China Everbright doubles net income
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| China Everbright doubles net income in the fiscal year of 2009. [CFP] |
![China Everbright doubles net income in the fiscal year of 2009. [CFP]](http://images.china.cn/attachement/jpg/site1007/20100324/001fd04cea510d1401861b.jpg "China Everbright doubles net income in the fiscal year of 2009. [CFP]")
\China Everbright Securities Co more than doubled its net income last year. bolstered by its booming brokerage business amid the robust stock market.
Profit of the Shanghai-based broker rose 106.7 percent from a year earlier to 2.83 billion yuan (US$414,57 million), or 0.83 yuan apiece, and its sales revenue gained 58.51 percent to 5.59 billion yuan, it said in a statement to the Shanghai Stock Exchange late today.
Its brokerage business generated 3.6 billion yuan in revenue, rising 40.93 percent from a year earlier, and profit gained 51 percent, the statement said.
"Its earning per share beat our estimation of 0.77 yuan because its cost ratio of 31.08 percent was lower than our expectation of 35 percent," said Li Weiqi, an analyst at Sinolink Securities Co.
China's stock regulator has given the green light to the first batch of six brokerages, including Everbright, to take part in margin trading and short selling. The other five brokerages are Citic Securities Co, GF Securities Co, Haitong Securities Co, Guotai Junan Securities and Guosen Securities.
"Margin trading and futures stock index businesses are expected to contribute 8 percent of the broker's income this year," said Liang Jing, an analyst at Guotai Jun'an Securities Co.
The brokerage launched an initial public offering in last August to raise 10.96 billion yuan, the first IPO by a Chinese brokerage since the end of 2002.
