Shanghai Industrial has diaverse interests, but most notable sectors are infrastructure and the tobacco business. Last year's annual returns show a 7.2 per cent drop in turnover to HK$3.3. billion and a 12.4 per cent year-on-year fall in net profit to HK$1.01 billion. According to securities company Pacific Challenge, the decline was partly due to the poor performance of the tobacco sector which the company had tried hard to redress. Pacific expects an improvement this year, although the sector's importance to the group is waning. In March, Shanghai Industrial signed a deal with Cosco Pacific, among others, to invest in a new container terminal in Shanghai. Pacific has changed its long-term 'buy' advice to 'neutral'.