SHANGHAI-LISTED China Railway Erju Co Ltd expects a net profit of CNY114 million (US$16.30 million) in the first quarter of this year, up 50 per cent from CNY73.37 million ($10.49 million) in the first quarter of 2007.

China Railway Erju said in its statement that there were mainly three reasons to the positive result. First of all, the equipments for express railway construction newly purchased in 2007 have been putting into use, improving marginal profit of the company.

The company also succeeded in reducing cost and improving project profit by acquiring China Railway Erju Group Material Co Ltd, the statement said.