LONDON (Alliance News) - Jiasen International Holdings Ltd Tuesday declared a maiden dividend, after reporting a strong uptick in profits for the first half of the year, buoyed by solid revenue growth from property developers.
The Chinese designer, manufacturer and wholesaler of wooden home furnishing and doors, posted a pretax profit of CNY122.3 million for the six months to June 30, up from CNY104.7 million a year earlier, driven by 13% increase in revenue to CNY415.8 million, up from CNY368.2 million. It said property developers contributed strongly to this growth and accounted for approximately 63% of revenue.
Jiasen declared a maiden interim cash dividend of 1.5 pence per share, and gave a confident outlook for the remainder of the year, citing an improving property market in China with the easing of property cooling measures in China, increasing urbanisation and more affordable mortgages.
"Jiasen is well positioned for the second half of the year supported by a strong order book. Despite the slowdown in the property market in China, we have successfully diversified our revenue streams and increased the sales of higher margin non-door products to property developers as the demand for semi furnished apartments grows. This demand is driven both by growing popularity amongst buyers along with government support," said Chairman Weigang Chen in a statement.
The group's main products include doors, wall panels and assorted fixtures, such as fitted wardrobes, cupboards and furniture which are sold principally to property development projects. Its products are sold in three main segments - residential and property development projects, wholesale, and export.
Jiasen said it has a strong order book from property developers, worth CNY137 million at the end of June, and said it continues to bid for larger projects, whilst actively seeking foreign brand partnerships.
The company said it is currently in talks to buy land for a new production facility, which it will fund by cash.
Jiasen International shares were down 0.7% Tuesday morning at 77.00 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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