China Resources Jumps After Posting First-Half Net Growth
China Resources Enterprise Ltd. (291), the government-backed partner of SABMiller Plc. (SAB), rose the most since 2008 in Hong Kong trading after reporting first-half growth rose 37 percent and naming a new chief executive officer.
The stock rose 11 percent to HK$24.25, its biggest gain since December 2008. Net income surged to HK$2.24 billion ($288 million) in the six months ended June and sales jumped 20 percent to HK$64 billion.
China Resources expanded its beer and retail business by buying rivals to tap the country’s growing domestic consumption as incomes rise. China’s gross domestic product expanded 7.6 percent in the three months ended June.
Hong Jie will become CEO, replacing Chen Lang, who will take the chairman’s role, the company said. Qiao Shibo resigned as chairman because of “other work allocation” by the China Resources Group, it said.
Profit at the beer division, which makes China’s best- selling Snow beer with SABMiller, rose 14 percent to HK$375 million. Retail earnings jumped 60 percent, helped by asset revaluations, it said. Excluding one-time items, profit from the company’s supermarkets and other outlets fell 3.6 percent.
The “short-term operating environment” in China will continue to be affected by the global economy, the company said in today’s statement. Consumer spending is expected to be supported by government initiatives, it said.
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