China COSCO boosts profit forecast 50pc

China COSCO (1919), soon to become the world's largest dry-bulk shipping carrier, revised its yearly profit forecast yesterday to beat market expectations, sending the share price even higher.

The dual-listed China COSCO yesterday filed an urgent notice to the Shanghai Stock Exchange saying it expects 2007 profit to exceed its previous forecast by 50 percent to reach 18 billion yuan (HK$19.02 billion). Early in September the company forecast its profit would reach 12.2 billion yuan by year-end.

"The significant increase in the forecast beats our original expectation," said UOB Kay Hian's analyst Stella Kei. "I think the company is benefiting from the overall condition of the international shipping market this year." Kei added that the firm agreed to acquire 412 dry-bulk vessels from its parent, China Ocean Shipping (COSCO Group), in September and will soon become the world's largest dry-bulk carrier.

 

China COSCO said the profit surge was spurred by improved international markets in the second half of 2007.

China COSCO's H shares closed yesterday at HK$22.60, an astonishing 439 percent surge year-to-date.

Source:RamblerNews