Fortei shows good form in first interim
FORTEI Holdings has reported a net profits leap of 226 per cent to $23.2 million in its first interim results announcement since listing in July.
Earnings per share at the sports shoe and leisure wear supplier rose 225 per cent, from 2.38 cents to 7.75 cents.
The average number of shares in issue over the period was 300 million.
The group said it would pay an interim dividend of one cent, in line with its forecast in its listing prospectus.
Chairman Kong Yun-kan said: ''The group has experienced a strong growth in its results for the six months ended June 30.'' Demand over the summer period had remained buoyant, he said.
''The sales of the summer series of sports shoes are encouraging and, barring unforeseen circumstances in the second half of the year, the directors are confident that 1993 will be another record year for the group in terms of turnover and profitability achieved,'' he said.
Turnover for the six months to June 30 rose 126 per cent to $133.2 million.
The company's listing raised $128 million and was oversubscribed by a factor of 20. The company was incorporated in Bermuda in June.
The group was listed on forecast earnings of 15 cents fully diluted with a forecast final dividend of six cents a share.
It was listed on a prospective price-earnings ratio of 8.5 and forecast profits of at least $60 million for the full year.
Management said it expected another sharp rise in profits, thanks to strong sales during the summer.
It added that China's attempts to slow down its runaway economy had yet to have an impact on its mainland sales.
The group's operations are based in China, Hong Kong and Macau.
Mr Kong said: ''The recent implementation of macro-economic policy in China does not so far have any significant effects on the group business.'' Much of the business expansion drive stated in the group's prospectus features opening outlets in China. However, Mr Kong remained confident of mainland economic conditions.
''Moreover it has been observed that the exchange rate for the yuan to US dollars has stabilised and the directors consider that this will be greatly beneficial to the future business of the group.'' For the period to June 30, operating profit margin stood at 21.3 per cent compared with 14.9 per cent in the previous period.
Share of associated-company profit was $100,000. The profit retained for the period was $19.25 million.
Over the last three years, net profit has risen from $1.24 million, and turnover from $43.29 million.
The register of shareholders will be closed from October 5 to 11.
To qualify for the interim dividend, transfers must be with the registrar by 4 pm on October 4.