Airlines: Air China (753 HK) plans to have a 3-year 5.2 billion yuan financing in mainland to support its purchase of 12.5 per cent stake in Cathay, The purchase of Cathay stake is worth 6.335 billion yuan and Air China prepares to have a loan of 5.2 billion yuan upon the deal. The flag carrier has invited about ten mainland banks to apply for its financing plan. Shareholders of China Eastern Airlines (670 HK) approved the share placement plan at the meeting in Shanghai yesterday. The carrier intends to sell 1.35 billion Shanghai-listed shares at 4.75 yuan each to its parent and as many as ten investors to raise 7 billion yuan.
Properties: Chinese Estates Holdings (127 HK) announced yesterday that its interim net profit dropped 9 per cent to HK$3.2 billion, compared to a year ago. Earnings per share were HK$1.57. An interim dividend of 2 HK cents per share was declared. The company will declare a special dividend of 63 HK cents per share if the previous transaction of financial assets to its chairman is successful. HKC Holdings (190 HK) announced that it will sell a 64,000 square metres land in Hainan to its large shareholder Huang Gang for HK$32.07 million. The company gains HK$3.15 million in the deal. Richfield Property (8136 HK) of Richfield Group bought more than 90 per cent stake in a old building in Ap Lei Chau for HK$186 million. The developer plans to submit an application of compulsory auction to the Lands Tribunal. The development cost is expected to be HK$400 million. Sun Hung Kai Properties (16 HK) said it will acquire 33 per cent stake in Transport Infrastructure Management Ltd from British company AMEC and China Resources for HK$45.5 million. Upon completion of the deal, Sun Hung Kai would wholly own Transport Infrastructure Management Ltd. Zhong An Real Estate (672 HK) posted a net profit of 72.65 million yuan fro the first half, diving 76 per cent year-on-year on a 74 per cent drop in sales. The company declares an interim dividend of 2 fens per share.
Consumer: Xtep International (1368HK) announced yesterday that its net profit rose 20 per cent to 307 million yuan for the first half, compared to a year ago. Earnings per share were 14.1 fen. An interim dividend of 7 HK cents per share was declared. The company plans to develop brands in overseas markets such as Middle East and South East Asia.
Resources: China Metallurgical Group (1618 HK) yesterday launched a presentation on its listing. Henderson Land Development (0012) chairman Lee Shau-kee, New World Development (0017) chairman Cheng Yu-tung, Chinese Estates (0127) chairman Joseph Lau Luen-hung and Sun Hung Kai Properties (0016) non-executive director Walter Kwok Ping-sheung are also interested in the initial public offering, sources revealed earlier. Representatives of Cheung Kong (0001) also attended the meeting. According to a preliminary offering circular, it has attracted five cornerstone investors, including subsidiaries of the Bank of China (3988) and Citic Pacific (0267), which will spend HK$1.94 billion on share subscriptions. The company will raise up to HK$41 billion through dual listings in China and Hong Kong. Its offering in Hong Kong is set to kick off tomorrow. Real Gold Mining (246 HK) reported yesterday that its net profit rocketed 120 times to 198 million yuan for the first six months ended June 30, compared to last year. Earnings per share were 31.43 fen. The company proposed no interim dividend. Hang Fung Gold (870 HK) is now in liquidation called by the High Court. The company was previously called to liquidation following a bankruptcy petition last year by one of its creditors, HSBC. However, after the takeover by the chairman of Hong Kong Resources Holdings Company Limited (2882), the company is still called to liquidation by the High Court. The hearing will be held on 2 November.
Financials: Standard Chartered (2888 HK) plans to buy assets of Royal Bank of Scotland in China, India and Malaysia for HK$2.5 billion. The deal between RBS, now government controlled, and emerging market British specialist Standard Chartered was imminent, said The Guardian.
Lee & Man Paper (8134 HK) said paper prices have surged 25 per cent on increasing domestic demand. The company said it can repay all loans faster than expected and expects to reduce its net debt to equity ratio from 80 per cent to 50 per cent within one year.
Little Sheep Group (968 HK) recorded a 7.2 per cent drop in its net profit to 39.15 million yuan for the first half. Earnings per share were 3.81 fen. No interim dividend was declared. The company expects a capital expenditure of 100 million yuan for the second half.
Lung Kee (Bermuda) (255 HK) reported yesterday that its net profit plunged 42 per cent to 198 million yuan for the first half, compared to a year ago. Earnings per share were 0.166 yuan. An interim dividend of 0.1 yuan per share was declared.
Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard