According to reports, Guangzhou Shipyard International Co. Ltd.
, who has already seen its Hong Kong-listed shares surge almost six-fold this year, said it will report a 500% third-quarter profit increase from last year, thanks to higher efficiency and improved margins.
A shorter shipbuilding cycle has also helped Guangzhou Shipyard, the only listed shipbuilding unit of China's largest ship builder
, China State Shipbuilding Corp.
(CSSC), to sell more ships at higher margins during the quarter ended September 30.
The company posted a $1m profit for the third quarter of 2005. In an announcement on Tuesday, it forecasted a five-fold increase in the same period.
The company is benefiting from high demand for new tankers and low labour costs that help it win orders from overseas.
Source: China Knowledge