$10b target can be met, says CITICKatherine Ng Friday, May 09,...

$10b target can be met, says CITIC

Katherine Ng

Friday, May 09, 2008

Despite airline and power businesses facing a tough market environment amid high oil and coal prices, CITIC Pacific (0267) chairman Larry Yung Chi- kin is confident a HK$10 billion recurring profit target can be met this year.
"Our special steel division was doing well during the first quarter even as the US economy slowed down. Property will start to contribute and is less affected by the tight [China macroeconomic] policy," Yung said at the company shareholders' meeting yesterday.

The steel-to-property conglomerate has set up a new entity - CITIC Special Steel Group - to streamline and increase synergies among its three steel companies.




"Steel production capacity aims to double in three years to 15 million tons," said executive director Peter Li Chung-hing, who added that mergers and acquisitions may be possible.

Yung said that in recent years CITIC Pacific has invested only in Hong Kong- listed Chinese stocks, or H shares, such as Industrial and Commercial Bank of China (1398), China Coal (1898), China Shenhua (1088) and China Molybdenum (3993).

Managing director Henry Fan Hung-ling said it will continue to buy back shares when prices are reasonable