Operation Revenue of Pret (002324.SZ) in Q3 down 4% MoM as Automobile Industry Development slows down


Shanghai Pret Composites Co., Ltd. (002324. SZ) is mainly engaged in vehicle modified plastics, its downstream customers are manufacturers of automotive parts. In 2011, influenced by policies and oil price increase, automobile production & sales growth in China has slowed down obviously, thereby, automobile parts manufacturers control over raw materials prices more strictly, which finally lead to the decrease in vehicle modified plastics demand and profit space of Pret.

In the first three quarters of 2011, Pret’s operation revenue increased by 21.4% YoY to RMB 680 million. Though its operation revenue in the first three quarters increased hugely on a YoY basis, Pret’s revenue in Q3 of 2011 shrank by 4.0% MoM to RMB 215 million, lower than RMB 242 million of Q1 and RMB 224 million of Q2. Moreover, its single quarter gross profit margin dropped to 14.1 % in Q3, from 17.2% in Q1.


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