What the Broker Said...

China Merchants Holdings (International), through subsidiaries, makes and sells paint products. The company also manufactures dry freight containers and provides marine transport and port services.

Results for 1999 revealed a turnover drop of 9.9 per cent to HK$1.35 billion, with net profit at HK$704.5 million, a decline of 10.6 per cent.

The decline in the turnover, profit and EPS figure, however, was due to the shortfall of a guaranteed HK$220 million payment from the Guiliu Expressway.

The group decided to be prudent and only booked amounts received, despite Guiliu's pledge.

Bearing this in mind, Pacific Challenge issued a 'buy' recommendation on the company's stock as all businesses, except the expressway, reported strong growth.

Results for last year beat analysts' expectations as the company recorded a 24.6 per cent growth in net profit on the back of strong shipping and port-related businesses.

Graphic: THEN29gwz