STRONG property income propelled net profit at Guangdong Investment to an 11-fold rise to $160.21 million for the 12 months to December 31. Earnings per share rose 183.46 per cent to 13.32 cents on a fully diluted basis. Chairman He Keqin said: ''The year 1992 is very significant to the group's business development and the financial results have been highly satisfactory.'' The controlling interest behind Guangdong Investment is Guangdong Enterprises, a private company owned by the Provincial Government of Guangdong. The directors recommended a six cent dividend, up 50 per cent. Net profit at Guangdong Investment compared with market expectations of $170 million. The actual result placed the company shares on a historic price-earnings ratio of 24 and a prospective 1993 p/e of 16. Analysts expect net profit at the company to rise 59 per cent to $270 million this year. Mr He said the group would continue to develop as a diversified operation with interests in industrial investment, property investment, tourism and hotels. Guangdong province would continue to be the primary focus of investment, he said. Investments in consumer goods will be a major focus of activity in the future. ''Infrastructural projects, such as existing power stations and new highways, are another investment objective of the group for the next few years,'' Mr He said. ''These projects, besides contributing long-term and steady earnings, are usually supported by the Chinese authorities.'' According to broker estimates, property development accounted for the single biggest component of pre-tax profits, 32 per cent. There were no earnings under this heading previously. Total pre-tax earnings were $189.51 million. Another major component was a substantial part of an estimated $100 million pre-tax profit from phase one of the Panyu Project, injected into the group in 1991. Rental income made up about 13 per cent of earnings, Guangdong Tours, contributing for the first time, made up about 28 per cent, and Guangzhou Malting 10 per cent. The remainder came from the New Cathay Hotel, the Guangdong Hotel and net interest income. According to the group statement, all hotels in the company had occupancy rates of around 85 per cent throughout the year. Between mid-1991 and January last year the Cameron Centre, a commercial property in Causeway Bay, Guangdong Tours and Guangzhou Malting were injected into the group. Added to this was the land use rights to 2.3 million square feet in Panyu County. In June last year investment properties totalling 500,000 sq ft in Shenzhen and Hongkong were added. Half an office building in Guangzhou with 430,000 sq ft of floor area was also acquired. Development rights on a further 4.7 million sq ft at Hui Yang County and a 70 per cent stake in the 207-room Guangdong Hotel were acquired. Turnover in 1992 leapt 1,292 per cent to $1.04 billion. Earnings from associated operations also kicked in $5.59 million. The effective tax rate on earnings was only eight per cent. The dividend payout ratio stood at 52 per cent and operating profit margin was 17 per cent. Mr He said: ''Looking ahead, the group's future developments will continue to focus on strengthening its investment in Guangdong province, as this region provides excellent opportunities and abundant resources. ''On the other hand, Hongkong will serve as the group's information and export bridge.''
