Cement maker TCC International Holdings Ltd said on Monday its first-half net profit may rise by about sevenfold year on year, fuelled by an acquisition and higher selling prices for its products.
Its clinker and cement production capacity expanded significantly due to the completion of the acquisition of Upper Value Investments Ltd in April 2010, the company said in a statement.
China’s cement prices have risen on surging demand due to the country’s strong economic growth and infrastructure boom.
TCC, a unit of Taiwan Cement Corp , posted net profit of HK$112.2m (US$14.4m) in the first half of 2010.
The profit forecast compares with an average forecast among analysts of HK$1.8bn net for the whole of 2011, according to Thomson Reuters.
The company said its profit projection, for which it gave no specific figure, was based on a preliminary review of the unaudited internal management accounts of the group, and that first-half results will be announced before the end of August.