CHITALY HLDGS LTD

Chitaly +4.6%; Strong Olympics Play Chitaly (1198.HK) +4.6% at HK$2.72, after reporting 216% on-year rise in 1H07 net profit to HK$18.68 million on margin improvement, stringent cost control. Sales +22.8% at HK$238 million, while gross profit margin ratio increased to 29.3% vs 27.3% year earlier. EPS at 6.4 HK cents vs 2.3 HK cents on-year; interim dividend at 1.2 HK cents vs nil year-earlier. Outlook positive on Olympics play as official home furniture supplier for Beijing 2008 Olympic Games. Off early high of HK$2.93, likely to flirt with HK$2.80. Volume robust at HK$3.63 million. Chitaly Holdings Limited is an investment holding company. The Company principally engaged in the sale of home furniture. Over 90% of its revenue and assets are related to the sales of home furniture. Chitaly Holdings Limited's operates through its Royal Furniture brand. The Company has been operating retail outlets. As of December 31, 2006, it had 20 outlets distributed in Beijing, Shanghai and Shenzhen. The Company also has 1,000 franchise outlets spread in different part of China. Some of its wholly owned subsidiaries include Chitaly (BVI) Limited, Hong Kong Royal Furniture Holding Limited and Chitaly Furniture Limited. In January 2007, the Company completed its acquisition of 71% interest of Signature Industry Limited, which is a manufacturer of sofa. +852-26366648 (Phone)