Jan. 31 (Bloomberg) -- SAIC Motor Corp. fell the most in more than two weeks after China’s largest domestic carmaker said profit growth declined last year as the market slowed.
SAIC’s Shanghai-listed shares fell as much as 3.4 percent to 14.95 yuan, the biggest drop since Jan. 13, and traded at 15.12 yuan at the 11:30 a.m. break. The benchmark Shanghai Composite Index rose 0.2 percent.
Net income in 2011 rose by more than 40 percent after more than doubling the year before, SAIC said yesterday. Reported profit will include earnings from Huayu Automotive Systems Co., an acquisition announced last April, said Han Weiqi, an analyst with CSC International Holdings Ltd. in Shanghai. The forecast means profit from existing operations grew by 15 percent to 20 percent, short of Han’s 25 percent estimate, he said.
“China’s car market will not see the same exponential growth we saw in the past few years, and investors are also selling such stocks to move into more high-growth sectors,” Han said by telephone.
The Shanghai-based carmaker said April 6 it would pay 28.6 billion yuan to buy assets including 60 percent of Huayu from its parent. Growth in China’s vehicle deliveries slowed to 2.5 percent in 2011, down from a 32 percent pace in 2010, after China withdrew a two-year package of tax breaks and rebates that had helped the country overtake the U.S. as the world’s largest auto market in 2009.
Last year’s sales rose by 12 percent, SAIC said.
--Liza Lin. Editors: Nate Espino, John Liu
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