SHANGHAI International Port (Group) Co said yesterday that net profit rose 23 percent last year on rising container business. However, the outlook this year looks tougher, with tight monetary policy and growing competition, it warned.
The port operator earned 3.64 billion yuan (US$519 million), or 0.17 yuan per share in 2007, versus 2.97 billion yuan a year earlier, it told the Shanghai Stock Exchange yesterday. Sales rose 27.6 percent to 16.3 billion yuan.
The results are in line with its preliminary earnings announcement made in January.
SIPG fell 2.12 percent to 6.94 yuan yesterday, while the Shanghai Composite Index dropped three percent.
Container throughput grew 20.4 percent to 26.15 million 20-foot equivalent units (TEUs) in 2007, making it the world's second-largest container harbor operator, SIPG said. Total cargo volume rose 16.5 percent to 353 million tons.
SIPG aims to reach container traffic of 30 million TEUs and total cargo handling of 385 million tons this year. Still, SIPG warned of increasing challenges for this year, despite the bright spots of the Beijing Olympics in August and the booming domestic economy.
Globally, the shipping and port industry may be challenged by the economic slowdown, SIPG said. A National Development and Reform Commission official has warned that China's ports may see slower profit growth this year as slowing US consumer spending hurts demand for Chinese goods.
China's shift to tighten monetary policy would affect SIPG's fund-raising activities while newer, domestic rival ports would also weigh on its core business, the company said.
Its board has approved proposals to issue four billion yuan in short-term commercial papers, pending shareholder approval.