China Agri-Industries (606 HK) announced yesterday that its net profit dropped 39 per cent to HK$1.32 billion for the first half, compared with a year ago. The company attributed the drop to the poor operating environment in the first half and a decline in the gross margin in the processing of beer and oil. Earnings per share were 28 HK cents. The company proposed an interim dividend of 6.7 HK cents per share.
Constructions: China Communications Construction (1800 HK) recorded a year-on-year 37.5 per cent jump to 3.25 billion yuan in its first-half net profit, boosted by China’s economic stimulus plan for infrastructure.Earnings per share were 0.2 yuan. No interim dividend was declared. Infrastructure construction, one of the core business of the company, has generated 68.7 per cent of revenue. Yet, new contracts of making heavy machinery which is the firm’s second largest segment, dived 74.3 per cent to 4.3 billion yuan.
F&B: China Mengiu Dairy (2319 HK) announced yesterday that its interim net profit rose 14 per cent to 662 million yuan, despite a fall in its sales revenue. Earnings per share were 42.4 fens. No interim dividend was declared. In the aftermath of the melamine scandal, losses of 949 million yuan for the whole of 2008 had been recorded. Analysts said the dairy market has returned to normal by the end of the first quarter and believed it has now recovered fully.
China Pharmaceutical (1093 HK) posted a 20 per cent rise in its first-half net profit to HK$533 million owing to the significant growth in the price of vitamins. Earnings per share were 34.71 HK cents. The company proposed no interim dividend.
Resources: China Resources Gas (1193 HK) said its first-half profit rose 27 per cent to HK$141 million. Earnings per share were HK$0.1. An interim dividend of 2 HK cents per share was declared. The company announced that it has acquired seven city gas projects for HK$1.6 billion from its parent. It is confident that the revenue of the seven projects can reach no less than HK$124 million. Shanghai LNG station, a joint venture of CNOOC Ltd (883 HK), the third-biggest oil company on the mainland, and Shenergy Group, will receive its first batch of 80,000 to 90,000 cube metres liquefied natural gas from Petronas in Malaysia on September 20. The batch of LNG will be used for the testing of the company’s new facilities.
Properties: Thomas Lau Luen-hung, brother of chairman Joseph Lau, said he has transferred his stake in Chinese Estates Holdings (127 HK) to other family members. His shares of the Hong Kong-based developer is now 4.59 per cent, dropping from 7.65 per cent, he is no longer a major shareholder of the company. He said he sold his holdings to neither his brother Joseph Lau nor his son Lau Ming-wai. Franshion Properties (China) (817 HK) recorded a 61 per cent decline in its net profit to HK$434 million for the first half, dragged down by the drop in the gross margin of the property development and hotel business. Earnings per share were 5.4 HK cents. The company proposed no interim dividend. SOHO China (410 HK) recorded a net profit of 12.5 million yuan for the first half, compared with a net loss of 146 million yuan a year ago. No interim dividend was declared.
Auto: Denway Motors (203 HK) posted a net profit of 1.179 billion yuan for the first half, edging down 4.7 per cent compared with a year ago on decreasing product prices and new expenses on vehicle components. The company proposed a 40 per cent off discount on its interim dividend, which is 3 HK cents per share. Geely Automobile (175 HK), the mainland’s biggest privately owned carmaker, reported yesterday that its first-half net profit rose more than doubled to 596 million yuan, benefiting from a rise in the sales of domestic vehicles and buying stake in auto making affiliates. Earnings per share were 8.9 fens. No interim dividend was declared.The company expects to expand its sales in the exports sector.
Honghua Group (196 HK) posted a net profit of 56.113 million yuan for the first half, dropping 55.4 per cent compared with a year ago. Earnings per share were 0.017 yuan. No interim dividend was declared.
Financials: HSBC Holdings (5 HK) China has appointed Huang Bijuan to be the vice chair and a member of the broad of directors of the bank. Huang joined HSBC since 1992 and has more than 25-year experience in banking business.
Kowloon Development (34 HK) said yesterday that its net profit rose 84 per cent to HK$883 million for the first half, boosted by revenue generated from the sales of properties in Hong Kong and Macau. Earnings per share were HK$0.77. An interim dividend of HK$0.2 per share was declared.
Regal Hotels (78 HK) recorded a net profit of HK$147.2 million for the first half, diving 75.47 per cent compared with a year ago. Earnings per share were 14.6 HK cents. An interim dividend of 2 HK cents per share was declared. Its sibling companies Paliburg Holdings (0617) and Century City International Holdings Ltd (0355) also posted a loss in net profit, sliding 46.8 per cent and 41.4 per cent respectively
Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard