Morgan Stanley: GM China Values ​​Ten Billion U.S. Dollars

According to Bloomberg News, Adam Jonas, a Morgan Stanley analyst, recently predicted GM’s financial situation, arguing that GM’s business value in China reached 10 billion U.S. dollars, while its business in Europe was negative. value.

The latest stock price of the GM New York Stock Exchange was $25.29 per share. Although it has risen 25% this year, it is still 24% lower than the 2010 IPO starting price of $33 per share. At present, the market value of GM is about 39.6 billion U.S. dollars, and the price-to-earnings ratio is 6.24 times, which is less than half of the 14 times P/E ratio obtained by investors in the S&P 500 Index. Adam Jonas predicts that GM's share price will rise to $45 per share within one year.

Jonas also stated that GM’s business value in China is 10 billion U.S. dollars, while in Europe it is -8 billion U.S. dollars, which almost offsets the gains from GM China; it is expected to take 12 to 18 months in the future. GM will lay off 3,000 to 5,000 people in Europe.

China is not only the single largest market for GM, but GM has also become the highest selling foreign car company in the Chinese market. In 2011, GM sold a total of 2,547,203 units in the Chinese market, an increase of 8.3% year-on-year, which is higher than the total sales of 2,503,820 units in the US market.