Yulon Nissan Profits from Reinvestments in China

Taipei, Sept. 19, 2012 (CENS)--Mainly profiting from its reinvestments in China, Yulon Nissan Motor Co., Ltd., a Taiwanese carmaker, is expected to earn twice its capitalization in profits for this year, according to institutional investors.

Yulon Nissan’s business performance in China is highly related to Dongfeng Nissan Passenger Vehicle Co., as its reinvestment profits in the country are mostly generated by two local car makers, both of which are contract manufacturers for Dongfeng Nissan, which aims to achieve full-year sales goal of one million units in China this year, as well as a car vendor, which has seen its revenue show incredibly strong growth since taking over Dongfeng Nissan’s aftermarket parts and maintenance service business early this year.

Yulon Nissan reported net profits of NT$3.522 billion, or NT$9.41 per share, for the first half of this year, with over 80% of which contributed by its reinvestments in China.

Institutional investors estimate that Yulon Nissan, driven by its Chinese reinvestments, is supposed to have raked in net profits capping the total of 2011 as of the end of August. Noteworthily is that the abovementioned Chinese car vendor contributed NT$1.185 billion to Yulon Nissan’s first-half net profits, sharply surging from NT$167 million it did a year ago.

Another good news to Yulon Nissan is that Dongfeng Nissan has been expanding its Xiangyang plant right after boosting annual capacity at another car plant to 800,000 units, while simultaneously kicking off construction of new full-cycle plants in Dalian and Zhengzhou. These output expansion projects will enable the Chinese carmaker to achieve annual capacity of 1.5 million cars in three years, and, in turn, will help Yulon Nissan to secure growth momentum from its business links with Dongfeng Nissan in the long run.