This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lentuo International Inc. Announces First Quarter 2011 Financial Results

Stocks in this article: LAS

The Company believes acquisitions will be a significant driver to grow its business in the future. We plan to purchase franchises to expand our business portfolio and generate attractive returns for the Company and its shareholders. We will continue to seek strong acquisition targets and are pursuing additional acquisition opportunities in geographies other than Tianjin as well. We remain confident that we are on track to fulfill our mid-term expansion plan of adding 10 dealerships to our growing national operations.

Lentuo opened a new FAW-Volkswagen dealership in the central area of eastern Beijing last week and expects to generate sales from this dealership beginning this week. We expect the dealership to generate revenue within the range of RMB 180 million to RMB 200 million ($27.5 million to $30.5 million) for the year 2011. As we observe increasing demand for premium passenger vehicles to be a long-term trend among China’s growing number of affluent households, we expect a limited impact on the premium car segment of our business from Beijing’s new quota system. In addition, the prime location of the new dealership in Beijing will be a key competitive advantage for us in this market--both in terms of repair and maintenance services and new car sales.

Financial Outlook

The Company estimates that its revenues for the second quarter of 2011 will be approximately RMB 650 million to RMB 680 million ($99.3 million to $103.8 million), representing a year-over-year decrease of approximately 11.2% to 7.1%.

This guidance is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

The Chairman concluded: “Although we expect second-quarter sales to be impacted by the recent policy changes in Beijing, we are working to overcome this challenge by enhancing and promoting our repair, maintenance and other service offerings, which generate significantly higher margins compared to new vehicle sales. Additionally, we plan to leverage our leadership position in Beijing to capitalize on local market consolidation opportunities and support our geographic expansion. We firmly believe that we have the right platform to take full advantage of China’s huge, rapidly growing auto market.”

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs