Profile of Monster growth stock AutoChina International (AUTC), (AUTCW)
Thursday, September 10, 2009
AutoChina International Announce Strong Interim Results as they Reposition Business Model
In an interim trading update AutoChina International (AUTC) have reported their H1 results for the current financial year. The Chinese commercial vehicle sales and leasing company’s interim results appear very strong, with a 47.7% increase in group sales compared to first half of 2008. Similarly, comparative earnings jumped 78% to almost US$13 million against the same period last year.
The strong financial data from first half trading comes at the end of a significant 6 month period in which AutoChina became a public company and sold a considerable strategic business unit. At the turn of the year AutoChina sold its auto dealership business to focus on the commercial vehicle sector which AutoChina anticipate will experience rapid growth in mainland China.
According to Autochina the proceeds of the sale will allow them to accelerate the current sales growth further as they expand their operations and open new branches. The last 6 months alone have seen AutoChina increase their branch network substantially from 102 sites to 142.
In an accompanying statement AutoChina’s CEO, Mr. Yong Hui Li commented on the new business models growth prospects;
“We believe that the commercial vehicle business model that we have created provides a significant opportunity for growth ... We believe that we are well-positioned to capitalize on the commercial vehicle expansion in China and to build on our position in this highly fragmented market.”
Link to earnings filing: http://tinyurl.com/yjajxta