Vinda International, the largest Chinese producer of household paper products, reported a full-year net profit of HK$593.5 million, up 9.3 per cent over a year ago.
As of 10:20am, the firm’s share price had shot up 5.6 per cent to HK$12.68.
Group turnover rose by 17.5 per cent to HK$7.9 billion, the company reported to the stock exchange. Vinda’s core business of household tissue paper accounted for 98.6 per cent while personal care categories of incontinence care, feminine care and baby care made up 1.4 per cent.
Despite the profit jump, the management highlighted a softening growth rate.
“The market for fast-moving consumer goods remained weak and the growth rate in the household paper market decelerated somewhat,” it stated.
“As China enters a ‘new normal’ growth mode … slowing GDP growth will probably drag on personal income growth, which has a very high historical correlation with retail sales growth,” a January 15 BNP Paribas report by consumer analyst Charlie Chen said.
