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