CAR Inc. is a provider of car rental services.
On March 17, China Auto Rental(HK: 00699) released its 2019 results announcement. The profit figures were not satisfactory, but the analysis from the perspective of operation was the "best" in history.
Less than four months after the launch of time-share leasing business by China Auto Rental, relying on the price advantage of its network and its own products, China Auto Rental has rapidly covered more than 55 cities across the country.
China Auto Rental(HK.0699) announced its 2019 annual results announcement. The announcement shows that the total operating income of China Auto Rental in 2019 was CNY 7.69 billion, an increase of 19.4% over the same period last year; the net profit was CNY 30 million, a year-on-year decrease of 89.3%. As early as one month before the financial report was announced, China Auto Rental issued a profit alert for the full year 2019 in which net profit is expected to fall by more than 80%.
China Auto Rental led the investment of Wulong Motors. The financing totaled more than HK $ 1.65 billion, and China Auto Rental invested CNY 1.14 billion, becoming the largest shareholder of Wulong Electric Vehicle Group.
It is estimated that the core net profit of 2017E / 2018E / 2019E will be approximately CNY 660 million / 730 million / 780 million respectively, and the target price will be reduced to HK $ 7.6 (approximately 20x 2018E adjusted PE); given 11.2% upside