The world's No 2 shipping container maker, Singamas Container Holdings Ltd, expects galloping world trade to boost its output to a record in 2007 and aims to keep gross profit margins on an even keel.
Chief executive Teo Siong Seng also said he saw no sign of a slowdown in international trade and added that problems in the US sub-prime mortgage sector should not affect consumption.
'Demand has been very strong in Europe, although the growth in the United States is at single digits as expected,' he told a news briefing after the firm reported a 50 per cent jump in first-half profits.
Singamas, the largest maker of containers or boxes after Shenzhen-based China International Marine Container (Group) Co, said gross profit margins should hold at about 8 per cent in the second half despite rising steel prices.
'Steel prices are expected to rise in the fourth quarter but in a more gradual way. And we should be able to pass on the cost to customers,' Mr Teo said.
The company's container output could rise to up to 800,000 20-foot equivalent units (TEUs) this year on strong demand.
Singamas will now focus on developing specialised containers with an eye to growing revenue from the sector to about one-third of the total in 4-5 years, from 6-8 per cent now, Mr Teo said.
Singamas made a record of more than 600,000 TEUs in 2004 and had forecast its annual production at 700,000 TEUs this year.
The company posted a net profit of US$16.28 million for the first six months of 2007, up from US$10.86 million the previous year, as the company nearly doubled container output to 420,000 TEUs during the period. It sold 402,000 TEUs of containers in the first half.
Average container selling prices for dry-freight boxes rose to US$1,913 per TEU from US$1,635 a year earlier.
Singamas shares reversed morning losses yesterday to end the day up 0.87 per cent at HK$4.65. They have gained about 31 per cent so far this year, beating a 15 per cent gain on the blue-chip Hang Seng Index.
Its bigger rival, China International Marine Container, posted a 5 per cent fall in interim net profit to 1.32 billion yuan (S$266 million) on falling margins and greater competition.
Chief executive Teo Siong Seng also said he saw no sign of a slowdown in international trade and added that problems in the US sub-prime mortgage sector should not affect consumption.
'Demand has been very strong in Europe, although the growth in the United States is at single digits as expected,' he told a news briefing after the firm reported a 50 per cent jump in first-half profits.
Singamas, the largest maker of containers or boxes after Shenzhen-based China International Marine Container (Group) Co, said gross profit margins should hold at about 8 per cent in the second half despite rising steel prices.
'Steel prices are expected to rise in the fourth quarter but in a more gradual way. And we should be able to pass on the cost to customers,' Mr Teo said.
The company's container output could rise to up to 800,000 20-foot equivalent units (TEUs) this year on strong demand.
Singamas will now focus on developing specialised containers with an eye to growing revenue from the sector to about one-third of the total in 4-5 years, from 6-8 per cent now, Mr Teo said.
Singamas made a record of more than 600,000 TEUs in 2004 and had forecast its annual production at 700,000 TEUs this year.
The company posted a net profit of US$16.28 million for the first six months of 2007, up from US$10.86 million the previous year, as the company nearly doubled container output to 420,000 TEUs during the period. It sold 402,000 TEUs of containers in the first half.
Average container selling prices for dry-freight boxes rose to US$1,913 per TEU from US$1,635 a year earlier.
Singamas shares reversed morning losses yesterday to end the day up 0.87 per cent at HK$4.65. They have gained about 31 per cent so far this year, beating a 15 per cent gain on the blue-chip Hang Seng Index.
Its bigger rival, China International Marine Container, posted a 5 per cent fall in interim net profit to 1.32 billion yuan (S$266 million) on falling margins and greater competition.
