China Shen­hua shares up 20pc af­ter spe­cial div­i­dend

New Straits Times - - Business -

HONG KONG: China Shen­hua En­ergy Co, the big­gest coal miner in the world’s largest producer, surged the most since 2008 af­ter re­ward­ing in­vestors with a spe­cial div­i­dend as it posted its first profit growth in four years.

Shares gained more than 20 per cent to HK$19.78 (RM11.27), gain­ing most since Oc­to­ber 2008, and were trad­ing at HK$19.08 as of 2.30pm lo­cal time.

The com­pany pro­posed a fi­nal div­i­dend of 0.46 yuan (29 sen) per share for last year, as well as a spe­cial div­i­dend of 2.51 yuan per share, it said in a state­ment late Fri­day.

“The scale of the spe­cial pay­out was star­tling and could be a bell­wether for China’s state-owned en­ter­prises,” La­ban Yu, head of Asia oil and gas eq­uity re­search at Jef­feries Group LLC in Hong Kong, wrote in a note to clients yes­ter­day.

“We be­lieve ini­tial mar­ket re­ac­tion would be over­whelm­ingly pos­i­tive, al­though this does sig­nal a lack of in­vest­ment op­por­tu­nity in China’s coal in­dus­try.”

Net in­come rose 41 per cent to 24.9 bil­lion yuan last year, said the Bei­jing-based com­pany in a sep­a­rate fil­ing to the Hong Kong stock ex­change on Fri­day.

Shen­hua, which also owns power plants and rail­roads, flagged the profit in­crease in Jan­uary. Rev­enue ex­panded 3.4 per cent to 183 bil­lion yuan, with about half from coal and more than onethird from power. Bloomberg

BLOOMBERG PIC

Profit mar­gins at the Agri­cul­tural Bank of China likely fell to 2.27 per cent last year, the low­est since at least

2008 and down from 2.66 per cent a year ago.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.