IPO: China National Medicines Corporation (Sinopharm) kicks off its initial public offering to raise as much as HK$8.7 billion today. The international tranche is over 27 times oversubscribed, locking in up to US$28 billion (HK$218.40 billion), sources said. Henderson Land (0012) chairman Lee Shau-kee has subscribed for US$50 million of Sinopharm shares but said the firm is too aggressive in setting prices. Metallurgical Corp of China (1618 HK) will starts its IPO tomorrow to raise as much as HK$19.5 billion at a price of HK$6.16 to HK$6.81 per share for a trading in board lot of 1000. Entry fee is HK$6,878.7.
Properties: Agile Property (3383 HK) announced yesterday that its net profit plunged 84 per cent to 706 million yuan for the first six months ended June 30, compared with a year ago. The company attributed the drop to a decline in its gross margin resulted from a lower property price recorded in the first half. Earnings per share were 19.5 fens. An interim dividend of 5.6 HK cents per share was declared. Sino Land (83 HK) reported yesterday that its net profit surged 6.7 per cent to HK$3.6 billion for the first half, boosted by the sales of properties. Earnings per share were HK$77.06 HK cents. The company proposed an interim dividend of 30 HK cents per share. Meanwhile, its parent Tsim Sha Tsui Properties (0247) declared an interim dividend of HK$0.3 per share despite a loss in securities investment.
Constructions: China Communications construction (1800 HK) said its new contracts value in the second half surges 20.5 per cent. The company expects the new contracts value to be no less than that in the first half, partly due to the rising demand for overseas port construction. The company will start the construction of the Hong Kong-Zhuhai-Macao Bridge in December this year.
Consumer: China DongXiang Group (3818 HK) recorded a 10 per cent rise in its interim net profit to 722 million yuan, compared with a year ago. Earnings per share were 0.1274 yuan. An interim dividend of 3.82 fens per share was declared. The company also proposed a special dividend of 1.27 fens per share. The company expects a drop in its sales in the second half since the growth of its new contacts in the third quarter is only 8 per cent, which is lesser than that in the first two quarters this year. ChinaYurun Food (1068 HK) announced yesterday that its net profit rose 37 per cent to HK$841 million, compared with a year ago, boosted by the sales of in pork. Earnings per share were 0.549 yuan. An interim dividend of 0.15 yuan per share was declared. Fujian-based sportswear maker Peak (1968 HK) sets price for its initial public offering between HK$3.55 and HK$4.55 per share. The firm has hired Credit Suisse and China Construction Bank to be the underwriters to raise US$200 million. The offer starts on September 15.
Financials: China Life Insurance (2628 HK) the world’s biggest life insurer by market value, said it hopes to acquire a stake in China Development Bank Corp, which funds China’s infrastructure projects. The Beijing-based insurer is seeking long-term investment in unlisted companies to gain long term and stable profit. The size of the stake is still waiting for the regulatory approvals. The Bank of East Asia (23 HK) gets approval from regulatory to become China’s first bank to settle cross-border yuan deals. Rumour has it that Industrial & Commercial Bank of China (1398), the world’s largest by market value, is showing interest in acquiring Wing Hang Bank (302 HK), a family-run lender in Hong Kong. Spokesmen from both lenders declined to comment. Wing Hang rose to HK$73.1 due to the rumour.
Resources: China Nickel Resources (2889 HK) recorded a net loss of 79.85 million yuan for the first half, compared with a profit of 97.34 million yuan a year ago. Loss per share was 0.038 yuan. No interim dividend was declared. The company expects a better result in the second half but did not say if it can return to black. China Resources Mircoelectronics (597 HK) posted a net loss of HK$83.35 million for the first half, compared with a profit of $96.35 million a year ago. Loss per share was 1.34 HK cents. No interim dividend was declared.
Brightoil Petroleum (933 HK) said its net profit rose 3.2 times to HK$263 million for the first half, boosted by the marine bunkering service. No interim dividend per share was declared. The company expects its capital expenditure to be US$1.56 billion (HK$12.2 billion) for the coming two to three years.
Far East Consortium International (35 HK) won the bid for a 48,244 square meters land in Singapore New Bridge Road for a hotel project. The deal costs HK$365 million.
Hutchison Whampoa (13 HK) sold US$3 billion bonds in two parts on Tuesday, Reuters said. The sale consisted of US$2 billion worth of six-year notes priced to yield 227.5 basis points more than US treasuries. The notes, which are guaranteed by Hutchison Whampoa, were sold through Barclays, Deutsche Bank and HSBC.
Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard