Demand for flat-screen TVs surges

Sichuan Changhong Electric Co<600839>, the second largest television maker in China, said its profit grew 47% which was backed by higher incomes that spurred sales of flat-screen TVs.

Its net income reached RMB 337 million (US$48.2 million), or RMB 0.18 a share, from a year earlier, said southwest China-based Mianyang in a statement to the Shanghai Stock Exchange on Saturday. Sales grew 22% to RMB 23 billion.

The robust demand for flat-screen TVs was mainly due to higher incomes in correlation with China's economic expansion, which allows more shoppers to choose flat-screen TVs instead of bulkier glass-tube sets. The coming Beijing Olympics also gives flat-screen TV market a boost, which may spur consumers to buy 77% more flat-screen TVs this year.

Changhong fell 2.9% to close at RMB 6.02 in Shanghai on Friday. The stock has fallen 30 % this year, compared with a 39% decline for China's benchmark CSI 300 Index.