Wednesday, October 21, 2009

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