Sundart net profit up 97pc as orders flow in

PUBLISHED : Friday, 11 December, 2009, 12:00am
UPDATED : Friday, 11 December, 2009, 12:00am

Sundart International Holdings, the fitting-out contractor that listed in August, said yesterday revenue grew 104 per cent to HK$1.21 billion for the first six months to September, while net profit rose 97 per cent to HK$120 million.

The company designs and constructs fixtures, furnishings and interiors for residential, commercial and hotel projects.

Its shares rose 13.9 per cent to HK$3.03 yesterday, when the firm announced its interim results.

At the same time, the company said it hoped to win billions in new orders from the Middle East and the mainland in the coming months.

Sundart is working on tendering for three projects in Qatar - the New Doha International Airport, the New Intercontinental Hotel and Qatar National Bank, financial controller Sunny Yip Chun-kwok said.

The three projects could represent HK$2 billion for the next two years, he said. 'We won't take all the HK$2 billion in projects even if it was offered to us. We will probably do HK$1 billion.'

'We cannot digest it,' said chairman William Chan. 'We have had so many tender inquiries coming in from Qatar of possible contracts worth HK$3 billion. Our market capitalisation is only HK$1.45 billion.'

In May, Sundart formed a joint venture in Qatar, Sundart Interior Contracting (Middle East), to tap the Middle Eastern market. It owns 47 per cent of the venture, and a Qatari, Sheikh Abdullatteef Mohammed Al-Kuwari owns 51 per cent.

'We decided Qatar was more secure than Dubai,' said Chan (left). 'The Qatar economy is rich in natural gas, but we heard that in the past, some projects were suspended in Dubai.'

In the next six months, Sundart hoped to win HK$1 billion of contracts from property projects in Chongqing, Sanya, Shanghai and Tianjin, said Yip.

'We have received inquiries not only from the first-tier cities in China, but the second and third-tier cities, even in Inner Mongolia,' said Chan.

Currently, 50 per cent of Sundart's revenue comes from Hong Kong and more than 40 per cent from Macau.