* SAIC to pay cash dividend of 12 yuan for every 10 shares
* Dividend yield of 9 percent compares with 1-2 pct average
* SAIC forecasts revenue growth will halve to about 8 pct
(Recasts, adds analyst comment)
SHANGHAI, March 28 Shares of SAIC Motor Corp
jumped 8 percent on Friday after China's biggest
automaker said it would boost its dividend payout, offsetting
concern of the company's slower revenue growth projection.
SAIC, which owns ventures with Volkswagen AG and
General Motors Co, said in its 2013 earnings report late
on Thursday that it planned to pay investors a cash dividend of
12 yuan for every 10 shares held.
That represents a dividend yield of 9 percent, compared with
4 percent a year earlier and an average among Chinese listed
companies of 1 percent to 2 percent, said Capital Securities
analyst Wan Dong.
The dividend yield shows how much a company pays out in
dividends each year relative to its share price.
"This kind of payout far exceeds market expectations, making
SAIC much more attractive for long-term investors," Wan said.
"It's true that big companies like SAIC don't have big
growth potential, but people really like the idea of giving a
big portion of a company's profit back to investors, instead of
making inefficient investments."
The Shanghai-based company reported a 19.5 percent rise in
2013 net profit at 24.8 billion yuan ($3.99 billion), helped by
robust sales at its ventures with Volkswagen and GM. That
compared with analyst estimates of 23.25 billion yuan.
The company also said revenue growth would likely halve this
year from last to about 8 percent, and that industry recovery
was fragile due to over capacity and competition.
SAIC shares last traded up 8.12 percent at 13.85 yuan while
the broader CSI300 index of top Chinese companies was
up 0.3 percent.
(Reporting by Kazunori Takada and Samuel Shen; Editing by