Monday, May 17, 2010

Hong Kong Stock Market Wrap May 13th, 2010

There were major banks raising target prices for Air China (783 HK) for 2 consecutive days. Yesterday Morgan Stanley raised rating to “buy” and target price to HK$9.36 for the company. Its share price went up 6.7 per cent to close at HK$7.62. (Hong Kong Economic Times A14)

Alibaba.Com Limited (1688 HK) said first-quarter profit reached 330 million yuan, up 33.8 per cent year-on-year or 17.4 per cent year on year, beating market’s estimates. Earnings per share were 6.55 fen. No final dividend is declared. The company said it might have acquisition plan in the second quarter. The potential target will be a project, which could lift customer volume and bring technical co-ordination. (Sing Tao Daily B3)

China Everbright (165 HK) said it has got approval to list its unit China Everbright Bank in Shanghai, according to the CEO. He said as there are uncertainties in the market, it is very hard to say if the bank will conduct listing in the short term. (Sing Tao Daily B2)

China Resources Power (836 HK) posted electricity sales of 29 million mwh in the first 4 months, up 43 per cent over the same period last year. April electricity sales was 7.03 million mwh, up almost 38 per cent over the same period last year. (Hong Kong Economic Journal P.10)

China Shenhua Energy Company Limited (1088 HK) said merchantable coal production in April amounted to 17.3 million tonnes, down 1 per cent year on year, while coal sales rose over 50 per cent to 23 million tonnes. In addition, both total generating capacity and capacity sold out increased over 60 per cent to reach over 11 billion KW, compared with the same period last year. (Sing Tao Daily B2)

China Precious Metal Resources Holdings (1194 HK) announced that CEO Dai Xiaobing has acquired an aggregate of 11 million shares in the company from open market yesterday, of which 9 million shares were purchased at the price of HK$2.15 each and 2 million shares were purchased at the price of HK$2.17 each). He has promised not to dispose of the acquired shares in one year. (Sing Tao Daily B2)

Citic Pacific Ltd., (267 HK) an arm of China’s biggest state-owned investment company, had its credit outlook cut by Standard & Poor’s Ratings Services after costs for its Australian iron ore project surged. The agency downgraded the company’s outlook to negative from stable, but reaffirmed its “BBB-“ rating for its long-term corporate credit. (Sing Tao Daily B3)

Hontex International (946 HK) announced KPMG had resigned as auditors of the company with effect from 10 May 2010. KPMG said it had identified discrepancies and issues when auditing the company’s 2009 annual results. (Hong Kong Economic Times A14)

Hang Seng Index announced its quarterly review results yesterday and the changes will be effective on 7 June. JP Morgan said after the adjustment, the weighting of HSBC Holdings (5 HK) will be increased from 14.9 per cent to 15 per cent, which will attract $88.2 million or 8.5 million shares of long positions. Its share price slightly went down 1 per cent to close at HK$76.75 yesterday. (Hong Kong Economic Times A2)

Swire Pacific Limited (19 HK), which cancelled the listing plan of its property unit last Thursday due to deteriorating market sentiment, said it has not the timeline to revive the IPO. CEO said the company has no immediate plans to raise funds. (Sing Tao Daily B2)

Newbridge is selling the shares of Ping An (2318 HK) in a price range of HK$60.52-$61.28 each, which will raise up to HK$9.8 billion. The placing shares account for over a half Newbridge Asia’s total stake in the company. NewBridge will gain up to HK$7.06 billion through the placing. (Sing Tao Daily B1)

Real Gold Mining Limited (246 HK) said it has reached an agreement with Win Triumph to acquire whole stake in gold mine Great Future for $70 million via cash payment. Meantime, the company will acquire whole stake in Yuanyi Mining for $60 million. (Hong Kong Economic Journal P8)

Texhong Textile Group (2678 HK) said the turnover rose over 41 per cent year on year in the first four months and net profit in the same period went up significantly compared with half-year profit ended the end of June last year. (Sing Tao Daily B2)

Uni-Bio Science (690 HK) in response to a press release from ICAC in April said that the controlling shareholder or single largest shareholder is its chairman and executive director Tong Kit Shing and that there exists no invisible controlling shareholder. (Hong Kong Economic Times A14)

Youyuan international IPO (2268 HK) starts today. It expected net profit in the first half of 2010 to be not less than 82 million yuan. It has signed an agreement with Cathay Special Paper, pursuant to which the company will have to make compensation if 2010 net profit is less than 220 million yuan. (Hong Kong Economic Times A6)

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