Dongfang Electric Q3 profits drop 60%
Updated: 2008-10-28 07:00
(HK Edition)
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Dongfang Electric Corp, China's second biggest power-equipment maker, saw its net profits during the third quarter fall 60 percent.
The net profits reached 316.57 million yuan during the period. Total revenue hit 7.05 billion yuan.
During the first three quarters, its total net profits reached 759.53 million yuan and revenue was 19 billion yuan.
The figures were announced last night, after the H-shares trading ended.
The company, pricipally engaged in the manufacture and sale of electric-power- generating equipment, saw a record daily plunge in Hong Kong yesterday on concerns of weak earnings before the announcement.
The stock plunged by 37 percent, the most since June 1994, to close at HK$11 a share, the stock's lowest point since February 2006, making it the day's biggest decliner in the MSCI AC Asia-Pacific Index.
Before yesterday's close, Dongfang's shares had declined less sharply than competitors Shanghai Electric Group Corp and Harbin Power Equipment Co since the Hong Kong market's peak a year ago, even after Dongfang reported losses of more than 1.6 billion yuan from the May 12 earthquake that destroyed a factory and killed workers.
Dongfang's Hong Kong-traded shares have slid 84 percent since the Hang Seng's peak a year ago, compared with 82 percent for Shanghai Electric and 90 percent for Harbin Power. The Deyang, Sichuan province-based Dongfang's Shanghai-traded shares fell by the exchange's daily limit of 10 percent to close at 18.91 yuan.
The boiler and turbine maker's profits have been squeezed by rising steel prices, which it won't be able to pass on to customers until the first half of next year, Luo said. First-half profits at Dongfang fell by 63 percent on damage from the earthquake, the company said on Aug 21.
Agencies
(HK Edition 10/28/2008 page3)