China Merchant Holdings’ net profit down 20% to HK$168m

Due to lower contributions and forex losses.

China Merchant Holdings (Pacific) reported a 20% decline in attributable profit for the third quarter.

This was on back of the absence of a negative goodwill that was booked in the same period last year, as well as lower deferred income and effective interest on other receivables, higher forex losses, and lower contribution from joint ventures.

According to DBS, acquisitions will drive the company’s bottom-line expansion in coming quarters, with core earnings expected to grow by nearly 50% by 2017.

“The recently completed Jiurui Expressway acquisition and acquisitions of three toll roads in Guangxi Zhuang Autonomous Region should propel the Group’s top and bottom lines in the medium to long term. We project CMHP’s core earnings to grow by nearly 50% from HK$675m in 2014 to HK$1,004m by 2017F, driven by contribution from these recent acquisitions,” DBS said.