CHINA Merchants Holdings (International) Co, the owner of stakes in the country's five largest container ports, said yesterday that first-half profit rose 26 percent as higher exports of toys, clothes and TVs helped boost traffic. Net income climbed to HK$1.52 billion (US$195 million) from HK$1.21 billion a year earlier, the company said in a Hong Kong Stock Exchange statement yesterday.

That was in line with the median forecast of HK$1.49 billion in a Bloomberg News survey of four analysts. Sales surged 69 percent to HK$2.86 billion. China Merchants' annual profit has risen five years in a row as overseas manufacturers boost production in China because of the country's lower wages. The company plans to increase investments in dry-bulk terminals to benefit from China's rising imports of coal and iron ore.

China Merchants' terminal ventures handled 22.16 million 20-foot boxes in the first half, up 20 percent from a year earlier.

China's exports surged 28 percent in the first half. Annual container volume at the country's ports may rise to 130 million boxes by 2010 from 93.6 million last year, according to the Ministry of Communications. About 90 percent of world trade moves by sea.