BBMG Corporation, a cement maker and property developer in the Bohai Rim region, plans to expand its affordable housing development operations this year to take advantage of favourable government policies, the company said Monday after posting a 42.5 percent gain in its full-year net profit for 2010.
The company’s net profit amounted to CNY2.72bn (US$0.42bn) for the year ended December 31, up 42.5 per cent compared with 2009, as its revenue soared 65.8 per cent YoY to CNY22bn, thanks to brisk home sales growth and a strong leap in cement demand. The board proposed a final dividend of 0.07 yuan per share, unchanged from 2009.
Rising on a nationwide housing boom, BBMG’s cement sales volume surged 95.1 per cent to 28.45Mt in 2010, with the segment revenue rising 84.3 per cent YoY to CNY9.95bn. The average selling price of cement stood at CNY274/t, up slightly from CNY273/t in 2009.
Looking ahead, BBMG’s President Jiang Deyi said the cement business, which has exhibited "a stronger growth momentum than the company’s other business segments in the past several years as a result of industry consolidation", will remain central to the company’s business. And the demand will remain robust, supported by the government’s massive investment in infrastructure and affordable housing construction.
It is estimated that the construction of 10 million units of affordable housing in 2011 will drive up investment in property development by 12.43 per cent and generate an extra 100Mt of cement demand.
The company targets over 40Mt of cement sales for 2011, said Chief Financial Officer Wang Hongjun.