China Knowledge reported that CSR Co Ltd formerly known as China South Locomotive & Rolling Stock Corp Ltd and the country largest manufacturer of rail vehicles projected that its net profit attributable to shareholders for 2011 would surge more than 50%YoY.

In a statement, the Shanghai and Hong Kong listed firm said the forecast of profit growth was principally boosted by reducing costs and the increase in operating revenue in core business.

Analysts said in 2010, the company net profit attributable to shareholders amounted to CNY 2.53 billion and its net profit for 2011 might have reached nearly CNY 3.8 billion, adding that earnings per share stood at CNY 0.21 in 2010.

The person familiar with the matter said CSR has received approval from China Ministry of Finance to raise CNY 2 billion, adding that the company is preparing for the fundraising via a private placement or rights issue.

CNR Corp another leading Chinese train manufacturer is also considering to raise CNY 2 billion.

(Sourced from China Knowledge)