China’s largest funeral service provider reports surge in business amid ageing population
Fu Shou Yuan International eyeing more PPP agreements with Chinese local governments to grab further market share in fast-growing sector
Shares in Fu Shou Yuan International, China’s largest funeral service provider, soared more than 5 per cent to a three-month high on Monday after unveiling a 23 per cent rise in net annual profit, driven by a 15.8 per cent jump in revenue from burial services amid the country’s fast ageing population.
The Hong Kong-listed company’s net profit reached 448.5 million yuan in 2016, its revenue rose 14.4 per cent jump to 1.3 billion yuan, and its attributable profit also saw a 19 per cent rise, to 339 million yuan.
The company said it was now eying the possible acquisitions of more smaller rivals this year, and has the support of some local governments in its helping to cope with a rising number of deaths in China.
“It is quite a contradiction for us to only have obtained a rather small market share in this huge market,” said Wang Jisheng, its executive director and president.
“We have strong confidence to integrate the best burial service resources in this sector.
“There are lots of flaws and irregularities in the sector that have created difficulties, but I believe a reform push by the authorities will see it become more normalised.”
