About a year ago GK Goh said textile company Tack Fat Group International was increasing capacity by 15 to 20 per cent to cope with demand from United States and European swimwear brands as they outsourced to Asia, taking advantage of lower wages and less regulation. The broker maintained its 'hold' recommendation on Tack Fat and increased its profit forecast. Tack Fat's interim results, which showed net profit improved 17 per cent year on year to $43.1 million, mainly through a 12 per cent increase in sales and lower finance costs, held no negative surprises for the broker. Earnings per share increased 11 per cent to 3.2 Hong Kong cents and dividend per share was raised by 13 per cent to 0.9 cents. Goh increased its 2004 net profit forecast to $125.8 million. The group primarily made swimwear and casual wear for clients such as Speedo, Wrangler and Gap. The counter was trading at 79 cents a year ago. Last July Tack Fat announced that for the year to March 2004 its turnover rose 12 per cent to $989 million, while profit attributable to shareholders rose 16 per cent to $121 million. Last month Tack Fat said turnover grew 69 per cent to $746.94 million in the first half, which also saw net profit increase 41 per cent to $60.76 million. The counter closed at $0.83 on Friday.