HONG KONG, Aug 22 (Reuters) - Truck maker Qingling Motors Co Ltd , the least fancied of the three Hong Kong-listed Chinese automotive firms, on Friday reported a 15 percent rise in interim profits although analysts said the company lags broader growth in the truck market.
The Chinese partner of Japan's Isuzu Motors reported six month net profit of 68.3 million yuan (US$8.25 million), compared with year-earlier profit of 59.4 million yuan.
While China's passenger car market is exploding, to the benefit of manufacturers such as Hong Kong-listed Denway Motors as well as overseas giants led by Volkswagen , the growth of the truck market is slower, with Qingling lagging the broader sector growth, analysts said.
The result fell just below forecasts of three analysts polled by Reuters, who expected profit in the 71-80 million yuan range.
The firm's turnover rose 16.4 percent to 1.71 billion yuan.
"It's growing at a single-digit rate by unit sales," said Nomura International analyst Phoebe Wong, who rates the stock a "sell" and was speaking before the results announcement.
"It's too speculative," she added.
With a price-to-earnings ratio of 19.8 times forecast 2003 profit, Qingling is costly next to Denway, which has a P/E ratio of 11.4 times, and sedan and minivan maker Brilliance China Automotive , which trades at 10.5 times forward earnings.
Qingling's relatively rich valuation is derived in part from a long-held market expectation that it will become a major maker of truck engines and gear boxes for export to Japan for Isuzu.
Rival truck and minivan maker Jiangling Motors Co , 30 percent owned by U.S. giant Ford Motor Co , this month reported an 87 percent jump in first-half profit, as turnover rose 34 percent to 2.7 billion yuan (US$327 million).
Qingling shares had risen 30.4 percent in the 52 weeks through Thursday, compared with a gain of 89 percent for Denway and 113 percent for Brilliance, which this year inked a joint venture with Germany's BMW to make luxury sedans in China.
(US$=8.28 yuan)