Friday, January 15, 2010

Hong Kong Stock Market Wrap Jan. 14th, 2010

Management of Bank of China (3988 HK), quoted by JP Morgan, said the bank has not yet decided the scale of financing. Its financing plan will be determined by the central government since it will affect the balance of interest of Ministry of Finance, Central Huijin Investment and Social Security fund. (Sing Tao Finance B2)

Bawang International’s (763 HK) substantial shareholders the Chens plan to place 150 million existing shares at a price ranging from HK$5.00 to HK$5.15 apiece to raise up to HK$772.5 million, sources said. If the market responds actively, they will place up to 200 million existing shares to raise HK$1.3 billion at most. (Sing Tao Finance B5)

China Green (904 HK) said the net profit for the first half ended October 30 has risen by 26 per cent compared with a year ago. Profit margin for the first half amounted to 51.8 per cent, surging 0.6 per cent year-on-year. The company expects the price to grow up to 8 per cent for the fiscal year ended in April. (Sing Tao Finance B5)

Envir Energy (8182 HK) said it expects to spend US$3 million to analyze and develop a drilling project in Xinjiang. The expenditure this year would exceed that in 2008 and 2009. (Hong Kong Economic Journal P. 8)

Rumour has it that Evergrande Real Estate (3333 HK) is marketing a five-year US$500 million (HK$3.9 billion) worth of bond. The group clarified that they have no such plan at this stage; details would be announced at the end of this month at the earliest. (Hong Kong Economic Journal P. 12)

Jackin International (630 HK) plans to place 210 million shares at a price of HK$0.95 per share to raise HK$193 million, a 19 per cent discount on the closing price on the last trading day. The proceeds will be used for the initial costs of its new projects. (Sing Tao Finance B4)

Kaisa Group (1638 HK) said the contracted property sales reached 900 million yuan in December, surging 152 per cent from a year ago. The developer said about 60 per cent sales came form projects in Pearl River Delta. (Sing Tao Finance B2)

Kingboard Chemical (148 HK) announced to spin-off its coke and coke-related chemicals business in Hebei province. The proposed spin-off, approximately 10 per cent of the global offering, will be available for subscription by qualifying shareholders at the offer price under the preferential offer. (Hong Kong Economic Journal P. 8)

PetrolChina (857 HK) said turnover of the company in 2009 beats expectation. Its oil and natural gas reserve have surged to make the year the fifth highest since the establishment of China. The oil gas field in Changqing also exceeds 30 million tons, becoming the second largest oil gas field in the mainland. (Hong Kong Economic Times A16)

Ping An Insurance (2318 HK) said it has no plan of financing through stock market. Yet, the company’s subsidiaries may consider to raise fund through issuing bonds. (Sing Tao Finance B2)

SouthGobi Energy Resources (1878 HK) starts its initial public offering today. The offer price is HK$133.5 per share or HK$6742.35 per board lot of 50 hares. The company will go listed on the Hong Kong bourse on January 29. CIC and Temasek have subscribed its shares for US$50 million each. (Sing Tao Finance B3)

Sun Hung Kai Properties (16 HK) announced that it has appointed Dr. Fung Kwok-lun, William as an independent non-executive director of the company with effect from February 1. Dr. Fung is also an independent non-executive director of several listed companies. (Hong Kong Economic Times A16)

Skin-care product retailer Water Oasis Group (1161 HK) has hired veteran investment banker and CVC Greater China chairman Francis Leung Pak-to as adviser for possible acquisitions in the mainland and finding strategic partners. The announcement came as the firm reported earning HK$80.99 million for the year to last September 30, 13.69 per cent from a year earlier, with its China retail business the key driver. A final dividend of 10 HK cents and a bonus per share were recommended. (Hong Kong Economic Journal P. 8)

ZTE Corporation (763 HK), the mainland’s second-biggest telecom equipment producer, raised around HK$2.59 billion for general working capital by placing 58.29 million new H shares, the company said. The shares were sold at HK$45 each, a 13 per cent discount on the closing price of HK$51.70 on Wednesday. (Hong Kong Economic Journal P. 6)

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