Sinotrans optimistic after poor HK debut

Sinotrans promised that it would remain profitable despite having the worst-performing trading debut on the Hong Kong Stock Exchange this year, the South China Morning Post reported. The mainland dry bulk carrier's shares hit an intra-day low on Friday of HK$7.10 (US$0.91), well below its issue price of HK$8.18 (US$1.05), before closing at HK$7.12 (US$0.92), a 13% price drop for the day. The company's chairman, Zhao Huxiang, said global demand for dry bulk shipment will remain high, leaving the possibility for the company to charge more on vessels to be leased, generating higher profits. UBS, a sponsor of Sinotrans' IPO, predicts Sinotrans' net profit will
rise 15% to US$137 million this year before growing
to US$298.5 million in 2008. Sinotrans plans on expanding its fleet to boost its current shipping capacity from 2.2 million dead weight tons (DWT) to 5-7million DWT by 2011.