Paz Corp Rises to 19-Month High in Chile as Profit JumpsEduardo Thomson
Paz Corp SA, the second-largest home developer in Chile, advanced to its highest level in 19 months after reporting an increase in profit as it benefited from international expansion.
Shares climbed 1.2 percent to 348.5 pesos at the close of trading in Santiago, the highest since August 2011. Trading volume was more than three times the daily average for the past three months.
The home builder reported yesterday profit of 5.5 billion pesos ($12 million) in 2012, a tripling from 2011, bolstered by a 59 percent jump in revenue in Chile and a doubling in Peru in the fourth quarter, according to a filing posted on the website of Chile’s securities regulator.
“They reported a massive improvement in margins and efficiencies, and they are now making money from their operations in Peru, which used to be a money loser,” Jorge Sepulveda, an analyst at brokerage EuroAmerica Corredores de Bolsa SA in Santiago, said in a telephone interview.
Paz’s operations in Peru posted a profit of 1.16 billion pesos in 2012, compared with a 600 million peso loss in 2011. The company also has operations in Brazil, which haven’t produced profits, according to the filing.
Paz shares have increased 65 percent from a one-year low reached July 25. The Ipsa benchmark index has risen 4 percent during the same period.