Road & Bridge Companies Grossed Nearly 60% Benefit in China

Road and bridges companies’ annual reports on is the best proof of the saying that ‘highways are cash printers’. According the 2010 annual report said, 600377.SH (Stock market number) make the big profit in the last year and the profit up to 38.1%.At the same time, 0000002.SZ(Stock market number) make the big benefit up to 14.4%.

The data shows that the average gross profit of 19 national businesses, including road and bridge toll-gate income, reached 59.14%; the average of net profit is as high as 35.51%. And despite the large number of real estate companies, but the industry average gross margin of 10% to 20%.

Of course, not all the highways are already profitable. In recent years, some of the new highways in the Midwest area remain in deficit. A reasonable explanation is that the cost of building roads in recent years has grown exponentially, but these areas haven’t propped up enough traffic yet.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *