Printer Friendly

Yulon Nissan's ROI in China in H2 to exceed NT$2.9 b. in H1.

Taipei, Oct. 3, 2012 (CENS)--Return-on-investment in China in the second half is expected to outstrip NT$2.9 billion (US$96.7 million) posted in the first half, according to Yulon Nissan Motor Co., Ltd., a joint venture between Taiwan's Yulon Group and Japanese automaker Nissan.

Institutional investors say that starting this year, Yulon Nissan's reinvested Dongfeng-Nissan Passenger Vehicle Co., a major automaker in China, has divested its auto-parts sales business to affiliate Guangzhou Fengshen Motor Co., Ltd., whose major stake held by Yulon Nissan will realize sizable ROI in China.

Tsai Wen-rong, Yulon Nissan's president, admitted the anti-Japan sentiment in China has impacted Dongfeng Nissan's recent sales, but the least among Japanese brands. Dongfeng Nissan achieved 16.4% sales gain YoY in the first eight months amid overall new-car sales growth in China of only 4% YoY, and will easily challenge one million-plus new car sales this year, Tsai said.

Dongfeng Nissan, with a second model joining its own-brand line, expects to sell over 10,000 Venucias this year.

Yulon Nissan's ROI in China totaled about NT$900 million (US$30 million) in the first quarter, which rose to NT$1.9 billion (US$63.3 million) in the second quarter. Some institutional investors forecast Yulon Nissan's ROI in China will exceed NT$6 billion (US$200 million) this year, and post earnings of about NT$7 billion (US$233.3 million), almost double from last year's, including core business earning in Taiwan of about NT$1 billion (US$33.3 million).

Compared to counterparts' 7% to 30% declines, Yulon Nissan's market share in Taiwan dropped only 0.7 percentage points.

COPYRIGHT 2012 China Economic News Services
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:return-on-investment
Author:Liang, Quincy
Publication:The Taiwan Economic News
Article Type:Brief article
Date:Oct 3, 2012
Words:273
Previous Article:PV Taiwan show kicks off today with mixed industry outlook.
Next Article:CDE sets up Cross-Strait Medicinal Product Cooperation promotion office.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters