MOST listed Chinese auto makers powered to better-than-expected profit this year on growing sales, and analysts forecast that they will drive investors to higher profit next year.
Shanghai Automotive Co Ltd, the listed unit of China's biggest car maker, Shanghai Automotive Industry Corp, reported its net profit more than tripled to 3.8 billion yuan (US$513 million) for the first three quarters of this year. Sales rocketed more than 21 times to 76 billion yuan.
Shanghai Auto's share price soared more than 170 percent from 8.3 yuan at the start of the year to 26.07 yuan at the close last Friday.
Its shares reaped harvest from the car maker selling additional shares to investors last year to expand its core business from auto parts to car production by merging assets in its two joint ventures with General Motors Corp and Volkswagen AG.
SAIC sold over 840,000 units in the first half.
Net profit at Beiqi Foton, China's largest light vehicle producer, powered 92 percent to 285 million yuan from January to September while sales rose 45 percent to 21 billion yuan during the same period.
Sinotruk, China's largest heavy-duty truck assembler, estimated profit for the whole year will jump by 150 percent to 200 percent on high demand for heavy-duty trucks.
Last year Sinotruk made a net profit of 224 million yuan. Its shares also climbed from 25.48 yuan on January 4 to 48.4 yuan last Friday.
"In addition to the booming stock market, auto-related stocks are favored because the profitability of car makers has improved and assets have been optimized, ensuring more potential for future growth," said Wang Canbing, an independent industrial analyst.
Auto-related stocks are projected to remain upbeat against overall market performance because of a rosier outlook.
China replaced Japan as the world's second largest auto market last year, trailing only the United States.