GUANGZHOU Investment Co, a property arm of Guangzhou-government-owned Yue Xiu Enterprises, has posted a sharp jump in profits to $218.7 million for last year. This compares with a profit of $37.8 million for 1991 and the projected figure of no less than $210 million when it listed last December. It expects results to improve further this year, despite speculation that last year's property boom is unlikely to be repeated and that an increase in mainland interest rates will diminish property activities. An extraordinary profit of $51.7 million was recorded from interest earned in the company's flotation, which was oversubscribed 230 times. This takes profit attributable to shareholders to $270.3 million, against $37.8 million a year ago. Earnings per share were 16.7 cents, against three cents the previous year. Directors recommended a dividend of one cent, representing a dividend payout ratio of 7.77 per cent. Vice-chairman and general manager Guo Peinan said the results were ''beyond expectations'', although only slightly above forecast earnings in the listing document. Mr Guo attributed the increase to the buoyant property market in Hongkong and China, the company's main source of profit last year. Mr Guo expected three Guangzhou projects to begin site work this year: Xi Hu Building, Yue Xiu Building and Zhuang Tou commercial-residential development. The company has signed letters of intent for property developments in Chinese cities. In Beijing, it plans to take a 16 per cent interest in a commercial property project in Xidan with a proposed gross floor area of 78,000 square metres. Its investment would be more than 700,000 yuan (about HK$944,000 at official rates). In Guangzhou, it has teamed up with Sun Hung Kai Properties and China Overseas Land and Investment to develop Xinxiu Garden. The company is also involved in developing property near Huangsha's underground railway. Mr Guo said the company had secured a 15 per cent interest in the eight-block residential development, in which Hutchison Whampoa also had a share. He said the company would take a 40 per cent stake in a development near the underground railway at Beijing Road in Guangzhou, with Sun Hung Kai Properties taking the remainder. At another Beijing Road development, plans to take a 60 per cent stake, with Sun Hung Kai Properties taking 40 per cent.