Source: Company data, Prevalence Value Capital estimates.
In arriving at any investment decision, a prudent investor needs to have a strong understanding of the underlying investment. In this case, we are making an argument for an equity investment in BAIC Motor Corporation (“BAIC” or the “Company”). The following discussion lays out our understanding of BAIC's business and its investment merits.
Company Background
BAIC is one of the leading passenger vehicle manufacturers in China. It is a subsidiary of BAIC Group, which holds 42.6% of BAIC Motor Corporation, and is backed by the Beijing municipal government.