CITIC Pacific expected to rebound

CITIC Pacific Ltd.(0267) said at earnings posting meeting, together with its parent company the group was applying for mainland telecom license to China ministry of Information Industry, which was believed to terminate worries of partial investors.With better-than-expected earnings the stock was expected to rebound strongly. CITIC Pacific met a lot of difficulties in developing mainland light-fiber and telecom project. With join of parent company, the possibility of obtaining license would be higher and risks would be lowered .Another focus of the meeting was that top level of the company said they would study mainland cargo transportation, airlines company and air port projects, which kept paces of China government¡¦s plan of broadly offloading mainland aviation stocks.Aviation businesses were expected to be resource of earnings growth in the future.The annual net profit of CITIC Pacific last year was HK$3430 mln, up 16% and financial status was greatly improved after selling stake of CLP Holdings Ltd.(0002) . Relevant expenditure was cut down 43% to HK$614 mln and the group planned to get a large amount of long-term RMB loan for mainland acquisition. 

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