Sales volume of mainstream passenger vehicle enterprises in April increased beyond market expectation.
Sales volume statistics in April will strengthen annual growth expectation of passenger vehicle for the whole year of 2009.
Domestic passenger vehicle demand will be increased mainly due to motor consumption release of the second & third tier regions.
We hereby upgrade growth speed of annual sales volume of saloon to 11%, and that of the passenger vehicle industry to 12.9%.
Industrial profitability is expected to bounce back.
Overall valuation of A-share motor sector: Dynamic P/E Ratio is at 31x, and P/B at 2.7x.
“Cautious” rating is hereby maintained for motor industry.