Cash registers for Suning Appliance shops - ResearchInChina
Date:2007-07-17
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Suning Appliance Co (stock code: 002024) has raised its forecast for first-half profit growth to as much as 120 percent following a 105.42-percent gain in net income last year.
Suning, the country's second-biggest home-appliance retailer, estimated net income for the first six months through June to expand between 100 percent and 120 percent from the 257 million yuan (US$33.94 million) a year earlier, it said in a statement posted on the Shenzhen Stock Exchange yesterday.
The forecast was up from a range of 70 percent to 100 percent in an earlier prediction by the retailer.
The company did not elaborate on the reasons for the profit surge.
Suning said in April that its first-half profit would increase as it opened more stores. Net income more than tripled to 126.3 million yuan in the first quarter after more than doubling in 2006.
The retailer ran 375 stores by the end of April and plans to expand outlet numbers to 1,500 by 2010, company officials said.
It announced in April it had raised 2.4 billion yuan by selling new shares to finance expansion. The funds will be used to open 250 stores nationwide. The Nanjing-based retailer is still studying a possible acquisition of Beijing Dazhong Electrical Appliances Co Ltd.
Suning is seeking acquisitions after its major rivals formed alliances.
Suning's shares were suspended from trading yesterday. The stock has gained 112.6 percent to 48.26 yuan since the start of this year.
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