Hong Kong Stock Market Wrap Sept. 29th, 2009

Properties: China Aoyuan Property Group (3883 HK) announced that it has acquired a land lot in Shenyang, which is worth of 822 million yuan. The land lot will be used for developing a large-scale residential and commercial community. China Overseas Land & Investment (688 HK) has bought out Shell Electric Mfg (Holdings) Co (0081) for HK$3.4 billion. As China Overseas Land & Investment is only interested in the 70 per cent stake in China Everbright Real Estate Development Ltd owned by the fan and electric appliance maker Shell Electric, the fan and taxi business are transferred to its subsidiary Privateco.

Resources: China Materials (1893 HK) Company’s A share subsidiary Ningxia Saima Industry said it is seeking a 350 million yuan loan from Bank of Communications Ningxia Branch as working capital. The company has recently gained a 462 million yuan worth cement contract. Chongqing Iron & Steel (1053 HK) announced that it has sold its production facilities in Chongqing to CCB Financial Leasing Corporation Limited for 1.4 billion yuan. The company will borrow these production facilities from CCB on a rental basis. G-Resources (1051 HK) Group says its gold resources and silver resources have risen to 5.5 million ounces and 4.9 million ounces respectively, according to its latest assets report.

China Railway (390 HK) announced that it has won four bids for 11.67 billion yuan, which amount to 4.97 per cent of its revenue last year.

Far East Golden Resources Group (1188 HK) announced yesterday it plans to issue rights to raise no more than US$7.8 billion (HK$60.45 billion) to fund its automobile project in the US.

Grandtop International (2309 HK) chairman Carson Yeung Ka-sing Yeung said he will complete the stock transfer for the takeover of the Birmingham Club on October 13 at the earliest. Carson is keen to use the purchase of the club to boost links between English and Chinese football. He has bought a 29.9 per cent stake in Birmingham early in 2007.

Financials: ICBC (1398 HK) has entered into the sale and purchase agreement with Bangkok Bank Limited (BBL) that it will buy 19.26 per cent shares of ACL Bank from BBL for HK$813 million. ICBC plans to issue a voluntary tender offer over the purchase.

NWS (659 HK) has acquired 179 million shares of China Everbright International at HK$3.03 per share which amounted to HK$542 million on September 24. New World Development, which is the substantial shareholder of NWS, would become the major shareholder of China Everbright International upon the purchase.

Shougang Concord Grand (730 HK) has agreed to buy a plane from Deer Air Company Limited for 200 million yuan and will rent it back to Deer Air for 36 months. Shougang Concord Grand will post a rental fee of 23 million yuan and handling fee of 4.25 million yuan in the deal.

Shui On Construction (983 HK) has previously bought a piece of land in Beijing with its co-developer Yida Real Estate from Pacific Century Premium Developments Ltd (0432). Shui On has a 65 per cent stake in the project while the latter has 35 per cent of shares. The two companies are offering a US$37.5 million and US$20.2 million shareholder loan respectively to raise capital for project development.

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

Hong Kong Stock Market Wrap Sept. 28th, 2009

Alibaba (1688 HK), China’s top e-commerce company, has agreed to buy 85 per cent stake in China Civilink for US$63.75 million (HK$494 million). Alibaba said it will acquire 99 per cent stake in China Civilink if the latter can fulfil the required targets. China Civilink operates as an e-commerce company that provides domain name registration, website hosting and design, with 200,000 corporate users.

Bright Prosperous (723 HK) has signed a memorandum of understanding with a timber company in Brazil on September 22 to acquire its 137,500 hectare timber business. The deal is worth of HK$342.5 million.

China All Access (633 HK) announced yesterday that its net profit surged 263 per cent to about 21 million yuan for the first half, compared with a year ago. Earnings per share were 2.8 fens.

China Petroleum & Chemical Corp (Sinopec) (386 HK), Asia’s biggest refiner, said it is still in talks over the Angola oilfield acquisition with Marathon Oil Corp. Marathon Oil had previously sold a 20 per cent stake in Block 32 to Sinopec and China National Offshore Oil Corp (0883) for US$1.3 billion (HK$10. billion). Rumour has it earlier that Angola's state-run oil company Sonangol would like to block the sale by exercising its right of first refusal while Sinopec said the deal in still ‘on going’.

China Qinfa (866 HK) has jointly invested with Hebei Port Group Co in a Zhuhai port which costs 1.5 billion yuan while China Qinfa has paid 900 million yuan. The company expects the port to start operation in 2012 with a 20 million tonnes throughput.

China Southern Airlines (1055 HK) announced that it has sold a 50 per cent stake in its joint venture MTU Maintenance Zhuhai Company to its parent for 1.61 billion yuan. MTU Maintenance Zhuhai Company is a joint venture that provides repairs, overhauls and maintenances of jet engines.

China South Locomotive & Rolling (1766 HK) Stock said its affiliates have signed contracts, which are worth of 72.4 billion yuan, with the Wuhan and Shanghai Railway Bureau. The first batch of multiple units to Wuhan will be delivered in the first half of 2010 and that of all products by the end of 2011. Meanwhile, 80 high-speed trains will be delivered from July 2012 to September 2014 in Shanghai.

Dream International (1126 HK) has recorded a net profit of HK$38.93 million for the first half, compared with a loss of HK$51.03 a year ago. Earnings per share were 5.8 HK cents. No interim dividend was declared.

HSBC (5 HK) has appointed Mark McCombe, former global chief executive of global asset management, to be the new chief executive with effect from February next year. McCombe will take up some of the responsibilities of Peter Wong Tung-shun, currently the Asia-Pacific executive director, who will become the Asia-Pacific chief executive next year.

New World Development (17 HK) plans to develop waste-to-energy business in the mainland through Hembly International Holdings (3989) as green issue is gaining public concern. Hembly’s subsidiary Biomax Environment currently has six waste-to-energy projects in the mainland.

RCG (802 HK) Holdings is seeking to raise HK$194 million by placing 20 million new shares at HK$9.69 each. Major shareholder Tony Chan Chun-chuen’s stake will dip to 23.22 per cent from 25.05 per cent upon the share palcement.

TC Interconnect Holdings (515 HK) announced that it will form a joint venture with the LED lighting producer Oriental Opto Technology Limited. TC Interconnect will have a 70 per cent take of the joint venture, amounted to 50 million yuan. The joint venture would be expected to gain lighting contracts in Guangdong Qingyuan and Shenzhen.

Top Form International Limited (333HK) has recorded a net loss of HK$12.61 million for the year ended June 30, compared with a profit of HK$57.97 million a year ago. Loss per share was 1.2 cents. A final dividend of 2.5 cents per share was declared.

Travelsky Technology (696HK) and its four former directors were criticized for violating rules of listing, according to the HKEx. It is said that the company has delayed to disclose its related deals for up to one year and seven months during 2004 and 2007.

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

Hong Kong Stock Market Wrap Sept. 25th, 2009

CNPC’s (135 HK) subsidiary CNPC Shennan Oil Technology Development Ltd has acquired liquefied natural gas assets in Hannan province for 200 million yuan. The liquefied natural gas factory produces 80,000 tonnes of gas annually.

Founder Holdings (418 HK) has enlarged its net loss to more than HK$15 million for the first half compare with a year ago; while EC-Founder (0618) has recorded a net profit of over HK$17 million, sliding 45 per cent year-on-year. Both companies declare no interim dividend.

Global Flex Holdings (471 HK) Limited hopes to return to the black by developing mobile television system developed by the China Mobile Multimedia Broadcasting. The company recorded a net loss of US$17.39 million (HK$135 million) for the first half, compared with a loss of US$35.02 million a year ago. Loss per share was US$0.011. No interim dividend was declared.

Lonking (3339 HK) has recorded a net profit of 331.18 million yuan for the first half, diving 40.17 per cent compared with a year ago. Earnings per share were 0.17 yuan. An interim dividend of HK$0.065 per share was declared.

Silver Base Group (886 HK) has made an announcement in response to a recent rumour saying the company was involved in fictitious export transactions, defrauding customs department and smuggling; and the company was involved in the investigation by the China Securities Regulatory Commission (CSRC) related to the case of Wuliangye Yibin, an A-share company listed on Shenzhen Stock Exchange. Silver Base denies the rumour and is considering to take legal action in order to protect the interest of the company and its shareholders.

Top Form International (333 HK) has recorded a net loss of HK$12.61 million for the first half, compared with a net profit of HK$57.97 a year ago. The company attributes the loss to fees of ending its brand business and annual write-downs. An interim dividend of HK$0.025 per share was declared.

Blu Spa Holdings (8176 HK) posted a surge in its net profit to HK$11.41 million for the first half, compared with a year ago. Sales revenue rose more than a double to HK$49.29 million. Earnings per share were 2.8 HK cents. No interim dividend was declared.

Bright International Group (1163 HK), a lighting product manufacturer, announced that it has bought six gold mines in Hebei province and two in Shandong for HK$7.4 billion. The deal was paid by cash, promissory notes and the issues of convertible notes.

China Mobile (941 HK) announced yesterday that its OPhone will go on sale in Shanghai. The Shanghai division of China Mobile will offer a subsidy of 1,800 yuan to each purchaser, Xinhua quoted sources as saying. The subsidy includes a fee waiver of 1,500 yuan for voice usage and 300 yuan for data services.

Mayer Holdings (1116 HK) recorded a net loss of 65.6 million yuan for the first half, compared with a year ago. Loss per share was 1.14 fens. No interim dividend was declared.

Tingyi (Cayman Islands) Holding (322 HK) plans to list in its hometown Taiwan. The food and beverages producer plans to raise NT$10 billion (HK$2.4 billion) through issuing TDR in the Taiwan stock market. The size of the fund makes the deal the largest of its kind in Taiwan.

Sinopharm Group (1099 HK), a newly listed company on the Hong Kong bourse, announced yesterday that its net profit surged 44.6 per cent to 477 million yuan for the six months ended June 30, compared with a year ago. Earning per share were 0.29 yuan, surging 45 per cent from a year ago.

Wing On Travel Holdings (1189 HK) recorded an increase in its net loss to HK$115 million for the first half, compared with a net loss of HK$80.43 million last year.

Sales revenue dropped 17 per cent to HK$883 million. Loss per share was 1.26 HK cents. The company proposes no interim dividend.

Zhongda International Holdings (909 HK) announced that it has recorded a net loss of 16.47 million yuan for the first half, against a net profit of 11.1 million yuan last year.

Sales revenue was 130 million. Loss per share was 3.1 fens. No interim dividend was declared.

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

Hong Kong Stock Market Wrap Sept. 24th, 2009

IPO: Mainland developer Mingfa Group plans to list in the Hong Kong bourse in October to raise as much as HK$8 billion. The group will have its listing hearing next week.

China Cosco Holdings (1919 HK), the flagship of the country’s premier shipping conglomerate, said losses recorded in the container business in the second quarter has been reduced. The largest mainland port operator said it has raised the container transportation fee for the European routes twice. It expects the market and revenue from the container business to improve in the third quarter which is traditionally the peak season of container industry.

Rumour has it that China Mobile (941 HK) would lower its international, Hong Kong, Macau and Taiwan roaming fee by 50 per cent to 80 per cent at most in order to survive in the 3G operator battle in mainland.

A subsidiary of China Overseas Land & Investment (688 HK) has won a land bid in Shanghai. The land is worth of 7 billion yuan and will be co-developed by China Overseas Land & Investment, China State Construction Engineering Corporation and China Construction Eighth Engineering Division. This co-development project costs 10.3 billion yuan while the company will be responsible for 5.15 billion yuan.

Hembly International (3989 HK) trading resumes yesterday after suspension for an acquisition of Smartview Investment Holdings, a waste-to-energy business, for HK$1.15 billion. The company price jumped 83.67 per cent target price close at HK$1.8 yesterday.

KWG Property (1813 HK) said it has entered into another agreement with Dongling Holding for the acquisition of 100 per cent equity interest in Guangzhou Lihe, from an originally 51 per cent agreement. The project is a residential, commercial and hotel development project and the construction has commenced.

Minmetals Land (230 HK) recorded a 51 per cent jump in its net profit to HK$40.96 million for the first half, compared with a year ago due to the surging income from real estate business. Earnings per share were 3.67 HK cents. No interim dividend was declared.

Minmetals Resources (1208 HK) announced yesterday that its net profit fell 11 per cent to HK$169 million for the first half, compared with a year ago on the contracting aluminium oxide market. Earnings per share were 8.36 HK cents. The company proposes no interim dividend.

Financials: People’s Insurance Co.Group of China, the state-run parent company of PICC Property & Casualty Co (2328 HK), has completed its restructuring into a stockholding company. Rumour has it that the group plans to list in both Hong Kong and Shanghai bourse seeking for strategic investors for fund raising.

Real Gold Mining (246 HK) is seeking as much as HK$925.2 million financing through a share placement.

Regal REIT (1881 HK) said chief executive officer Kai Ole Ringenson has tendered his resignation in order to pursue other interests. His resignation will take effect from March 1 next year and he will act as a non-executive director of the company.

SJM Holdings (880 HK) announced yesterday that it will issue 6-year convertible bonds worth of HK$2 billion to fund projects in Macau and daily operation. The convertible bonds price at HK$5.13 to HK$ 5.35 per share. Deutsche Bank will be in charge of the issuing.

Electronics manufacturer Skyworth Digital Holdings (751 HK) plans to stop producing CRT TVs in 2010, earlier than the company’s previous expectation. The producer would change the CRT TV production line to LCD TV which can product 10 million televisions annually.

Walter Ping-sheung Kwok, non-executive director of Sun Hung Kai Properties (16 HK), has reduced his stake in the company from 42.88 per cent to 42.42 per cent, after he sold 11.744 million shares of the company yesterday. No trading share price was disclosed.

Wumart (8277 HK) said it has discussed with Times Limited about its possible acquisition of the latter preliminarily. However, Wumart said no formal proposal was made for acquisitions after the discussion.

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

Hong Kong Stock Market Wrap Sept. 23rd, 2009

361 degrees International (1361 HK), a newly listed company, announced yesterday that its net profit surged 253.2 per cent to 630 million yuan for the first half, compared with a year ago. Earnings per share were 42.1 fens. An interim dividend of 7.4 HK cents per share was declared. The sportswear company expects to record a 30 per cent growth in sales and to open up to eight hundred new outlets each year.

Aeon Credit Service (Asia) (900 HK) reported yesterday that its net profit fell 16.5 per cent year-on-year to about HK$123 million for the first half. Earnings per share were 29.57 HK cents. An interim dividend of 16 HK cents per share was declared. The lender attributed the drop to the contraction of lending due to increasing numbers of individual bankruptcy.

Alltronics Holdings (833 HK) recorded a net profit of HK$4.15 million for the first half, compared with a loss of HK$6.34 million a year ago. Earnings per share were 1.32 HK cents. An interim dividend of HK$0.02 per share was declared. The company said it would maintain a 40 per cent dividend policy, taking HK$6.2 million out of HK$59 million as dividend.

China Everbright International (257 HK) has raised up to HK$1.37 billion by selling 450 million shares at a price ranging from HK$3.03 to HK$3.07 each, a discount of up to 5.31 per cent to its closing price of HK$3.20. The proceeds will be used for project financing and working capital.

China Shanshui Cement (691 HK) has raised up to HK$1.33 billion by selling 240 million shares at a price ranging from HK$5.5 to HK$5.59 each, a discount of up to 2.7 per cent to its closing price of HK$5.65. The proceeds will be used for project financing and working capital.

Auto: Chinese carmaker Geely Automobile (175 HK) has issued convertible bonds and warrant to Goldman Sachs Capital Partners VI Fund to raise US$330 million (HK$2.586 billion) to fund its capital expenditures and potential acquisitions. Geely’s shares surged 19 per cent to close at HK$2.13.

Gome Electrical (493 HK) Appliances announced yesterday that it has issued 5-year convertible bonds worth of HK$2.39 billion to JP Morgan to raise HK$2.05 billion. The company will have to issue 956 million new shares in the future if the bonds are fully converted.

Great Wall (74 HK) Technology recorded a net profit of 130 million yuan for the first half, sliding 33.4 per cent compared with a year ago on declining exports. Earnings per share were 10.87 HK cents. No interim dividend was declared.

Greentown China (3900 HK) won a land bid in Suzhou yesterday, acquiring two land lots which are 4.81 million square metres in total. China Resources Land(1109) and Sun Hung Kai Properties (0016) were also major competitors in yesterday’s land bid.

Kith Holdings (1201 HK) recorded a 16 per cent slide in its net profit to about HK$30 million for the six months ended June 30, compared with a year ago. Earnings per share were 11.49 HK cents. The company proposes an interim dividend of 2.2 HK cents per share.

PetroChina (857 HK) said it plans to sell 330-day bills worth of 30 billion yuan on the interbank market next Tuesday. The proceeds will be used to supplement working capital, the oil producer said.

Shell Electric MFG (81HK) recorded a 78 per cent drop in its net profit to about HK$34 million for the first half, compared with a year ago on rising costs. Earnings per share were 6.5 HK cents. An interim dividend of 2 HK cents per share was declared.

Standard Chartered (2888 HK) will submit listing documents to Indian regulator as early as this week, becoming the first foreign company to list in India, sources said.

TLT Lottotainment (8022 HK) who plans to expand its business to online lottery services, said it has gained regulatory approval to launch seven online mobile lottery games in the mainland. The company believes the game series could boost its sales.

Vital Pharmaceutical (1164 HK) announced its interim net profit fell 34 per cent to HK$37.25 million for six months ended 30 June. Turnover slid 25 per cent to HK$247.08 million. Earnings per share were 2.4 HK cents. No interim dividend was declared.

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

Hong Kong Stock Market Wrap Sept. 22nd, 2009

IPO: Metallurgical Corp (1618 HK) of China’s H shares grey market almost bottomed yesterday. Dragged down by the 8.5 per cent decline in the A shares market, its grey market price once fell below the HK$6.35 offer price.It is said that grey market of Sinopharm (1099 HK) yesterday closed at HK$20.15, 26 percent higher than its offer price of HK$16. Shareholders could earn a paper gain of HK$1,660 per board lot of 400 shares.

Properties: The newly listed mainland developer Baolong (1238 HK) expects to earn 3 billion yuan profit this year, offering price between HK$3.3 and HK$4.9 per share. The developer has a land reserve of 7 million square meters and sees it adequate for development for the future three years.

China Agrotech (1073 HK) said it expects to record a lower net profit for the first-half. The company attributed the decrease in its net profit to the reservation of profit for impairment as the prices of fertilizers and other products drop. The company says its financial and operation status are normal and stable at present.

Telecom: China Unicom (762 HK) announced that it has recorded a 19 per cent increase in the number of new user in August by 800,000 users. Even though it is the lowest growth rate among three operators in the mainland, the operator believes the launching of 3G service on the national day and the sales of iPhone at lower prices might improve the subscription next month.

Alltronics (833 HK) reported yesterday that its net profit jumped to HK$4.15 million for the first half, compared with a year ago. Earnings per share were 1.32 HK cents. An interim dividend of 2 HK cents was declared.

CLP holdings (2 HK) has gained approval from the Executive Council on extending its contract of the supply of nuclear electricity from Daya Bay Nuclear Power Station for another term of 20 years from May 7 in 2014 to May 6 in 2034.

CT Holdings (1008 HK) announced yesterday that its net profit slumped 24 per cent to HK$92.53 million for the first half, compared with a year ago. Earnings per share were 5.7 HK cents. The company proposes no interim dividend.

Fu Ji (1175 HK) Catering said yesterday it has to delay the announcement of its first quarter results which were originally scheduled on or before September 18, yet it did not give out a timetable. The group said the delay is due to the poor health condition of one of the major financial officers who cannot perform his duty.

Fushan International Energy (639 HK) posted a net profit of HK$769 million for the first half, compared with a loss of HK$19.63 million a year ago. Earnings per share were 16.82 HK cents. An interim dividend of 10 HK cents was declared. The company attributed the turnaround to the stimulus measures of government which increases the demand for coal energy products.

GCL-Poly Energy Holdings (3800 HK), the mainland's largest producer of solar power panels raw material polysilicon, says the company has already accumulated long-term contracts worth of US$23.7 billion (HK$183.6 billion) from its downstream customers and has received 3 billion yuan deposits for the contracts. The chairman Zhu Gongshan says it has given discounts to their customers during the financial crisis and prolonged the duration of long-term contract from 8 years to 15 years. The company is seeking to cut its power expenses through direct purchase deals with power generators to combat declining margins amid industry oversupply.

Financials: Hang Seng Bank (11 HK) appointed Jethro Lau to be the vice chair of the bank in China, managing commercial finance business. Liu was a former staff of HSBC Holdings (0005) and DBS Bank. The lender has expanded its China senior team by increasing the number of vice chair from three to four. Including chair Dorothy Sit, all five seniors come from parent HSBC Holdings. Hong Kong Exchanges and Clearing (388 HK) yesterday introduced guidelines on “flexible index options” trading for market consultation. Flexible index options are Hang Seng Index and H-shares Index options contracts with customized strike prices and expiry months decided by buyers and sellers. HKEx says buyers and sellers could trade on the open platform through block trade facilities after the approval from the regulator.

Renhe Commercial (1387 HK) recorded a 152 per cent surge of the net profit to 708 million yuan for the first six months ended June 30, compared with a year ago. The company attributed the profit to the revenue of selling franchises. Earnings per share were 3.54 fens. The company proposes no interim dividend.

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

Hong Kong Stock Market Wrap Sept. 21st, 2009

Banks: China Construction Bank (939 HK) announced yesterday, as supported by the Ministry of Finance, the maturity date of the bank’s ten-year bond issued by China Cinda Asset Management Corporation, in a book value of 247 billion yuan, will be extended for a further period of ten years and the interest rate will remain unchanged at 2.25 per cent per annum.

Properties: China Resources Land (1109 HK) plans to refill its land bank by reserving ten billion yuan for future acquisition of land lot regarding the rising sales in the property market. The company also plans to buy premium land lot from its parent in the major cities in the mainland. KWG Property (1813 HK) won a bid of a 5162 square-metre land lot in Guangzhou for 465 million yuan yesterday. The company plans to develop serviced apartment in this land lot and sets the price at 35,000 yuan per square metre. The sales will begin in 2011.

Telecom: City Telecom (1137 HK) said it expects its net profit for the 12 months ended August 31 to surge more than 50 per cent on improvements in its fixed-line business and a HK$31.3 million one-off gain from a bond buyback, which means its net profit will rise to more than HK$187.79 million, based on last year’s earnings. Smartone Telecommunications (315 HK) announced that it has gained approval from regulatory to launch 3G networks in Macau in 2010. The operator budgeted HK$180 million for the constructing of 3G networks and launching of 3G services.

Auto: Dragon Hill Wuling (305 HK) Automobile recorded a net loss of 41,400 yuan for the first half, compared with a profit of 8.41 million yuan a year ago. Loss per share was 0.045 yuan. No interim dividend was declared. Geely Automobile Holdings Ltd (175 HK), the mainland’s biggest privately owned carmaker’s Hong Kong-listed arm, is in talks to sell HK$1.94 billion worth of convertible bonds and call warrants to a private equity fund of the Goldman Sachs Group Inc, according to Reuters. Geely would expand its production capacity, set up news plants and acquire automobile-related assets from its parent by using the fund raised in the sales.

China Everbright International (257 HK) has won the bid of the second drainage plant project in Dezhou for 58 million yuan.

GCL-Poly Energy (3800 HK) recorded a net profit of 71.8 million yuan for the first half, rising more than a double on surging prices in electricity and steam. No interim dividend was declared.

Lumena Resources (67 HK) announced yesterday its net profit surged 20.9 per cent to 255 million yuan for the first half, compared with a year ago. Revenue generated from medical use of thenardite rose to 21.6 per cent while gross margin jumped 2.3 per cent to 72.4 per cent. No interim dividend was declared.

Modern Media Holdings (72 HK) recorded a net loss of 9.5 million yuan for the first half on a cut of expenditure from its advertising clients. Revenue dropped 14 per cent to 136 million yuan.

PMG (379 HK) announced yesterday that its two subsidiaries Betterment and One Express, sold 251 million stake in China Conservational Power for HK$40 million at 15.9 HK cents per share. PMG said the sales can help to strengthen cash flow in the company and the fund raised would be used for operating expenditure and future investment.

Semiconductor Manufacturing International (981 HK) recorded a net loss of HK$2.14 billion, a further 2.2 per cent drop of the net loss last year. No interim dividend was declared.

Consumer: Wumart Stores (8277), a Chinese retailer backed by private equity giant TPG Capital, is likely to acquire smaller rival Times Ltd (1832) for around US$600 million (HK$4.68 billion) to expand its national distribution network. Wumart and Times would merge and the smaller unit would be delisted from the Hong Kong stock exchange if the deal goes through.

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

Hong Kong Stock Market Wrap Sept. 18th, 2009

IPO: Mainland property developer China Greencity plans to issue H shares within two to three years in order to raise financing for its hotel and residence projects. The developer said it is restructuring at this stage and thus would not list in Hong Kong this year. The Fujian-based real estate company Powerlong Group plans to list on the Hong Kong bourse. The company concentrates on the development of commercial projects, such as shopping mall leasing. It has a land bank of 78 million square metres in the mainland.

Consumer: AEON Stores (Hong Kong) Co. (984 HK) Limited recorded a net profit of HK$55.69 million for the first half, sliding 49.4 per cent compared with a year ago.

Earnings per share were 21.42 HK cents. An interim dividend of 9.6 HK cents per share was declared. Legend Holdings (992 HK), the parent company of Lenovo Group, hopes to list in Hong Kong as a whole in three to six years. The company would concentrate on clean energy and environmental protection, new technology, new materials, financial services and businesses linked with internal demand.

Auto: Brilliance China Automotive Holdings (1114 HK) Limited posted a net loss of 386.01 million yuan for the first half, compared with a profit of 282.94 million yuan a year ago. Loss per share was 0.0973 yuan. No interim dividend was declared.

Properties: China Resources Land (1109 HK) recorded a net profit of HK$1.319 billion for the first half of 2009, surging 59 per cent compared with a year ago. Earnings per share were 27.53 HK cents. An interim dividend of HK$0.054 per share was declared. The company said it has a land bank of 25.324 million square metres and will continue to buy land in the second half. Rumour has it that Mr Walter Kwok, non-executive director of SHK Properties (16 HK), plans to purchase China Resources Cement (1313) for HK$390 million. The cement maker is the biggest producer in the southern region and was not affected by the over-production rumour.

Telecom: China Unicom (762 HK) has set its 3G-iPhone price at $1999 yuan the least, together with a 2-year contract, according to mainland newspapers. The phone operator would launch the iPhone sales in the fourth quarter. Centron Telecom (55 HK) International recorded a 57 per cent rise in its net profit to 83 million yuan for the first half, compare with a year ago. Revenue surged 52 per cent to 563 million yuan. The gross margin dropped 2 per cent. No interim dividend was declared. The company said it will phase out products with lower gross margins while developing products, such as wireless coverage products with higher gross margins.

Gaming: Casino operator Galaxy Entertainment Group (27 HK) recorded a net profit of HK$1.06 billion in the first half on gains from a debt buyback and cost control, after reporting a loss a year earlier. Earnings before interest, tax, depreciation and amortisation (ebitda) surged 91 per cent to HK$507 million for the six months to June, compared with HK$242 million the previous year. Shun Tak Holdings (242 HK), the ferry operator and property developer controlled by Macao billionaire Stanley Ho’s family, will issue HK$1.4 billion of convertible bonds to fund investments. The 5-year Hong Kong dollar bonds will be convertible into shares of Shun Tak at a price of HK$8.18. The company said the capital will be used for general working capital and to finance new investment opportunities. Credit Suisse Group AG is the lead manager of this convertible sale.

Lonking Holdings (3339 HK) said it is expected to record a half-year net profit considerably lower than that as compared with the first six months last year. The decrease in net profit was primarily attributable to the reduction in foreign exchange gain; and the fair value adjustments of the derivative financial instrument embedded with the outstanding convertible bonds of the company. Melco International (200 HK) development announced that it would offload its entire shares of Value Convergence Holdings (0821) to raise HK$ 309 million. Melco, the largest single shareholder in Value Convergence, is looking to sell its 43.24 per cent stake for HK$1.92 a share, a 6.3 per cent discount of the price on Friday.

China High Speed Transmissions Equipment (658 HK) announced its net profit rose 0.7 per cent to 254 million yuan for the first half, compared with a year ago. Earnings per share were 0.2 yuan. No interim dividend was declared. The company added that it will continue to raise sales overseas and expand its market share in the mainland.

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

Hong Kong Stock Market Wrap Sept. 17th, 2009

China Metal Recycling (773 HK) recorded a net profit of HK$189 million for the first half, leaping 35.4 per cent compared with a year ago due to a higher-than-expected economic growth in the mainland. Earnings per share were 26.39 HK cents. No interim dividend was declared.

Utility: China Power International development (2380 HK) announced yesterday that its net profit rose to 152 million yuan for the first half, against a net loss of 249 million yuan last year. The company attributed the profit to the higher electricity prices in the mainland. Earnings per share were 4 fens. No interim dividend was declared.

Auto: Geely Automobile’s (175 HK) executive director Mr Lawrence Ang said Geely had never approached Magna International on the takeover of Opel. Yet, he explains that the trade suspension in the Hong Kong bourse is mainly due to the issue of its convertible bonds but not the matter of takeover.

Global Bio-Chem Technology (809 HK) reported a decline in its interim net loss to HK$91 million for the first time since its listing on the Hong Kong bourse, dragged down by the global economic downturn. Losses per share were 3.9 HK cents. No interim dividend was declared. Meanwhile, its subsidiary Global Sweeteners Holdings Limited (3889) recorded a 97 per cent plunge in its first-half net profit to HK$4 million due to the financial tsunami and milk scandal in the mainland.

Great Eagle (41 HK) chairman Mr. Ka Shui Lo M.D. said yesterday that Great Eagle is interested to list on the planned international board of the Shanghai bourse due to the higher valuation in A shares market. In addition, listing on the international board of the Shanghai bourse may help the company’s development and raise capital in the mainland, the chairman said.

Properties: Greentown China (3900 HK) recorded a net profit of 323 million yuan for the first half, sliding 5 per cent compared with a year ago. Earnings per share were 21 fens. An interim dividend of 9.6 HK cents per share was declared. Shimao Property (813 HK) recorded a rise in its net profit to 1.199 billion yuan for the first half, surging 30.5 per cent compared with a year ago. Earnings per share were 35.6 fens. An interim dividend of 10 HK cents per share was declared. The developer is confident of the mainland property market and plans to raise its sales target from 17 billion yuan to 20 billion yuan for 2009.

Hong Kong Exchanges and Clearing (388 HK) Limited’s subsidiary Hong Kong Securities Clearing Company Limited (HKSCC) and the National Depository Center (NDC) which is part of the MICEX Group, an exchange operator based in Russia, signed a Memorandum of Understanding on cooperation and the exchange of information. HKSCC Chief Executive Mr Greiner said the MOU helps HKSCC to collaborate with MICEX, strengthen relations between Hong Kong and Russian settlement institutions and promote the two markets’ healthy development.

K. Wah International (173 HK) posted a net profit of HK$155 million for the first half, sinking 38.2 per cent compared with a year ago. Earnings per share were 6.27 HK cents. An interim dividend of 1 HK cent per share was declared. Chairman Lui Che-woo said the group hopes to list on the Shanghai bourse in five to ten years. The company may raise the weighting of its mainland business, depending on the availability of opportunities.

Luen Thai (311 HK) announced yesterday that its net profit rose 5.29 per cent year-on-year to US$7.47 million for the first six months ended June 30 Earnings per share were 0.75 US cents. An interim dividend of 0.224 US cent per share was declared.

Pan Asia Environmental (566 H) Protection announced its net profit rose 56.5 per cent to 35.5 million yuan for the first six months ended June 30. Earnings per share were 4.44 fens. No interim dividend was declared.

Rumour has it that PCCW (8HK) plans to partner with Telkom, a South African phone company, to expand in Africa, Business Report said. It said that these two firms, which both have operations in Africa, hope to enter into a cooperation agreement similar to the one Telkom has with US firm AT&T. Telkom Chief Executive Reuben did not confirm or deny the talks while PCCW refused to comment.

Logistics: Sinolink Worldwide (1168 HK) posted a net profit of HK$498 million for the first half, rocketing 570 per cent compared with a year ago. Earnings per share were 15.16 HK cents. No interim dividend was declared. The company plans to bid 2 projects in shanghai and 1 project in Shenzhen in the near term and says it has no plan to issue bonds due to a higher cost. Transport International (62 HK) posted a 25 per cent drop in its net profit to HK$340 million for the first half, compared with a year ago on the decrease in its revenue generated from property sales. Earnings per share were 6 HK cents. An interim dividend of HK$0.3 per share was declared. Bus business contributed HK$310 million revenue to the company, which is 10.3 times more than the figure last year, due to the cut of oil price.

Wharf (4 HK) announced that it has succeeded in bidding for a site in Tianjin with China Merchants Property at a cost of 641 million yuan.

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

Hong Kong Stock Market Wrap Sept. 16th, 2009

Beijing Enterprises (393 HK) announced yesterday that its net profit surged 11.3 per cent year-on-year to HK$1.42 billion for the first half on higher income from gas and beer sales. Earnings per share were HK$1.25. An interim dividend of 20 HK cents per share was declared.

Airlines: Cathay Pacific (293 HK) plans to sell 12.45 per cent stake in Hong Kong Aircraft Engineering Company (0044) at HK$91.83 per share, a 1.58 per cent discount to yesterday’s closing price of HK$93.30. Cathay Pacific said the deal can boost its cash preservation during the downturn and help to maintain a healthy level of its assets and liabilities. It expects to raise HK$1.9 billion and gain a profit of HK$1.271 billion from the sales.

Resources: China National Materials (Sinoma) recorded a net of 308.88 million yuan for the first half, edging up only 1.46 per cent compared with a year ago on a drop in overseas demand for glass-fiber. Earnings per share were 0.086 yuan. No interim dividend was declared. Sinoma expects its export sector to rebound in the second half and plans to increase its overseas market shares from 34 per cent to 50 per cent. China Nickel Resources (2889 HK) Holdings plans to acquire the Lianyun Port iron gold project for 196 million yuan. The 1,080,000-square-meter project is still constructing and is expected to produce 1 million tones nickel-iron products upon completion. CNPC (Hong Kong) (135 HK) has reached an agreement with China Petroleum Pipeline Bureau to acquire its 49 per cent stake in China Oil and Gas Co for HK$695 million.

Properties: China Overseas Land & Investment (688 HK) confirmed yesterday that it has bought 157 million shares or a 29.99 per cent stake in Shell Electric Mfg (Holdings) Co. (0081) for HK$450 million. The deal costs HK$2.90 per share, a 23 per cent discount to their last traded price of HK$3.75. Shell Electric, a fan and electric appliance maker, owns 70 per cent of China Everbright Real Estate Development Ltd., which holds and developes property projects in major China cities including Guangzhou, Beijing and Shanghai. Midland (1200 HK) recorded a net profit of HK$278 million for the first half, surging 73 per cent from a year earlier. The company attributed the gain to the recovering property market. Earnings per share were 37.62 HK cents. An interim dividend of 17.6 HK cents per share and a special cash bonus of 20 HK cents per share were declared. Shui On Construction (983 HK) and Materials reported yesterday that its first-half net profit dives 10 per cent to HK$787 million, compared with a year ago. The company generated HK$648 million from the privatization of its china central properties. Earnings per share were HK$2.36. An interim dividend of 10 HK cents per share were declared, a 50 per cent cut in the dividend last year. The company plans to spin-off its cement business as it contributes HK$171 million profit to the company. Sun Hung Kai Property (16 HK) said it currently has a land reserve of 9.7 million square metres, the lowest level within these eighteen years. SHKP said it would replenish its land bank in Hong Kong through converting farmland into residential land while buying land in major cities in mainland, such as Beijing, Shanghai, Guangzhou and Shenzhen for high ordered residential projects.

Auto: Shares of Geely Automobile (175 HK) Holdings were suspended from trading in Hong Kong after it announced that it plans to issue convertible bonds and warrants. The company gave no further details on the issue, according to Bloomberg.

Heng Xin China (8046) reported yesterday that its net profit returns to the black for the first half to HK$111 million, compared with a loss a year ago. Sales revenue surged 9.34 times to HK$339 million. Earnings per share were 11.28 HK cents. No interim dividend was declared. The company proposes that no interim dividend will be declared in the coming two years in order to keep cash flow for its short-term development.

Sinomedia (623 HK) announced yesterday that its net profit dived 72 per cent to 12 million yuan for the first half, compared with a year ago. Earnings per share were 2.2 fen. No interim dividend was declared.

Synergis Holdings (2340 HK) said it will focus on asset management in the mainland because of a higher profit margin. The company is eyeing a project in Tianjin and expects to get the bid by year end. It is also seeking for new projects in Shanghai, Beijing and Shenyang in the mainland.

Win Hanverky Holdings (3322 HK) Limited recorded a net profit of HK$92.661 million for the first half, down 9.8 per cent compared with a year ago. Earnings per share were 7.3 HK cents. An interim dividend of 2.5 HK cents per share was declared.

Xinao Gas Holdings (2688 HK) Limited posted a net profit of 374 million yuan for the first half, surging 30.8 per cent compared with a year ago. Earnings per share were 0.369 yuan. No interim dividend was declared.

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

Hong Kong Stock Market Wrap Sept. 15th, 2009

Consumer: Bawang International (1338 HK) recorded a 28 per cent year-on-year decline in its interim net profit to 100 million yuan, beating market forecast. Earnings per share were 5 fens. No interim dividend was declared. The herbal shampoo maker plans to launch new herbal skin-care products in the second half and adjust its product mix to increase market shares. The company now has a 46 per cent market shares in the mainland shampoo market. The company also intends to launch its products in Thailand and Malaysia. China Huiyuan Juice (1886 HK) recorded a profit of 66.74 million yuan for the first half, diving 81.8 per cent compared with a year ago on decline in sales of core juice products due to the acquisition rumour of Coca-Cola Co. No interim dividend was declared. The company said its sales have been recovering since July

Airlines: Cathay Pacific (293 HK) chief executive Tony Tyler demands the Airport Authority for a third runway to alleviate the airport’s capacity, which will become saturated in 2010.

Financials: China Life Insurance (2628 HK) announced that its unaudited accumulated premiums income for the first eight months accounts for 210.7 billion yuan, down 6.4 per cent compared to 225.2 billion yuan a year ago. The insurance said its August premiums income is 19.6 million yuan, dropping 11.7 per cent from the 22.2 million yuan in the same period last year. Bank of East Asia (23 HK), Hong Kong’s fifth-biggest lender, plans to buy a 10 per cent stake in Golden Eagle Asset Management for 28 million yuan, sources said. The move is a step to enter the mainland’s wealth management and fund markets.

China National Materials (1893 HK) reported yesterday that its net profit rose 1.46 per cent to 308.8 million yuan for the first six months ended June 30, compared with a year ago. Earnings per share were 8.6 fens. No interim dividend was declared.

Properties: China Overseas (688 HK) announced yesterday that it has accumulated 157 million shares of Shell Electric MFG (Holdings) Company Limited (0081), a 29.99 per cent stake, for HK$455 million at HK$2.90 per share. Sun Hung Kai Properties (16 HK) announced yesterday that its first-half net profit rose 2 per cent year-on-year to HK$12.4 billion, excluding the effect of fair-value changes on investment properties. Net rental income surged 21 per cent to HK$7.27 billion while sales of Hong Kong properties amounted to HK$22.5 billion, mostly from new projects. Its mainland business generated HK$3.18 billion to the sale revenue. Earnings per share were HK$4.04. A final dividend of HK$1.70 per share was declared.

China Travel International (308 HK) revealed yesterday that it plans to buy out resorts and related projects in different provinces in China, such as Henan, Hubei, Guizhou, Yunnan and Tibet. Yet it does not have any schedule for these acquisitions. The company believes that these acquisitions would not lead to extra financial burden to the company since it currently has a 1.6 billion cash flow in hand.

Rumour has it that the ten biggest customers of China Zhongwang (1333 HK) listed in its prospectuses, such as China South Locomotive& Rolling and Baotou Beifang Chuangye Co, had never purchased any of its products in 2008. Sources also said underwriters of China Zhongwang still have not received the listing fee. China Zhongwang denied the rumour and said it has paid out all listing fee through JP Morgan. The company’s price dropped 10.88 per cent yesterday due to the rumour.

Hopefluent (733 HK) Group posted a net profit of HK$43.12 million for the first half, surging 46 per cent compared with a year ago. Earnings per share were 14.57 HK cents. No interim dividend was declared.

Midland IC&I (459 HK) recorded a net profit of HK$17.64 million for the first half, sliding 38 per cent compared with a year ago, dragged down by the dull market. Earnings per share were 0.13 HK cent. No interim dividend was declared.

Richard Li Tzar-kai, Chairman of PCCW (8HK), has put an end to the privatization of PCCW since his Singapore-listed shareholder, Pacific Century Regional Developments, announced yesterday that it dropped a plan to ask the Court of Final Appeal to hear its case. The company said it withdraws from the final appeal of privatization because it wants to focus on its business opportunities.

SJM (880 HK) announced yesterday that its net profit dived 40 per cent to HK$338 million for the first half, compared with a year ago, dragged down by the decrease in the number of visitors to Macau. Sales declined 4.3 per cent to HK$14.8 billion. Earnings per share were 6.8 HK cents. SJM retains the biggest market share in the competition from foreign operators in Macau.

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

Hong Kong Stock Market Wrap Sept. 11th, 2009

IPO: Australia’s fifth-richest man Clive Palmer, expects to launch an initial public offering of his Resourcehouse mining group in Hong Kong by the end of the year. The group has not yet decided which mining asset to include in its IPO. Palmer may raise as much as HK$23.4 billion, according to sources.

Resources: China Mining Resources (340 HK) net profit for the first half is HK$8.28 million, compared with a loss of HK$465 million a year ago. Earnings per share were 0.14 HK cents. No interim dividend was declared. Rumour has it that joint venture of China Petroleum & Chemical Corporation (0386) and CNOOC (0883)’s bid on an oil field in Africa was hindered by an acquisition by Angola oil company Songango. Songango plans to use their first priority in the bid, which means it can offer bidding price after Sinopec and CNOOC. CNOOC refused to comment on the rumour but said the bidding process is satisfactory so far. Green Global Resources (61 HK) issued a profit warning and expected the Group’s unaudited consolidated interim results for the six months ended June 30 to record a loss as compared to a profit for the corresponding period last year. The company attributed the expected loss to a substantial decrease in the its turnover during the period of the global economic downturn.

Telecom: China Mobile (941 HK) has revived talk of listing its shares on the Chinese mainland stock marke and is waiting for approval from the regulators.

COL Capital (383 HK) said it has acquired 68.72 per cent stake in Greenfield Chemical Holdings Limited from its substantial shareholder for HK$ 281 million or HK$1.5 per share, a 6.25 per cent discount of per share price before suspension. COL Capital said that the takeover aims at diversifying the business of Greenfield Chemical.

Embry Holdings (1388 HK) posted a profit of HK$61.83 million for the first half, surging 56 per cent compared with a year ago on growing sales. Earnings per share were 15.41HK cents. An interim dividend of HK$0.03 per share was declared.

Gaming: Galaxy Entertainment (27 HK) said it has acquired a 1.7 million square metres land for HK$2.84 billion in Coloane-Taipa in Macau which will be used for the development of large scale resort project with hotels, serviced apartment, casinos and other related facilities. The company expects the project to complete within eight years after the approval is obtained. Melco International Development (200 HK) recorded a loss of HK$811.89 million for the first half, compared with a loss of HK$614.4 million a year ago. Loss per share was 66.14 HK cents. No interim dividend was declared. The company’s chief financial officer Wong Chi-ho announced to leave his position in the meeting. It is rumoured that he is going to join the mainland business Oriental Ginza Holdings Limited (0996).

Financials: Ping An Insurance Group (2318 HK) announced that the first eight months premium incomes of Ping An Life Insurance Company of China, Ping An Property & Casualty Insurance Company of China, Ping An Health Insurance Company of China and Ping An Annuity Insurance Company of China amounted to 118.875 billion yuan, rising 34.31 per cent year-on-year.

Shangri-La Asia Limited (69 HK) recorded a net profit of US$67.26 million (HK$520 million) for the first half, down 50.43 per cent compared with a year ago. Earnings per share were HK$0.18. An interim dividend of HK$0.06 per share was declared.

Properties: Agile Property (3383 HK) has acquired the land-use rights of a plot of land in Tanzhou, Zhongshan for 190 million yuan. The land size is about 124,000 square metres. Hong Long (1383 HK) recorded a 93 per cent decline in its net profit to 1.15 million yuan for the first six months ended June 30, dragged down by a 17 million yuan loss of the fair value of derivatives. Earnings per share were 0.11 fen. No interim dividend was declared.

Constructions: Forefront (885 HK) reported yesterday that its net profit rose to HK$122 million, reversing a HK$68 million net loss from a year earlier. Earnings per share were 11.63 HK cents. No interim dividend was declared. Hsin Chong Construction (404 HK) posted a 52 per cent decline in its interim net profit to HK$30 million. Its revenue increases by 31 per cent to HK$1.399 billion. Earning per share were 4.5 HK cents. An interim dividend of 2.5 HK cents per share was declared. Its unit Synergis Holdings Limited (2340) recorded a 9.6 per cent rise in its net profit to HK$ 14.32 million for the first half. Earning per share were 4.3 HK cents. An interim dividend of 2.5 HK cents per share was declared.

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

Hong Kong Stock Market Wrap Sept. 10th, 2009

Properties: Cheung Kong Holdings (1 HK) has named its luxury mid-levels project Conduit 18, roadshows will kick off in mainland after the National Day golden week holiday. The developer has been entrusted by an American pension fund. China Overseas Land (688 HK), a subsidiary of China State Construction Engineering Corp, China’s biggest home builder listed this July, has acquired a prime plot of land in Shanghai for 7 billion yuan through public auction. The 312,000-square-meter plot in the Putuo district is assigned for residential development. Henderson Land Development, a local property developer, is planning to offer a benchmark sized 10-year dollar bond to raise HK$12 billion to pay the land premium of a project in Wu Kai Sha. The developer has mandated JP Morgan and HSBC as the lead managers to the issue. Shenzhen Investment (604 HK) has announced that it raises its target of revenue from the pre-sale properties by 20 per cent to 4.5 billion yuan. The rise in its sales target is attributable to the stable mainland policy of the property market within this year. The company has already achieved 73 per cent of its pre-sale target worth of 3.3 billion yuan.

Financials: China Construction Bank International (939 HK) plans to launch a yuan investment fund to raise up to 2.6 billion yuan to invest in unlisted mainland hospital and health enterprises.Ping An Insurance (23318 HK) trust has reached an agreement with Greentown China Holdings (3900) to jointly invest in a project developed by Greentown China. Ping An Insurance said its trust unit would invest 15 billion yuan over the next three years in the project. Wing Hang Bank (302 HK) yesterday noticed its shareholders that it has no merger or acquisition plan at present but admitted that major shareholders might have informal contract with any interest parties and consider the possibility of any cooperation. Yet, the bank declared that it has no plan or negotiation with other interest parties at this stage.

China Automation (569 HK) recorded a net profit of 107.43 million yuan for the first half, surging 38 per cent compared with a year ago. Earnings per share were 0.1148 yuan. No interim dividend was declared. The company is in talks to acquire two projects and hopes to complete one of them within this year, expecting to spend 200 million yuan on acquisitions.

Beijing Media Corporation (1000 HK) recorded a net profit of 9.64 million yuan for the first half, sliding 23.7 per cent compared with last year. Turnover dropped 29 per cent to 377 billion yuan. Earnings per share were 4.89 fen. No interim dividend was declared.

China Merchants Holdings International (144 HK) has recorded a 14.4 per cent drop in its first- half net profit to HK$1.73 billion, which is the first drop of port operations in 20 years. The company attributed the decline to the weakened trade and a shrinking shipping volume. Earnings per share were HK$0.713. An interim dividend of HK$ 0.25 was declared. The company said it has no plan to issue A shares as currently there is no need for financing.

The Hong Kong and Shanghai Hotels (45 HK) announced yesterday the closure of its hotel portion of Quail Lodge on November 15 and a reduction in available services in the Golf Club and its clubhouse in California. The company said Quail Lodge has continued to suffer losses every year in the past eight years, despite significant financial and management support from the company. It did not announce how long the closure would be.

Mongolia Energy (276 HK) said its colliery in Khushuut, inner Mongolia, will start production at the year end. The company estimates a production of 3 million tonnes of raw coal (2 million saleable) per annum in 2010 and eventually an 8 million tonnes of raw coal (5.5 million saleable) per annum.

PCCW (8 HK) appointed 71-year-old Edmund Tse Sze-wing yesterday as an independent non-executive director. Tse is widely regarded as the "Godfather of Insurance" in Hong Kong due to his 50 years in the business. He is the former senior vice-chairman of AIG.

Tao Heung Holdings (573 HK) posted a net profit of HK$103.7 million yuan for the first half, up 9.6 per cent year-on-year compared with the prior period. An interim dividend of 4.65 HK cents were declared, with a special dividend of 1.55 HK cents per share.

The Children’s Investment Master Fund (TCI), a London-based hedge fund manager, reduced its stake in The Link Real Estate Investment Trust (823 HK) to 11.94 per cent from the previous 12 per cent for HK$19.36 million, second time in this month.

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

Hong Kong Stock Market Wrap Sept 9th, 2009

IPO: China National Medicines Corporation (Sinopharm) kicks off its initial public offering to raise as much as HK$8.7 billion today. The international tranche is over 27 times oversubscribed, locking in up to US$28 billion (HK$218.40 billion), sources said. Henderson Land (0012) chairman Lee Shau-kee has subscribed for US$50 million of Sinopharm shares but said the firm is too aggressive in setting prices. Metallurgical Corp of China (1618 HK) will starts its IPO tomorrow to raise as much as HK$19.5 billion at a price of HK$6.16 to HK$6.81 per share for a trading in board lot of 1000. Entry fee is HK$6,878.7.

Properties: Agile Property (3383 HK) announced yesterday that its net profit plunged 84 per cent to 706 million yuan for the first six months ended June 30, compared with a year ago. The company attributed the drop to a decline in its gross margin resulted from a lower property price recorded in the first half. Earnings per share were 19.5 fens. An interim dividend of 5.6 HK cents per share was declared. Sino Land (83 HK) reported yesterday that its net profit surged 6.7 per cent to HK$3.6 billion for the first half, boosted by the sales of properties. Earnings per share were HK$77.06 HK cents. The company proposed an interim dividend of 30 HK cents per share. Meanwhile, its parent Tsim Sha Tsui Properties (0247) declared an interim dividend of HK$0.3 per share despite a loss in securities investment.

Constructions: China Communications construction (1800 HK) said its new contracts value in the second half surges 20.5 per cent. The company expects the new contracts value to be no less than that in the first half, partly due to the rising demand for overseas port construction. The company will start the construction of the Hong Kong-Zhuhai-Macao Bridge in December this year.

Consumer: China DongXiang Group (3818 HK) recorded a 10 per cent rise in its interim net profit to 722 million yuan, compared with a year ago. Earnings per share were 0.1274 yuan. An interim dividend of 3.82 fens per share was declared. The company also proposed a special dividend of 1.27 fens per share. The company expects a drop in its sales in the second half since the growth of its new contacts in the third quarter is only 8 per cent, which is lesser than that in the first two quarters this year. ChinaYurun Food (1068 HK) announced yesterday that its net profit rose 37 per cent to HK$841 million, compared with a year ago, boosted by the sales of in pork. Earnings per share were 0.549 yuan. An interim dividend of 0.15 yuan per share was declared. Fujian-based sportswear maker Peak (1968 HK) sets price for its initial public offering between HK$3.55 and HK$4.55 per share. The firm has hired Credit Suisse and China Construction Bank to be the underwriters to raise US$200 million. The offer starts on September 15.

Financials: China Life Insurance (2628 HK) the world’s biggest life insurer by market value, said it hopes to acquire a stake in China Development Bank Corp, which funds China’s infrastructure projects. The Beijing-based insurer is seeking long-term investment in unlisted companies to gain long term and stable profit. The size of the stake is still waiting for the regulatory approvals. The Bank of East Asia (23 HK) gets approval from regulatory to become China’s first bank to settle cross-border yuan deals. Rumour has it that Industrial & Commercial Bank of China (1398), the world’s largest by market value, is showing interest in acquiring Wing Hang Bank (302 HK), a family-run lender in Hong Kong. Spokesmen from both lenders declined to comment. Wing Hang rose to HK$73.1 due to the rumour.

Resources: China Nickel Resources (2889 HK) recorded a net loss of 79.85 million yuan for the first half, compared with a profit of 97.34 million yuan a year ago. Loss per share was 0.038 yuan. No interim dividend was declared. The company expects a better result in the second half but did not say if it can return to black. China Resources Mircoelectronics (597 HK) posted a net loss of HK$83.35 million for the first half, compared with a profit of $96.35 million a year ago. Loss per share was 1.34 HK cents. No interim dividend was declared.

Brightoil Petroleum (933 HK) said its net profit rose 3.2 times to HK$263 million for the first half, boosted by the marine bunkering service. No interim dividend per share was declared. The company expects its capital expenditure to be US$1.56 billion (HK$12.2 billion) for the coming two to three years.

Far East Consortium International (35 HK) won the bid for a 48,244 square meters land in Singapore New Bridge Road for a hotel project. The deal costs HK$365 million.

Hutchison Whampoa (13 HK) sold US$3 billion bonds in two parts on Tuesday, Reuters said. The sale consisted of US$2 billion worth of six-year notes priced to yield 227.5 basis points more than US treasuries. The notes, which are guaranteed by Hutchison Whampoa, were sold through Barclays, Deutsche Bank and HSBC.

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

Hong Kong Stock Market Wrap Sept 8th, 2009

China Agri-Industries (606 HK) announced yesterday that its net profit dropped 39 per cent to HK$1.32 billion for the first half, compared with a year ago. The company attributed the drop to the poor operating environment in the first half and a decline in the gross margin in the processing of beer and oil. Earnings per share were 28 HK cents. The company proposed an interim dividend of 6.7 HK cents per share.

Constructions: China Communications Construction (1800 HK) recorded a year-on-year 37.5 per cent jump to 3.25 billion yuan in its first-half net profit, boosted by China’s economic stimulus plan for infrastructure.Earnings per share were 0.2 yuan. No interim dividend was declared. Infrastructure construction, one of the core business of the company, has generated 68.7 per cent of revenue. Yet, new contracts of making heavy machinery which is the firm’s second largest segment, dived 74.3 per cent to 4.3 billion yuan.

F&B: China Mengiu Dairy (2319 HK) announced yesterday that its interim net profit rose 14 per cent to 662 million yuan, despite a fall in its sales revenue. Earnings per share were 42.4 fens. No interim dividend was declared. In the aftermath of the melamine scandal, losses of 949 million yuan for the whole of 2008 had been recorded. Analysts said the dairy market has returned to normal by the end of the first quarter and believed it has now recovered fully.

China Pharmaceutical (1093 HK) posted a 20 per cent rise in its first-half net profit to HK$533 million owing to the significant growth in the price of vitamins. Earnings per share were 34.71 HK cents. The company proposed no interim dividend.

Resources: China Resources Gas (1193 HK) said its first-half profit rose 27 per cent to HK$141 million. Earnings per share were HK$0.1. An interim dividend of 2 HK cents per share was declared. The company announced that it has acquired seven city gas projects for HK$1.6 billion from its parent. It is confident that the revenue of the seven projects can reach no less than HK$124 million. Shanghai LNG station, a joint venture of CNOOC Ltd (883 HK), the third-biggest oil company on the mainland, and Shenergy Group, will receive its first batch of 80,000 to 90,000 cube metres liquefied natural gas from Petronas in Malaysia on September 20. The batch of LNG will be used for the testing of the company’s new facilities.

Properties: Thomas Lau Luen-hung, brother of chairman Joseph Lau, said he has transferred his stake in Chinese Estates Holdings (127 HK) to other family members. His shares of the Hong Kong-based developer is now 4.59 per cent, dropping from 7.65 per cent, he is no longer a major shareholder of the company. He said he sold his holdings to neither his brother Joseph Lau nor his son Lau Ming-wai. Franshion Properties (China) (817 HK) recorded a 61 per cent decline in its net profit to HK$434 million for the first half, dragged down by the drop in the gross margin of the property development and hotel business. Earnings per share were 5.4 HK cents. The company proposed no interim dividend. SOHO China (410 HK) recorded a net profit of 12.5 million yuan for the first half, compared with a net loss of 146 million yuan a year ago. No interim dividend was declared.

Auto: Denway Motors (203 HK) posted a net profit of 1.179 billion yuan for the first half, edging down 4.7 per cent compared with a year ago on decreasing product prices and new expenses on vehicle components. The company proposed a 40 per cent off discount on its interim dividend, which is 3 HK cents per share. Geely Automobile (175 HK), the mainland’s biggest privately owned carmaker, reported yesterday that its first-half net profit rose more than doubled to 596 million yuan, benefiting from a rise in the sales of domestic vehicles and buying stake in auto making affiliates. Earnings per share were 8.9 fens. No interim dividend was declared.The company expects to expand its sales in the exports sector.

Honghua Group (196 HK) posted a net profit of 56.113 million yuan for the first half, dropping 55.4 per cent compared with a year ago. Earnings per share were 0.017 yuan. No interim dividend was declared.

Financials: HSBC Holdings (5 HK) China has appointed Huang Bijuan to be the vice chair and a member of the broad of directors of the bank. Huang joined HSBC since 1992 and has more than 25-year experience in banking business.

Kowloon Development (34 HK) said yesterday that its net profit rose 84 per cent to HK$883 million for the first half, boosted by revenue generated from the sales of properties in Hong Kong and Macau. Earnings per share were HK$0.77. An interim dividend of HK$0.2 per share was declared.

Regal Hotels (78 HK) recorded a net profit of HK$147.2 million for the first half, diving 75.47 per cent compared with a year ago. Earnings per share were 14.6 HK cents. An interim dividend of 2 HK cents per share was declared. Its sibling companies Paliburg Holdings (0617) and Century City International Holdings Ltd (0355) also posted a loss in net profit, sliding 46.8 per cent and 41.4 per cent respectively

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