Friday, August 14, 2009

Hong Kong Stock Market Wrap Aug 13th, 2009

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