JAC(SH:600418) Hua Xia Shi Bao·2025-08-26 23:48Core Viewpoint - Jianghuai Automobile reported a significant decline in revenue and net profit for the first half of 2025, yet its stock price increased, indicating market optimism despite poor financial performance [2][6]. Financial Performance - The company's revenue for the first half of 2025 was 19.36 billion yuan, a year-on-year decrease of 9.10% [2]. - Net profit attributable to shareholders was -0.773 billion yuan, a decline of 356.89% compared to a profit of 0.301 billion yuan in the same period last year [2]. - The non-recurring net profit was -0.916 billion yuan, a drastic drop of 1096.63% year-on-year [2][3]. - Basic earnings per share were -0.35 yuan, down 350% year-on-year [2]. Sales and Export Performance - Total vehicle sales in the first half of 2025 were 190,600 units, a decrease of 7.54% year-on-year [4]. - The company sold 79,500 trucks, down 2.38%, while sales of pickups increased by 15.00% to 32,900 units [4]. - The export volume for the first half of 2025 was approximately 107,000 units, ranking ninth among the top ten exporters, down from 120,000 units and eighth place in the same period of 2024 [3][4]. Strategic Developments - Jianghuai Automobile plans to establish a wholly-owned subsidiary, Anhui Jiangqi Overseas Equity Investment Co., Ltd., to support overseas business development [3]. - The company is focusing on enhancing its sales network through three main business models: authorized overseas dealers, domestic foreign trade agents, and establishing subsidiaries abroad [3]. Market Reaction and Stock Performance - Despite the financial losses, Jianghuai Automobile's stock price rose by 1.71% to 53.38 yuan, reaching a market capitalization of 116.58 billion yuan, a historical high [2][6]. - The stock price has shown a continuous upward trend since the announcement of the partnership with Huawei, with a significant increase from 19.13 yuan per share in July 2024 to 38.3 yuan per share by May 2025 [6]. Product Development and Future Outlook - The new luxury brand, Zun Jie, is still in the capacity ramp-up phase, with production targets set at 3,000 units per month by September and 4,000 units by the end of the year [7]. - Analysts predict that Zun Jie could become a leading luxury brand with potential annual sales of 100,000 units and a net profit of 124,000 yuan per vehicle [7]. - The luxury car market is experiencing a slowdown, with total sales down by 5-7% year-on-year in the first half of 2025, raising questions about Jianghuai's ability to replicate the success of competitors like Seres [7][8].