UPDATE 1-Tingyi confident of double-digit '09 revenue growth
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HONG KONG, May 27 (Reuters) - Instant noodle maker Tingyi (Cayman Islands) Holdings (0322.HK) is confident of maintaining double-digit growth in 2009 revenue as a weak economy is seen aiding its sales, a senior executive said on Wednesday.
The company was confident of meeting its revenue target if material costs remained stable and the impact of H1N1 influenza on the economies of China and Hong Kong was not as serious as that of SARS, group CFO Frank Lin told Reuters.
Lin said the company had no plan to raise product prices.
Earlier this week, Tingyi reported a 42.5 percent year-on-year rise in first-quarter net profit to US$92.79 million, while revenue jumped 21 percent to US$1.175 billion. Its 2008 net profit rose 33.65 percent to US$260.4 million and revenue climbed 33 percent to US$4.27 billion.
Tingyi, which competes with Taiwan's Uni-President Enterprises (1216.TW), Nabisco (KFT.N), Coca-Cola (KO.N) and China's Wahaha, a partner of France's Danone (DANO.PA), controls 51 percent of China's instant noodle market in value terms, and about 46 percent of its ready-to-drink tea market, according to a survey by AC Nielsen.
Shares of Tingyi have risen more than 31 percent so far in 2009 through Tuesday. The stock slid 0.68 percent to HK$11.74 in late trade on Wednesday. (US$1=HK$7.8) (Reporting by Fion Li; writing by Donny Kwok; editing by Jonathan Hopfner and Chris Lewis)
