Tuesday, April 27, 2010

Hong Kong Stock Market Wrap April 26th, 2010

Air China (753 HK) director Kong Dong said the next target was to increase the capital spending of 2010 by 50 per cent year-on-year to 15 billion yuan in order to gain market share in the mainland. The company intends to expand its presence in the Eastern and Southern market. Air China’s net profit more than doubled to 2.172 billion yuan in the first quarter of the year. (Hong Kong Economic Times A12)

Asia Cassava Resources Holdings Limited (841 HK) announced profit warning for the fiscal year ended March 31. The company said it cassava chips sale and turnover are likely to more than double, due to persistent increasing demand. (Sing Tao Daily B2)

BYD (1211 HK) said unaudited first-quarter net profit surged 2.55 times year on year to 1.704 billion yuan. Turnover amounted to around 12.656 billion yuan, up 70 per cent compared with that of the same period last year. Earnings per share were 0.75 yuan. No final dividend was decalred. (Sing Tao Daily B4)

China Construction Bank Corp. (939 HK) is likely to propose a 0.7-for-10 rights issue to raise as much as 70 billion yuan in Shanghai and Hong Kong, according to mainland media, citing unnamed authorized sources. The board will discuss the proposal on April 29 when the bank checks its first-quarter results, the paper said. (Sing Tao Daily B2)

China Citic Bank (998 HK) said it will cooperate with its strategic shareholder CORFISA, which is wholly controlled by Spanish bank Banco Bilbao Vizcaya Argentaria SA., to set up a China Auto Finance venture. Citibank will contribute 650 million yuan for a 65 per cent stake in the company. The total registration capital will be 1 billion yuan. (Sing Tao Daily B2)

China Forestry (930 HK) posted net profit of 511 million yuan for the full-year of 2009, down 91.3 per cent. Earnings per share amounted to 0.22 yuan. Revenue rose 45.7 per cent to 793.7 million yuan. A final dividend of 5.86 HK cents was declared. (Hong Kong Economic Journal P.8)

China Railway (390 HK) posted net profit of 6.887 billion yuan, surging 4.1 times year-on-year. A final dividend of 0.063 yuan was declared. Other income totalled 1.357 billion yuan. Gross profit margin dropped 1.2 percentage points year-on-year to 6.1 per cent. Net profit in the first quarter rose 68.48 per cent year-on-year to 1.655 billion yuan. (Hong Kong Economic Times A12)

Dragon Hill Wuling Automobile (305 HK) Holdings said it recorded a loss of 21.92 million yuan for 2009, compared with a profit of 32.64 million yuan in 2008. If excluding the loss resulted from the change in fair value of the derivative financial instrument embeded with the convertible loan notes issued by the company, the company gained around 43.76 million yuan, up 34% year on year. Loss per share was 2.39 fen. No final dividend was declared. (Sing Tao Daily B4)

Hong Long (1383 HK) chairman Zeng Yunshu said contract sales target this year would be 1.628 billion yuan, with sales area of 202,000 sq.m. Sales reached 300 million yuan since this year, of which 100 million yuan generated from Hong Long Century Plaza that has launched sales since early April. He added that the company had not been affected by new macro-adjustment measures as it was focusing on sales of commercial properties. (Hong Kong Economic Times A12)

Lansen Pharmaceutical Holdings (503 HK) said it would benefited from the continued growth of pharmaceutical industry in the PRC but whether it would distribute dividends in the first listing year had yet to be decided. The company expected net profit of US$4.8 million for the period ended June 2010. (Hong Kong Economic Journal P.8)

Lenovo Group Limited (992 HK) mulls on acquiring a U.S. smart phone producer Palm, to pave the way into the U.S. market, Reuters news reported. The fourth largest PC maker would have to invest up to HK$10.1 billion to complete the deal, the news agency said. (Sing Tao Daily B2)

Orange Sky Golden Harvest (1132 HK) saw revenue grow 55 per cent to HK$290 million in the first quarter and net profit grow 5.6 times year-on-year to HK$33 million. For the 18 months ended last year, revenue amounted to HK$1.164 billion, increased by 88 per cent over the year ended June 2008. Net profit rose from HK$11 million to HK$96 million. Special dividend of 1 HK cent per share was recommended. (Hong Kong Economic Times A12)

Sun Hung Kai & Co. Limited (86 HK) said it will conduct reorganization and it has agreed to sell Mandatory Convertible Notes and warrants to a private-equity firm CVC Capital Partners for HK$2.14 billion. The sale is conditional on Sun Hung Kai disposing of its 38 per cent stake in mainland producer Tian An China Investments Co. (0028), to Allid Properties Ltd. (0056). (Sing Tao Daily B4)

Swire Properties (962 HK) said 65 per cent of the fund raised will be used to pay back the debt for its parent company, Swire Pacific Limited (0019). Another HK$210 million will be invested in property developments, according to the prospectus. The company will issue 910 million shares at a price ranging from HK$20.75 to HK$22.9. The entry fee for the retail investors will be HK$4,626. (Sing Tao Daily B1)

Renhe Commercial (1387 HK) posted revenue of 4.163 billion yuan for the year 2009, up 36.5 per cent. Net profit jumped 1.12 times to 4.038 billion yuan. Earnings per share were 19.29 fen. A final dividend of 9.18 fen per share was paid. (Hong Kong Economic Times A12)

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