Despite the global economic crisis, China's domestic demand for instant noodles, beverages and baked goods has held up, causing Tingyi (Cayman Islands) Holding Corp's net profit in the first half to soar 40.6 per cent to US$179.38 million. Turnover at the food and beverage maker, best known for its 'Monster Kong' brand, rose 22.1 per cent to US$2.5 billion, derived largely from the mainland. The company's second-quarter turnover growth of 22.1 per cent was better than the 21.3 per cent growth in the first quarter, which suggests the mainland's demand for food and drink improved in the second quarter over the first. 'As China's domestic economy stabilised and domestic market demand continued to expand, the growth in retail sales of consumer products also continued to increase,' said Tingyi chairman Wei Ing-chou. CIMG-GK Securities analyst Renee Tai said Tingyi's interim results were in line with her expectations. 'With improving income from China's rural areas and cities beyond the first and second tier, demand has held up,' she said. 'We see a shift in demand being developed outside China's first-tier cities, in rural areas.' Tingyi's beverage sales grew a robust 37.8 per cent to US$1.3 billion during the first half, representing 51.9 per cent of total turnover. The market share of Tingyi's Master Kong ready-to-drink tea rose to 45.7 per cent in March, enabling Tingyi to remain the leader in this market niche, according to ACNielsen. Instant noodle sales grew 9.4 per cent to US$1.07 billion, accounting for 43 per cent of total turnover. Tingyi's market share increased to 51.4 per cent in March, according to ACNielsen. For the second half of this year, Ms Tai said: 'I don't see demand letting up. But competition is still there on the beverage side.'
