Friday, September 11, 2009

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