PEREGRINE Investments Holdings recorded a bumper 101 per cent rise in net profit to $607.8 million for the 12 months to December 31.
The company announced a one-for-five bonus issue of new shares and a consolidation of six shares for one new share. This will mean investors with 5,000 shares at present will be able to consolidate their holding into 1,000 shares.
The strong result reflected the buoyant stock market conditions in Hongkong last year which ensured strong deal flow and major infusions of overseas institutional money into local stocks.
The rise in profit after tax and before extraordinary items is the result of the merchant bank's powerful connections in the Hongkong business community, which have provided it with a constant flow of business.
These influential parties include Cheung Kong and Hutchison Whampoa, CITIC Pacific, CITIC Hongkong, and Hopewell.
The group has also been instrumental in satisfying mainland appetites for listing on the Hongkong stock exchange by leading the public offers for Hai Hong, China Overseas and Land Investment, China Travel International and, most recently, Denway.