Hong Kong Stock Market Wrap Oct. 29th, 2009

Asm Pacific Technology (522 HK) has posted a net profit of HK$401 million for the third quarter, surging 50 per cent from a year ago. Net profit for the first three quarters amounted to HK$476 million, diving 49 per cent year-on-year. Earnings per share for the first three quarters were HK$1.21.

Bank of China (3988 HK), the country’s largest foreign exchange lender, has posted a third-quarter net profit of 21.1 billion yuan, surging 18.8 per cent from a year ago on fast growing lending and decrease in the loss of assets devaluation. It has earned 62.23 billion yuan in the first nine months, a 3.8 percent rise year-on-year. Earnings per share for the first three quarters were 0.25 yuan.

Bank of China (Hong Kong) (2388 HK) has recorded an operating profit of HK$10.6 billion for the first nine months, sliding 20.3 per cent on higher expenses caused by the settlement of Lehman minibonds saga. Including impairment losses of HK$3.24 billion generated from the settlement of Lehman minibonds saga, its operating expenses totalled HK$9.25 billion for the first nine months of the year, a 47.55 per cent increase from a year ago.

Brilliance China Automotive Holdings (1114 HK), holding 51 per cent stake in Shenyang Brilliance Jinbei Automotive Co, plans to sell the latter’s Zhonghua business which focus on producing Zhonghua-branded vehicles to parent Brilliance for 494 million yuan.

China Cosco (1919 HK) has sunk into the red and lost 690 million yuan for the third quarter compared with a year ago. Net loss for the first three quarters was 5.3 billion yuan, against a net profit of 19.7 billion yuan from a year earlier. The company expects the net profit for 2009 to sink into the red.

Sinopec (386 HK) has posted a net profit of 49.71 billion yuan, surging 230 per cent for the first three quarters compared with a year ago. Earnings per share were 57.4 fens for the first three quarters. Net profit for the third quarter amounted to 16.55 billion yuan, rising 124 per cent from a year ago.

China Resources Enterprise (291 HK) announced yesterday that it plans to sell its non-core port and textile businesses so as to focus on the consumer sector. Its port and textile businesses will be transferred to its parent China Resources (Holdings) together with HK$30 million in cash in an exchange for a hypermarket chain and a brewery.

CNOOC (883 HK), the country’s dominant offshore oil producer, has posted a 23.1 per cent year-on-year fall in revenue in the third quarter due to a 36.6 per cent slide in the average oil selling price to US$67.83 a barrel from US$106.94 a year earlier. Total revenue for the three months came to 23.76 billion yuan, compared with 30.88 billion yuan a year earlier. For the first nine months, revenues slid 33.9 per cent to 56.81 billion yuan. There is a 22.2 per cent rise in output to 525,542 barrels per day, as a large oilfield in Nigeria comes on stream.

Hutchison Telecommunications International (2332 HK) announced that it has sold 51 per cent stake in a Israel company, Partner Communications Company Ltd, to Scailex Corp for HK$10.76 billion yuan on Wednesday.
Industrial and Commercial Bank of China (1398 HK), the world’s largest lender by value, has recorded a higher-than-expected net profit of 33.595 billion yuan, surging 19.14 per cent year-on-year for the third quarter compared with a year earlier. The company attributed the gain to strong growth in non-interest income and earnings from financial investment Net profit for the first three quarters amounted to 100.019 billion yuan, a 7 per cent increase in its net profit last year. Earnings per share for the first three quarters were 0.30 yuan.

Building and engineering firm Metallurgical Corp of China (1618 HK) has posted a third-quarter net profit of 1.4 billion yuan under Chinese accounting standards. Revenue for the nine months to September was 119.8 billion yuan. The firm is not required to give comparative year-on-year data as it is newly listed in Hong Kong and Shanghai last month.

The Link Reit (823 HK) was accumulated by Australian bank at a price of HK$18.247 per share on October 16, according to the HKEx. The Australian lender has added its holdings in the Link by 2815,500 units for HK$51.37 million. The bank’s shares in the Link rise from 4.89 per cent to 5.02 per cent upon the deal.

Tsingtao Brewery (168 HK) has recorded a net profit of 615 billion yuan for the third quarter, soaring 93 per cent from a year earlier. Operating revenue for the third quarter totalled 5.63 billion yuan.

Standard Chartered (2888 HK) plans to issue India Depositary Receipt (IDR) for its listing on the India bourse as it wants to strengthen its branding and business in India. The bank is in talks with the Indian regulatory.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 28th, 2009

Bank of Communications (3328 HK), China’s fifth-largest lender, has posted a lower-than-expected net profit of 7.32 billion yuan for the third quarter in accordance with international accounting standards, edging up 1.5 per cent year-on-year. Net profit has amounted to 22.875 billion yuan for the first three quarters, rising 0.68 per cent compared with a year ago. Earnings per share were 0.47 yuan for the first three quarters.

China Coal Energy has recorded a third-quarter net profit of 1.409 billion yuan, a 35.6 per cent drop compared with a year ago. Net profit was 4.94 billion yuan for the first nine months, falling 13.88 per cent year-on-year.

China Oilfield Services (2883 HK) has recorded a net profit of 1.777 billion yuan for the third quarter, edging up 2.1 per cent from a year earlier. Net profit for the first nine months was 2.8 billion yuan, rising 2 per cent year-on-year.

China South Locomotive & Rolling Stock (1766 HK) has posted a third-quarter net profit of 413 million yuan, surging 64 per cent year-on-year. Earnings per share were 3 fens. No dividend was declared. Net profit for the first three quarters was 1.039 billion yuan, a 2 per cent decline compare with last year.

Cosco Pacific (1199 HK), Asia’s third-largest container-terminal operator, has posted a net profit of US$40 million (HK$310 million) for the first three quarters, a 48 per cent drop from a year ago. Earnings per share were HK$0.137. No dividend was declared.

Geely Automobile (175 HK) announced yesterday that its parent Geely Group is in advance talks with US carmaker Ford Motor Company over the acquisition of Volvo Car unit and Geely would be the preferred bidder of the deal.
Guangshen Railway Company Limited (525 HK) has recorded a net profit of 417 million yuan for the third quarter, rising 6.35 per cent year-on-year. Net profit for the first nine months is 1.08 billion yuan, dropping 5.08 per cent compared with a year ago. The company attributes the drop to the rising production cost as it expands.

Nine Dragons Paper (2689 HK) is seeking to rise as much as HK$2.875 billion through a top-up placing. The company is selling 236 to 250 million shares at an indicative price range from HK$10.85 to HK$11.50 per share, representing a discount of 5.6 per cent to 10.9 per cent to yesterday’s closing price of HK$12.18 each.

PetroChina (857 HK), the world’s second most valuable company, has posted a lower-than-expected net profit of 30.85 billion yuan in the third quarter, a 24 per cent drop from a year earlier as oil prices fell. Net profit for the first three quarters was 81.35 billion yuan, falling 14 per cent compared with last year. Earnings per share were 21.4 fens for the first three quarters.
Semiconductor Manufacturing (981 HK) has recorded a net loss of US$69 million (HK$540 million) for the third quarter, compared with a year earlier due to the dull market. Net income dropped 14 per cent to US$323 million (HK$2.5 billion) for the third quarter, compared with a year ago.

Sinopec Shanghai Petrochemical (338 HK) has recorded a net profit of 1.538 billion yuan for the first nine months, compared with a net loss of 2.679 billion yuan a year ago. The company had a net profit of 550.64 million yuan in the third quarter, compared with a net loss of 2.307 billion yuan in the same period last year. Earnings per share were 0.214 yuan.

TCL Communication Technology (2618 HK) has recorded a net profit of HK$14 million for the third quarter, surging 45.66 per cent year-on-year. The company attributes the increase in net profit to the rising competitiveness after its restructuring.

TCL Multimedia Technology (1070 HK) has recorded a profit of HK$230 million for the first nine months, compared with a net loss of HK$255 million a year ago. Its net profit for the third quarter was HK$87 million. Earnings per share were HK 22.68 cents. No third-quarter dividend was declared.

Yanzhou Coal Mining (1171 HK) has posted a 1.12 billion yuan net profit for the third quarter, diving 61.3 per cent year-on-year. Net profit for the first three quarters is 3.03 billion yuan, plunging 54.7 per cent compared with last year. The company’s cost of production has surged 24 per cent, according to Morgan Stanley.
Zijin Mining (2899 HK) has posted a net profit of 960 million yuan for the third quarter, climbing 15 per cent from a year ago on soaring sales. Net profit surged 12 per cent to 2.89 billion yuan for the first three quarters. Earnings per share were 19.9 fens for the first three quarters.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 27th, 2009

Aluminum Corporation of China (2600HK) has returned to the black with a third-quarter net profit of 32 million yuan, though diving 88 per cent from a year ago. Net loss for the first three quarters was 3.5 billion yuan, against a net profit of 2.57 billion yuan last year. Loss per share were 25.9 fens for the first three quarters. The company attributed the loss to the weak demand for aluminum products and excess production capacity.

Angang Steel’s (347 HK) third-quarter net profit was cut by 17 per cent to 1.89 billion yuan from a year earlier on lower demand.

Chongqing Iron & Steel (1053 HK) has posted a net profit of 37.1 million yuan for the third quarter, plummeting 99 per cent compared with a year ago, according to the PRC’s accounting standards. Net profit for the first nine months was 35 million yuan.

China Petroleum & Chemical Corp (Sinopec)’s (386 HK) spokesman Huang Wensheng said he is not aware of discussions with Ghana National Petroleum Corp. to jointly bid for the Jubilee offshore oil field. Sinopec had proposed forming a joint venture. Ghana National rejected the initial offer and is waiting to hear from other potential partners, the Wall Street Journal reported.

China Railway Construction Corp (1186 HK) has posted a net profit of 3.676 billion yuan in accordance with the PRC’s accounting standards for the first nine months, a 54.09 per cent surge compared with last year. Its third-quarter net profit jumped 69.03 per cent year-on-year to 1.455 billion yuan.

China Shenhua Energy (1088 HK) has posted a net profit of 26.03 billion yuan for the first three quarters ended September 30, climbing 15 per cent from a year earlier. Earnings per share were 1.309 yuan, a 14.6 per cent increase from last year. Its third-quarter profit was 8.74 billion yuan, rising 12 per cent year-on-year.
Listing candidate Cofco Corp (906 HK) will have its investor presentation today. The group plans to issue 200 million new shares to raise as much as HK$1.078 billion at a price between HK$3.85 to HK$5.39 per share, according to sources. The entry fee is HK$5444 with 1000 shares per lot.

Hutchison Whampoa (13 HK) plans to issue US$189.3 million notes which due in 2015 to swap notes with a maturity period within the coming two years. The deal involves US$120 million.

Mainland developer Longfor Group (960 HK) plans to issue 1 billion new shares for HK$7.8 billion. The group will have its investor presentation on November 2 and go public on November 19.

Maanshan Iron & Steel (323 HK) has recorded a net profit of 802 million yuan for the third quarter, edging up 2 per cent from a year ago. Earnings per share were 10.42 fens. Net profit for the first three quarters was 69.1 million yuan, diving 99.8 per cent year-on-year.

Ping An Insurance (2318 HK), China’s second-largest life insurer by premiums, announced yesterday that its net profit for the first three quarters was 8.375 billion yuan. Net profit for the third quarter was 3.153 billion yuan, against a loss of 7.877 billion yuan last year. Earnings per share were 0.43 yuan. Premium income for the first three quarters was 104.724 billion yuan, a 33.5 per cent year-on-year increase.

Shimao Property (813 HK) has announced that it has bought a land lot of 180,000 square metres in Hangzhou for 360 million yuan. Meanwhile, its subsidiary Shanghai Shimao has reached an agreement with Wuxi Communications to jointly develop a project in Wuxi. This project is worth 4.26 billion yuan.
Sino-Ocean Land (3377 HK) announced it has won a bid in Tianjin for 1.1 billion yuan. The mainland developer plans to develop the 130,400-square-meter land into luxury residences.

Yanzhou Coal Mining (1171 HK), the country’s biggest coal producer, has posted a third-quarter net profit of 1.12 billion yuan, diving 61 per cent compared with last year. Net profit for the first three quarters reached 3.02 billion yuan, plunging 55 per cent year-on-year as the coal prices dived amid financial crisis.
Zte Corporation (763 HK) has recorded a net profit of 480 million yuan for the third quarter, surging 58 per cent from a year earlier. Earnings per share were 0.23 yuan. Net profit for the first three quarters was 1.192 billion yuan, soaring 46 per cent from a year ago.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 23th, 2009

IPO: Agricultural Bank of China plans to list on both the Hong Kong and Shanghai bourses to raise as much as 2.3 billion yuan. The proportion of the shares in the A and H markets would be 7:3 or 6:4. CPMC will start its IPO road shows tomorrow. The company said there will be three cornerstone investors of its listing on the Hong Kong bourse, including CRC, JDB group and CCB International. UC Rusal, a Russian aluminium giant, plans to pass its IPO hearing next month and list on the Hong Kong bourse at the end of December to raise US$3 billion (HK$23.4 billion) for repayment of debts.

Rumour has it that Anta Sports (2020 HK) chairman Ding Shizhong and his family would place 80 million old shares at a price ranging between HK$9.88 to HK$10.1 for HK$808 million, a 5.8 per cent to 7.8 per cent discount to yesterday’s closing price.
(Hong Kong Economic Journal P. 14)

Finanicals: China Construction Bank (939 HK) has recorded a net profit of 86.119 billion yuan for the first nine months, edging up 2.24 per cent compared with a year ago. Earnings per share were 0.37 yuan. Bank of East Asia (23 HK), Hong Kong’s fifth-biggest lender, intends to raise HK$4.7 billion via the issuance of 50-year U.S. dollar-denominated hybrid bonds to help boost its capital adequacy ratio, said market sources. Standard & Poor’s Ratings Services said it has assigned its "BBB-" issue rating on the lender’s proposed US dollar-denominated stapled securities. China Citic Bank Corporation (998 HK) has announced that its third-quarter net profit has increased 7.5 per cent to 4.348 billion yuan from a year ago on rising net interest margin and reduced losses from assets devaluation. The net profit for the first three quarters dropped 8.6 per cent to 11.4 billion yuan. Industrial and Commercial Bank of China’s (1398 HK) A shares are permitted to circular as the lockup period on its 236 billion A shares held by Huijin and the Ministry of Finance expires today.

Huadian Power International (1071 HK) has posted a net profit of 907.727 million yuan in accordance with the PRC’s accounting standards for the first nine months. Earnings per share were 0.15 yuan. The third-quarter net profit amounted to 361.48 million yuan.

Kingboard Chemical Holdings Ltd (148 HK) plans to spin off its subsidiary Kingboard Heibei Coalchem Holdings Ltd to list on the Hong Kong bourse. A listing application has been submitted to the Hong Kong Stock Exchange. The company said it plans to sell 25 per cent stake of the subsidiary and spend fund raised on developing chemical products.

The Australian government has granted conditional approval for a proposed takeover of coal miner Felix Resources by Yanzhou Coal Mining (1171 HK). The conditions include operating the firm through an Australian-based subsidiary, Yancoal Australia Pty Ltd and listing that unit on the Australia Securities Exchange by the end of 2012. Yanzhou Coal Mining will be required to cut its holding in Yancoal Australia to below 70 per cent when it lists.

Anhui Conch Cement (914 HK) has recorded 938 million yuan for its third-quarter net profit, a 33 per cent increase from a year ago. The net profit for the first three quarters was 2.235 billion yuan, a 11 per cent rise from a year earlier. Earnings per share were 53 fens. A dividend of 1.27 yuan per share for the first three quarter was declared.

China Life Insurance (2628 HK) has recorded a third-quarter profit of 5.954 billion yuan, more than a double from a year earlier, yet a 30 per cent plunge from a quarter earlier. Net profit for the first three quarters was 19.874 billion yuan, surging 51.58 per cent from a year earlier. The premium income for the first nine months rose 42.27 per cent to HK$9.152 billion yuan.

Hutchison Whampoa’s (13 HK) subsidiary Hutchison China MediTech Limited announced yesterday that it has accumulated 15 per cent stake in Hutchison Healthcare Limited (HHL) for 42 million yuan. The deal will be completed within this year, Hutchison China MediTech will hold 100 per cent stake in HHL upon the deal.

Rumoured has it that Zijin Mining (2899 HK) plans to acquire copper mines and gold mines next year for 1 billion yuan at most. The grou pis seeking targets with over 100 tonnes reserves of gold and 1 million tonnes of copper.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 22th, 2009

IPO: China Mingsheng Bank, the first mainland bank to go public this year, seeks as much as HK$3 billion on the Hong Kong bourse. Its listing hearing will be held next week. Sands Macau is seeking HK$1.56 to HK$2.34 billion on the Hong Kong bourse. Its listing hearing will be held next week.

Bossini International (592 HK) has recorded a 21 per cent drop in its net profit to HK$50.25 million for the six months ended June 30. Earnings per share were 3.16 HK cents. A final dividend of 1 HK cent per share was declared.

Barclays Capital has accumulated about 32.33 million shares of BYD (1211 HK) at an average price of HK$78.145 last Friday, a 5.41 per cent of stake in BYD, according to filings with the Hong Kong stock exchange,. BYD has been included in the FTSE Xinhua China A50 Index after closing last Friday.

Capital Strategic Investment (497 HK) plans to sell all its stake, a 50 per cent shares, of Elton Building, in Sheung Wan for HK$300 million.
(Hong Kong Economic Journal P. 10)

China Power International Development (2380 HK) said it has gained approval from regulatory for its joint project with Guangdong Electric Power to build two 300-megawatt electricity machines. The project amounts to 2.52 billion yuan.

China Shipping Development (1138 HK) announced that its third-quarter earnings have dropped 81 per cent to 292 million yuan, half of the earnings of last year. Net income for the first three quarters also recorded an 80.8 per cent decline to 900 million yuan. Earnings per share were 26.6 fens. The company attributed the drop to declining market demand and overcapacity.

Fittec International Group (2662 HK) has announced that for the year ended June 30, a HK$37.81 million net loss was recorded. Loss per share was 4 HK cents. A dividend of 2 HK cents per share was declared.

Fushan International Energy(639 HK) has entered into a framework agreement to acquire coking coal mining assets in Shanxi and Inner Mongolia for no more than HK$1 billion. The company has to pay HK$100 million for deposit within five days following the date of the agreement.

The Asia-Pacific insurance unit of HSBC (5 HK) has raised its stake in Vietnamese state-backed insurance and financial firm Bao Viet Holdings to 18 per cent from 10 per cent for 1.88 trillion dong (HK$815.9 million). Foreign equity in Vietnam is capped at 49 per cent. The bank can acquire a further 7 per cent stake in the Vietnamese firm in the next three years as it has reached an agreement with Bao Viet in 2007 that allows it to raise its stake to 25 per cent in five years.
Husky Energy Inc, the Canadian oil producer controlled by Hong Kong billionaire Li Ka-shing, said third-quarter profit fell 73 per cent as crude and natural-gas prices dropped, according to Bloomberg.

Lumena Resources (67 HK) announced that it plans to issue US$250 million (HK$1.95 billion) 1200 basis points senior notes which due in 2014. The proceeds will be used for repayment of debts to BOCI Leveraged & Structural Finance Limited, capital expenditures and general corporate use.

Mongolia Energy (276 HK) admitted it has exported 260 tonnes of coal to the Xinjiang Province. It is the first time for Xinjiang Province to import coal from other area rather that its own. Mongolia Energy said it is in talks with potential customers for long-term contracts.

Petroasian Energy (850 HK) has reached an agreement with China National. Petroleum Corporation that it will be the technical consultant to provide technical consultancy services and evaluation service on the latter’s Ksar Hadada exploration permit.

Vodone (82 HK) has announced that it has acquired a 70 per cent stake in a mobile-telephone gaming firm Dragon Joyce Group for 168 million yuan. As part of the deal, Dragon Joyce has agreed to guarantee a pre-tax net profit of 13.75 million yuan in the fourth quarter, 71.5 million yuan next year and 85.8 million yuan in 2011.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 21th, 2009

China Merchants China Direct Investments (133 HK) announced that it held 120,770,002 A shares of China Merchants Bank (3968) on October 19. The company plans to subscribe for its CMB A rights shares in full. The deal has been approved by the regulatory.

China Overseas Land and Investment (688 HK) announced that its unaudited operating profit amounted to HK$1.8 billion in the third quarter, while operating profit for the first nine months was HK$7.18 billion. Meanwhile, its subsidiary China State Construction International Holdings Limited (3311) has recorded an 8 per cent rise in its operating profit to HK$521 million for the first nine months.

China Unicom (762 HK) announced yesterday that it has completed a US$1 billion share swap with Spainish Telefonica. Unicom has issued 693 million new shares to Telefonica at a price of HK$11.17 each in exchange for 40.73 million Telefonica shares at 17.24 Euros per share. Unicom now holds a 0.87 per cent stake in Telefonica. The swap increases Telefonica’s stake in Unicom to 8.06 per cent.

China Yurun Food Group (1068 HK) replied yesterday on the swine disease reports on the Huabei region. It said its business is not affected as it keeps a high standard in every procedure of material selection.

China Zenith Chemical (362 HK) has posted a 37 per cent plunge in its net profit to HK$167.8 million for the first six months ended June 30. Earnings per share were 4.49 HK cents. No interim dividend was declared.

Datang International Power Generation (991 HK) has recorded a net profit of 374 million yuan from July to September, reversing a net loss of 432 million yuan a year ago. The Chinese power producer attributed the positive figure to higher electricity demand. Net profit for the first nine months this year was 1 billion yuan, against a loss of 13.9 million yuan last year.

Esprit (330 HK) has recorded an 8.7 per cent fall in its sales in Europe for the third quarter to HK$8.065 billion. In Asia, its sales also dropped 3 per cent to HK$1.05 billion for the first half while sales for the first nine months slumped 8 per cent to HK$9.365 billion.

Geely Holding’s (175 HK) ten-month effort to buy Volvo from Ford Motor Co. may fall apart within days as the companies struggle to agree on intellectual property rights, according to Bloomberg.

Guangzhou R&F Properties (2777 HK) plans to issue 5-year fixed rate bonds worth of 5.5 billion yuan at a coupon rate ranging from 6.1 percentage points to 7.1 percentage points. The proceeds will be used for repayment of debts and operating capital. The bond issue has been approved by mainland regulatory.

Hysan Development (14 HK) has appointed Mr. Gerry Lui Fai Yim as the executive director of finance of the company effective from December 1. More, Mr Lee Ho-Tim was appointed as the adviser to the board with effect from today.

Rumour has it that the state-owned metals trader China Minmetals Corp (2626 HK) plans to acquire Hunan Nonferrous Metals Corp, according to the Minmetals president Zhou Zhongshu. It is said that talks were going on between the two companies.

Jiangxi Copper (358 HK has posted a 46 per cent plunge in its third quarter earnings to 560 million yuan. While its profit slid 57 per cent to 1.76 billion yuan. The company attributed the decline to the drop in prices of its major products.

Little Sheep Group (968 HK) announced it would sell a total of 7.3 per cent of its stake to Yum Brand since the latter’s previous purchase in June. The deal is priced at HK$4 per share. Yum Brand’s shares in the group would increase from 20 per cent to 27.3 per cent upon the deal.

Orange Sky Golden Harvest (1132 HK) yesterday unveiled its plan to return to film production and expand its number of movie theaters on the mainland from its current 12 to 600 in three years.

Siberian Mining Group (1142 HK) announced yesterday that its major shareholder Cordia has terminated the original loan facilities and has drafted a new one of up to US$72 million.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 20th, 2009

IPO: Mainland winery Tongtian plans to go public next month to raise HK$500 million for production expansion. Mainland property developer Excellence Real Estate (1028 HK) kicks off its public offering today to seek as much as HK$7.8 billion. Ping An Insurance (2318) and China Life (2628) are the cornerstone investors and they expect to develop an investment relation with the group. Mainland property developer Mingfa Group (846 HK) kicks off its public offering today for HK$3.4 billion, the developer offers shares at a price of no more than HK$3.79 per share.

Beijing Capital Land (2868 HK) plans to issue 5-year bonds worth of 1 billion yuan with a coupon rate of 6.5 percentage points to raise 2 billion yuan for repayment of debts and replenishment of working capital.

China Eastern Airlines (670 HK) has set up a subsidiary in Zhejiang to build new routes around Hangzhou, Wenzhou and Ningbo to house the increasing number of tourists coming for the Shanghai World Expo. The carrier plans to raise the number of planes from 24 to 50 in three years.

China Mobile (941 HK), the world’s largest wireless network operator, announced yesterday that its net profit rose 1.8 per cent to 83.9 billion yuan for the nine months to September.

China Telecom Corporation (728 HK) has reported a 15 per cent rise in its operating revenue to 154.7 billion yuan for the first three quarters. Yet, a 34 per cent drop is posted in its net income to 11.4 billion yuan for the first three quarters, dragging down by its mobile business.

CLP (2 HK) announced that its sales revenue has dropped 10.2 per cent to HK$37.6 billion in the first nine months. Revenue from local electricity business has decreased to HK$21.05 billion due to the decline in sales in the manufacturing sector. Yet, sales rose 2.6 per cent to 23,662 gigawatt hours due to hot weather in August and September. An interim dividend of HK$1.56 per share was declared.

Fu Ji Food (1175 HK) and Catering Services announced yesterday that it has gone into liquidation. The High Court has appointed Deloitte Touche Tohmatsu as the provisional liquidators of the company. Trading has been suspected since July 29. The company was accused of delaying announcement of its results for several times.

Guangzhou Investment (123 HK) has sold stake in GZI Transport (1052) to shareholders to raise HK$1.63 billion. The company plans to rename as ‘GZI Property’ and focuses on real estate development. The fund raised would be used for working capital, acquisitions and new projects.

Huaneng Power International (902 HK) Inc has recorded a net profit of 4.13 billion yuan for the first nine months on rising electricity price, more output from new operating units and less write-downs. For the third quarter, the company had a net profit of 2.17 billion yuan.

Jiangsu Expressway (177 HK) announced that its net profit has increased 21.72 per cent to 1.518 billion yuan for the first three quarters due to the new standard of trucks toll fees, according to the PRC accounting standards for business enterprises.

Kantone (1059 HK) has recorded a 50 per cent drop in its net profit to HK$71.06 million for the six months ended June 30. Earnings per share were 1.61 HK cents. A final dividend of 0.15 HK cents per share was declared.

Orient Overseas (International) (316 HK) announced that its third-quarter sales has plunged 42 per cent to US$950 million due to the slumping global trade. The total volume and loadable capacity in the third quarter have dropped 16 per cent and 11.5 per cent respectively.

Trinity Ltd, (891 HK) a sibling company of Li& Fung (0494), plans to raise HK$664 million on the Hong Kong bourse by offering 452 million of shares at a price of no more than HK$1.71 per share.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 19th, 2009

IPO: China Longyuan Electric Power Group, a wholly owned subsidiary of China Guodian Corporation, plans to seek HK$7.8 billion on the Hong Kong bourse. The hearing for the listing is scheduled next Thursday. Morgan Stanley and UBS are the sponsors of Longyuan’s listing.

Bank of East Asia (23 HK) is rumoured to issue e a long-term US dollar hybrid bond which is worth of US$500 million to US$600 million (HK$3.9 billion to HK$4.7 billion) for fund raising, sources said. The lender confirms yesterday that it is considering the potential for fundraising exercise yet no draft has been made at this stage.

Bright Prosperous (723 HK) plans to place no more than 917.6 million shares at a price of 8.1 HK cents each, a 5.81 per cent discount of the closing price before its trading suspension. The company seeks HK$72 million for working capital. Trading will resume today.

Cheung Kong (1 HK) has confirmed that it has subscribed to the initial public offering of Evergrande Real Estate. Yet no figures has been disclosed yet.

Everbright Zhenjiang, (257 HK) a subsidiary of China Everbright International, has reached an agreement with Zhenjiang Management Bureau to develop a waste-to-energy plant in Zhenjiang. The company has a 30-year concession right to construct and operate the plant. The project will be worth of 413 million yuan.

China Merchants Bank (3968 HK) said more than 99 per cent of its shareholders have approved its rights issue plan of up to 22 billion yuan (HK$24.97 billion). The rights issue will take place in January next year.

CR Vanguard (291 HK), a subsidiary of China Resources Enterprise, has agreed to buy out stake in Zhuzhou Shenguo Tou Commercial Property for about 47 million yuan.

Freeman Corporation (279 HK) plans to place 39 million new shares through Get Nice Capital Limited at a price of HK$0.6 per share to raise HK$23.4 million. The proceeds will be used to repay the company’s debts.

Henderson Land (12 HK) said it has sold 250 units of the Changsha project for 100 million yuan. The price is set at 4000 yuan per square meter.

Hong Kong Energy (987 HK) has announced that it intends to introduce strategic investors. Yet no legally binding agreements or contracts have been signed at this stage. The company said it is considering the possibility of buying out assets from its parent.

Hua Yi Copper (559 HK) plans to offer shares in the proportion of two offer shares for every one share held by shareholders to raise HK$190 million. The share will be offered at a price of HK$0.15 each.

Global consumer goods exporter Li & Fung (494 HK) announced yesterday it will pay up to US$401.8 million (HK$3.134 billion) to buy US clothing business Wear Me Apparel. Li & Fung will settle the deal with internal cash reserves for a fixed amount of US$101.8 million, plus performance-based payments over the next five years of up to US$300 million. New York-based Wear Me Apparel holds licenses for top brands such as Calvin Klein, Timberland, US Polo, Disney, Marvel and Warner Brothers.

Sources said Huayangnian Property (1777 HK) plans to delay its listing plan which was originally scheduled this week. The developer said it takes longer because the Industrial and Commercial Bank of China (0349), Citigroup and Goldman Sachs would like to join as underwriters. The road show schedule has not confirmed yet.

Sino Land (83 HK) has beaten seven rivals to develop the Yuet Wah Street project in Kwun Tong, the Urban Renewal Authority said yesterday. The project can provide around 300 homes in 2014, market watchers forecast.

Yau Lee (406 HK) announced yesterday that it has acquired a property located at 18, Chi Kiang Street in Kowloon from Rich China Corporation Limited. The property is worth of HK$121.3 million, which is different from the previous valuation.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 16th, 2009

IPO: Resourcehouse, controlled by Australia’s fifth-richest man, will seek Hong Kong listing committee approval for its US$2 billion to US$3 billion (HK$15.6 billion to HK$23.4 billion) IPO on October 22, a source familiar with the matter said on Friday. If approved, the natural resources company would aim to list at the end of November, the source said.

Asia Cement (743 HK) has recorded a 3.06 billion yuan revenue for the three quarters ended September 30, a 39 per cent growth compared with a year ago. A net profit of 477 million yuan was posted, surging 74 per cent year-on-year.

Cathay Pacific Airways (293 HK) held a shareholder meeting yesterday to vote on the deal selling 12.45 per cent stake in Hong Kong Aircraft Engineering Co (0044) to parent Swire Pacific (0019), the proposal is approved with 99 per cent of votes.

Cosco Pacific (1199 HK), the world’s fifth-largest port operator, had reached an agreement last year with Greece’s previous conservative administration to takeover management of Piraeus Port, Greece’s biggest state-controlled port. Claiming it may lead to job cuts, port workers suspended on Saturday a strike against the deal until November 2.

Far East Golden Resources Group (1188 HK) plans to set six bases in the mainland and US to make natural gas and multi-fuel electric-drive hybrid cars. The first hybrid car is expected to be launched in the first quarter next year.

Fujikon Industrial Holdings Limited (927 HK) expected its interim results for the six months ended September 30 to decline substantially, which would end in a lower net profit as compared to the net profit of the corresponding period last year.

South Korea’s Lotte Shopping Co. agreed to pay as much as US$630 million to acquire Chinese supermarket chain Times Ltd. (1832 HK) The acquisition allows the Korean retailer a route to quickly expand its presence in mainland China.

Foxconn International (2038 HK) has signed an agreement to build a new production facility of LED business in Chengdu in Sichuan province, which is worth of US$1 billion (HK$7.8 billion).

Hong Kong Energy’s (987 HK) managing director Yung Pak-keung Bruce said the company hopes to return to the black with the injection of capital from its parent HKC (Holdings) Ltd (0190) in April next year and its wind power projects which will be completed next year. The company has recorded a net loss of HK$5.8 million in the first half.

Hysan Development’s (14 HK) chairman and acting chief executive Peter Lee Ting-chang died at his home in Hong Kong on Saturday at the age of 55. The cause of death was not clear, according to a spokesman for the company. The independent non-executive deputy chairman David Akers-Jones has been appointed acting chairman and will be supported by committee comprised of non- executive directors to oversee the company’s operations with immediate effect.

Deutsche Bank, the listing sponsor of Mingfa Group (846 HK), expected the group to have a valuation of HK$49 billion and its offer price will be a 60 per cent discount of its net asset value. The group’s land reserves amount to about 10 million square meters, which mainly located at the Changjiang Delta, according to sources.

Mongolia Energy (276 HK) estimated its working capital at US$2.85 billion (HK$22.23 billion) for its exploitation of a coal mine in Mongolia for 19 years with an annual coal production of 800 tonnes. The total capital expenditure for the project is expected to be US$449 million (HK$3.5 billion).

Prosperity Investment (310 HK) announced that its chairman Lam Kwing-wai Alvin has sold 65.12 million shares to the deputy chairman & managing director Lau Ko-yuen Tom at a price of HK$0.9 per share for HK$58.61 million. Trading will resume today.

Seamless Green China (8150 HK) announced that its rights issue has lapsed since the company and placing agents could not reach an agreement on the details and commission of the right issue. Trading will resume today. Meanwhile, its executive director Wong Pak-fai Philip was removed as the vice chairman of the company and will remain as an executive director while independent non-executive director Wong Kwok-wai was appointed as the vice chairman with effect from October 16.

Rumoured has it that Sun Hung Kai Properties (16 HK) has sold 150 units of Aria at the Kowloon Peak on Saturday and Sunday, accounting 21 per cent of the total number of flats in Aria. The average selling price is HK$9200 per square foot.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 15th, 2009

Catic Shenzhen (161 HK) will issue short-term bonds next Tuesday to raise as much as 3.5 billion yuan. It said 60 per cent of the proceeds would be spent to support Air China (0753) operation.

Tycoon Li Ka-shing has accumulated stake in his property flagship Cheung Kong (1 HK) to 40.5 per cent for HK$98.51 million on October 14, according to the Hong Kong stock exchange. He has bought 989, 000 shares at an average price of HK$99.605 per share.

China Life Insurance (2628 HK) announced that its unaudited accumulated premiums income for the first three quarters was about 237.3 billion yuan, down 4.55 per cent compared to 248.6 billion yuan for the corresponding period last year.

China Merchants Bank (3968 HK) said there is no need to raise funds in the next three years after getting approval for its plan on rights issue from its shareholders. CMB, the mainland’s fifth largest lender, plans to raise no more than 22 billion yuan in the rights issue to lower its capital needs and boost competitiveness. The lender will issue no more than 2.5 shares for every 10 shares held by existing shareholders on both A and H bourses.

Rumoured has it that China Mobile (941 HK) plans to bid for Zain Telecom, a mobile telecommunication company in Kuwait, according to an Indian newspaper Business Standard. Chairman of China Mobile Wang Jianzhou has previously mentioned that China Mobile would not refuse any overseas merger and acquisition plans when developing its business in the local market.

China Shenhua (1088 HK) Energy said its coal sales for the first nine months this year were 23.6 million tonnes, rising 22.3 per cent year-on-year.

Esprit Holdings (330 HK) said it plans to buy back stake of a joint business with China Resources Enterprise (0291) in the mainland. Yet no details have been released at this stage.

First Pacific (142 HK) plans to raise HK$2.19 billion through a rights issue. Shareholders can buy one rights share for every five they already own at HK$3.40 each.

Great Eagle Holdings (41 HK) has acquired a waterfront site in Dalian for 734 million yuan. The site will be developed into a high-end residential project and a luxury hotel with 286,000 square meters of gross floor area.

Glorious Property (845 HK) announced that its subsidiary Shanghai Xintai has entered into an agreement with Nanjing Jiaotong to establish a project company which involves 6 billion yuan investment.

Hopewell Holdings (54 HK) is considering selling its Happy Valley development project instead of leasing it. The 45-storey project which provides 78 units is expected to be completed in the second quarter next year.

Rumour has it that Industrial and Commercial Bank of China (1398 HK) and China Construction Bank (0939) have won approval from China regulator to buy into Taiwanese financial institutions.

Kaisun Energy (8203 HK) has entered into a memorandum of understanding for the acquisition of Nobel Holdings Investments. The deal will be financed by issuing new shares. The acquisition will be finished by January 2010.

Shanghai Industrial (363 HK) has agreed to sell 44 per cent stake in its A-shares subsidiary Shanghai Pharmaceutical and other medical business to its parent for 5.75 billion yuan. The company said it will focus on developing real estate and infrastructure construction after restructuring its assets this year.

Zhong An Real Estate (672 HK) announced that it has bid a land in Hangzhou for 550 million yuan. The land lot amounts to 145,265 square meters with an average cost of HK$2400 per square meter.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 14th, 2009

Rumour has it that China Mobile (941 HK) plans to spend more than 30 billion yuan to subsidize handsets next year, in order to compete with China Unicom. The proposed amount is a triple to that this year.

China Water Affairs (855 HK) said it has set a framework to spin off a non-fully-owned subsidiary for a separate listing on the Hong Kong or other bourses.

China Unicom (762 HK) announced yesterday that a 3G iPhone (8GB) without network service will be priced at 4999 yuan. The mobile operator has also introduced a student package which costs 66 yuan per month for using its network.

Dah Chong Hong (1828 HK) has agreed to buy a land lot in Yuen Long by acquiring the shares of Rich Crystal , a wholly-owned subsidiary of Dah Chong Hong’s parent CITIC Pacific Limited (0267), at HK$8.00, with its debt amounting to HK$70.76 million.
The land lot will be used to develop a motor service centre.

Datang International Power (991 HK) said power generation in the first nine months rose 5.63 per cent to 102 billion kilowatt-hours.

EPI holdings (689 HK) plans to raise HK$177.5 million from a share placement of up to 820 million shares at a price of HK$0.225 each.

Huaneng Power (902 HK) said power generation in the first nine months rose 3.08 per cent to 145 billion kilowatt-hours. The company attributed the change to the productivity of its newly acquired system.

Hutchison Whampoa (13 HK) has agreed to sell its subsidiary Vanda Group, a technology solution company, to US A Vnet Inc on October 5. The buyer hopes to expand its business in China through this acquisition.

Hutchison Telecom (2332 HK) has agreed to sell its Thailand business to Thailand telecom operator CAT, according to a Thailand newspaper. The two companies have signed a memorandum of understanding and according to the plan, Hutchison would sell its four telecom operator subsidiaries to CAT.

Ping An Insurance (2318 HK) has recorded a 35 per cent increase in its premium to 133.5 billion yuan for the nine months ended September, up from 99.2 billion yuan for the same period last year.

Poly (Hong Kong) Investments (119 HK) plans to raise about HK$3.078 billion through a share placement, sources said. The placement size was increased to 380 million shares from 320 million shares at HK$8.1 each since it has been oversubscribed for several times.

Shanghai-based solar silicon material manufacturer Comtec Solar Technology (712 HK) will start share subscriptions for its initial public offering in Hong Kong next Monday with an entry fee of HK$6262.56. The company will use proceeds to expand production capacity, purchase polysilicon, and fund research and development, the report said.

Solartech International (1166 HK) plans to acquire a gold-copper mine in Mongolia. The valuation price is still under consideration. The deal will be settled by cash, news shares and convertible bonds.

Wheelock Properties (49 HK) has agreed to sell a non-core asset for HK$935 million to Emperor International Holdings (0163). The podium, comprising the basement, the lower ground and upper ground floor, second floor and third floor, and the roof of the podium, of Healthy Gardens, 560 King’s Road in North Point, has a total gross floor area of approximately 125,400 square feet.

The Fujian-based Yuzhou Properties (1628 HK) is selling 600 million shares, or 25 per cent of its enlarged share capital to raise up to HK$2.2 billion from its Hong Kong initial public offering. Price per share was set between HK$2.70 to HK$3.70.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 13th, 2009

Berjaya Holdings (288 HK) has acquired Cosway Group from its parent for HK$2.23 billion. The deal will be settled in cash, shares and convertible bonds. The company would change its name from ‘Berjaya Holdings (HK) Limited’ to ‘Cosway Corporation Limited’ after obtaining approval from its shareholders.

Bosideng International’s (3998 HK) subsidiary has signed an agreement with a mainland apparel brand to buy 80 per cent stake in Shanghai Bozi for no more than 88 million yuan. The mainland brand has more than 200 sales points in China and has exports to Japan and Australia.

Chaoda Modern Agriculture (682 HK) announced yesterday that its net profit rose 9 per cent to 3.986 billion yuan for the six months ended June 30. Earnings per share were 1.55 yuan. An interim dividend of 5 HK cents per share was declared.

Tycoon Li Ka-shing accumulates stake in his property flagship Cheung Kong (1 HK) to 40.43 per cent from 40.41 per cent on Friday, according to the Hong Kong stock exchange. He bought 410,000 shares at an average price of HK$98.10 per share. This is the ninth time of his accumulation of stake since the middle of September.

China Insurance International Holdings announces that the accumulated premium income of its subsidiary, Tai Ping Life (966 HK) Insurance Company Limited, amounted to 16.4 billion yuan for the first nine months, a 5.66 per cent increase compared to 15.5 billion yuan for the corresponding period of 2008.

Hopewell Holdings (54 HK) said its Lee Tung Street co-redevelopment project and Hopewell Centre 2 are both progressing as planned. The developer said the projects involve HK$9 billion investment yet it has no financing pressure.

HSBC (5 HK) chief executive Michael Geoghegan said HSBC hopes to list its shares on the Shanghai bourse next year, which will be the one of the first overseas companies to do so, according to Reuters. Rumour has it that HSBC plans to raise US$3 billion to US$7 billion (HK$23.4 billion to HK$54.6 billion) in China, people familiar with the matter said.

Maoye International (848 HK) has agreed to purchase 93.7 per cent shares of Taizhou 100 for 277 million yuan.
The deal will be settled in cash.

New World Development (17 HK) expects its luxury home ‘The masterpiece’ in Tsim Sha Tsui to have 10 to 20 per cent sales from mainland buyers. The sales volume has reached HK$6.6 billion while 231 units out of total 345 units have been sold. The remaining units are expected to be sold before the end of June 2010.

PICC (2328 HK) announced that its premium income for the first nine months was 95.722 billion yuan, surging 16.89 per cent compared with a year ago.

Fujian-based developer Powerlong Real Estate (1238 HK) closed at HK$3.00 in the grey market yesterday, 9.09 per cent higher than its offer price of HK$2.75. Shareholders posted a paper gain of HK$250 per board lot of 1,000 shares. As the retail portion of its iniial public offering was undersubscribed, the developer slashed its offer price well below its original indicative range of HK$3.30 to HK$4.90.

Sino Prosper Holdings (766 HK) has set a frame agreement to take over the exploit right of an inner Mongolian gold mine and a mine factory which produces 50 tonnes of gold per day for no more than 140 million yuan.

Television Broadcasts (511 HK) announced that its subsidiaries have reached an agreement with MEASAT Broadcast Network Systems, a Malaysian registered company, to prolong a management contract for three more months until December 31.

Tian An China (28 HK) announced it has sold its subsidiary Commander to MH (Singapore) at the nominal consideration of HK$7.80. Commander agreed to offer the put options to MH after the deal.

Yuzhou Properties (1628 HK) said it would launch its initial public offering next Tuesday. The listing candidate starts roadshow today to raise US$300 million to US$500 million (HK$2.34 billion to HK$3.9 billion) in Hong Kong.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 12th, 2009

Bonjour Holdings (653 HK) has announced that its sales rose 60 per cent from last year during the Golden Week on the increasing mainland tourists visiting Hong Kong during the holiday. The company plans to further expand its retail business by opening four to five new branches within the coming three months in the mainland.

The Hong Kong-based airline Cathay Pacific (293 HK) said Monday it carried 2 per cent fewer passengers in September than a year earlier, though its passenger load factor rose 7.9 per cent on significant reduction in capacity. Cathay Pacific said it saw a seasonal upturn in demand for first and business class traffic, though overall volume and yields were well below those of previous years.

China Aoyuan (3883 HK) has purchased the rest of shares of a Panyu project from its partner for HK$293 million. The joint development contract would terminate and China Aoyuan would fully own the project upon the deal.

China Overseas Land & Investment (688 HK), the country’s leading developer, said its sales in the first nine months has surged 85 per cent to 38.47 billion yuan, compared with a year ago. The company has accumulated 4 million square metres sales in the first nine months which is a double compared with last year. Its land reserves have reached 26.38 million square metres which are adequate for the development in the future four years.

CNOOC (883 HK) is rumoured to be in advanced talks with the Ghana National Petroleum Corp (GNPC) to make a rival bid competing with Exxon Mobil Corp for shares of Jubilee oilfield in West Africa, according to Wall Street Journal. The GNPC-Cnooc bid is said to be competitive to what Exxon has offered. Cnooc has refused to comment on the rumour.

Dongfeng Motor Group (489 HK) announced that its sales jumped 71.28 per cent in September on the subsidiary measure offered by the government. The sales volume of commercial vehicle for the first nine months recorded a 5 per cent drop and the total sales volume rose 17.53 per cent to 148,000 units.

GCL-Poly Energy (3800 HK) has announced that its wholly-owned subsidiary Jiangsu Zhongneng has signed a new facility agreement, providing 65 million yuan to Golden Concord Real Estate for a further period of six months.

Geely Automobile (175 HK) announced that the total automobile sales volume of its five 91 per cent-owned subsidiaries was 32 thousand units in September, surging 101 per cent over the same period last year. The monthly sales volume in September this year was the best level achieved by the group in its history.

Glorious Property (845 HK) said it has purchased two pieces of land in Tianjin for 850 million yuan. The two land lots amount to 587,000 square meters and would be developed into residential areas. The project would be developed in two separate phrases and sales would begin in 2011.

Financials: PICC Property (2328 HK) and Casualty announced that it has successfully issued the subordinated term debts to the qualified investors. The principal amount of the issued subordinated term debts is 5 billion yuan, with a maturity of 10 years. The interest for the first five years is 4.3 per cent per annum on nominal value. The company has the right to redeem the above debts at the end of the fifth year. If the company does not exercise the redemption right, the interest will be 6.3 per cent per annum on nominal value for the last five years. Standard Chartered (2888 HK) has got the Reserve Bank of India's (RBI) approval to issue Indian depositary Receipts (IDRs), according to Reuters. Yet the London-listed bank said it has not yet filed a prospectus with SEBI for its issue of India Depository Receipt (IDR) and said it is still too early to talk about the size of the IDR.

Sa Sa international (178 HK) said that it will step up the pace to open three new branches in Hong Kong which will be located in Causeway Bay, Tsim Sha Tsui and Quarry Bay in the second half this year. The company will also open two to three new branches in Beijing and Shanghai within two to three months this year. There are a total of 13 branches and 22 counters in department stores in the mainland.

Sinopec Yizheng Chemical Fibre (1033 HK) has said that it expects a net profit in the third quarter for the three months ended 30 September 2009. For the same period in 2008, the company had recorded a 247.246 million yuan net loss.

Rumour has it that Tencent (700 HK), a Chinese internet value-added services provider, has reached an agreement with SNS game developer Five Minutes to acquire its SNS game called "Happy Farm" for millions of yuan.

Lotte Shopping Company (1832 HK), South Korea’s top retailer by market share, said yesterday that it was considering purchasing a 72.3 per cent stake in the Chinese hypermarket and supermarket operator Times Ltd. Rumour has it that Lotte will acquires 72.3 per cent shares from Time’s Chairman Kenneth Fang by paying HK$4 billion in cash on its market price. Wumart previously indicated that it would offer US$600 million (HK$4.68 billion) to buy Times.

Yanzhou Coal Mining (1171 HK) said yesterday that it has resubmitted an application to the Australian Foreign Investment Review Board to seek approval of the purchase of Felix Resources for A$3.333 billion (HK$25.8 billion). This has been the third time of application to the Australian Board.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard

Hong Kong Stock Market Wrap Oct. 9th, 2009

IPO: Evergrande Real Estate, one of the mainland’s tenth biggest developers, plans to raise at least US$1 billion (HK$7.8 billion) on the Hong Kong bourse as it goes public next month. It will start offering shares on October 22 and listing on November 5.

Huafeng Group (364 HK) said it would issue convertible bonds worth of HK$150 million to raise HK$145 million for repayment of loan and working capital. The three-year bonds are placed at HK$0.28 per share, an 11.11 per cent discount to its closing price at HK$0.315 yesterday.

Integrated Distribution Services (2387 HK) said it has acquired all stake in an Indian logistic company PT WestSide Agritama for US$5 million (HK$39 million). Integrated Distribution Services plans to pay the deal with internal capital reserve and bank lending.

New World China Land (917 HK) announced yesterday that it will partner with parent New World Development Co. (0017) to raise at least HK$4.89 billion at a price of HK$2.55 per share, a 38 per cent discount to its closing price. The company may use the money to refinance borrowing, including the possible redemption or repurchase of convertible bonds, according to the statement.

PetroChina (857 HK) and British Petroleum have reached an agreement to jointly develop the biggest oilfield in Iraq. The twenty-year contract involves US$ 15 billion (HK$117 billion) investment.

Sinolink Worldwide Holdings (1168 HK) has placed 290 billion shares through UBS to raise no less than HK$540 billion fund. The placement is priced at a range of HK$1.87 to HK$1.94 per share, a discount from 4.9 to 8.3 per cent to its closing price at HK$2.04.

Standard Chartered (2888 HK) has filed its application to the Securities & Exchange Board of India (Sebi) for an issue of Indian depository receipts (IDRs), according to India press. The deal is subject to Sebi’s approval. It is rumoured that StandChart aims to raise no less than US$1 billion (HK$7.8 billion) through the deal.

Tsingtao Brewery (168 HK) expects to record a 75 to 85 per cent net profit growth for the first quarters ended September 30. Net profit of the corresponding period last year was 700 million yuan.

Asia Coal (835 HK) has agreed to buy coal assets in China, including a mine in Shanxi province, for US$300 million (HK$2.33 billion) from Wonder Champion Investment, The mine has an estimated coal resources of up to 95.3 million tonnes. Asia Coal will fund the deal by issuing 5-year convertible bonds to Wonder Champion. Trading of its shares will resume today.

Country Garden (2007) said its property sales in the golden week, which was the first eight days of October, surged 63 per cent from last year to reach 2.2 billion yuan. In terms of gross floor area, sales jumped 83 per cent to 410,000 square meters.

Global Sweeteners (3889 HK), a refined product and sweetener manufacturer, expects its gross margin to rise in the second half on rising exports and controlling cost. he company has recorded a 79 per cent dive in its net profit and an 8.3 per cent decrease in its gross margin in the first half. It believes the gross profit in the second half will surge to the 20 per cent level which will be similar to that before the financial tsunami. The sweetener manufacturer also said it will expand its business in beef market and enter the Hong Kong market in the first quarter next year.

Shoe seller Le Saunda (738 HK) a 30 per cent growth in sales for the first seven days of the Golden Week in China while some Hong Kong and Macau branches seeing sales go up by more than 50 per cent. et, its gross margin in Hong Kong has dropped a little comparing with last year due to its competitive pricing strategy.

Sa Sa (178 HK) an over 30 per cent surge in sales in Hong Kong and Macau during the 8-day Golden Week holiday. The number and average value of each transaction posted a double-digit growth in Hong Kong and Macau. The company attributed the growth to the tourists coming from China.

Rumoured has it that Shimao Property (813 HK) and a Fujian-based real estate company Xiemen Real Estate would be the basic investor of a new stock Yuzhou PPT (1628) which will go listed on the Hong Kong bourse this Wednesday. The two companies would subscribe US$30 million (HK$234 million) worth of Yuzhou shares

Vodone (82 HK) has agreed to buy a 70 per cent stake in the mainland-based Dragon Joyce Group for 168 million yuan. The deal will be settled in cash of 40 million yuan and an issue of 100 million new shares at HK$1.50 yuan per share.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard