Japan's Sumitomo Heavy Industries could post a 10% rise in annual profit as Chinese machinery demand increased.

The shipbuilder's operating earnings in the year to the end of this March may be JPY 52bn ($477m), the Nikkei daily said.

If confirmed, the figure would be the highest since the JPY 56.9bn it recorded in 2008.

Revenue is expected to increase 7% to about JPY 720bn, which would be its best ever.