Hong Kong Stock Market Wrap Aug 28th, 2009

Resources: China Shenhua Energy (1088 HK), the nation’s biggest coal producer, recorded a first-half net income of 16.9 billion yuan, rising14 per cent from 14.8 billion yuan a year ago on increased production to meet demand spurred by the government’s economic stimulus. Earnings per share were 0.851 yuan. No interim dividend was declared. China Qinfa Group (866 HK) recorded a profit of 10.89 million yuan for the first half, down 95 per cent compared with a year ago. Earnings per share were 0.01 yuan. No interim dividend was declared. PetroChina (857HK), Asia’s largest oil and gas producer, reported a 7.2 per cent decline in interim profit to 50.5 billion yuan, in line with market forecast. The company plans to raise oil refining capacity and wants to earn more profit from downstream operations by expanding in less regulated markets abroad. CNPC (Hong Kong) (135 HK) posted a 80 per cent decline in its first- half profit to HK$316 million on its provisions for possible tax payments on a Kazakh project and lower oil prices. Earnings per share were 7.11 HK cents. No interim dividend was declared.

Telecomm: China Unicom (762 HK), the country’s second mobile-telephone network operator, posted an interim profit of 6.62 billion yuan, down 42.1 per cent from 11.43 billion yuan a year ago. The company attributes the loss to the impact of its corporate restructuring and intensified competition in the domestic telecommunication sector. It will start selling Apple’s iPhone on the mainland in the fourth quarter in a move that could kick-start growth at its nascent 3G service.

Properties: Henderson Land Development (12 HK), the third-largest developer in Hong Kong, said its second interim net profit fell 38 per cent fell to HK$3.51 billion on decreased profits from property sales. The company declares a second interim dividend of HK$0.3 per share. Wonderful World Holdings (109 HK) announced that the joint venture, Grand International Development Limited, in which it owns 50 per cent stake, has successfully bidden the land use rights for a piece of land located at Fuzhou. The land will be developed into a shopping mall. Wonderful World will inject HK$200 million into the joint venture by way of shareholders' loan.

Financials: Bank of East Asia (23 HK), the city’s fifth-largest lender, plans to list A shares in the second half next year at the earliest as a China unit spinoff. The lender is still considering either a group listing or a China unit spinoff. In the first half, BEA China, which was incorporated in 2007, contributed 40 per cent of the group’s pre-tax profit and about 35 per cent of the loan portfolio. BEA China plans to expand its branches up to 100 by the end of 2010. It now has 71 branches and hopes to have 80 by the end of this year.

BBMG (2009 HK) said its controlling shareholder, BBMG Group, has proposed acquiring a 60.64 percent stake in Tianjin Zhenxing Cement for 395 million yuan. The acquisition is still in draft and waiting for the approval from the regulatory.

Beijing Enterprises (392 HK) and China Datang Corporation gained the regulator’s approval to adjust the investment structure of Keqi Coal-based Gas Company. Total investment will rise 40 percent to 25.71 billion yuan. Beijing Enterprises’ investment will increase 34 per cent to 8.74 billion yuan while China Datang Corporation and its subsidiaries will pay for the rest.

BYD Company (1211HK) the Chinese maker of batteries and electric cars backed by US billionaire investor Warren Buffett, recorded a 98 per cent rise in its first-half net profit to 1.18 billion yuan on its more-than-doubled car sales. Earnings per share were 0.57 yuan. No interim dividend was declared. The company attributed the surge to its improved economies of scale and seized market share from rivals. Meanwhile, its subsidiary BYD Electronic (0285), which makes components for mobile handsets, reported a 47 per cent decline in first-half net profit to 228.89 million yuan owing to a drop in its gross margin and increased investments in research and development.

Airlines: China Southern Airlines (1055 HK), the nation’s largest carrier, reported that its first-half net profit plunged 97 per cent to 25 million yuan, dragged down by lower yields and the lack of foreign-exchange gains last year. Earnings per share were 0.4 fen. No interim dividend was declared. The company warned that there are uncertainties in the outlook for the second half as the international aviation market demand may still be in the doldrums, and the overall international oil price shows an upward trend.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 27th, 2009

Financial: Bank of China (3988 HK), the mainland’s third-largest commercial bank by assets, reported yesterday that its first-half profit slipped 2.5 per cent to 41.1 billion yuan as lower interest rates hurt its margins. The Beijing-based lender said an increase in government-supported loans which aimed at stimulating the flagging economy helped to offset some of the decline in interest income. Earnings per share were 0.16 yuan. The company proposes no interim dividend. BOC Hong Kong (2388 HK) recorded a net profit of HK$ 6.69 billion in the first half, but sliding 5.6 per cent from a year earlier. The city’s third-largest lender attributed the higher-than-expected profit to the net fee income which surged more than expected on the back of a rosy stock market. The bank said it will continue its solid core business growth in the second half, although net interest margin cannot rise as rates remain low. Earnings per share were HK$0.6329. An interim dividend of HK$0.285 was declared. China Citic Bank (998HK) said its net profit slided 16 per cent to 7.52 billion yuan in the frist half, dragged down by a decrease in its net interest margin. The lender expects the banking industry would face challenges despite a rosy mainland economic recovery. Earnings per share were 0.18 yuan. No interim dividend was declared. Beauforte Investors Corp (21HK) has reached agreement with the China Construction Bank to introduce the latter as a strategic investor of the company. China Construction Bank will purchase 50,000,000 million shares of the company at a price of HK$0.4 per share. Beauforte will mainly focus on tourism property business in the future.

Properties: Cheung Kong (1HK) buys a property in 133 to 137 Electric Road for HK$460 million, according to a source. The land is 8,000 square metres and the area of the building accounts for 80,000 square metres. Chinese property (2337 HK) developer Shanghai Forte Land buys 25 per cent stake in a Shanghai property from ING for HK$165 million. The project was completed last October and its total sellable areas are 140,000 square metres. Recorded until last month, 1036 units which amount to 122,000 square metres have been sold. Shui On Land (272 HK) said yesterday that its net profit slacked 45 per cent to 718 million yuan from a year earlier due to lower property sales and the absence of sales of equity interest in individual projects to strategic partners. To response to the decline in its interim net profit, the developer had imposed a three-year freeze on staffing and operating expenses and cut its dividend by 86 per cent. An interim dividend 1 HK cent was declared.

Consumer: Giordano International (709 HK) recorded a net profit of HK HK$48 million for the first half, diving 76.9 per cent compared with a year ago. Sales revenue slides 14.5 per cent to HK$2.03 billion. Earnigns per share were HK$0.032. An interim dividend of 2 HK cents per share was declared, down 69 per cent compared with the 4.5 HK cents last year. Ports Design (589 HK) recorded an interim profit of 206 million yuan, surging 13 per cent compared with a year ago. Earnings per share were 0.37 yuan. An interim dividend of 0.24 yuan per share was declared. The company planned to increase 30 outlets this year but only 11 new shops were opened in the first half due to the recession, it believes more will be opened in the second half. Sasa International (178 HK) posted a 20 per cent year-on-year increase in its sales in August. Chairman Kwok Siu-ming said the weak sales in the previous months were affected by the swine flu but the impact has been minimizing in July and August due to revenue from mainland tourists. The company has 137 outlets now and would like to open two more in Tsim Sha Tsui and Causeway Bay by November.

Shipping: China Cosco (1919 HK) recorded a net loss of 4.6 billion yuan in the first half, against a net profit of 15.1 billion yuan from a year earlier. The company attributes the loss to lower property sales and the absence of sales of equity interest in individual projects to strategic partners. Losses per share were 0.45 yuan. No interim dividend was declared.

China Railway Construction (1186HK) said its interim net profit surged 45.7 per cent to 2.11 billion yuan from a year earlier, pushed by the increased amount of investment in railway in mainland. Earnings per share were 0.18 yuan. No interim dividend was declared.

China Railway (390 HK) announced yesterday its first half net profit rocketed 61 per cent to 3 billion from a year earlier, lifted by the rising revenue from the business of infrastructure construction under the governmental investment in infrastructure construction. Earnings per share were 14.5 fen. The company proposes no interim dividend.

Towngas (3HK) recorded a 19 per cent rise in its first-half net profit to HK$3 billion, boosted by the revenue from its businesses in mainland and better investment return. The company expects the revenue generated from gas sales in mainland can reach HK$1.1 to 1.2 billion this year. Earnings per share were HK$0.453. An interim dividend of 12 HK cents per share was declared.

Tianjin Development (882HK) a Tianjin-based logistics service provider, posted a net profit of HK$247 million for the first half, diving 40.2 per cent compared with a year ago. Earnings per share were diluted to 23.14 HK cents. An interim dividend of HK$0.052 per share was declared.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 26th, 2009

Hong Kong Stock Market Wrap Aug 26th, 2009

Consumer: Belle International (1880 HK) recorded a 15 per cent rise in its net profit to 1.14 billion yuan in the first six months, boosted by its footwear business. The firm said it will focus on expanding its footwear business as growth in sportswear remains sluggish in China. Its chief executive said selling Fila was part of the company’s strategy of shifting focus to its footwear business. Earnings per share were 13.47 fen. An interim dividend of 3.5 fen was declared. Esprit (330 HK) recorded a 26 per cent year-on-year decline in its net profit in the first half to HK$ 4.75 billion as its major European markets fell into recession. Earnings per share were HK$3.81. A high interim dividend of HK$ 2.05 was declared despite the decline in its profit. Lianghua Supermarket (980 HK) vice chair Hua Guoping denied on bidding Times Ltd (1832), a Shanghai-based hypermarket and supermarket operator. Times Ltd announced earlier that it is looking for buyers and Lianghua Supermarket was said to be one of the bidders. Lianghua said Times Ltd is one of the competitors of the company and would pay full attention to the bid, but it denied that they are in talk on the deal.

Financial: China Life (2628 HK) has confirmed its interest in acquiring stakes in Agricultural Bank of China and listing candidate American International Assurance, but any decision depends on pricing and regulations. Chairman Yang Chao said the mainland’s largest insurer will expand into commercial banking as well as trustee and asset management to grow into a comprehensive financial institution.

Resources: Citic Pacific (267 HK) reported yesterday that its net profit plunges 43 per cent to HK$ 2.47 billion in the first half, dragged down by the shrinking demand for special steel. Earnings per share were 68 HK cents. The company will pay an interim dividend of 15 HK cents to fulfil its promise to shareholders. Citic Pacific clarified that it has no plan to sell its stake in two cross-harbour tunnels as they both provide stable income to the company. Cnooc (883 HK), the nation’s third-largest oil and gas producer, announced yesterday that its net profit slides 55 per cent to 12.4 billion yuan in the first half on sharply lower oil prices. Earnings per share were 28 fen. An interim dividend of 20 HK cents was declared. The main offshore oil and gas producer lacks major refining operations and so was directly hurt by the sharp drop in oil prices from a year earlier. Yet, it forecasts better results as the economy recovers.

Property: Hopewell (54 HK), the Hong Kong-based property, infrastructure and hospitality group, yesterday reported a 72 per cent decline in its first-half net profit to HK$ 1.68 billion, dragged down by the lack of property sale this year. An interim dividend of HK$0.18 was declared. The company proposes no special dividend. Kerry Properties (683 HK) announced yesterday that its interim net profit dropped 24 per cent to HK$990 million. The company said it has reached a HK$5 billion target of contract sales in the first seven months at higher selling prices despite a fall in its profit. It proposes an interim dividend of 30 HK cents. Wang On (1222 HK) said its new project in Yau Tong, which involves as much as HK$5 billion, will be launched at the end of next year at the earliest. The developer said as the land is transferred from industrial to residential use, it has to pay HK$2 billion to the government as premium. Wharf recorded (4HK) a 44 per cent surge in its first-half net profit to HK$3.29 billion, boosted by the property investment in mainland. Earnings per share were HK$1.20. An interim dividend of 36 HK cents was declared. Wheelock (20 HK), the parent of Wharf, said its interim underlying net profit rose 47 per cent to HK$1.75 billion. Including property revaluation gains, net profit fell 20.7 per cent. Earnings per share were 86 HK cents. An interim dividend of 2.5 HK cents, was declared the same as last year.

Sinotrans recorded (598 HK) a net of 270 million yuan for the first half, down 60.5 per cent compared with a year ago. Earnings per share were 0.064 yuan. No interim dividend was declared. The company said the ratio of domestic business has risen 6 per cent and plans to raise it to as much as 15 per cent in three years by restructuring its domestic and foreign business.

The Hong Kong and Shanghai Hotels (45 HK) recorded a net profit of HK$462 million for the first half, down 71 per cent compared with a year ago. Earnings per share were HK$0.32. An interim dividend of HK$0.03 per share was declared.

Tianjin Port Development (3382 HK) recorded a loss of HK$15.85 million for the first half, compared with a profit of HK$140.68 million a year ago. The company attributes the loss to a drop in mainland exports. Loss per share was HK$0.009. No interim dividend was declared. The company said cargo throughput has dropped 6.7 per cent in the first half and thus would lower its target from 9,000,000 to 8,500,000 standard containers.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 25th, 2009

IPO: Longhu Property, the Chongqing based property developer, plans to return to the Hong Kong bourse. The developer plans to go listed last year to raise as much as US$1 billion but the plan was postponed due to the recession. The company’s listing application will be submitted next month at the earliest.

Airlines: Air China (753 HK), the national flag carrier, said its net profit soared 150 per cent to 2.88 billion yuan, from 1.17 billion yuan for the first six months of last year, according to international accounting standards. The airline said its surging net profit is attributable to the fair-value increases in its jet fuel hedging contracts after the price of oil went up in the first half. Earnings per share were 0.243 yuan. No interim dividend was declared. AviChina Industry & Technology (2357 HK) its parent plans to inject 150 billion yuan or 80 per cent of its total assets into its listed subsidiaries in three to five years. Aviation Industry Corporation of China, AviChina's parent, has total assets of 310 billion yuan, with about 70 billion yuan already injected into 21 subsidiaries listed in the mainland and Hong Kong.
The injection plan is still in draft and AviChina Industry & Technology is uncertain about the amount it will receive.

Financials: Bank of East Asia (23 HK) recorded a better-than-expected net profit of HK$1.17 billion for the first half, surged 46.8 per cent surge from a year earlier. The lender attributed the surge in net profit to its non-interest income. It is optimistic about the loan growth in the country and expects to achieve slight growth in the second half. Earnings per share were 64 HK cents. An interim dividend of 28 HK cents per share was declared. China Everbright International (257 HK) recorded a net profit of HK$197 million for the first half, up 46.77 per cent compared with a year ago. Earnings per share were 6.26 HK cents. An interim dividend of 1 HK cent per share was declared.China Life Insurance (2628 HK), the nation's largest insurer, recorded a first-half profit of 18.23 billion yuan, rose 15.4 per cent due to higher investment returns. The insurer reduced the proportion of fixed-income and increased equity investment to further optimize the investment asset allocation. Earnings per share were 0.64 yuan. The company proposes no interim dividend.

Properties: China Infrastructure Investment (600 HK) sold a TN6 land in Macau to former vice chairman Mr Xu and other related persons for HK$350 million. Mr Xu holds 13.7 per cent of stake in the land after the purchase. The area of the land is 4661 sq meters. Trading of the company will resume today. Country Garden (2007 HK), the third-largest Hong Kong-listed mainland developer by market capitalization, reported a 5 per cent decline in the interim net profit to 1.82 billion yuan. The Guangdong-focused property developer said that the decline in the net profit is dragged down by the drop in sales and gross margin. Yet, the company recorded a gain of 431.8 million yuan on an equity swap in the first half. Earnings per share were 11.1 fen. No interim dividend was declared.

Building Materials: China National Building Material (3323 HK) posts a net profit of 850.8 million yuan, up 55.9 per cent. The company attributes the gain to the rise in sales in its core cement business that rose 48.9 per cent to 9.97 billion yuan.

China Zhongwang Holdings (1333 HK), Asia’s biggest aluminum extrusion products maker, said its first-half net profit soared 71.7 per cent from 946.5 million yuan to 1.62 billion yuan for the six months ended June 30 as it concentrated on more profitable industrial aluminum products.

Autos: Dong Feng (489 HK), China’s third-largest automaker, reported a 5.4 per cent rise in first-half net profit to 2.61 billion yuan. The company, a partner of Nissan Motor and Honda Motor, said the net profit was boosted by the expansion of new demand for cars through the government stimulus program. However, it believes that the exports market is still weak while oil price and costs of raw materials post uncertainties to the company’s second-half business. Earnings per share were 30.25 fen. No interim dividend was declared.

Fosun International (656 HK) recorded a decline in the first-half net profit to 1.32 billion yuan, plunged 31 per cent from a year earlier. Earnings per share were 20 fen. No interim dividend was declared. The company expects the second-half net profit to improve on rising demand of steel and metal.

Hong Kong ferry (50 HK) posts a net profit of HK$595 million for the year ended June 30, compared to a net loss of HK$62 million last year. An interim dividend of 10 HK cents is declared. The company attributes the profit to the gains from selling bonds and its property Shining Heights.

Tcc International (1136HK) posts a net loss of HK$65.8 million for the first half, dragged down by the loss of its cement production section, compared to a net profit of HK$54.4 million last year. Turnover is HK$1.5 billion while loss per share is 5.1 HK cents. The company proposes no interim dividend.

Consumer: The mainland supermarket chain Times Limited (1832 HK) intended to sell the company out for US$560 million, which is 72.3 per cent owned by chairman Kenneth Fang and his family. The company has invited bidders to make offers for the retailer, the Wall Street Journal reported. It is said that potential bidders are Wumart Stores (8277) and Lianhua Supermarket Holdings (0980).

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 24th, 2009

Resources: Aluminium Corporation of China (2600 HK) recorded a net loss of 3.522 billion yuan for the first half, dragged down by the decrease in the demand of aluminium product. Losses per share were 0.26 yuan. The company proposes no interim dividend. The company said the demand of aluminium product, especially in the automobile and property industry, has dropped owing to the economic recession. The producer expects the demand of aluminium product to rise next year. Sinopec (386 HK) will focus on increasing its upstream capital expenditures in order to boost its exploration and production segment. Its annual capital expenditures for 2010 and 2011 would be 120 billion yuan. Sinopec Corp may also buy some of the Addax Petroleum assets from its parent. China Resources Power (836 HK) recorded its net profit of 2.27 billion yuan for the first half, rose 1.26 times from a year earlier. Earnings per share were 0.0527 yuan. The company proposes an interim dividend of 0.06 yuan. Sinopec Yizheng Chemical Fibre (1033 HK) recorded a first-half net profit of 310 million yuan, boosted by the rise in the international crude oil price. No interim dividend was declared. Jiangxi Copper Company (358 HK) reported a 59 per cent decline in first-half net profit to 1.271 billion yuan. The company said the net profit is attributable to the copper hedging and it will continue to reduce operating costs and raise its efficiency in order to pass the recession. No interim dividend was declared.

Properties: Beijing Capital Land (2868 HK), its net profit for the first half dropped 2.6 per cent to 245 million yuan. An interim dividend of 0.012 was declared. The company plans to issue A shares in mainland stock markets but it is still waiting for the approval from the regulator.

Banks: China Construction Bank (939 HK) has confirmed the possibility of lifting the capital adequacy ratio to tighten its lending. The lender was responding to a recent industry report regarding the requirements set by China Banking Regulatory, that all bank have to deduct their current holdings of subordinated or hybrid debts sold by other banks from their supplementary capital. CCB is now studying the issue and its impact on its CAR ratios and it says there is no need for share placement to replenish capital in the near term. Hang Seng China of Hang Seng Bank (11HK) has its Shenzhen branch opened yesterday, increasing its spots to 35 in China. Mrs Xie Guan Yanping, chair of Hang Seng China, says Shenzhen is one of the four main focuses of their development plan, the new branch helps to expand their financial management business in Shenzhen and Zhujiang Delta.

Consumer: China Green (904 HK) posts an interim profit of 454.93 million yuan for the year ended April 30, down 3.4 per cent compared with a year ago. The company attributes the drop to added tax categories and interest paid to bonds. Earnings per share were 0.515 yuan. A final dividend of HK$0.073 per share was declared. The company has spent HK$549 million to increase reserves of rental land, production line and transport facilities this year. Want Want China Holdings (151 HK) the country’s largest maker of rice cakes and flavoured milk, said first-half profit fell 6.4 per cent as income last year was inflated by exchange gains and the sale of properties. Net income in the six months to June dropped to US$121 million from US$129 million.

Citic Pacific (267 HK) has agreed to pay 1.52 billion yuan for Jiangyin Special Steel Mill through buying out the equity interest in Approach Well, Perfect Future, the PRC Company and the related shareholder’s loans. The above companies are the operating companies of the Jiangyin special steel mill.

CLP Power (2HK) managing director Betty Yuen So Siu-mai has taken leave to undergo treatment for an early stage of breast cancer. Chief operating officer Richard Lancaster will stand in as managing director for the Hong Kong business, while corporate development director Chan Siu-hung will be responsible for the nuclear operations. The company says Betty’s leave would not affect company’s operation.

Dah Chong Hong (1828 HK) recorded a net profit of HK$270 million for the first, down 6.57 per cent compared with a year ago. Earnings per share were 15.02 HK cents. An interim dividend of 4.51 HK cents per share was declared. The company says the government is promoting the use of electric vehicles and believes the company will be benefited as it is one of the resellers of Japanese -made electric vehicles.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 21st, 2009

Financials: China Construction Bank (939HK) recorded a net profit of 55.81 billion yuan for the first half, down 4.88 per cent compared with a year ago. The bank attributes the drop to the narrowed interest margin.Earnings per share were 0.24 yuan. No interim dividend was declared. Hang Seng Bank (11 HK) is considering to list in the A bourse and to issue yuan bonds, said Leung Ko May-yee, the new vice chairman and chief executive of Hang Seng Bank. PICC Property and Casualty (2328 HK), the mainland's largest non-life insurer by premiums, returned to profit in the first half. The insurer reported a 322 million yuan net profit, against a 292 million yuan loss a year earlier, as claims because of natural catastrophes declined. No interim dividend was proposed.

Consumer: Gome (493 HK) recorded a profit of 580.31 million yuan for the first half, down 49.5 per cent compared with a year ago. Earnings per share were 0.045 yuan. No interim dividend was declared. Ex Chair Huang Guangyu was requested by the Securities and Futures Commission to return 1.66 billion yuan to Gome, his case was proved to have no relation to the company. A hearing will be held on September 8. Parkson Retail (3368 HK) announced a net profit of 462 million yuan for the first half, up 12 per cent. A 5 fen of interim dividend is declared. Bossini International Holdings (592 HK)’s controlling shareholder, Law Ka-sing, quitted as chairman yesterday. The company said Mr Law, 59, was retiring, adding that he had no disagreement with the board and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders.

Properties: SOHO China (410) made a clarification on press reports relating to a rumour of an evasion of 600 million yuan tax.Based on its financial and tax investigations conducted during the acquisition of The Exchange, the company is reasonably satisfied that the Hong Kong project companies had paid related taxes and fees in acquiring the property title. SOHO China reiterates that this transaction is for the acquisition of the property title of The Exchange. All previous transfers by the project developers of the project development right and the resulting changes in the project development right and payment of related taxes shall bear no relation to the company's acquisition. SOHO China stressed that it has complied stringently with the PRC tax laws since inception. Prosperity Real Estate Investment Trust (808 HK) said its distributable income was HK$73.07 million for the first half, down 1.8 per cent from a year ago. The trust will distribute HK$0.0554 per unit. The trust says it is seeking to acquire Tier-1 city project in mainland.

Resources: Yanzhou Coal Mining (1171 HK), the fourth biggest producer of fuel in China, posts a net profit of 2.02 billion yuan for the year ended June 30, down 48 per cent from the prior year. The company attributes the loss to the drop in price and sales of coal. Sinopec (386 HK) recorded a net profit of 33.2 billion yuan for the first half, soared threefold from a year earlier. The company said the higher-than-expected interim net profit is boosted by the higher retail price of oil products in China. Earning per share were 0.383 yuan. An interim dividend of 0.07 yuan was proposed. Sinopec forecasts its financial results for the first three quarters of this year could show a 50 per cent improvement over a year earlier due to the rising demand for chemical products. Hunan Nonferrous Metals (2626 HK) posts an interim net loss of 212 million yuan, down from a net profit of 74 million yuan from a year earlier. The net loss is attributed to the plunging demand for the nonferrous metals in the economic recession and a drop in its prices. Losses per share were 5.79 fen. No interim dividend was declared.

Industrials: First Tractor (38HK) reported a net profit of 169 million yuan for the first half, up 1.17 times from a year earlier, boosted by the favourable agricultural development policy. The company proposes no interim dividend. It expects a rise in the sales of its industrial machinery due to the recovering demand in the market.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 20th, 2009

Asian stock markets advanced yesterday after the Dow Jones Industrial Average stabilized overnight. The Shanghai Composite Index surged 4.5 percent while locally, the Hang Seng Index gained 1.9 percent.

IPO: Sundart Internaional (2288 HK), an interior decorating contractor, lists on the mainboard today, with its grey market price leaping 11 per cent to HK$4.80 the highest. Investors earn HK$460 per board lot of shares excluding handling fees.

Telecom: China Mobile (941 HK), the country’s biggest mobile operator, recorded a net profit of 55.3 million yuan for the first half, edging up 1.4 per cent, from a year earlier. Earnings per share were 2.76 yuan. An interim dividend of HK$1.346 was declared. The company forecasts that its income would continue to grow as it expands its business to rural areas in China. PCCW (8 HK) reported a net profit of HK$654 million for the first half, sliding 0.3 per cent compared with a year ago. Earnings per share were 96 HK cents. The company proposes no interim dividend. The telecom operator said no interim dividend was distributed because it hoped to reserve more capital for its further development, and a special dividend of HK$1.30 per share was declared several months ago.

Shipping: China Shipping Development (1138 HK), the nation’s largest coastal energy shipper, said first-half operating income plummeted 80 per cent from a year ago on weaker contributions from both coal and oil shipping. The company is seeking long-term contracts in order to lift profit and has set up a joint venture with PetroChina (857 HK) on liquefied natural gas (LNG) carriage. Guangzhou Shipyard (317 HK) recorded a 55 per cent net loss for the year ended June 30 to 242 million yuan due to rise in raw materials costs in ship manufacturing industry. No interim dividend was declared.

Properties: Guangzhou R&F (2777 HK) yesterday reported a 90 per cent dive in first-half net profit to 160 million yuan, dragged down by the loss arising from the sale of a land lot in Foshan. Earnings per share were 4.97 fen. No interim dividend was declared. Pacific Century Premium Developments (432 HK) said first-half net profit surged 30.8 times year-on-year to HK$159 million, boosted by the sales of Residence Bel-Air. Earnings per share were 66.3 HK cents. No interim dividend was declared. Meanwhile, Pacific Century has agreed to sell a residential site in Beijing to Shui On Construction and Material (0983) for US$118 million.

Financial: Industrial and Commercial Bank of China (1398 HK), the world’s largest bank by market value, recorded a net profit of 66.4 billion yuan for the first half, rising 2.9 per cent from a year earlier. The company attributed the net profit to the brisk increase in lending and fee-based revenue. Earnings per share were 0.2 yuan. No interim dividend was declared.

Auto: Qingling Motors Company recorded a net profit of 103.36 million yuan for the first half, up 11.5 per cent compared with a year ago. Earnings per share were 4.16 fen. No interim dividend was declared.

Regal Real Estate Investment Trust (1881 HK), which operates five Regal-branded hotels in Hong Kong, said distributable income for the first half was HK$280 million, up 13 per cent from a year ago. Earnings per unit attributable to unitholders were 5.9 HK cents. An interim distribution of 8.5 HK cents per unit was declared.

Sinolink Worldwide (1168 HK) expected to record a growth in first-half net profit on a boom of sales of properties. The estimated net profit would be no less than 5 times of that posted a year ago, the company said.

Solargiga Energy (757 HK) recorded an interim net loss of approximately 119.75 million yuan compared with a profit of 183.28 million yuan a year ago. No interim dividend was declared.

Consumer: Stella International (1836 HK) recorded a 14.6 per cent decline in the first-half net profit to US$47.50 million. The decline was mainly due to a drop in sales, especially in the European market.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 19th, 2009

Mainland stocks were pummeled yesterday, entering a technical bear market amid rumors of imminent tightening measures, and the turmoil spread to Hong Kong. The Shanghai Composite Index plunged 125.300 points, or 4.3 percent, to end the day at 2,785.584. The Shanghai and Shenzhen bourses were the worst-performing markets in Asia. Rumors swirled yesterday that China's Vice Premier Wang Qishan had met with the heads of the mainland securities, banking and insurance regulators to discuss upcoming tightening policies. The market was also abuzz with talk that Beijing will clamp down on illegal funds entering the property market. In Hong Kong, the Hang Seng Index shed 1.7 percent, breaking through the 20,000 level to close at 19,954.23, down 352.04 points. The Hong Kong dollar softened during the day as some funds flowed out of the territory.

Basic Materials: Anhui Conch Cement (914 HK) said first-half net profit fell 2.33 per cent year-on-year to 1.27 billion yuan, dragged by a drop in selling prices and gross margin. The company proposes no interim dividend. In facing the rapid competition in the market, the company will maintain its business strategies in the western part of China that raise its operating efficiency. Qunxing Paper (3868 HK) expected its gross profit margin to stay at 28 per cent in the second quarter, similar to that in the first quarter, as prices of raw materials are likely to remain steady in the near term. The company earlier reported a net profit of 149 million yuan in the first half, down 21 per cent from a year earlier, but gross profit margin rose 2.7 percentage points on lower raw materials prices. Qunxing Paper is currently debt-free and holds a net cash of HK$1.2 billion. It plans a capital expenditure of HK$656.1 million and HK$459.4 million respectively for this and next year.

Financials: Bank of Communications (3228 HK) China’s fifth-largest lender, recorded a net profit of 15.56 billion yuan for the first half, edging up 0.3 per cent from a year earlier. The company attributed the net profit, though lower-than-expected, to an offset of net interest margin squeeze by its growth in new loans. Earnings per share were 0.32 yuan. An interim dividend of 10 fen per share was declared.

Properties: Beijing North Star (588 HK) said it posted a 425 per cent surge in interim net profit to 786 million yuan, due to good sales in mainland properties. Contract sales amounted to 1.6 billion yuan in the first half, which accounts for 57 per cent of the company’s full-year target. Shanghai Forte (2337 HK) posted a net profit of 286 million yuan for the first half, surging 697 per cent year-on-year on a recovery of mainland property market and good sales.The developer had acquired three pieces of new lands in the period and its land reserve was now 10.8 million sq ft, it said.

Consumer: Golden Eagle (3308 HK) reported a net profit of 75 million yuan for the first half, down 78 per cent from a year earlier. No interim dividend was declared. Ju Teng International (3336 HK), a seller and manufacturer of computer shells, said its interim net profit grew 2.2 per cent year-on-year to HK$290 million for the year ended June 30.Turnover was down 8.9 per cent to HK$3.12 billion. The basic earnings per share was HK$0.283. The company has no plan to list in Taiwan, given that Hong Kong is more international, it said. Vinda International Holdings (3331 HK), one of China’s leading toilet paper, facial tissue and napkin makers, it expected net profit for the first half to grow significantly from HK$61.76 million a year earlier. The company attributed the improvement to low raw material costs and growth in sales. Vinda closed up 4.49 per cent at HK$5.12 yesterday on the news.

ZTE Corporation (763 HK), an I.T. hardware corporation in China, announced a first-half net profit of 783 million yuan, up 40 per cent from a year earlier. Earnings per share were 45 fen. The company proposes no interim dividend. ZTE said its net profit rise was attributable to the release of 3G licenses in the mainland which lead to an increase in the investment in 3G facilities.

BYD (1211 HK) announced yesterday the appointment of Mr. David L. Sokol as non-executive director of the company, effective from August 4. Sokol, 52, is chairman of MidAmerican Energy, Johns Manville and NetJets, each subsidiaries of Berkshire Hathaway, which is controlled by billionaire investor Warren Buffet.

Advanced Semiconductor Manufacturing (3355 HK)’s loss widened to 56.1 million yuan in the first half from 6.6 million yuan a year earlier on declining demand. The company, however, made a profit of HK$17.9 million in the second quarter, against a first-half loss of HK$80 million. The company expected to see a stable performance in the third quarter, it said.

China Shipping Development (1138 HK) reported a net profit of 613 million yuan for the six month ended June 30, plunging 80 per cent compared with a year ago. Earnings per share were 18 fen. The company proposes no interim dividend. The dive was mainly due to the shipping market downturn, the company said. The company expects its net profit for the first three quarters to drop 50 per cent from a year earlier.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Aug 18th, 2009

IPO: China Minsheng Banking Corp, the nation’s first listed non-state lender, plans to launch an initial public offering in Hong Kong to raise 20 billion yuan in the fourth quarter. The fund raising aims to replenish capital drained by rapid loan expansion in the first half. The nation’s banking and securities regulators have approved the share sale and the bank is reportedly filing an application with the Hong Kong bourse as soon as this week.

Property: China Properties Investment (736 HK) plans to sell up to HK$600 million worth of 2-year zero coupon convertible bonds. The bonds are convertible to 5.08 billion shares, representing 62.66 per cent of the enlarged issued share capital. The conversion price is HK$0.118 each, a 38.54 per cent discount to the last traded price. The net proceeds of HK$585 million would be used to fund the acquisition of an oil company. Trading in the company’s shares will resume today. SOHO China (410 HK) has agreed to acquire a top Shanghai office building owned by the real estate investment arm of Morgan Stanley for 2.45 billion yuan. The deal marks SOHO China’s first entry into the highly competitive Shanghai property market, in which some economists have already said properties are overpriced. The Exchange, a 52-storey office and retail complex, is also known as Dong Hai Plaza, but SOHO China will rebrand it as “The Exchange – SOHO” after the deal.

Utility: CLP Holdings (2 HK) said it posted a 42.3 per cent slump in interim net profit to HK$3.24 billion on the lower permitted return and weak electricity demand in China. The profit slump was also due to a one-off provision of HK$346 million for an Australian solar system investment, and currency fluctuations, the company said. Earnings per share were HK$1.34. An interim dividend of HK$1.04 per share was declared, unchanged from a year earlier.

Fufeng Group (546 HK) yesterday reported a net profit of 354 million yuan in the first half, three times of that of last year. Earnings per share were 21.32 fen. The company proposes an interim dividend of 1 HK cent per share.

Resource: Maanshan Iron & Steel (323 HK) recorded a first-half net loss of 795 million yuan, compared to a net profit of 2.24 billion yuan a year earlier.

PCCW (8 HK) and chairman Richard Li Tzar-kai’s appeal to Hong Kong’s highest court, which blocked the telecom operator’s HK$15.93 billion privatisation bid, was rejected by the Court of Appeal yesterday. The three judges are the same panel that earlier blocked the privatisation.

Qunxing Paper (3868 HK) recorded a net profit of 149 million yuan in the first half, down 21 per cent from a year earlier. Earnings per share were 14 fen. An interim dividend of 3.28 HK cents per share was declared.

Sinofert Holdings (297 HK) reported a net loss in the six months ended June 30 of HK$800 million. Loss per share was 11.8 HK cents. No interim dividend was declared. Sinofert attributed the loss to the poor economic environment. However, the company does not have any plan of reducing production scale.

Sichuan Expressway (107 HK) reported a net profit of 414 million yuan in the first half, up 34 per cent from a year earlier. Earnings per share were 16.2 fen. An interim dividend of 13 fen per share was declared.

TCL Multimedia Technology (410 HK) recorded a net profit of HK$140 million for the first half. Earnings per share were 14 HK cents. No interim dividend was declared.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times

Hong Kong Stock Market Wrap Aug 17th, 2009

E-commerce giant Alibaba.com (1688 HK), it would buy from its parent, Alibaba Group, a business management software division of Alisoft for 208 million yuan, in an effort to increase its appeal among customers during the ongoing downturn. Meanwhile, the company reported a 40 per cent growth in net profit to 608 million yuan in the first half. An interim dividend of 12 HK cents was declared.

Consumer: Anta Sports (2020), China’s largest sportswear retailer by market value, said net income for the first half rose 40 per cent to 608.3 million yuan, up from 434.3 million yuan a year ago. The Fujian-based company attributed the better-than-expected first-half profit to network expansion and stronger brand presence. Looking ahead, Anta said one of its development plans was to list in Taiwan. Beijing Jingkelong (814 HK), same-store sales declined 4 per cent in July and August, but expected improvement to be seen in September. The company plans a full-year capital expenditure of 280 million yuan, and aims to open eight new supermarkets and 30 convenience stores this year. Tingyi (322 HK), China’s largest packaged food maker, posted a 40.57 per cent increase in first-half net profit to US$179.4 million (HK$1.39 billion), up from US$127.6 million last year, thanks to improved beverage sales. The company said it would discuss whether to increase its production in the third quarter and had no plan for merger at this stage.

Cheung Kong Infrastructure (1038 HK) has agreed to act as a guarantor for its indirect wholly-owned subsidiary’s three-year syndicated term loan of A$510 million ($3.274 billion).Pursuant to agreement, it shall be an event of default if Hutchison Whampoa, CKI’s controlling shareholder holding a 84.58 per cent stake, ceases to own beneficially at least 30 per cent of CKI’s issued share capital. Meanwhile, CKI is said to be among several potential buyers interested in the UK electricity distribution network of French power utility EDF, put up for sale for around £4 billion.

China Insurance International (966 HK) recorded a net profit of HK$520.9 million for the first half, up 36.6 per cent from HK$381.3 million a year earlier. Earnings per share were 36.8 HK cents. No interim dividend was declared.

Property: China Overseas Land & Investment (688 HK), the Hong Kong-listed developer controlled by the construction ministry in Beijing, said first-half profit jumped 32 percent after home sales on the mainland reached a record. Net income climbed to HK$3.04 billion from HK$2.31 billion a year earlier.

Citic Pacific (267 HK) has agreed to sell its non-core business Cathay Pacific to Air China and Swire Pacific for HK$7.4 billion. Citic Pacific, which has suffered from foreign exchange losses, sold a 12.5 per cent stake in Cathay to the mainland flag carrier Air China for HK$6.34 billion and another 2 per cent stake to Swire Pacific for HK$1.01 billion. Both stakes were sold at HK$12.88 per share. Citic Pacific said it would focus on special steel, mineral resources and real estate sectors in future.

Power plant operator GCL-Poly Energy Holdings (3800 HK) yesterday said it expected first-half profit would more than double from a year ago, due to an increase in on-grid tariffs. The company said it recorded growth in sales revenues generated by adjustments to on-grid tariffs and steam prices. On-grid tariffs increased twice in July and August last year, and the average steam price for the first half this year was about 16 per cent higher than one year ago, it said.

Harbour Centre Development (51 HK) first-half net profit dived 20 per cent year-on-year to HK$230.6 million. The company said turnover and operating profit of its hotel segment fell by 22 per cent and 42 per cent respectively to HK$179.2 million and HK$41.4 million on a considerable drop in average room rates and occupancy. The segment was hard hit amid the global recession and human swine flu pandemic, it said. The company declared an interim dividend of 5 HK cents per share, unchanged from last year.

Bank: Industrial and Commercial Bank of China (Asia) (349 HK) its net profit ended June 30 edged up 1.5 per cent to HK$930.15 million, from HK$915.96 million a year ago. Earnings per share were 72 HK cents. The lender will pay an interim dividend of 28 HK cents per share, the same as last year.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times

Hong Kong Stock Market Wrap Aug 14th, 2009

HSI 20,891 +0.15% : HSCEI 11,899 unch : Turnover HK$62billion

Hong Kong opened up 200pts in the morning before falling away throughout the morning session. Afternoon session saw the market briefly slip lower before turning and gaining momentum to close the day in positive territory. Volumes retreated for the second day.

IPO: Sundart International (2288 HK), which is engaged in interior design and renovation for developers, was more than 720 times subscribed, attracting a combined HK$43.2 billion in funds. The international tranche of the offer was more than 10 times subscribed. Sundart is likely to price the shares at HK$4.18 each, the top end of the indicative price range, helping the firm to raise the maximum amount of HK$602 million from a share sale in Hong Kong. Sundart shares are set to commence trading on August 21. Evergrande Real Estate has changed its sponsors for its proposed Hong Kong listing. UBS withdrew last Friday while Goldman Sachs rejoined the listing plan. The sponsors of the developer’s listing are now Goldman Sachs, Merrill Lynch and BOC International. Evergrande planned to go public last year but the plan was shelved as the financial crisis hit. Sinopharm Holdings, the largest distributor in the Chinese pharmaceutical market, plans to raise up to US$700 million in its Hong Kong initial public offering next month. The company plans to issue H shares in September 25. China International Finance and UBS are the sponsors of its listing.

Resources: China Coal Energy (1898 HK), the listed entity of the country’s second-largest coal producer, first-half net profit rose 3.1 per cent to 4.35 billion yuan, helped by lower finance costs. Core operating profit, however, dropped 17.9 per cent year-on-year to 5.37 billion yuan due to lower sales volume and selling prices on falling coal exports. China Coal recorded a huge paper loss on China Cosco shares last year after the stock market bubble burst, but realized a 166 million yuan gain this year from selling the shares taking advantage of the market recovery. Sino Union Petroleum & Chemical (346 HK) has agreed to pay HK$4.8 billion for five mainland coal mines from Capital Kingdom, which is 67 per cent-owned by chairman Hui Chi-ming. Capital Kingdom bought last month the coal mines for merely HK$3.66 billion and would book a gain of HK$1.14 billion from the deal. Sino Union will pay by issuing HK$2.5 billion worth of new shares at 90 HK cents each and convertible notes. Trading in the company’s shares will resume today. Gold producer Zhaojin Mining (1818 HK), its first-half net profit surged 49 per cent to nearly 32 million yuan on a rise in self-mined gold output. Turnover surged 41 per cent to 1.06 billion yuan. Earnings per share jumped 46.67 per cent to 22 fen. No interim dividend was declared.

Insure: Ping An Insurance (2318 HK), China’s second-largest life insurer, said first-half net profit fell 45 per cent to 5.22 billion yuan because of higher costs and a lower profit contribution from realised equity investment gains. The Shenzhen-based insurer said it increased its equity investment amid the A-share market rally and lowered the proportion of its fixed-income asset holdings in the second quarter. Ping An declared an interim dividend of 15 fen, down 25 per cent from a year earlier.

Powers: Shanghai Electric (2727 HK) net profit for the six months to June fell 11 per cent to 1.37 billion yuan on falling power demand. The company proposed no interim dividend. Datang Power International Power Generation (991 HK) said first-half net profit amounted to 722 million yuan, up 53 per cent from a year earlier. The Beijing-based company, profit jump was due to higher power prices and lower coal costs that offset the impact of lower plant utilization. No interim dividend was declared. Meanwhile, Datang said parent China Datang Group had agreed to take a 40 per cent stake in its 16.2 billion yuan coal-to-chemicals project in Inner Mongolia.

Xiamen International Port (3378 HK), its interim profit for the year ended June 30 dived 64 per cent year-on-year to 25 million yuan due to profit reduction in its port service and material business. The company forecasts that profit for the first three quarters would drop 67 per cent.

Beijing Capital International Airport (694 HK), which operates the city’s airport, net profit for the six months to June surged 86 per cent to 105 million yuan because of increased traffic brought about by the central government’s stimulus measures. Revenue grew 15 per cent to 1.51 billion yuan. Earnings per share jumped 71 per cent to 24 fen. No interim dividend was declared.

Intime Department Store (1833 HK) has agreed to sell 50 per cent shares of Hangzhou tourist spot “Shopping Street” to its chairman Shen Guojun for 514 million yuan. The company sold the project because it was not a core business, and it had been making loss since it was acquired in December 2007.

Tianneng Power (819 HK) said net profit for the six months ended June increased 4.1 per cent from a year earlier to 126 million yuan. Earnings per share were 12.6 fen. The company proposes no interim dividend.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times

Hong Kong Stock Market Wrap Aug 13th, 2009

HSI 20,861.3 +426.06 +2.08% : HSCEI 11,900.15 +243.83 +2.09%

Alibaba.com (1688 HK), operator an online portal connecting millions of buyers and sellers, recorded a net profit of 514.1 million yuan for the first half, down 26.3 per cent compared with a year ago. A special dividend of HK$0.2 per share was declared to celebrate its 10-year anniversary.

Properties: Cheung Kong (1 HK) posted a net profit of HK$11.517 billion for the six months to June, up 5 per cent year-on-year. Turnover rose 18 per cent year-on-year to HK$12.14 billion Earnings per share were HK$4.97. An interim dividend of 5 HK cents per share was declared. Shanghai Forte Land (2337 HK) plans to apply to the China Securities Regulatory Commission for an A-share listing to float 285 million new shares. The proceeds would be used to pay off debts and fund new mainland property development projects. The proposed issue is subject to approval from shareholders and regulators.

Insurance: China Life Insurance (2628 HK), its unaudited accumulated premiums income for the first seven months totalled 191.1 billion yuan, down 5.86 per cent from 203 billion yuan a year earlier. Ping An Insurance (2318 HK) plans to spend 4.5 billion yuan to participate in a rights issue by its banking unit, Ping An Bank, in a bid to boost its banking business. The unit is planning to raise 5 billion yuan by placing 3.16 billion new shares with existing shareholders to boost its capital adequacy ratio for business expansion.

Banks: China Merchants Bank (3968 HK), the country’s fifth-biggest lender by market value, its board approved yesterday a plan to raise up to 18 billion yuan through a rights offer to boost its core capital. The bank would sell as many as 3.8 billion shares to the owners of A shares and H shares. Shareholders can subscribe for two new shares for every 10 shares they hold. Market watchers speculated before the Chinese lender would raise a fund of as much as 20.5 billion yuan. Chong Hing Bank (1111 HK), first-half net profit jumped 53.3 per cent year-on-year to HK$161 million, helped by a plunge in write-downs on securities available for sale and unrealized gains on securities on rising market prices. Earnings per share were 37 HK cents. An interim dividend of 8 HK cents per share was declared, down 47 per cent from a year earlier. Chong Hing has to pay HK$239 million for minibond repurchase agreement. Dah Sing Financial (440 HK) has agreed to buy 125 million shares issued by subsidiary Dah Sing Banking (2356 HK) for HK$1 billion in a share placement. The shares are priced at HK$8 each, representing 10.11 per cent discount to HK$8.9, Dah Sing Banking’s closing price yesterday. Dah Sing Financial’s holding in the subsidiary will increase from 70.86 per cent to 74.13 per cent after the share purchase. Wing Hang (302 HK), net profit for the six months to June dipped 45.6 per cent to HK$512.6 million. Net interest income fell 30.5 per cent to HK$1.16 billion. Under the minibond buy-back agreement, the lender has to pay HK$356.9 million. Wing Hang has made a less than HK$200 million write-down in the first half and believes there should be no future financial outlay. Earnings per share were HK$1.74. An interim dividend of 2 HK cents per share was declared

Resources: CNOOC (883 HK) had successfully made a new discovery of a middle-sized oilfield in the south of Shijiutuo Uplift in the north central of Bohai Bay. CNOOC has drilled wells on this structure before. The discovery well QHD35-4-3 drilled to a total depth of 2,215 metres and penetrated oil pay zones with total thickness of 21.4 metres. During the drill stem test, the well was tested to flow at an average rate of 1,700 barrels of oil and 400 thousand cubic feet of natural gas per day. Yanzhou Coal Mining (1171 HK), China’s fourth-biggest producer of the fuel, has agreed to buy out Australia’s Felix Resources for about A$3.5 billion (HK$21.7 billion) to secure supplies. Yanzhou will pay A$18 a share for Felix in cash, including dividends and stock in a unit. The price represents a premium of 6.5 per cent to Felix shares’ last traded price.

Hutchison Whampoa (13 HK) reported yesterday a net profit of HK$5.76 billion for the six months to June, down 33 per cent from a year earlier. Turnover was down 20 per cent to HK$141.03 billion. The company attributes the better-than-expected results to a drop in losses arising from its 3G businesses. Earnings per share were HK$1.35. The management declared an interim dividend of 5.1 HK cents per share.

Li & Fung (494 HK), the world’s biggest exporter of textiles and clothing, has reported a 13 per cent rise in first-half profit, boosted by lower operating costs. Net income rose to HK$1.4 billion in the first six months from HK$1.24 billion a year ago. Revenue dipped 2 per cent to HK$46.29 billion after some overseas customers went bankrupt. An interim dividend of 26 HK cents is declared.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times

Hong Kong Stock Market Wrap Aug 12th, 2009

HSI 20,435 -3.03% : HSCEI 11,656 -2.77% : Turnover HK$75.1 billion

Hong Kong market fell the most in three months, due to the sell off by mainland market. The Commerce Ministry in Beijing comments on China's efforts to boost domestic demand cannot completely offset slumping exports. The HSI finished down 638.97 points, falling off a 12-month closing high above 21,000 points on the previous day. Market feels that the index supported should be around 20,000 points in the short term, close to its 20-day moving average. Turnover rose sharply to HK$75.1 billion from Tuesday's HK$65.7 billion. HSBC (0005) and China Mobile (0941), which have both surged in recent sessions on mounting speculation of an impending A shares listing.

Property: Agile Property (3383 HK) has agreed to pay 360 million yuan for four commercial and residential sites in Shenbei district in Shenyang. The sites have a total area of 342,500 square metres and a gross floor area of 702,800 sq metres. The accommodation value of the sites is 512 yuan per sq metre. Swire Pacific (19 HK), a general trading house with interests in aviation, property and shipping, is selling US$500 million worth of 10-year dollar bonds. Initial price guidance has been indicated at 190 basis points over US treasuries for the transaction. The deal is being handled by HSBC and JPMorgan. Standard & Poor’s has rated it A-minus, while Moody’s has an A3 rating. The outlook is stable for both ratings.

Banks: HSBC (5 HK) has completed a mandatory tender offer for the remaining 10.11 per cent of the shares of PT Bank Ekonomi Raharja Tbk (Bank Ekonomi) held by the general public. The bank has bought about 269 million shares of Bank Ekonomi, a provider of commercial banking services in Indonesia, for IDR713.4 billion (US$71.6 million). This brings HSBC’s holding in the Indonesian bank to 98.96 per cent. HSBC was required to make a mandatory tender offer to public shareholders after it acquired 88.89 per cent of Bank Ekonomi on May 22. China Construction Bank (939 HK), the nation’s third-biggest bank, has agreed to buy out the consumer finance business of American International Group in Hong Kong. CCB Asia, a subsidiary of CCB, will buy 100 per cent of the shares of AIG Finance (Hong Kong), a wholly-owned subsidiary of AIG, for US$70 million in cash, plus the repayment of AIG intra-group indebtedness and deposit obligations of around US$557 million. Dah Sing Financial (440 HK) yesterday reported a 20 per cent decline in first-half net profit to HK$300 million, while Dah Sing Banking Group (2356) reported a 40.6 per cent drop in net profit to HK$307 million.

Auto: Great Wall Motor (2333HK) plans to sell 170,000 to 190,000 vehicles this year, according to deputy general manager Bai Xuefei. Meanwhile, rumour has it that the Hebei-based vehicle maker is mulling an A-share listing. Yet, Bai said the company saw no fund-raising need and did not have substantial details for the listing plan at the moment

Hong Kong Exchanges and Clearing (388 HK) earns HK$2.2 billion in the first half, a 26 per cent drop from last year. Second-quarter net profit rose 63.8 per cent to HK$1.37 billion from HK$834 million in the first three months of the year. The bourse operator will pay an interim dividend of HK$1.84 per share, 26 per cent lower than the HK$2.49 a year earlier. However, the payout ratio was kept at 90 per cent.

Telecom: Hutchison Telecom Intl (2332) has agreed to sell its controlling stake in Israeli mobile operator Partner Communications to local entrepreneur Scailex Corp, an importer of Samsung mobile phones, for US$1.38 billion (HK$10.76 billion). HTIL expects to book a pre-tax gain of US$1 billion on the 51 per cent stake sale. The deal might be completed in two to three months, it said. Scailex agreed to buy the Partner stake for 67.025 Israeli shekels (HK$135.28) a share, equal to Partner’s closing price of 67 shekels on Tuesday. Hutchison Telecommunications Hong Kong (215 HK) recorded a net profit of HK$256 million for the first half, up 3.6 per cent compared with a year ago. Earning per share were 5.32 HK cents. An interim dividend of 1.12 HK cent per share was declared.

Casino: Melco Crown (200 HK), a 34.1 per cent-owned associate of Melco International Development, plans to issue 37.5 million American depositary shares to raise as much as US$190 million (HK$1.48 billion). Each ADS will represent three ordinary shares, and will include option to issue an additional 3.75 million ADS in the event of strong demand from the investment community. The deal could raise up to US$220 million to help Melco repay debt.

Insure: Ping An Insurance (2318 HK), China’s second-largest insurer, will invest HK$23.25 million for a 50 per cent stake in a joint venture set up with a subsidiary of asset management company Value Partners Group. The company plans to launch exchange-traded fund (ETF) products in Hong Kong. The deal is subject to regulatory approval.

Shanghai Industrial (363 HK) Holdings has agreed to acquire from its parent two residential sites located in Qingpu district in Shanghai for 1.53 billion yuan. The sites have a total area of 950,000 square metres. The accommodation value of the sites is 1,500 yuan per sq metre.

Tencent Holdings (700 HK) an internet and telecom services provider, said first-half net profit jumped 89 per cent year-on-year to 2.26 billion yuan, boosted by strong second-quarter revenue growth for its paid internet services. The company’s second-quarter net profit was 1.2 billion yuan, leaping 85.2 per cent from a year earlier. No interim dividend was proposed.

Consumer: Wumart Stores (8277 HK), Beijing’s largest supermarket chain, yesterday announced that it would cumulatively raise about HK$1.65 billion from strategic investors, including a TPG-managed fund, for opening new stores and making acquisitions. TPG Asia V LP would buy HK$930 million of Wumart’s Hong Kong-listed stock, and a unit of Chinese private equity firm Hony Capital LP would buy HK$170 million of shares, the company said. These strategic investors’ shares would account for 10.9 per cent of the company’s total shareholding equity. Natural Beauty (157HK) said net profit for the six months ended June was HK$108.9 million, down 27 per cent from a year earlier. Revenue fell 19 per cent year-on-year to HK$255.3 million. Earnings per share were 5.446 HK cents. The company proposed an interim dividend of 3.5 HK cents per share.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times