Mainland-related stocks are expected to outperform the Hang Seng Index for the rest of the year as companies deliver on their earnings promise.
Yizheng Chemical Fibre yesterday became the latest mainland play to report a jump in interim profits as the resurgent economy fuelled sales.
Its net profits soared 64.7 per cent to 374.77 million yuan (about HK$350.93 million) and the company said it was aiming to become 'one of the top three to five polyester manufacturers in the world in five years'.
Last week, Shanghai Petrochemical said earnings jumped 75 per cent to 415 million yuan, while fellow petrochemical producer Beijing Yanhua's Petrochemical profits soared 145 per cent to 244 million yuan on buoyant demand.
'These companies are still trading at a discount to their global peers,' said Salomon Smith Barney petrochemicals analyst Leslie Chow.
Meanwhile, China Eastern Airlines on Friday reported a 110 per cent jump in profits to 203.67 million yuan, helped by rising turnover and aircraft disposals.