Tuesday, May 18, 2010

Hong Kong Stock Market Wrap May 17th, 2010

IPO: Prudential PLC said it would offer 11 shares for every two existing, at 104 pence per share, nearly 81 per cent less than the May 14 closing price. The insurer will need to issue up to 12.96 billion shares for nearly $21 billion. (Sing Tao Daily B2)

It is said that BOC Hong Kong (2388 HK) will enter into a supplementary agreement with banks participating in yuan business this week. Spokesperson of the bank has denied the saying. (Hong Kong Economic Times A13)

CNNOC (883 HK) signed a final agreement with state-run Turkish Petroleum Corporation (TPAO) to develop the Maysan oilfield complex in Iraq. The company will have 63.75 per cent stake in the oilfield. The Maysan complex is estimated to have up to 2.5 billion barrels reserve, which would require billions of dollars in investment. (Sing Tao Daily B3)

China Telecom Corporation Limited (728 HK) introduced CDMA 2000 version blackberry phone, which is targeted at commercial market. The company has started service in 16 provinces, with monthly fee ranging from 189 yuan to 589 yuan. In addition, the company plans to introduce Palm phone this summer. (Sing Tao Daily B3)

China Life Insurance (2628 HK) posted unaudited accumulated premium income of about 132.9 billion yuan for the first 4 months this year, up 5.5 per cent over the 126 billion yuan for the same period last year.
(Hong Kong Economic Journal P.10)

China Railway (3900 HK) has announced that a subsidiary has secured construction contracts worth 69.218 billion yuan in total for 15 railway, subway or highway projects. The company said the sum was equivalent to 20 per cent of its overall operating income last year according to PRC GAAP. (Hong Kong Economic Times A13)

Euro vs dollar drops. Esprit (330 HK), with many businesses exporting to Europe, went down 7.7 per cent to close at HK$45.15 yesterday. 84 per cent income of the company was from Europe for the 9 months ended March. (Hong Kong Economic Times A2)

Foxconn International (2038 HK) dropped 8.2 per cent to close at HK$6.12 yesterday as euro vs dollar drops. 22.5 per cent income of the company was from Europe last year. JP Morgan lowered target price for the company to HK$5.4 from HK$8 and rating to “underweight” from “neutral”. (Hong Kong Economic Times A2)

Kunlun Energy (135 HK) is to acquire 55% equity interest in Jiangsu LNG Company from its parent PetroChina (0857) for around 500 million yuan. Jiangsu LNG Company operates a LNG terminal, loading, storing and gasificating natural gas. (Hong Kong Economic Times A13)

Parkson Retail Group (3368 HK) said same store sales increased 10.8 per cent in the first quarter ended March 31 and the company expect to maintain a 10 per cent growth for the whole year. CEO said capital expenditure would be around 800 million to 1.2 billion yuan, mainly used to establish five new stores.
(Sing Tao Daily B2)

Southgobi Resources Ltd. (1878 HK) said first-quarter loss enlarged to around $168.3 million, compared with $9.96 million loss in the same period last year. Sales cost rose nearly three times to $12.7 million, mainly due to higher depreciation caused by realigning the open-pit and additional mobile equipment. (Sing Tao Daily B2)

Shandong Chenming Paper (1812 HK) has entered into contracts to purchase various equipment and parts for a total of 970 million yuan with Finland’s Metso Corporation’s and Germany’s Voith Group’s subsidiaries through its wholly owned subsidiary Shouguang Meilun Paper. The deal should have no substantial impact on its financial condition. (Hong Kong Economic Journal P.10)

Tingyi(Cayman Islands)Holding Corp. (322 HK) said first-quarter profit rose 10.12 per cent year-on-year to $102 million. Turnover increased 23 per cent year-on-year to $1.449 billion, but gross margin decreased 5.02 per cent to 30 per cent. Earnings per share were 1.83 US cents. No dividend is declared. (Sing Tao Daily B2)

Tcc International Holdings Limited (1136 HK) said the company plans to rasie HK$2.284 billion through a rights issue at a subscription price of HK$2.1 per rights share, on acceptance in the proportion of one rights share for every two. The price is around 27 per cent discount of the closed price before suspension. The net proceeds will be used to repay the debt in acquiring Upper Value. (Sing Tao Daily B2)

ZTE CORPORATION (763 HK) said the portion of phone business will increase to 50 per cent of the company’s total revenue, as it continues to develop high-end market in Europe and the U.S. as well as promote creative products such as mobile broadband. (Sing Tao Daily B2)

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