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
