Xi'an Aircraft International Co surged 4.51 percent yesterday after reporting a 146-percent jump in its net income in the first half of this year, boosting its share price.
Its earnings rose to 138 million yuan (US$20.15 million) during the period, or 0.13 yuan a share, and its sales revenue soared 314 percent to 4.25 billion yuan, the company said in a statement to the Shenzhen Stock Exchange yesterday.
The aircraft maker attributed the better financial performance to its expanded business scope after issuing non-publicly traded shares in February.
It sold 370 million shares at 9.18 yuan apiece to its parent AVICI Xi'an Aircraft Industry (Group) Co Ltd and 129 million shares to nine other institutional investors at 25.18 yuan each.
The company focused on production and sales of homemade aircraft rather than making aircraft parts after selling the new shares, the statement said.
It predicted that its net income would soar 200 percent to 250 percent in the first three quarters on an annual basis and its third-quarter profit would jump 550 percent to 600 percent.
Shares of the company rose 4.51 percent to 18.08 yuan while the benchmark CSI 300 Index added only 0.69 percent to 2,721.69 points.
"Its profit is similar to our expectations. In February, its parent AVICI Xi'an Aircraft Industry (Group) Co Ltd injected air-related capital into the listed company, which boosted its sales income," said Li Xiaoguang, an analyst at Shenyin & Wanguo Securities Co.
"We expect the delivery of the ARJ21 jet will further boost the firm's sales in 2009 as the firm processes 80 percent of parts and produces 35 percent of the jet," Li said.
The ARJ21 is China's first homemade commercial jet which is set to make its maiden flight in September or October this year. The jet has received 171 orders.
Li expected the company's revenue at 9.3 billion yuan this year, 10.8 billion yuan next year and 12.2 billion yuan in 2010.
(Shanghai Daily August 7, 2008)
