profit forecast, that is, this year’s total revenue will be 784.854 billion yuan. yuan, and the net profit was 19.754 billion yuan.

For the full-year sales, SAIC still maintained its forecast of 6 million vehicles. SAIC Motor said that the company’s main indicators such as sales, revenue, and profits have returned to pre-epidemic levels, and vehicle sales have achieved “five consecutive monthly increases” since May. In the fourth quarter, as the domestic auto market enters the traditional peak sales season, and the superimposed purchase tax preferential policies bring about consumption promotion opportunities, the company will further consolidate the good momentum of production and sales replenishment and performance recovery, and make every effort to sprint the annual vehicle production and sales growth target.

The production and sales report shows that from January to September this year, SAIC Motor sold a total of 3.77 million vehicles, achieving 62.83% of the annual target.

As of the close, SAIC Motor fell 2.02% to close at 14.04 yuan per share.