Shenzhen International profit rises on asset sale
Shenzhen International Holdings, a logistics-to-transport firm, said net profit surged 8.8 times last year to a record, thanks to a sale of non-core assets.
Net profit rose to HK$2.03 billion from HK$230.79 million in 2006, boosted by a HK$1.39 billion gain from the sale of a stake in glass maker CSG Holdings.
Excluding exceptional items, the company said operating profit climbed 93 per cent to HK$375.42 million on a 59 per cent gain in turnover to HK$853.99 million.
The growing mainland economy and increasing number of car owners fuelled growth in Shenzhen International's toll-road and logistics units.
Toll-road operations reported a 55 per cent gain in earnings before interest and tax to HK$441 million while the logistic division advanced 33 per cent to HK$48 million.
Shenzhen International bolstered its logistics assets last year, lifting its stakes in South China Logistics and Shenzhen Western Logistics.
The firm also teamed up with Nanjing Port Authority and Nanjing Chemical Industry Park to form a joint venture to contract and operate a project in Xiba Port in Nanjing, which will comprise five deep-water terminals for 50,000-tonne vessels and a logistic centre.
It expects to spend 2 billion yuan (HK$2.22 billion) this year to increase its mainland logistics network, and aims to expand its operating area tenfold in the next three years.
'We will continue to sell down non-core assets in order to reinvest in high potential logistics and toll-road projects,' chairman Guo Yuan said.