Friday, September 25, 2009

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