Monday, September 21, 2009

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