China Railway sees steady growth in H2

Sep. 1, 2009 (China Knowledge) - China Railway Group Ltd<601390><0390>, the country's largest railway and highway builder, said that its earnings growth in the second of this year may exceed that of the first half as the infrastructure development will continue to benefit from the central government's RMB 4 trillion stimulus package.

China Railway's chairman Shi Dahua expressed his confidence in the company's better performance for the rest of this year as the firm is involved in over 75% of projects in the stimulus package. However, the chairman warned of possible decline in its infrastructure business in 2010 after the government's massive stimulus measures this year.

The Chinese construction company said in its interim report released last week that its net profit hit RMB 3.09 billion for the first six months of this year, representing a robust increase of 60.9% from a year earlier.

In August, China Railway won a railway contract worth US$7.5 billion in the South American country of Venezuela.

H shares of China Railway declined 2.9% to HK$6.69 on Monday.