Thursday, September 08, 2011

Shui On Construction & Materials (0983) will shift its business focus from construction to real estate in the next three years.
It hopes to concentrate on developing abandoned buildings and "knowledge-based communities" in the mainland following its success with Xintiandi - a Shanghai landmark.

The company, to be renamed SOCAM Development, aims to double its after-tax net profit to HK$1.8 billion by 2014.

Net assets are also expected to increase to HK$13 billion while annual sellable gross floor area is seen reaching one million square meters.

SOCAM Development will keep up the 33 percent dividend payout ratio policy, chairman Vincent Lo Hong-sui said.

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"Some small-sized developers will go out of business in the next two years due to the government's's cooling policy," said Lo. "This will offer good opportunities to us."

The company, which still has HK$2 billion to spend on capital expenditure this year, will gradually phase out its cement production business.

Its shares rose 0.56 percent to HK$9 yesterday. GRACE CAO

Source:thestandard