Hainan Meilan Airport shares drop despite strong 2010 profit result

Shares in China’s Hainan Meilan International Airport Co dropped back yesterday, despite the company unveiling a 22% jump in revenue for the 12 months ended 31-Dec-2010.

Financial highlights were as follows:

  • Revenue: USD74.3 million, +21.6% year-on-year;
    • Aeronautical: USD49.5 million, +7.6%;
    • Passenger charges: USD20.3 million, +8.6%;
    • Airport fee: USD15.7 million, +5.3%;
    • Non-aeronautical: USD24.8 million, +64.6%;
    • Freight and packing: USD8.5 million, +302.1%;
    • Franchise fee: USD8.4 million, +22.7%;
    • Car parking: USD2.6 million, +64.5%;
  • Operating profit: USD37.0 million, +33.1%;
  • Profit before tax: USD38.7 million, +31.1%;
  • Net profit: USD36.5 million, +31.0%;
  • Total assets: USD350.9 million, +11.1%;
  • Cash and cash equivalents: USD134.4 million, +49.9%;
  • Total liabilities: USD38.4 million, +102.3%;
  • Passenger numbers: 8.8 million, +4.6%;
  • Cargo volume: 154,125 tons, +11.8%;
  • Aircraft movements: 73,824, +6.8%.
  • *Based on the conversion rate at USD1 = CNY6.564

Hainan Meilan International Airport Co stated: “The group estimates that the industry operating environment will be improved, the [Hainan] island’s civil aviation transportation and production will show rapid growth." But it warned: "The deep impact of the international financial crisis has not been completely eliminated, the world economy has not yet entered a virtuous circle of steady growth. Systemic and structural risks are still quite prominent."

Selected ABD daily share price movements (% change): 28-Mar-2011