Monday, October 19, 2009

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