China Merchants profit rises 42% in H1
China Merchants Holdings (International) Co., the investor in ports moving about a third of the country's containers, boosted first-half profit 42 percent as China's rising exports fueled sea-cargo traffic.
Net income climbed to HK$2.02 billion ($259 million) from HK$1.42 billion a year earlier, excluding discontinued operations, the company said in a Hong Kong stock exchange statement today. Sales climbed 18 percent to HK$3.37 billion.
China Merchants' ports, including ventures in Shanghai and Shenzhen, handled 13 percent more containers in the period, helped by a 22 percent increase in China's exports of toys, textiles and computers. The company expects trade to withstand any slowdown in the U.S. because of demand in Europe and Southeast Asia, according to the statement.
The growth of Shekou Port in Shenzhen is really strong as it's less exposed to the U.S.,'' said Jim Wong, a Nomura International Ltd. analyst. Still, the second-half outlook remains wait and see.''
The company's ventures handled a total of 25.1 million boxes in the first half. Container traffic at the Western Shenzhen Port Zone rose 18 percent to 5.86 million boxes. Shanghai International Port (Group) Co., the operator of China's busiest harbor, boosted container volume 27 percent and profit 35 percent. China Merchants owns 27 percent of the company.
Most of China Merchants' customers now pay in yuan, instead of foreign currencies, which protects it against yuan appreciation, the statement said.
Profit Rises
Including year-earlier contributions from a toll-road unit that was later sold, China Merchants' net income rose 32 percent from HK$1.52 billion. Cosco Pacific Ltd., Asia's third-largest container-terminal operator, boosted first-half profit 11 percent to $153.2 million excluding a year-earlier one-time gain.
China Merchants, a Hang Seng Index company, has dropped 41 percent this year, compared with a 25 percent decline for the benchmark, on concerns about slowing world trade and increasing competition. The stock rose 0.7 percent to HK$28.40 at 2:38 p.m.
The company proposed a first-half dividend of 28 Hong Kong cents, 40 percent higher than a year earlier.
China Merchants' throughput of iron ore and other dry-bulk cargos rose 47 percent in the first six months to 114.26 million tons, the statement said. The company bought a stake in Zhanjiang Port (Group) Co. last year to bolster its dry-bulk business. Bulk traffic at the port, near Hong Kong, rose 37 percent to 31.3 million tons. Baosteel Group Corp., China's biggest steelmaker, bought 8 percent of the venture in July.
China Merchants also has stakes in ventures in cities including Hong Kong, Zhanjiang and Ningbo. Parent China Merchants Group is aiming to complete an agreement for a $1.3 billion port project in Vietnam by the end of the year. The deal would be the company's first outside of China.
Net income climbed to HK$2.02 billion ($259 million) from HK$1.42 billion a year earlier, excluding discontinued operations, the company said in a Hong Kong stock exchange statement today. Sales climbed 18 percent to HK$3.37 billion.
China Merchants' ports, including ventures in Shanghai and Shenzhen, handled 13 percent more containers in the period, helped by a 22 percent increase in China's exports of toys, textiles and computers. The company expects trade to withstand any slowdown in the U.S. because of demand in Europe and Southeast Asia, according to the statement.
The growth of Shekou Port in Shenzhen is really strong as it's less exposed to the U.S.,'' said Jim Wong, a Nomura International Ltd. analyst. Still, the second-half outlook remains wait and see.''
The company's ventures handled a total of 25.1 million boxes in the first half. Container traffic at the Western Shenzhen Port Zone rose 18 percent to 5.86 million boxes. Shanghai International Port (Group) Co., the operator of China's busiest harbor, boosted container volume 27 percent and profit 35 percent. China Merchants owns 27 percent of the company.
Most of China Merchants' customers now pay in yuan, instead of foreign currencies, which protects it against yuan appreciation, the statement said.
Profit Rises
Including year-earlier contributions from a toll-road unit that was later sold, China Merchants' net income rose 32 percent from HK$1.52 billion. Cosco Pacific Ltd., Asia's third-largest container-terminal operator, boosted first-half profit 11 percent to $153.2 million excluding a year-earlier one-time gain.
China Merchants, a Hang Seng Index company, has dropped 41 percent this year, compared with a 25 percent decline for the benchmark, on concerns about slowing world trade and increasing competition. The stock rose 0.7 percent to HK$28.40 at 2:38 p.m.
The company proposed a first-half dividend of 28 Hong Kong cents, 40 percent higher than a year earlier.
China Merchants' throughput of iron ore and other dry-bulk cargos rose 47 percent in the first six months to 114.26 million tons, the statement said. The company bought a stake in Zhanjiang Port (Group) Co. last year to bolster its dry-bulk business. Bulk traffic at the port, near Hong Kong, rose 37 percent to 31.3 million tons. Baosteel Group Corp., China's biggest steelmaker, bought 8 percent of the venture in July.
China Merchants also has stakes in ventures in cities including Hong Kong, Zhanjiang and Ningbo. Parent China Merchants Group is aiming to complete an agreement for a $1.3 billion port project in Vietnam by the end of the year. The deal would be the company's first outside of China.