SUV sales drive record profit for Geely in 2016

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Shares in Geely Auto clawed their way back into the black after the Chinese carmaker reported net profit rose more than 125 per cent in 2016 thanks to strong SUV sales.

Shares were up as much as 0.5 per cent to HK$11.38 in the early afternoon session on Wednesday after dropping as much as 2.7 per cent ahead of the company’s lunchtime earnings release.

The company reported revenue of Rmb53.7bn for the 2016 financial year, up more than 78 per cent from the previous year as net profit rose 126.1 per cent to Rmb5.1bn.

A median analyst estimate for the latter figure compiled by Bloomberg had forecast growth of just above 100 per cent.

The company said strong sales of its own Chinese-branded SUVs drove total passenger vehicle volume growth of 20.5 per cent in 2016.

Geely also proposed a final dividend of HK$0.12 per share and set its automobile sales target for the 2017 financial year at 1m units, up 31 per cent from 2016.

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