Kenford shares vault 78.1% after a surge in H1 net profits
Updated: 2008-12-23 07:32
By Joey Kwok(HK Edition)
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Shares of Kenford Group, an electrical hair care gadget producer, vaulted 78.1 percent yesterday after the company announced a 21.5 percent surge in its first-half net profits.
"Despite the recession in the US, the impact on our company is not significant. As more people choose to take care of their hair at home, it has helped boost our product sales," Chairman Albert Lam said at a press conference yesterday.
Lam said the turnover from the Asian and American markets recorded a huge jump in the first half, as the company's newly-launched products were well accepted in the regions.
Kenford's stock opened high yesterday at HK$0.23, compared with its previous close of HK$0.16 last Friday. It sustained the rally and once rose to the day's high of HK$0.32 in the afternoon trading session. It finally closed at HK$0.29, jumping 78.1 percent, or HK$0.13, against a 3.34 percent drop in the benchmark Hang Seng Index.
The company's first-half net earnings reached HK$39.4 million, while its turnover also advanced 52.5 percent to HK$399 million for the six months that ended on Sept 30.
Lam said the company has unveiled more than 30 products last year, while the new products with new functions won many consumers over. It makes hairdressing tools for such celebrated brands as Philips and Toni & Guy.
Kenford's gross profit increased by 21.5 percent to HK$76.1 million in the first half. However, its gross margin declined to 19.1 percent from 24 percent and its net profit margin slid to 9.9 percent from 12 percent in the same period last year, due to the rise in raw material and labor costs.
The company is currently constructing a new plant in Changping, Dongguan near Guangzhou. It is expected to be completed by the end of this year and begin production in early 2009.
(HK Edition 12/23/2008 page2)