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SCMP Reporter

STEADY business growth in the telecommunications industry saw S Megga International Holdings post a 11 per cent rise in net profit to $43.87 million for the six months ended December.

  Despite a diversification into Hong Kong and China properties, chairman Leung Ray Man said the production of telecommunications equipment would remain its core operation.

  However, he said: ''Growth in this business will be steady rather than spectacular.''   The company chalked up turnover of $575.09 million, which equated to an increase of 19 per cent from a year ago.

  But earnings per share were down one cent to eight cents and an interim dividend of three cents was proposed.

  Mr Leung expected the company to benefit from the economic recovery in the United States which was its primary source of sales.

  ''Replacement demand, together with a gradual improvement in consumer sentiment, should push North American sales up steadily,'' he said.

  In Europe, the company would introduce its first cordless telephone to meet the requirements of the Digital European Cordless Technology standard, he said.

  The product was recently presented at the CeBIT show in Hanover, Germany.

  Mr Leung said the company's penetration into China would be mainly through the joint venture formed with AT&T and the Ministry of Posts and Telecommunications of China.

  The venture would be the major vehicle for distributing consumer products manufactured by the company on the mainland, he said.

    Mr Leung said S Megga would continue to invest in properties in Hong Kong and China, if the opportunities arose.



S Megga sees room for further growth in telecoms industry