August 4 -- Shenzhen Airport (000089) recorded a 3.98 percent year-on-year drop in first half 2011 net profit attributable to shareholders to 352 million yuan, with earnings per share of 0.21 yuan, reports Shanghai Securities News, citing a company filing.

Revenue increased 8.42 percent year-on-year to one billion yuan.

The drop in net profit was due to a 12.63 percent year-on-year rise in operating cost to 485 million yuan.

According to the company, the increase in operating cost was due to higher payments to the housing provident fund.

Revenue from its aviation logistics business increased eight percent year-on-year, while related costs rose 24.8 percent, resulting in a drop of 8.35 percentage points year-on-year in its gross margin.

The gross margins of its remaining aviation businesses, value-added business and advertising business declined 1.85, 0.66, and 0.71 percentage points, respectively.

An analyst said the company is unlikely to post good earnings numbers due to the rise in operating cost and the almost full utilization of the capacity of Shenzhen airport.

The company had put its second runway into operation on July 26, and will start the building of a third runway with proceeds raised from the issuance of two billion yuan worth of convertible bonds.

Shares of Shenzhen Airport were up 0.19 percent to trade at 5.34 yuan at 10:19 today.