China Shipping Development sees 60% jump in 1H profit

China Shipping Development (600026.SH, 1138.HK), the dry-bulk arm of the country’s second-largest shipping group, announced a 60% year-on-year increase in first-half profit on the back of rising demand for raw materials, Bloomberg reported. The company’s net income rose to US$144 million, compared to US$90.4 million a year ago as sales grew 34% for the period. The Baltic Dry Index, a measure of commodity-shipping costs, posted an average gain of 49% in the first half, largely in response to rising Chinese imports of commodities including iron ore and coal. China Ocean Shipping Group has said it expects the strength of Chinese demand to extend the index’s rally. Separately, China Shipping said it would buy a 50% stake in the shipping unit of Guangzhou Development Industry (600098.SH) for US$48.3 million. The acquisition will boost the company’s coal transportation network in southern China.