STOCKWATCH: Shum Yip higher after 2000 results/optimistic outlook

HONG KONG (AFX-ASIA) - Shum Yip Investment Ltd shares were higher amid optimism over its business outlook after the company reported higher-than-expected 2000 results, dealers said.	    At 11:25 am, Shum Yip was up 0.025 hkd or 1.23 pct at 2.05 on volume of 6.61 mln shares.	    The Hang Seng Index was down 7.09 points at 13,267.52.	    An analyst with a regional brokerage said the market expected an annualized 17-18 pct increase in Shum Yip's 2000 net profit, but the result turned out to be 25 pct growth.	    He said earnings are seen growing by 30 pct in 2001 from 2000, bolstered by an exceptional gain of 100 mln yuan from its affiliate Goldfield Industries Inc's listing on the Shanghai Stock Exchange.	    "The exceptional gain should (support) the company's earnings this year," the analyst said.	    Excluding the exceptional gain, Shum Yip still sees a double-digit growth in 2001 amid optimism over the prospects for the Shenzhen property market, the analyst said.	    "The outlook for the property market in Shenzhen is favourable. While the company continues to have 50-60 pct of its business related to this sector, the earnings prospect is encouraging," he said.	    Shum Yip said yesterday it is planning to spend several hundred million Hong Kong dollars to acquire a stake in a power plant in Guangdong.	    The analyst said a power plant in Guangdong will make a stable earnings contribution to the company given the shortage of electricity supply on the mainland.	    "The annual earnings growth of a power plant is seen at between 10 and 20 pct in the coming years," he said.	    Shum Yip also said it is planning to list its logistics business on the Shanghai Stock Exchange, but the analyst said it is difficult to make any projection in that area at the moment.	    "The logistics sector is not a core business of the company. It is quite difficult to make any forecast," he said.	    Shum Yip is seeking to turn its 51 pct-owned Shenzhen Sungang Warehouse Enterprise into a logistics arm and float it on the Chinese market.	    The analyst recommends a 'buy' on the stock but said he is still reviewing his price target.	    "Originally, our price target was 2.20 hkd, but we are doing our review now. We will probably adjust our price target higher after the company released an encouraging 2000 results yesterday," he said. 

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