Wednesday, May 5, 2010

Hong Kong Stock Market Wrap May 4th, 2010

IPO: Agriculture Bank of China may sell as much as 18 per cent of itself in an initial public offering in Hong Kong and Shanghai, which is 20 per cent lower than the maximum expectation in the market. In addition, the raised fund target is not $30 billion as the market has been expecting, reports said, citing its CEO. The bank will raise a total capital ranging from $25 billion to $26 billion, according to the report. (Sing Tao Daily B2)

China Southern Airlines (1055 HK) expects 2010 operating income to grow 20 per cent to 50 billion yuan and number of passengers to be above 70 million. (Hong Kong Economic Journal P.8)

Comba Telecom Systems Holdings (2342 HK) plans to expand business overseas in 2010, expecting to lift the overseas market to account 20 per cent of its whole business, up from the 15 per cent last year. The company said the company suffered little affect from the India’s move to ban the imports of Chinese telecom instruments and still expected Indian business to generate 5 per cent of its total income, the same level as that of last year. (Sing Tao Daily B4)

Fortune Real Estate Investment Trust (778 HK) said income available for distribution increased 28 per cent to around HK$106 million. Distribution per unit for the period was 6.38 HK cents, down 36 per cent compared with the same period last year. (Sing Tao Daily B4)

(2777) GUANGZHOU R&F PROPERTIES CO., LTD. SALES UP BUT QUANTITY DOWN IN APR R&F Properties recorded contracted sales and areas of 2.454 billion yuan and 183,000 sq.m. respectively in April, up 5 per cent and down 24 per cent respectively over the same period last year. Sales and areas were 9.799 billion yuan and 805,000 sq.m. respectively for the first four months this year, up 18 per cent and down 19 per cent respectively over the same period last year. (Hong Kong Economic Times A14)

Good Friend International (2398 HK) said the total sales orders received from customers for the first four months in 2010 amounted to 702 million yuan, up 2.01 times year-on-year. Sales orders of its CNC machine tools business went up two times to 1,230 units while contracted sales jumped 2.3 times to 608 million yuan. (Hong Kong Economic Journal P.8)

HSBC (5 HK) announced its payment of dividends for the first time this year. The bank will pay dividends of US$8 per share on 7 July. (Hong Kong Economic Journal P.8)

Industrial and Commercial Bank of China (1398 HK) said the target of capital adequacy ratio this year is 12.4 per cent and core capital adequacy ratio target is 10.2 per cent. The bank expects the capital adequacy ratio to be around 12.3 per cent and core capital adequacy ratio to reach around 10.1 per cent in 2011 and 2012. (Sing Tao Daily B3)

KWG property (1813 HK) said pre-sale in April doubled to 1.5 billion yuan year-on-year. The accumulated pre-sale income amounted to around 5.1 billion yuan, which has accounted for 50 per cent of the whole-year sales target. (Sing Tao Daily B4)

Loudong General Nice Resources (988 HK) will buy 30 per cent equity interest in Shanxi Linxian Taiye Coal Mining for 700 million yuan through a 51 per cent owned joint venture. The company also plans to buy 30 per cent equity interest in Shanxi Dan Tan Gou Mining project. (Hong Kong Economic Times A14)

Li & Fung Limited (494 HK) has hired three investment banks to arrange a road show for possible $500-million U.S. bond issue. The company may issue to bond after the road show. The company’s share price growth ranks the top three this year. It surged 5 per cent to close at HK$39.65 yesterday. (Sing Tao Daily B3)

(2318) PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD. GOT APPROVED TO BUY STAKE IN SHENZHEN DEVELOPMENT BANK Ping An Insurance (Group) Co. of China Ltd. said it has received approval from the securities regulator to buy TPG Inc’s 520 million shares in Shenzhen Development Bank, via issuing 299 million new H-shares to TPG. In addition, the mainland insurance business will grow at a pace of 50 percent increase every year, according to a high-level executive. (Sing Tao Daily B3)

Phone company PCCW (8 HK) borrowed $16 billion through 20 banks according to a media report. The sum is to refinance debts and bonds due 2011 of around $15.5 billion in total. (Hong Kong Economic Times A14)

Standard Chartered Plc (2888 HK) said revenue and profit in the first quarter this year hit record on an improved performance in consumer and corporate banking. Income from the corporate banking clients grows over 20 per cent, while consumer-banking business recorded a more than 10 per cent growth in the first quarter, compared with the same period last year. The bank didn’t provide any specific figures for earnings. (Sing Tao Daily B3)

Taifook Securities (665 HK) Deputy Chairman and Managing Director Wong Shiu Hoi said that after Haitong Hong Kong acquired 60 per cent interest of Taifook, part of the merging procedures of both parties had been completed. Together they have 230 staff in Hong Kong. They plan to increase the number to 300 by year-end and open one to two more branches. (Hong Kong Economic Times A14)

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