Fuel-injection equipment maker Weifu Fuel Injection Co has posted a 13 per cent rise in first-half profit to 33.2 million yuan (about HK$30.8 million), from 29.3 million yuan. The unaudited interim figure, compiled using Chinese accounting standards, represents about half the company's target for the full year. Sales were up 22.2 per cent to 244.97 million yuan, from 200.37 million yuan a year ago. At the operating level, Weifu said profits were up 4.8 per cent to 30.57 million yuan, from 29.16 million yuan for the corresponding period last year. A Shanghai-based analyst with a European brokerage said: 'At the operating level, the company has not changed much.' Credit Lyonnais Securities Asia, in its August research report, forecast the company would post a full-year profit of 59 million yuan this year, down from 63 million yuan in 1995. The Shanghai analyst said: 'Although sales rose 22 per cent, operating profit is just up 4.8 per cent. Costs probably are increasing faster than sales.' She said the company was burdened by a 15 per cent rise in wages, compared with none a year ago, and a 5-8 per cent increase in steel prices, increasing production costs. Despite that, she was optimistic about Weifu's full-year earnings, in a market yet to recover from the repercussions of recent austerity measures. 'We are going to see the company post satisfactory results, as the rest of the companies are seeing significant decreases in earnings this year. 'Weifu is going to break even in the sense that other industrial companies come up with poor earnings.' Weifu mainly manufactures and sells fuel-injection pumps. Type A pumps are used in diesel engines for medium-duty trucks and passenger cars. Type I pumps are used in agricultural machinery. Weifu's B shares began to trade on the Shenzhen Stock Exchange in September last year. Weifu has an historic link with Bosch, having worked with the German giant for 10 years on technology transfers. Weuraudic, in which Weifu has a 48 per cent stake, is a joint venture between Bosch and Zexel, a consortium comprising Isuzu, Nissan Motors, and Industrial Bank of Japan, to produce carburettor nozzles. They are in trial use with Jialing Motors and Qingling Motors.
