Hung Hing expecting 10pc decline in first-half earnings

PUBLISHED : Thursday, 18 October, 2001, 12:00am
UPDATED : Thursday, 18 October, 2001, 12:00am

Paper-making and printing firm Hung Hing Printing expects to see a 10 per cent decline in net profit in its first-half and full-year results.

The company has also warned that turnover year-on-year will be down due to the economic impact from the terror attacks in the United States.

The company, among the largest paper-makers and printers in Hong Kong, has seen paper prices fall amid the global economic slowdown worsened by the attacks last month.

'We were pretty optimistic about [the second-half] before the US attacks, but now there are so many uncertainties, so we think it's going to be very tough in the second half,' executive director Tommy Yam Hon-ming was quoted by Reuters as saying yesterday. 'But the real effect can only be seen over the January to March period next year.'

The company sourced about 20 per cent of its sales via direct export to manufacturers of brand-name goods in Europe, Japan and the US, and the rest mainly to the mainland.

The 51-year-old company reported a 9 per cent growth in net profit to HK$273 million on turnover of HK$1.8 billion in the year to March 31.

Mr Yam's forecasts on the company's future bottom-lines to select media may have breached listing rules which require fair and even distribution of stock price-sensitive information.

Mr Yam said his comments to Reuters were fair and indicated he was not aware they might have breached listing rules.