Monday, May 29, 2006

Stock Earnings: Hengxin Tech net profit doubled!

Chinese-based Hengxin Technology Ltd said its net profit last year more than doubled to 56.36 mln yuan from 27.34 mln yuan the year before because of strong sales and in the absence of a huge tax charge. Sales rose 22.9 pct to 468.04 mln yuan, with revenue from radio-frequency coaxial cables accounting for 68.6 pct. Sales of telecommunications equipment accounted for nearly a third. Hengxin incurred no tax charge last year, while there was a 17.98 mln yuan tax charge in 2004. The company said that overall group gross profit margin was maintained at about 22 pct. "We will continue to tap on the immense opportunities in rapidly growing telecommunications markets such as China," Hengxin Technology chairman and chief executive Qian Lirong said in a statement. He said Hengxin hopes to increase its share of the Chinese market as cellphone penetration there remains relatively low. The expected issuance of third-generation cellphone service licenses in China gives Hengxin another opportunity to increase its market share, Qian said. He said Hengxin intends to tap other developing markets such as India, the Middle East, Africa and South America in the next 1-2 years.

Hengxin Technology Ltd's results for 2005:
Sales - 468.04 mln yuan vs 380.81 mln
Pretax profit - 56.36 mln yuan vs 45.31 mln
Net profit - 56.36 mln yuan vs 27.34 mln
EPS - 0.0331 sgd vs 0.0161
Final div - 0.0033 sgd vs nil

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