Tuesday, September 22, 2009

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