BRIEF: Shouhui returns to profit on financial instrument gains

Insurance intermediary services provider Shouhui Group Ltd. (2621.HK) saidon Thursday it expects to report a net profit of between 660 million yuan ($92 million) and 680 million yuan for the six months through June, reversing a net loss of 750 million yuan a year earlier.

The company attributed the turnaround mainly to gains from changes in the book value of financial instruments issued to investors, which increased by between 795 million yuan and 815 million yuan from a loss in the year-ago period.

The company said its adjusted net profit for the six-month period is expected to range from 56 million yuan to 76 million yuan, down by about 50 million yuan to 70 million yuan year-on-year, mainly due to growing macroeconomic uncertainty, weaker demand for financial products, and lower brokerage rates in the insurance sector under the government’s “integration of reporting and accounting” policy.

The company estimated it would report revenue of 545 million yuan to 565 million yuan for the first half of the year, down by about 140 million yuan to 160 million yuan year-on-year, while its costs and expenses fell in the range of 75 million yuan to 95 million.

Shouhui’s stock opened higher on Friday, closing at HK$9.43 by the midday break, up 5.79%.

By Lee Shih Ta

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