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Dulux focuses local, positive about China

AAP logoAAP 14/12/2016 Ethan James

Paint and adhesives supplier Dulux Group is focusing on growing its Australian and New Zealand markets, and remains optimistic about long-term opportunities in China.

The company confirmed guidance at its annual general meeting on Wednesday, predicting net profit after tax for the 2017 financial year would outstrip the $130.4 million achieved in 2015/16.

Chairman Peter Kirby said Dulux's focus was on Australia and New Zealand, where it gets 90 per cent of its revenue.

"This is complimented by our investment in niche offshore positions in paints and Selleys," he told shareholders.

"We have seen solid growth in Hong Kong and, while market growth in China has slowed, we are positive about the longer term outlook there."

Dulux's new Melbourne paint factory is due to open late next year and expected to be earnings neutral in the 2018 financial year, 12 months earlier than expected.

At 1450 AEDT, the company's share price was up 29 cents, or 4.94 per cent, at $6.15.

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