Wing Shing rises by 6.25pc after reporting a jump in net earnings

Shares in paint and colourant-maker Wing Shing Chemical Holdings climbed 6.25 per cent yesterday after the company reported a 12 per cent rise in net profit.

Wing Shing's shares rose as high as 9.4 per cent to 70 HK cents yesterday, the highest since the counter listed on the main board in November. They closed the day at 68 HK cents.

The surge followed the company's announcement of interim results. During the six months to September 30, net profit rose to HK$19.95 million from HK$17.78 million. Turnover was up 12.8 per cent to HK$133.96 million.

'The increased turnover was attributable to the steady growth in the group's paints and blended solvents business, in particular cabinet coatings, powder coatings, baking enamel for metals and emulsion paints,' the company said.

But turnover and operating profit in the plastic colourants division fell by 14.4 per cent and 19 per cent respectively.

'This business segment was still under a development stage and affected by personnel turnover,' Wing Shing said.

Accompanying the overall increase in turnover was a sharp rise in trade receivables.