Friday, November 6, 2009

Hong Kong Stock Market Wrap Nov. 5th, 2009

Agile Property (3383 HK) has entered into an agreement with HSBC, Bank of America and Merrill Lynch to issue of US$300 million notes due 2016. The estimated net proceeds of the notes issue amount to approximately US$283.6 million, which the company intends to use to finance existing and new property projects.

Capital Estate (193 HK) has recorded a net loss of HK$227.2 million for the twelve months ended July 31, a further 12 per cent from a year ago. No dividend was declared. (8006 HK) plans to turn its global income of its CDC Software to US$500 million within the next three to four years and to raise its Chinese market income from US$30 million to US$100 million. The company said more resources will be put on developing the mainland software market.

China Overseas Land & Investment (688 HK) announced that its property sales in October have reached 4.02 billion yuan, surging 98 per cent year-on-year. The accumulated sales for the ten months ended October was 42.5 billion yuan, an 86 per cent rise from last year with an accumulated floor area of 43.57 million square meters. Its land reserves account for 28.9 million square meters, which is sufficient for the future four years’ development.

City Telecom (Hong Kong) (1137 HK) has posted a net profit of HK$213 million for the twelve months ended August 31, surging 70 per cent from a year ago on strong growth in fixed telecommunication network services business. Earnings per share were 32.4 HK cents. A final dividend of 16 HK cents per share was declared.

China’s leading offshore oil producer CNOOC Ltd (883 HK) said it has agreed to buy 10 to 20 per cent stakes in oil assets in the Gulf of Mexico from Norway’s Statoil, marking its first entry into oil reserves in the gulf.
CNOOC Ltd did not disclose the price of the deal.

Hong Kong Building & Loan Agency (145 HK) announced that a substantial shareholder has sold 56.50 million shares of the company for HK$103 million. Trading of its shares resumes today.

Hopefluent Group (733 HK) announced that it has agreed to acquire a property project in Tianhe district in Guangzhou which is worth of HK$88.20 million. The deal will be settled by issuing 42 million new shares at a price of HK$2.1 per share.
A shareholder of Kingsoft (3888 HK) is rumoured to sell 82.64 million shares of the company for as much as HK$572 million, according to market sources. Singapore Investment Corp (GIC) is rumoured to be the seller in this deal.

Lenovo Group (992 HK) has recorded a higher-than-expected net profit of US$53 million (HK$414 million), surging 130 per cent year-on-year for the second half ended September 30 on cost control and strong growth in sales of personal computer. An interim dividend of 1 HK cent per share was declared. Net profit for the first half amounted to US$130 million, plunging 72 per cent from a year ago.

Li Ning (2331 HK) Company announced that its non-wholly-owned subsidiary, Shanghai Double Happiness, has agreed to acquire 20 per cent stake in Suzhou Double Happiness from Wujiang Daoboer Sports Equipment for 6.42 million yuan. Shanghai Double Happiness and Daoboer will hold 75 per cent and 25 per cent of stake in Suzhou DHS respectively upon the deal.

New IPO candidate LongFor Properties (960 HK)’ 900 million shares international placing has been oversubscribed for 6 times. Morgan Stanley, UBS and Citibank are the sponsors of its listing.

Manulife Financial Corporation has reported a net loss of C$172 million for the third quarter ended September 30, compared to a net profit of C$510 million in the third quarter last year. The loss per share was C$0.12. A quarter dividend of C$0.13 per share is declared.

Peace Mark (304 HK) announced that its investor Global Peak has reached an agreement with temporary liquidator that Global Peak will be granted the right to restructure Peace Mark exclusively before May 4 in 2010. Global Peak has already deposited HK$8 million as escrow money.
The Link announced (823 HK) that a salary committee of four independent non-executive directors has been formed to help setting a responsible and a fair salary mechanism for management.

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