SGX Mainboard-listed 8Telecom International Holdings Co., the manufacturer and provider of telecommunication infrastructures and emerging property developer in China, announced today a 154.9% year-on-year jump in net profit to RMB36.7 million ($7.3 million) for the half year ended 30 June 2010 (1H2010) from RMB14.4 million a year ago.

1H2010 turnover improved by 12.9% y-o-y to RMB253.5 million from RMB224.6 million in 1H2009 mainly due to bulk sales of 9,365 sqm of office space from its Linping Times Square property, and enlarged contribution from telecom engineering services segment.

The group saw a combined decline of 37.2% or RMB72.8 million from its telecommunication & other tower and telecommunication pipe segments as China’s top three telecom operators wound down 3G investments in 1H2010, while its telecom engineering services segment took good advantage of the pickup in demand from the existing network infrastructures to provide operation & maintenance (O&M) services.

Gross profit outpaced revenue growth, surging 68.1% yoy to RMB99.9 million in 1H2010 from RMB59.4 million in 1H2009. This was mainly attributed to its high margin property development division. Consequently, the group’s gross profit margins climbed up from 26.5% in 1H2009 to 39.4% in 1H2010.

8Telecom says in light of the gradual shift in China’s telecommunications industry from the early capital intensive infrastructure construction phase to an established network infrastructure phase, the group has placed greater emphasis on developing its telecom engineering services segment to garner a more recurring stream of revenue from rental and O&M services.