'Pipe rehabilitation is a growing market in light of deteriorating sewers and water pipelines worldwide,' chairman Chow Yei-ching said yesterday.

'Chevalier is ready to expand in the market after years of strategic planning.'

Mr Chow said its pipe business, which operates in eight countries, had started making a profit last year but should make a more significant contribution this year. He did not provide any figures.

The company participated in three of the seven pipe renewal projects ordered by the government last year.

Turnover increased 34.1 per cent year on year to $4.29 billion.

Profit from construction and engineering grew 11 per cent to $160 million, while earnings from its property and hotel business shot up 288 per cent to $172 million.

No new mainland residential property projects would be sold until late next year, managing director Stephen Kuok Hoi-sang said.

He added that the company would invest $300 million in the mainland property market this year.

Chevalier declared a final dividend of 25 cents per share, up from 20 cents last year.

Meanwhile, Chevalier iTech Holdings, the company's computer and network provider unit, hoped its newly acquired Pacific Coffee would help boost its shrinking profits.

The company, which paid $205 million for 39 outlets in Hong Kong and five in Singapore in May, planned to open up to five new outlets in Hong Kong and their first outlets in Beijing and Macau by March next year, the management said.

Each new store will cost about $2 million.

'The fast-growing coffee business should generate a strong cash flow for the group this year,' executive director Oscar Chow Vee-tsung said.

'Opening four to five new outlets this year is a realistic target because we don't want to expand in haste.'

Triggered by a fall in its investment earnings, Chevalier iTech saw net profit plunge 83.54 per cent to $3.76 million, or 0.22 cent per share, for the year to March.