Golden Eagle Retail Group Ltd. (3308), a department store operator based in eastern China’s Jiangsu province, said 2011 profit gained 26 percent as it benefited from shoppers’ rising incomes. Shares rose.
Net income rose to 1.21 billion yuan ($192 million), or 0.62 yuan a share, from 959.2 million yuan, or 0.49 yuan, a year earlier, the company said in a Hong Kong stock exchange filing yesterday. Profit matched the average estimate of 1.2 billion yuan from 16 analysts surveyed by Bloomberg News.
Sales jumped 31 percent to 3.22 billion yuan in 2011, and same-store sales gained 25 percent. Consumers in the world’s most populous nation are getting wealthier as urban disposable income rose 14 percent to about 21,810 yuan in 2011.
The Nanjing-based department store operator said it plans to open five to eight stores annually over the coming three years, expanding its presence in Jiangsu, Anhui, Shaanxi and Yunnan provinces. New outlets may be in self-owned or leased real estate or may be acquired, Golden Eagle said.
Golden Eagle rose 5.4 percent to HK$20.15 in Hong Kong, the highest close since March 2. The stock has gained 23 percent this year, compared with the benchmark Hang Seng Index’s 16 percent advance.
The company will pay a final dividend of 0.188 yuan a share for 2011, compared with 0.15 yuan a share for 2010.
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