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STEEL SPRING: The infrastructure spending spree and recovering domestic demands have delivered a boost to major industries, including the steel-making sector (WANG MIN) |
Weihai Huadong Automation Co. Ltd., a machine tool maker listed on the Shenzhen Stock Exchange, issued its midterm report on July 10, the first company to do so in China this year. The company generated operating revenue of 243.36 million yuan ($35.63 million), a year-on-year increase of 23.14 percent, with net profits standing at 40.43 million yuan ($5.92 million), up 108.13 percent year on year. The earnings per share for the company were 0.34 yuan ($0.05). The report also estimates that from January to September 2009, the company's net profits will increase 100 to 130 percent compared to the same period last year.
Listed companies began issuing their midterm financial reports in July, adding confidence to the recovering economy as Chinese markets continue to show signs of improvement. For the most part, reports showed an increase in financial gains and the promise for continued progress in the second half of this year.
A total of 157 listed companies had issued their midterm financial reports by July 30, releasing further news of progress and growth in the first half of this year. In the second quarter, 136 companies achieved a higher performance than in the first quarter, of which 52 saw their growth rise above 100 percent. Only 21 companies suffered from a worse performance in the second quarter than the first.
Recovery plans
A research report released by the China Securities Co. Ltd. (CSC) indicates that during the pick-up process of the real economy, it is government policies that push up and enable the infrastructure, resource and consumption industries to recover first.
The auto industry, selected to receive the first revitalization plan from the state, has experienced a decline in industry inventory since the fourth quarter of 2008, while its year-on-year growth of production-sales ratio has been expanding steadily. Growth in the recovering auto industry has outperformed expectations, with continued progress likely as the economy becomes more stable and real demand begins to increase.
Since the early months of 2009, sales of housing have been growing, mainly benefiting from favorable policies and the release of inflexible demand. Plentiful liquidity has also supported a revival in the real estate market.
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