Developer Sunac shares gain on solid profit forecast

HONG KONG, March 6 (Reuters) - Sunac China is expecting a solid earnings jump for 2017, forecasting net profits to surge over 240 percent thanks to an increase in revenue and gross margin.

Investors cheered the news, sending its shares up as much as 5.4 pct in early trading on Tuesday. As of 0252 GMT, they were up 0.4 percent, while the broader market narrowed gains to 0.9 percent.

The country’s fourth largest property developer by sales said late on Monday its revenue last year increased over 80 percent from a year ago, while gross profit margin climbed about 7 percent, according to unaudited accounts.

Sunac, due to report 2017 results late this month, said the impairment provision made for its investments in loss-making video-streaming firm Leshi Internet has been taken into consideration in its forecast. (Reporting by Clare Jim; Editing by Shri Navaratnam)