Date
22 May 2017
China Southern Airlines expects to return to profitability amid rising demand and lower fuel costs. Photo:HKEJ
China Southern Airlines expects to return to profitability amid rising demand and lower fuel costs. Photo:HKEJ

Positive profit alerts offer relief to market slump

Several Chinese companies have issued positive profit alerts, providing a relief for investors from the broad selloff in the country’s stock markets, the Hong Kong Economic Journal reported on Thursday.

China Southern Airlines Co. Ltd. (01055.HK, 600029.CN) projected a net profit of 3.4 billion to 3.6 billion yuan (US$547.4-579.6 million) for the first half of this year, from a loss of 1.08 billion yuan a year earlier, amid rising demand and lower fuel costs.

Poly Real Estate Group Co. Ltd. (600048.CN) estimated its interim net profit would surge 30 percent to 5 billion yuan from a year ago.

The growth was mainly driven by an increase in the number of projects completed over the period, leading to a 25 percent rise in sales and 39.45 percent growth in gross profit, the company said.

The developer’s top officials pledged to increase their holdings in the company to help arrest the market slump.

Tanrich Financial Holdings Ltd. (00812.HK) also expects a turnaround in its bottomline after posting a gain of HK$69 million from the sale of financial assets.

Hang Fat Ginseng Holdings Co. Ltd. (00911.HK) forecast its profit in the six months to June to at least double from a year ago, thanks to its diversification strategy.

Translation by Vey Wong

[Chinese version 中文版]

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Hong Kong Economic Journal

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