THE construction machinery manufacturer Shanghai Jintai Co wants to raise more than US$20 million to expand production capacity. It plans to issue 80 million B shares at between 27 and 29 cents each and is expected to list on the Shanghai stock exchange next month. The company reported a net profit of two million yuan (about HK$1.86 million) in 1992, 57 million yuan in 1993, and 61 million yuan in 1994. Analysts said the big jump in profit in 1993 was a result of a restructuring - combining two subsidiaries. Jintai has predicted a 63 million yuan profit in 1995, representing 3.27 per cent growth over the previous year. The company predicted a 30 per cent net profit growth over the next two years. Analysts said China's infrastructure development had been discouraged by the authorities since it launched marco-economic controls in the middle of 1993. They said fixed investments were unlikely to grow aggressively this year under China's austerity measures - intended to combat a double-digit inflation rate. Credit Lyonnais Securities analyst Rita Lun said: 'Jintai's modest profit forecast has reflected concerns over the industry.' Jintai's price-earnings ratio will be pitched between six and seven times. Miss Lun said the price was cheap and fair. Analysts said the stock was a long-term infrastructure play, but its short-term prospects were unexciting. Jintai produces piling products, including engineering drilling rigs, and diesel rig hammers. It also makes deep jet mixers. The proceeds of the issue will fund the company's capacity expansion in piling equipment and product diversification. Jintai's diesel pile hammers were developed with technology supplied by the Germany company Delmag. The company is looking at establishing long-term relationships with other country's research and design institutes to ensure improvements in its products which are sold primarily in China. Sales are mainly concentrated in eastern China, in Shanghai, Jiangsu, Zhenjiang - plus Guangdong, Guangxi, Hainan and Fujian in southern China. The company will make a presentation this Friday. Shenyin International and Standard Chartered Asia are the international lead managers. Other underwriters include Smith New Court, Crosby Securities and Credit Lyonnais.