SHANGHAI, Jan 21 (Reuters) - China State Construction Engineering Corp (CSCEC) forecast on Thursday that its net profit attributable to its shareholders rose more than 80 percent in 2009, partly buoyed by a construction boom at home.
'Our company's construction business and property income rose sharply in 2009 along with a jump in (China's) fixed asset investment and improving domestic and global economy,' CSCEC, China's biggest building company, said in a statement published in the official Shanghai Securities News.
CSCEC, however, reminded investors that its earnings last year would be diluted as its outstanding shares had been expanded to 30 billion shares by the end of 2009 from 18 billion shares in 2008 because of its initial public offering (IPO) on the Shanghai Stock Exchange in July 2009.
CSCEC, which did not give details of its 2009 earnings, said its net profit was 2.745 billion yuan ($402 million) in 2008. It is scheduled to publish its 2009 annual results report on April 30, according to a timetable published by the exchange.
In a separate statement last week, CSCEC said the value of new construction contracts signed in 2009 rose 42 percent from a year earlier to 412 billion yuan.
China's construction market picked up last year, bolstered by Beijing's 4 trillion yuan stimulus programme and a surge in bank lending as China moved aggressively to prop up economic growth while the financial crisis battered the global economy.
But there are clear signs that the government is gradually winding down its stimulus scheme this year as China's economy is on a recovery track and as excessive bank lending threatens to ignite inflation and create asset bubbles.
In the latest such sign, official media and banking sources said on Wednesday that Chinese authorities had instructed some banks to restrict lending during the rest of January after a burst of credit in the first couple of weeks.
The central bank, the People's Bank of China, has already started to clamp down on excess liquidity in Chinese markets by raising banks' reserve requirement ratios and short-term debt yields over the past two weeks.
Worries that a credit tightening may trim CSCEC's business and its bottom line this year pushed its shares 2.43 percent lower on Wednesday when it was the Shanghai market's most active stock.
($1=6.83 Yuan)
(Reporting by Lu Jianxin and Jason Subler; Editing by Ken Wills)
((jianxin.lu@thomsonreuters.com; +86 21 6104 1792; Reuters Messaging: jianxin.lu.reuters.com@reuters.net)) Keywords: CSCEC/EARNINGS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Our company's construction business and property income rose sharply in 2009 along with a jump in (China's) fixed asset investment and improving domestic and global economy,' CSCEC, China's biggest building company, said in a statement published in the official Shanghai Securities News.
CSCEC, however, reminded investors that its earnings last year would be diluted as its outstanding shares had been expanded to 30 billion shares by the end of 2009 from 18 billion shares in 2008 because of its initial public offering (IPO) on the Shanghai Stock Exchange in July 2009.
CSCEC, which did not give details of its 2009 earnings, said its net profit was 2.745 billion yuan ($402 million) in 2008. It is scheduled to publish its 2009 annual results report on April 30, according to a timetable published by the exchange.
In a separate statement last week, CSCEC said the value of new construction contracts signed in 2009 rose 42 percent from a year earlier to 412 billion yuan.
China's construction market picked up last year, bolstered by Beijing's 4 trillion yuan stimulus programme and a surge in bank lending as China moved aggressively to prop up economic growth while the financial crisis battered the global economy.
But there are clear signs that the government is gradually winding down its stimulus scheme this year as China's economy is on a recovery track and as excessive bank lending threatens to ignite inflation and create asset bubbles.
In the latest such sign, official media and banking sources said on Wednesday that Chinese authorities had instructed some banks to restrict lending during the rest of January after a burst of credit in the first couple of weeks.
The central bank, the People's Bank of China, has already started to clamp down on excess liquidity in Chinese markets by raising banks' reserve requirement ratios and short-term debt yields over the past two weeks.
Worries that a credit tightening may trim CSCEC's business and its bottom line this year pushed its shares 2.43 percent lower on Wednesday when it was the Shanghai market's most active stock.
($1=6.83 Yuan)
(Reporting by Lu Jianxin and Jason Subler; Editing by Ken Wills)
((jianxin.lu@thomsonreuters.com; +86 21 6104 1792; Reuters Messaging: jianxin.lu.reuters.com@reuters.net)) Keywords: CSCEC/EARNINGS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
