Wednesday, August 19, 2009

Hong Kong Stock Market Wrap Aug 17th, 2009

E-commerce giant (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