Sinoma Ltd Q1 net profit up 157%

On April 28, China National Materials Co., Ltd. (01893.HK) announced its result for the first quarter of 2010. Turnover of the company increased by 44% on a year-on-year base, as well as earning before tax up 130% and net profit up 125%.

Sinoma Ltd had a good start in the first quarter of 2010. All the business segments have maintained rapid and healthy development. So far, the company's cement equipment and engineering services has signed new contracts of over RMB 10 billion Yuan home and aboard. The company paid special attention on the contract performance and cost control, which resulted in a continuous growth of its turnover and gross profit.

Subsidiaries of cement segment located in northwest China have been impacted by the traditional off-season and extremely cold weather, which caused a bad sales volume. When the weather gets warm, it will be a peak period for cement and it is expected that the profitability of the whole year will be further improved.

In terms of the hi-tech material segment, wind power blades faced a good situation in both production and sales. The sales volume of the first quarter increased by 239% as compared with that of the same period last year. Glass fiber price began to rise since the second half of last year. At the same time, the company took many steps to cut the cost, which caused that the gross profit had begun to rise and made profits. At present, all the business segments grows fast and it is expected that the annual result of Sinoma Ltd will step upon a new stage.

From China Cement (2010-5-5)