BAIC Motor 1958

[winston]

not vested

BAIC Motor has benefited from
a) Beijing Benz is taking market share in the entry-level premium segment with new products,
b) Beijing Hyundai’s sales have been recovering since Mar 16 on the start of a strong product cycle, and
c) the proprietary brand business should see losses narrowing by 17% p.a. in 2016-18 on the EV+SUV strategy.

We initiate a BUY rating with target price of HK$11.50.

Source: UOBKH

[persistentone]

Is there a good background article online that explains the 1958.HK entity and the relationship it has to the parent company?

Is the BAIC EC series car directly manufactured by 1958.HK? Does Beijing Automotive Group intend for 1958.HK to be the entity the produces all of its electric vehicles?

The parent company is so enormous, and has so many ties to the government of China, that it is very hard for me to quickly sort out where the profits from EV's in this company are going.

[persistentone]

The 2017 Annual Report under "Major Financial Summary" on page 4 shows the earnings per share to shareholders dramatically decreasing, even though earnings from 2016 to 2017 increased. The earnings are shifted into "non controlling interests". What is the story behind that? It looks like the underlying company's profits dropped dramatically and shifted hugely to companies that they own minority interests in?