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Chaifa targets interior

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Chaifa Holdings chairman John Chan Chun-tung has forecast double-digit growth to continue on strong sales in China.

The garment manufacturer - which saw a scramble on its stock earlier this month after it posted a 53 per cent rise in attributable profit to $58.32 million and issued 23 million new shares - said yesterday it planned to continue its aggressive push into China's emerging interior.

In the year to March, China sales soared 72 per cent, accounting for 94 per cent of the company's total $410.91 million turnover.

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A brokerage forecast says net profit will grow 20 per cent to $70.4 million on turnover up 19.7 per cent to $492.1 million in the fiscal year to March.

'The Chinese Government . . . is trying to open up the lagging interior regions to investment,' Mr Chan said.

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'Sichuan is a good example. It is China's most populous province and it's middle-income bracket is expanding.

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