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
