Guangdong Investment may deliver double-digit profit growth if it can book exceptional gains of more than $120 million from the proposed spin-off of its leather processing business and disposals this year.
The spin-off might help massage the group's otherwise flat or declining profit, an analyst said. He cited a company figure saying the spin-off would bring in an exceptional gain of more than $50 million.
Combined with an exceptional gain of about $70 million from the disposal of Liwan Plaza in Guangzhou, Guangdong Investment would avoid a profit decline.
Guangdong Investment director Berger Hou Bojian said the company was not too concerned about profit growth in a particular year and the aim of the separate listing was to allow a more rapid growth at its tannery business.
The tannery business supplied leather to seven of the 10 big shoe-makers in the country, he said.
Guangdong Investment would hold a 51 per cent interest in the listed vehicle, Guangdong Tannery.