(Yicai Global) March 24 -- Food and beverage manufacturer Tingyi Cayman Islands Holding expects continued growth in its instant noodle line this year after its net profit jumped 35.1 percent to CNY3.3 billion (USD470.7 million), driven by gains in it and its beverage segment.

It foresees its rahmen noodles doing well this year on the coattails of the Covid-19 pandemic, as they and its drinks swiftly rebound in the second half after a brief slowdown, the company said in the performance report it issued yesterday.

Tianjin-based Tingyi Holding's share price [HK:0322] closed up 9.03 percent at HKD13.52 (USD1.74) today.

This is the company's first earnings statement after its founder Wei Ing-Chou stepped down and his eldest son James Wei took over as chairman. Its revenue gained 2.1 percent to CNY62 billion last year, per the report.

The coronavirus outbreak early this year is expected to affect gross domestic product, consumption and production in the first quarter, but the Chinese economy will recover quickly after the epidemic, Tingyi Holding predicted.

The firm's instant noodle sales gained 5.8 percent to CNY25.3 billion last year, making up nearly 41 percent of the company's total. The profit on them rose 28.7 percent to CNY2.2 billion.

The company's dried noodle business will set its sights on consolidating the high-price, high-end markets, and expanding the ultra-high-end market to achieve sales growth as well, it stated. Its sales volume made up 43.3 percent, while its sales revenue claimed almost 47 percent of the market total to rank it first in China, according to data from global information firm Nielsen.

The sales volume of Tingyi Holding's beverage business grew a modest 0.8 percent to CNY35.6 billion last year, 57.4 percent of the company's overall business. Its net profit jumped 72.4 percent to CNY946 million.

Editor: Ben Armour