Hong Kong Stock Market Wrap June 29th, 2010

BEA (0023) has granted a 2-yr term loan facility of HK$800 million to Agile Property (3383 HK). The company will be an event of default if controlling shareholders cease to be interested in 50% of the equity interest at least or cease to be entitled to exercise management control. (Hong Kong Economic Journal P13)

AgBank (1288 HK) vice chairman Zhang Yun expects cost to income ratio to drop 5-8 percentage points to 35-38 per cent after the listing. Underwriters will receive 1.96 per cent of the offer price payable for the HK offer shares initially offered as gross underwriting commission. (Hong Kong Economic Journal P4)

Café de Coral (341 HK) announced its result for the year ended 31 March yesterday. Its full-year turnover reached historical high at around HK$4.88 billion, up 4.5 per cent, while the net profit increased by 16 per cent to around HK$513 million year-on-year. A final dividend of 45 HK cents was paid. (SingTao Daily B4)

Cheung Kong (Holdings) (1 HK) chairman Li Ka Shing increased shareholdings of the company and Hutchison Whampoa (0013) by 349,000 shares in total for over HK$26 million on 24 June and 25 June, taking its shareholdings in the two companies to 42.09 per cent and 51.92 per cent respectively. (Hong Kong Economic Journal P12)

China Gas (384 HK) may record a significant increase in net profit for the year ended 31 March 2010, which is mainly due to the positive fair value adjustments of the outstanding interest rate swap contracts. (SingTao Daily B4)

China Haidian (256 HK) plans to sell 30 per cent equity interest of its commercial and residential site in Shenzhen for a consideration of 426 million yuan. It reaped HK$156.25 million for general operating capital and expansion of its watch business. (SingTao Daily B4)

China Resources (291 HK) bought an 80 per cent equity interest in Pacific Coffee from Chevalier Pacific Holdings Limited for a consideration of HK$326.6 million. It aims to enter the coffee market in the mainland and strengthen its retail business development. (SingTao Daily B5)

Foxconn International (2038 HK) expects interim results ending end of June to record increase in loss mainly due to lower products pricing, changes in product mix as well as higher depreciation expenses. It does not mention the impact of salary cost. (Hong Kong Economic Times A10)

Chow Tai Fook controlled by New World Development (17 HK) chairman Cheng Yu Tung acquired on 23 June 1.95 billion shares in China Sci-Tech Holdings for HK$390 million at HK$0.2 each. The figures are lower than those China Sci-Tech Holdings previously announced. China Sci-Tech Holdings announced in mid-June Cheng will acquire 7.8 billion shares for 200 million dollar. (Hong Kong Economic Journal P4)

North Mining (433 HK) aims to acquire 70 per cent of equity interests in Yi Tong that holds a mine exploitation permit of Dong Feng Lin Gold Iron Mine located in Heilongjiang Province for a consideration of HK$414 million. The consideration will be satisfied in cash and the issue of new shares at HK$0.28 each. (SingTao Daily B4)

Broadcasting Authority has received application from ATV regarding a change in shareholding. Prosperity International (803 HK) chairman Wong Ben Koon together with mainland trader Wang Zheng are to acquire a total of 41.66 per cent equity stake in ATV from CITIC Group, Phoenix Television (2008) chairman Liu Changle, and Chan Wing-kee. (Hong Kong Economic Times A12)

Shui On Land (272 HK) plans to launch several home sale programs in the second half. Its sales centre for high-end residential projects in Foshan started operation yesterday. It is estimated that the company will launch a presale for its high-rise flats and villas in the next one to two months. (SingTao Daily B4)

UK hedge fund TCI decreased holding of The Link Real Estate (823 HK) by over 1.266 million fund units at an average price of HK$19.55 per share last Thursday. TCI Fund Management also reports a decrease in holding of the latter by 2 million units as well last Friday at an average price of HK$19.76. (Hong Kong Economic Journal P12)

FIRST DAY ENDED HK$3.83; UP 8.81% Trauson Holdings’ (325 HK) first day ended HK$3.83, up 8.81 per cent from its offer price of HK$3.52. Investors posted a paper gain of HK$310 (excluding handling charges) per board lot. (SingTao Daily B4)

Yip’s Chemical (408 HK) said its net profit amounted to HK$378 million for the year ended 31 March 2010, rising 70 per cent year-on-year. Basic earnings per share were 70 HK cents. A final dividend of 20 HK cents was declared. (SingTao Daily B6)

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

Hong Kong Stock Market Wrap June 28th, 2010

China CITIC Bank (998 HK) second largest shareholder BBVA is developing in the Greater China. China CITIC Bank has signed agreements with BBVA to set up an independent private banking business cooperation unit in China CITIC Bank. (Hong Kong Economic Times A12)

Convoy (1019 HK) kicks off IPO today at HK$1-1.2 per share to raise up to HK$120 million. The listing only includes the company’s insurance products and MPF businesses. Chairman Quincy Wong says the company has no plan to float its investment products intermediary business at the moment. (Hong Kong Economic Times A12)

Eagle Nice (International) (2368 HK) posted net profit of around HK$150 million for the year ended 31 March 2010, down 8.7 per cent. Earnings per share were 29.9 HK cents. A final dividend of 7 HK cents per share was recommended. (Hong Kong Economic Journal P4)

Emperor International (163 HK) has returned to the black, posting profits attributable to shareholders of HK$2.8 billion for the year ended 31 March 2010, in which revenue arising from property revaluation is over HK$2.48 billion. A final dividend of 4 HK cents was declared. (SingTao Daily B4)

First Tractor (38 HK) plans to issue not exceeding 150 million A shares for investment in three projects amounting to around 1.9 billion yuan in total, but the raising amount has not fixed. (SingTao Daily B4)

Genesis Energy (702 HK) aims to acquire Orion Energy International Inc., a company engaged in exploration, development and production of the coal bed methane in Sanjiao Block in Shanxi Province. The remuneration is expected not to exceed $350 million which will be satisfied in a combination of cash and new shares. (SingTao Daily B4)

GOME Electrical Appliances (493 HK) has approved and accepted Chen Xiao to resign as president. Executive vice president Wang Jun Zhou has been appointed to take the position. The former will remain as chairman. (Hong Kong Economic Times A10)

Hopewell Highway Infrastructure (737 HK) is the first enterprise to issue yuan bonds in HK. The proceeds will go to the mainland and support infrastructure projects by way of foreign direct investment. The plan has already been approved by the Ministry of Commerce. (Hong Kong Economic Times A10)

Media Chinese (685 HK) recorded profits attributable to shareholders over $41million for the year ended 31 March 2010, gaining a 1.45 times growth. Earnings per share were 2.44 cents. A second interim dividend of 0.771 cents was paid. (SingTao Daily B4)

Ping An Bank Huizhou Branch under Ping An Insurance (2318 HK) has already started operation. Huizhou Branch has become the ninth branch set up by Ping An Bank to strengthen its layout in the Pearl River delta region. (SingTao Daily B4)

RCG (802 HK) delivered an announcement yesterday night after its share price had plunged 14 per cent. It clarified that the company has no intention to change auditor and said that its CEO Lee Boon Han has increased 41,000 shares at an average HK$4.53 per share. (SingTao Daily B4)

Finance director Richard Meddings of Standard Chartered (2888 HK) said that although in recent weeks, economic uncertainties have been increasing and market sentiment has become weaker, the bank is comfortable with analysts’ forecast of a HK$45.9 billion profit before tax this year. (SingTao Daily B2)

Swire Pacific (19 HK) offers to acquire all of the issued shares in the capital of Hong Kong Aircraft Engineering Company Limited from the latter’s shareholders at a price of HK$105 per share. Independent financial adviser Rothschild considers the terms to be fair and reasonable and advises HAECO independent shareholders to accept it. (Hong Kong Economic Times A12)

Texwinca (321 HK) said its profits attributable to shareholders rose 17 per cent to HK$1 billion. Earnings per share were 75.8 HK cents. A final dividend of 26 HK cents was declared. (SingTao Daily B4)

Xingye Copper International (505 HK) says processed products sales from Jan to May jumped 60 per cent over the same period last year and expects full-year overall sales to reach 80,000 tonnes. It expects net profit to record double-digit growth this year. (Hong Kong Economic Journal P6)

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

Hong Kong Stock Market Wrap June 25th, 2010

Air China (753 HK) aims to purchase 20 Boeing 737-800 aircraft from Boeing Company for a consideration of $1.398 million that will be payable by cash in instalments. The company expects the Boeing aircrafts to be delivered in stages from 2013 to 2015. The transaction will strengthen the fleet capacity of Air China with an increase of around 5% based on available tonne kilometres of the company as at 31 December 2009. (Hong Kong Economic Times A12)

Alibaba (1688 HK) plans to buy Vendio, a US business sales software company, for expanding its buyer foundation in the United States and increasing the website usage. Terms of the deal, announced Thursday, were not disclosed, but it is expected to close in July. (Hong Kong Economic Times A10)

China Railsmedia (745 HK) announced that it is expected to record a significant loss for the year ended 31 March 2010. The loss is mainly due to the impairment loss of accounts receivable in relation to an arbitration award and the keen competition in the building construction industry together with the rising material costs. (SingTao Daily B3)

Cosway (288 HK) announces that based on the preliminary review on its management accounts
and its subsidiaries, the company is expected to record a profit before tax as much as HK$283 million for the financial year ended 30 April 2010, representing over 58 per cent growth.
(SingTao Daily B3)

Dongfeng Motor (489 HK) aims to buy land and properties from its parent, Dongfeng Motor Corporation, for a consideration of around 575 million yuan. The land and Properties are located in Wuhan Economic & Technological Development Zone, which covers an area of around 752,300 square meters. (SingTao Daily B3)

Skyworth (751 HK) recorded a 14 per cent year-on-year growth for its total TV sales volume in May. It added that that the labour costs represented only 1.8 per cent of the cost of sales. The company expects that the possible increase of labour costs in the year ending 31 March 2011 would increase by less than 0.3 percentage points. (SingTao Daily B3)

Winsor (1036 HK) plans to sell Lucky Industrial Building, located at Kwai Chung, to Mansion Industries Limited for a consideration of HK$348 million. The company will reap HK$95 million from the deal, which will be booked as an income in this financial year. In addition, it will generate net cash proceeds of HK$344 million to be used for future operating capital. (Hong Kong Economic Journal P8)

China Aoyuan Property Group Limited (3883 HK) has secured a secured and a fixed interest rate term loan facility of HK$500 million in total from Nanyang Commercial Bank and Bank of China (3988) respectively. The company has agreed not declare or pay any dividends in excess of 60 per cent of net profit after tax. (SingTao Daily B15)

L’Occitane (973 HK) controlling shareholder L’Occitane Groupe S.A.(LOG) signed a transfer agreement with Clarins on 25 June. Clarins transferred its 10.06 per cent shareholding in LOG to LOG on that day. (Hong Kong Economic Times A12)

Ming Hing (402 HK) Waterworks executive director Ho Hin Hung Henry says a coal mine in Mongolia has already started preliminary study and expects it to generate income immediately when the mining starts in Q4. He intends to sell coals to the mainland next year. (SingTao Daily B15)

Natural Dairy (NZ) (462 HK) has got back control of and access to mines owned by Chengde Sanjin and Shenlong Mining. It will send a team of no less than 20 staff there by the end of July this year for production planning and mining. (Hong Kong Economic Journal P8)

A media report wrote that Prudential (2378 HK) plans a reconstitution of the board and chairman Mcgrath Harvey Andrew will step down to be responsible to the failure in acquiring AIA. It is said that 2 non-executive directors will be added. (SingTao Daily B15)

Shanghai Zendai Property (755 HK) has signed a letter of intent with Renown Capital to jointly establish a fund management firm. The former and the latter will hold 60 per cent and 40 per cent interest in the firm respectively. (SingTao Daily B15)

Siberian Mining (1142 HK) lost HK$1.6 billion for the year ended 31 march 2010, primarily due to the impacts of non-cash fair value adjustments, amortization and impairment loss of different balance sheet items. (Hong Kong Economic Times A12)

United Pacific (176 HK) Industries lost HK$4.5 million for the six months ended 31 March 2010, as compared to the loss of HK$19.94 million in 2009. Turnover rose 21 per cent to HK$596 million. No dividend was declared. (Hong Kong Economic Times A12)

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

Hong Kong Stock Market Wrap June 23rd, 2010

IPO: China ITS sets to kick off roadshow on 30 June to raise up to HK$900 million. It is to list on 15 July this year. (Hong Kong Economic Times A12)

AgBank (1288 HK) is to launch its initial public offering next week and set its price at HK$2.88-3.48, just over 1.53-1.76 times its book value. (SingTao Daily B1)

Asia Cement (743 HK) plans to acquire 70 per cent of the equity interest in Wuhan Xinlingyun at a consideration of 236 million yuan. Wuhan Xinlingyun operates a cement plant located in Wuhan City, which comprises a new dry process clinker production line with total annual cement production capacity of 1.5 million tons. (SingTao Daily B2)
A report citing sources says that BEA (23 HK) plans to issue 10-yr subordinated bonds in a bid to boost tier-two capital and that the bank has appointed Citi-JP Morgan for arrangement. (Hong Kong Economic Journal P6)

Chiho-Tiande (976 HK) will start IPO on 28 June to raise over HK$780 million. The company is to list on 9 July this year. (Hong Kong Economic Times A12)

Computech Holdings (8081 HK) wholly-owned subsidiary Computech Online acquires 86 per cent issued share capital and shareholders’ loan of Wiseking Mining Investment for around HK$ 2.395 billion. Consideration will be satisfied by cash, allotting and issuing convertible preference shares and promissory notes. (Hong Kong Economic Journal P6)

Dickson Concepts (113 HK) announced its results for the year ended March 31 yesterday, posting a 4.92 times growth year-on-year in net profit to HK$304 million. Earnings per share were 81.7 HK cents. A final dividend together with a special one of 36 HK cents in total were declared. (SingTao Daily B2)

Far East Consortium International (35 HK) plans to spin off its hotel business and will announce the plan in the short term. The Group currently operates 14 hotels. (Hong Kong Economic Journal P6)

Freeman Corporation (279 HK) announces that the result of the company for the year ended 31 March 2010 is expected to post a profit as compared to a loss last year, mainly due to unrealised gains on investment in listed securities and properties, and increase in revenue from the trading of securities segment, etc. (SingTao Daily B2)

HKR International (480 HK) has returned to the black, posting a net profit of around HK$1.841 billion for the year ended Feb 28, 2010, comparing to a loss of HK$224 million over the same period in the previous year. Earnings per share were HK$1.36. A final dividend of 12 HK cents was paid. (SingTao Daily B2)

Interchina (202 HK) recorded a profit of around HK$63 million for the year ended 31 March 2010, returning to the black. No dividend was declared. (SingTao Daily B2)

Morning Star Resources (542 HK) major shareholder and chairman Khoo Kay Peng plans to sell around 1.53 billion shares. The company says a company plans to buy 750 million shares of it and that may represent more than 30 per cent of the existing issued shares. (Hong Kong Economic Journal P6)

Pacific Andes (1174 HK) recorded a profit of HK$335 million in the first half of the year ended 31 March 2010, rising 2.6 per cent year-on-year. Earnings per share were 11.2 HK cents in the period. No dividend was paid. (SingTao Daily B2)

Headhunter Executive Search Group International Limited takes it to court, asking Prudential Holdings Limited (2378 HK) under Prudential plc to pay over US$380,000, around HK$3 million, of service fee and other expenses. (Hong Kong Economic Journal P6)

Yu Man Fung, Alice increases its shareholding in Ruyan Group (329 HK) through additional subscription. She is now holding nearly 502 million shares, up to 15.47 per cent stake in the company. (SingTao Daily B2)

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

Hong Kong Stock Market Wrap June 24th, 2010

China Construction Bank (939 HK) aims to raise 75 billion yuan through rights issue. Its shareholders yesterday gave the green light to the fundraising plan at the annual general meeting, but the bank expects that it needs two month’s time for regulatory approvals. (SingTao Daily B5)

China-Hongkong (1123 HK) Photo Products posted a net profit of around HK$45 million for the year ended March 31, 2010. Earnings per share were 3.86 HK cents. A final dividend of 1.5 HK cents per share and a special one of 1 HK cent each were declared. (SingTao Daily B4)

CITIC 21CN (China) (241 HK) Technology and CITIC 21CN have to pay Beijing Oracle over 116 million yuan with interest for software license fee and supporting service fees. (Hong Kong Economic Journal P6)

Eva Precision (838 HK) expects that its profit for the six months ending 30 June 2010 to increase by not less than 7 times over the corresponding period last year, mainly due to a significant growth in office automobile system market and the expansion in China that explores the booming Chinese consumption market, etc. (SingTao Daily B4)

Fujikon (927 HK) had a net profit of HK$510 million for the year ended March 31, dropped nearly 44 per cent. Earnings per share were 12.8 HK cents. A final dividend of 5 HK cents and a special one of 3 HK cents were paid. (SingTao Daily B4)

Hutchison’s (215 HK) subsidiary 3 Hong Kong announced to launch microblogging services for star fans to receive latest microblog information from their idols through SMS. The service will be charged HK$8 per month. (SingTao Daily B4)

L’Occitane International (973 HK) reported profit of €81.6 million for the year ended 31 March 2010, up 39.8 per cent year-on-year. Net sales rose to € 612 million. Total number of retail locations also rose to 1,541. (Hong Kong Economic Times A14)

Sources says Real Gold Mining (246 HK) places shares at HK$11.88 to HK$12.35 each for over HK$926 million. Proceeds will be used for acquisition, capital spending and gold mining. Trading in the shares of the company on the Stock Exchange has been suspended starting yesterday. (Hong Kong Economic Times A14)

Sa Sa (178 HK) recorded a net profit of HK$380 million for the year ended March 31, rising 20.6 per cent year on year. Earnings per share were 27.5 HK cents. A dividend of 5 HK cents per share and a special dividend of 14 HK cents each were proposed. (SingTao Daily B5)

Shanghai Industrial Holdings (363 HK)said that it has completed the acquisition and subscription deal with Neo-China Land Group (Holdings) Limited at a price of HK$2.32 per share. Shanghai Industrial Holdings and parties acting in concert with it are currently holding around 45 per cents stake in Neo-China. Neo-China will resume trading today. (SingTao Daily B4)

Shirble Department (312 HK) Store kicks off IPO today, issuing 375 million shares at HK$2.11 to HK$2.81 each for up to HK$1.054 billion. The company is to list on 8 July. Chairman Yang Xiangbo says the company plans to open 8-10 new stores in Guangdong and Hunan in the next three years and the first one will be opened in July. (Hong Kong Economic Times A12)

Citigroup lowers rating on Sino-Ocean Land (3377 HK) from “buy” to “hold” and target price form HK$6.66 to HK$6.65, expecting the company to record sales ended end of June of 6 billion yuan only. Citigroup adds that 14-15 billion yuan would be a more reasonable full-year sales target for the company. (Hong Kong Economic Times A14)

Tai Cheung (88 HK) recorded 30 per cent net profit growth, amounting to HK$275 million for the year ended March 31. A final dividend of 17 HK cents was recommended, over 21 per cent higher from the same period last year. (SingTao Daily B4)

Wheelock Properties (49 HK) approved a proposed privatization by a shareholder yesterday. Votes cast by independent shareholders in favour of and against the proposed privatization represent respectively 98.76 per cent and 1.24 per cent of the number of shares votes were cast for. Listing of shares on the Stock Exchange is expected to withdraw on 22 July. (Hong Kong Economic Times A14)

Morgan Stanley is bullish on Wynn Macau (1128 HK), regarding the stock as its favorite short term gaming stock, expecting it to go up to HK$20. The stock closed at HK$13.75 yesterday, up over 4 per cent. (Hong Kong Economic Journal P1)

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

Hong Kong Stock Market Wrap June 22nd, 2010

IPO: Sources says Convoy plans to start IPO on 29 June to raise over HK$200 million and list on the main board in mid-July, with Quam as sponsor. (Hong Kong Economic Times A12)

Bank of Communications (3328 HK) announces A share rights issue results. 97.84% of the total A shares were validly subscribed for, equivalent to 17.12514 billion yuan. A shares holders may subscribe for 1.5 shares for every 10 A shares held at 4.50 yuan each. (Hong Kong Economic Times A12)

China Overseas (688 HK) plans to sell a 30 per cent interest in the Xi’an Project, a 30 per cent interest in the Qingdao Project and a 32 per cent interest in the Shenyang Project for a total consideration of HK$1.23 billion to Harmony China Real Estate Fund. (SingTao Daily B4)

China Precious Metal Resources (1194 HK) plans to acquire a target company holding a gold mine at Mojiang Hani Minority Autonomous Prefecture, located at southwest of Kunming, for a consideration of 335 million yuan, with a discount of nearly 62 per cent from its valuation of 881 million yuan. (SingTao Daily B4)

Chaowei Power (951 HK) decides to launch IPO tomorrow to raise up to HK$780 million and list on 7 July with BNP Paribas as sponsor. (Hong Kong Economic Times A12)

EPI (689 HK) announced that Climax Associates Limited transferred 8.72 million shares in the company to Mr. Wong Chi Wing Joseph, the Chairman and CEO of the company. Climax is owned by Mr. Chu Kwok Chi Robert, executive director of the company and Mr. Wong. (SingTao Daily B4)

Guotai Junan (1788 HK) is to launch its first IPO on Friday to raise HK$1.59-2.31 billion at a price of HK$3.88-5.63 per share. Entry fee is HK$5,686. The proceeds gained from the IPO will be used for expanding its margin financing business, developing new business and repaying bank loans, accounting for 40, 10 and 30 per cent respectively. (SingTao Daily B3)

Intime Department Store (1833 HK) plans to sell 90 per cent equity interest in Hankou Hotel and the shareholder’s loan for an aggregate consideration of 320 million yuan. It is expected to have an income of 50 million yuan. (SingTao Daily B4)

Kenford (464 HK) reported a 5 per cent growth to over HK$53 million in its net profit for the year ended March 31. Earnings per share were 12.4 HK cents. A final dividend of 2.5 HK cents and a special final dividend of 1 HK cents were proposed. (SingTao Daily B4)

Man Wah (1999 HK) reported its first net profit yesterday after its listing on the bourse. The net profit grew by 1.7 times to HK$606 million for the year ended March 31, slightly higher than the profit forecast for HK$593 million. Earnings per share were 85.09 HK cents. A final dividend of 16 HK cents was declared. (SingTao Daily B4)

2H ROOM RENTS EXPECTED TO UP 20% Miramar Hotel (71 HK) and Investment Company expects occupancy rate of The Mira to be 90 per cent in the second half of the year, up 10 percentage points over the first 5 months, and room rents to be up 20 per cent in the second half. (Hong Kong Economic Journal P11)

Lee & Man Paper Manufacturing (2341 HK) CEO Lee Man Chun Raymond said the company has entered into a business collaboration agreement with Nippon Paper. The company sold shares to the latter for HK$3.55 billion in June. (Hong Kong Economic Journal P9)

Omnicorp (94 HK) has confirmed to issue new shares and convertible notes to raise net proceeds of more than HK$600 million for existing forestry business, investment and general operating capital. Omnicorp will issue around 42 per cent of the entire issued share capital of the company as enlarged by the subscription shares to its major shareholder Sino Forest. (SingTao Daily B4)

Sichuan Xinhua (811 HK) Winshare Chainstore will acquire 15 subsidiaries of its promoter and shareholder SPG for 1.255 billion yuan. They are mostly publishing companies. (Hong Kong Economic Times A14)

Sinoref Holdings (1020 HK) will start IPO on 25 June to raise up to HK$300 million and list on 7 July this year. (Hong Kong Economic Times A12)

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

Hong Kong Stock Market Wrap June 21st, 2010

AV Concept (595 HK) recorded a net profit of HK77 million for the year ended March 31 this year, turning losses into gain. Earnings per share were 17.8 HK cents. A final dividend of 4 HK cents was paid. (SingTao Daily B4)

BYD (1211 HK) has signed with French Compagnie Générale de Location De Equipements for setting up a joint venture company to engage in financing business for purchase of cars, which includes providing loans for new-car end users. BYD share price closed at HK$63.2 yesterday, rising 5.25 per cent. (SingTao Daily B4)

China Construction Bank (939 HK) has received an undertaking to subscribe rights shares to be issued by it from controlling shareholder Central Huijin. The latter committed to subscribe in cash in proportion to shareholding ratio all offered rights shares to be allotted to it under rights issue plan passed at the former’s 3rd board meeting in 2010. (Hong Kong Economic Journal P8)

China Mobile (941 HK) reported figures of new subscribers in May. It added 917,000 new 3G users, higher than the 713,000 new users in April. Over 10 million new users are expected this month. (Hong Kong Economic Journal P7)

China Resources (1313 HK) signed a deal with Universal Cement to acquire several subsidiaries of Universal Cement for a total consideration of HK$820 million in cash through bank credit line and internal resources. The subsidiaries are engaged in the production of clinker, cement and concrete in Huizhou and Ningbo. (SingTao Daily B5)

China Strategic Holdings (235 HK) and Primus’s acquisition of Nan Shan Life is still under the process of approval by the Taiwan regulatory authorities. China Strategic Holdings announced yesterday an agreement with AIG to extend the long stop date of the share purchase agreement from the original 12 July to 12 October. (Hong Kong Economic Times A13)

China Telecom Corporation’s (728 HK) number of new users becomes stable. It added 3.02 million new users in May, making the total number go up to 71.5 million users. (Hong Kong Economic Times A13)

Golik Holdings (1118 HK) chairman Pang Tak Chung said the company will adjust investment proportion and focus on Hong Kong market, expecting construction industry in Hong Kong to head to a 5-year golden period. (Hong Kong Economic Journal P7)

Hong Kong Economic Times (423 HK) posted a net profit over HK$85 million for the year ended 31 March 2010, up 37.7 per cent year-on-year. Earnings per share were 19.8 HK cents. A final dividend of 8.9 HK cents was declared. (SingTao Daily B4)

Hutchison Telecommunications (215 HK) major shareholder Li Ka-shing increases 1.16 million shares at an average price of HK$1.641 on June 15, amounting to HK$1.91 million. (SingTao Daily B4)

Kaisa Group Holdings (1638 HK) announces a transfer of 566 million shares as the IPO shortfall shares to investors on 10 June pursuant to a share purchase agreement with certain institutional investors, including Temasek and Credit Suisse, in 2007. (Hong Kong Economic Times A13)

K.P.I. Company (605 HK) will concentrate on developing convenience stores business in Beijing. General manager Tao Ye said the company will put more resources in businesses in Beijing such as fast food and electronic commerce service businesses, adding that 30 convenience stores will be opened in Beijing this year. (Hong Kong Economic Journal P8)

Lee & Man Paper (2314 HK) reported a net profit of HK$1.833 billion for the ended 31 March, 2010, surging over 5 times, mainly due to the increase of both production capability and income. Earnings per share were 40.3 HK cents. A final dividend of 8 HK cents was declared. (SingTao Daily B5)

Link Real (823 HK) will appoint Andy Cheung Lee Ming as its executive director next Monday. The compensation payable to Cheung will be HK$3 million per annum together with a discretionary bonus in the range of 30-75 per cent of his base salary. (SingTao Daily B4)

Xiwang Sugar (2088 HK) first 5-month net profit jumped 70-fold from first 6-month in the previous year. It is expected that net profit for the first half this year will have substantial growth. (SingTao Daily B4)

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

Hong Kong Stock Market Wrap June 18th, 2010

IPO: Sources says Shirble of Shenzhen plans to start its IPO on 25 June, issuing 375 billion shares at 2.11 to 2.81 per share to raise up to 1.05 billion. Revenue this year would climb 20 per cent to 1.372 billion yuan, BNP Paribas forecasts. (Hong Kong Economic Times A12)

Artini China (789 HK) plans to place shares at a price of HK$0.53 per placing share to raise net proceeds of HK$42.5 million. The placing price represents a discount of approximately 17.19 per cent to the closing price on June 18. (SingTao Daily B14) (SingTao Daily B14)

China Railway (3900 HK) has approved a private placement to issue a maximum of 1.518 billion new A shares for subscription. The issue price of the A shares will be not less than 4.11 yuan, raising a maximum total amount of 6.239 billion yuan. CRECG, China Railway controlling shareholder, plans to subscribe around 852 million shares at an amount not exceeding 3.5 billion yuan. (Hong Kong Economic Times A10)

The number of China Unicom’s (762 HK) new 3G subscribers in May reached 1 million, first in this year, suggesting that its fee cut promotion scheme is effective. The aggregate number of its 3G service subscribers is 6.528 million. Tencent stock price went up 1.8 per cent, ended HK$9.61, being the worst blue chip on Friday. (Hong Kong Economic Times A10)

Huabao International (336 HK) posted a net profit of HK$1.34 billion for the year ended March 31 this year, rising 20.7 per cent. Earnings per share is 43.15 HK cents, up 19.6 per cent. Apart from recommending a final dividend of 6.78 HK cents per share, special dividend of 5.5 HK cents per share was also declared. (SingTao Daily B14)

Oriental Press (18 HK) recorded a net profit of HK$307.49 million for the year ended Mar 31, with earnings per share at 12.8 HK cents. No final dividend was recommended. (SingTao Daily B14)

Tencent (700 HK) has been plummeting recently, but it made a late rebound on June 18, surging to HK$135.5 from HK$120, the whole day volatility being over HK$10, ended up HK$129.7, rising 3.76 per cent or HK$4.7, with turnover as much as HK$3.24 billion to become the most active stocks again. (Hong Kong Economic Journal P4)

Theme International (990 HK) plans to place 70 million shares to Suen Cho Hung, the major shareholder of several companies including China Yunnan Tin Minerals Group. The placing price will be HK$1, representing a discount of 13.79 per cent to the closing price on Friday, raising net proceeds of HK$69.90 million. (SingTao Daily B14)

Century Sunshine Group (509 HK) acquires Sunshine Partners from Yang Yuchuan and Zou Li for HK$87.75 million. The consideration is satisfied partially in cash and partially by issuing 226 million new shares at HK$0.3 each. (Hong Kong Economic Times A14)

China Everbright International (257 HK) signs two framework agreements with Anhui province and Jiangsu province respectively to develop biomass power generation, involving 640 million yuan in total. (SingTao Daily B13)

China Sci-Tech Holdings (985 HK) places shares at HK$0.2 per share for US$600 million. Trading of its shares resumes today. (SingTao Daily B13)

HSBC Holdings (5 HK) may acquire Royal Bank of Scotland’s business in India. According to a media report, the 2 banks have been in talks regarding the acquisition for months. The deal is expected to confirm within several weeks. (Hong Kong Economic Journal P4)

HALF YEAR NET DOWN 73.3% Huafeng Group Holdings (364 HK) posted turnover of HK$360 million for the six months ended 31 March 2010, up 11.5 per cent over the same period last year. Profit attributable to equity shareholders was HK$31 million, down 73.3 per cent over the same period last year. (Hong Kong Economic Journal P4)

King Stone Energy (663 HK) places up to 2.673 billion new shares, 14.42 per cent of its issued share capital as enlarged, at HK$0.195 each for HK$521 million. It has applied to resume trading in its shares today. (Hong Kong Economic Times A14)

Wah Nam International (159 HK) places up to F185 million shares, 4.96 per cent of its issued share capital as enlarged, at HK$1.11 each for HK$199 million. It has applied to resume trading in its shares today. (Hong Kong Economic Times A14)

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

Hong Kong Stock Market Wrap June 17th, 2010

China Coal Energy Company (1898 HK) recorded raw coal production volume of 51.96 million tons in the first 5 months this year, up 32 per cent year on year. Coal sales volume was 49.56 million tons, up 53 per cent year on year. (Hong Kong Economic Journal P12)

ENTERS WORLD'S TOP 20 DAIRY RANKING Rabobank of the Netherlands yesterday announced Top 20 Global Dairy Companies 2009. China Mengniu Dairy (2319 HK), with annual turnover of US$3.77 billion, ranked the 16th. (Hong Kong Economic Times A10)

China South City (1668 HK) expects to have a substantial growth in net profit for the year ended 31 March 2010, as the sales of property increases. (SingTao Daily B4)

Coslight Technology International (1043 HK) denies that it will produce battery electric vehicles within 2 years, saying that the date of production has not been decided although it having the relevant licenses and know-how to do so. (Hong Kong Economic Times A10)

Easyknit International Holdings (1218 HK) President and CEO Kwong Jimmy Cheung Tim was arrested by the Commercial Crime Bureau on 15 June and has been released on bail of HK$20,000. The company said the Bureau took away books and records belonging to Planetic International Ltd from its premises on the same day. (Hong Kong Economic Times A10)

TO INVEST IN 2 US SOLAR PHOTOVOLTAIC PROJECTS GCL-Poly Energy (3800 HK) will invest in two American solar photovoltaic projects through its wholly owned subsidiary GCL Solar. The investment amounts are $50 million and $5 million respectively. (SingTao Daily B4)

Grand T G Gold (8299 HK) recorded a full year loss narrowed to 36.53 million, down 60 per cent over the same period last year, with basic loss 0.8 HK cents per share. No final dividend was declared. (SingTao Daily B4)

L'Occitane (973 HK) International one of the joint sponsors of its listing CLSA sets rating for the company at “outperform”, with target price at 20. CLSA expects CAGR of its net profit to reach 26 per cent in the next 3 years. (Hong Kong Economic Times A10)

A 50% indirectly owned subsidiary of Phoenix Satellite Television (2008 HK) has signed main contractor agreements for the development and construction of the Land and Phoenix International Media Centre, for a total budget of 850 million yuan inclusive of the land price. (SingTao Daily B4)

Real Gold (246 HK) is planning to acquire the remaining 2.86 per cent of the equity interest in its indirect wholly owned subsidiary Fubon Industrial, at the amount of 194 million yuan satisfied in cash. (SingTao Daily B4)

UBS increased holding of shares in Sino-Ocean Land Holdings (3377 HK) by over 3.34 million shares at an average price of 5.78 each for almost 19.33 million on 11 June, taking its shareholding in the company from 4.94 percent to 5 percent, according to HKEx data. (Hong Kong Economic Journal P13)

TURNS LOSS INTO GAIN Sparkle Roll (970 HK) posted a net profit for the year ended 31 March 2010, recording 113 million of profit attributable to shareholders, with basic earnings 5.2 HK cents per share. A dividend of 0.3 HK cents per share was recommended. (SingTao Daily B4)

Tencent (700 HK) share price has faced pressure recently, even its then sponsor Goldman Sachs said that Tencent growth rate will slow, lowering its target price to HK$152 from HK$180 and setting the rating at “neutual”. Tencent went down nearly 2 per cent to close at HK$125, dropping for third straight day. (SingTao Daily B2)

The holding company of United Company Rusal (486 HK), En+ Group has invested in Hong Kong Mercantile Exchange by 10 per cent stake. En+ is the fourth consortium investing in HK Mercantile following Industrial and Commercial Bank of China (Asia), Cosco Group and Indian Reliance Money. (SingTao Daily B4)

Water Oasis Group (1161 HK) reported net profit of HK$24.2 million for the six months ended 31 March 2010, down 44 per cent year on year. Earnings per share were 3.3 HK cents. Interim dividend of 3 HK cents per share was declared.
(Hong Kong Economic Times A10)

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

Hong Kong Stock Market Wrap June 15th, 2010

IPO: Trauson (325 HK) issues 212.828 million shares starting today at HK$2.38-3.57 each to raise HK$506.5 million to HK$760 million. UBS is the sponsor. Receiving bank is Bank of China (Hong Kong). Offer period is today to noon of 21 June. Expected listing date is 29 June. (Hong Kong Economic Journal P2)

Major shareholders of China Lilang (1234 HK) sold 60 million of old shares at HK$8.4-8.6 per share, with 8.5-10.6 per cent of discount from its closing price yesterday. They increased the placing scale to 80 million shares and increased to cash in HK$672 million at last. (SingTao Daily B2)

The deadline for China Strategic (235 HK) to acquire Nan Shan Life is less than a month away. Executive Director Or Ching Fai Raymond said yesterday that the company may discuss with AIG for an extension. It is said that the company has submitted insufficient documents to Taiwan authority. (Hong Kong Economic Times A14)

Fantasia Holdings Group (1777 HK) acquires a site in Dongguan for 317 million yuan. The site area is 96,900 sqm and total gross floor area is 242,100 sqm. The land price is around 1,300 yuan per floor area. The company says its land reserve is around 13.42 million sqm now, adequate for use the next 3-5 years. (Hong Kong Economic Times A14)

Global Bio-Chem Technology Group (809 HK) plans to issue rights shares at a price of HK$0.75 per share to raise around HK$696 million on the basis of 2 rights shares for every 5 shares. HSBC will be the underwriter of the rights issue. (Hong Kong Economic Times A14)

Greentown China (3900 HK) achieved 20 billion yuan of accumulated sales volume as of June 13 this year, rising 17 per cent from a year ago. Among the 20 billion sales amount, there are 17.4 billion yuan of contracted sales. (SingTao Daily B4)

Neo Telemedia (8167 HK) plans to acquire the entire issued share capital of Ease Ray Limited from the vendor at a consideration of HK$1.1 billion. Upon completion, the vendor will become the major shareholder of Neo Telemedia, holding 25 per cent of interest of the company. (SingTao Daily B3)

Pearl Oriental (632 HK) released an announcement about the warrant subscription by its chairman. It stated that due to an inadvertent mistake, the announcement about the issuance of the above-mentioned warrant subscription has not been filed to the Securities and Futures Commission for comment before its publication and thus the company is in breach of Takeovers and Mergers and Share Repurchases. It also clarified that its chairman will not apply for the whitewash wavier at this stage. (SingTao Daily B3)

Silver Base Group (886 HK) chairman Liang Guo Xing said the group is in talk with a long established Chinese herbal tea company for cooperation opportunities. If a deal is reached, he expects gross profit margin of the company to be 35 per cent. Furthermore, he expects sales to surge 60 per cent this year. (Hong Kong Economic Journal P8)

Suncorp Technologies (1063 HK) has signed a non-legally binding memorandum of understanding regarding a possible acquisition of the entire equity interest in a mainland company that owns a 50-year exclusive right to operate a fiber optic backbone network in China. The consideration would be around HK$4.99 billion by a combination of cash and convertible bonds to be issued by the company.

Vtech (303 HK) recorded around HK$1.605 billion of net profit for the year ended 31 March 2010, up 44 per cent year-on-year. Basic earnings per share are 83.7 US cents. A final dividend of 62 US cents per share is recommended. (SingTao Daily B2)

Chairman of Xinao Gas (2688 HK) bought 940,000 shares of the company last Tuesday and Wednesday at a consideration of HK$13.3 million, increasing his stake to 31.11 per cent. (SingTao Daily B3)

OPEN OFFER UNDER-SUBSCRIBED Xing Lin Medical (8130 HK) announced that the open offer was under-subscribed with only 0.38 per cent of its total offer shares. Its underwriter Kingston Securities Limited will subscribe the remaining shares, which is equal to nearly 20 per cent of its stake following the expansion. (SingTao Daily B3)

Zhong An Real Estate acquires an 158,000 sq.m. site in Hangzhou for 834 million yuan. The company will only pay 51 per cent of the price, around 425 million yuan, as the site will be developed jointly with a real estate firm.

Z-Obee Holdings (948 HK) appointed Polaris yesterday as financial consultant to provide financial advisory service for the proposed TDR Listing. The company believes the proposed listing can attract international investors. (Hong Kong Economic Times A14)

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

Hong Kong Stock Market Wrap June 14th, 2010

On 10 June 2010, Chigo Holdings (449 HK) transferred about 46.4 million shares of the company by way of gifts to certain directors of the company, current and former employees, and customers of the Group. The beneficial shareholding of Li Hing Ho in the issued share capital of the company decreased to 57.94 per cent from from 67.02 per cent after the transfer of the relevant shares. Mr. Li remains the controlling shareholder of the Company. (Hong Kong Economic Times A12)

Henderson Land (12 HK) chairman Lee Shau Kee increased 190,000 shares of its stake in the company, at average 44.842 HK cents per share for a consideration of HK$8.52 million, hiking its stake in the company to 65.34 per cent from 65.33 per cent on Monday, according to HKEx news. (Hong Kong Economic Journal P6)

Netdragon Websoft (777 HK) announced that its net profit for the first quarter decreased around 56 per cen to 21.21 million yuan, basic and diluted earnings per share are RMB 4.03 cents. No dividend was declared. (SingTao Daily B3)

New World China Land (917 HK) redeemed 22,188 units of retail convertible bonds due in 2010 at a redemption price at $14,977.6 per unit for a consideration of over $332 million, involving over 2.2188 billion yuan of face value of bonds. (Hong Kong Economic Journal P6)

Playmates Toys (869 HK) plans to raise HK$104.3 million of rights shares at the subscription price of HK$0.30 per rights share on the basis of one rights share for every two existing shares, substantially discounted 38 per cent compared to HK$0.485 closed on Friday. (SingTao Daily B3)

The accumulated written premiums of Ping An Insurance (Group) (2318 HK) subsidiaries, namely Ping An Life Insurance Company of China, Ltd., Ping An Property & Casualty Insurance Company of China, Ltd., Ping An Health Insurance Company of China, Ltd. and Ping An Annuity Insurance Company of China, Ltd., for the first five months this year were 77.72 billion yuan, 24.74 billion yuan, 64.38 million yuan and 1.99 billion yuan respectively. (Hong Kong Economic Times A12)

Yuexiu Property’s (123 HK) contracted sales in May amounted to 529 million yuan, rising 1.71 times year-on-year. Its contracted sales in the first five months amounted to about 4.6 billion yuan, up 2.75 times year-on-year, equal to 58 per cent of its full-year target. (SingTao Daily B3)

Asia Cement (China) (743 HK) CEO Chang Tsai Hsiung said the company plans to acquire coal mines to increase gross profit margin and is seeking a project in Qinghai and Shangxi. The company expects capacity to go up 30 per cent this year to 17.04 million tonnes. (Hong Kong Economic Journal P4)

China Sci-Tech Holdings (985 HK) announced the completion of acquisition of the entire equity interest of a listed copper mining company in Canada Chariot for a consideration of around 1.8 billion on 11 June. The latter is a wholly owned subsidiary of the company now. (SingTao Daily B12)

E. Bon Holdings (599 HK) reported net profit of around HK$41 million for the year ended 31 March 2010, up 64 per cent. A final dividend of 3 HK cents per share and a bonus share issued on the basis of 3 bonus shares at par for every 10 shares were recommended. The company currently is the exclusive agent of famous brands B&B Italia and Poltrona Frau. It plans to open specialty showrooms for them in 2H.
(SingTao Daily B12)

Fosun International (656 HK) acquires from independent third parties 628,300 shares and 1.6166 million ORANE mandatorily convertible bonds of Club Med listed in Paris on 11 June, around 7.1 per cent of the share capital of the latter on a fully diluted basis. The latter develops and manages hotels, holiday centers and leisure and entertainment facilities. (Hong Kong Economic Times A10)

Maoye International Holdings (848 HK) granted share options to 411 individuals last Friday, including directors, management and employees and consultants with special contributions. They can subscribe for up to 126.30 million shares in total at a price of HK$2.81 per share. (SingTao Daily B12)

PICC Property and Casualty (2328 HK) recorded premiums income of 66.435 billion yuan for the first 5-month this year, up 24 per cent over the 53.572 billion yuan for the same period last year. (SingTao Daily B12)

Shanghai Industrial Holdings (363 HK) has basically finished selling its non-core businesses. The company now focuses on real estate, infrastructure and consumption businesses. It said capital spending on real estate business this year is around 5-7 billion, including at least 2.7 billion for acquiring Neo-China Land Group (0563). (Hong Kong Economic Journal P6)

Wang Sing International (2389 HK) announced a rights issue on the basis of 3 rights shares for every 2 shares at a price of HK$0.15 per rights share to raise up to HK$180 million for repaying shareholders’ loans and investing in a real estate project in Jiangsu. (SingTao Daily B12)

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

Hong Kong Stock Market Wrap June 11th, 2010

IPO: AgBank plans to initiate its first stage promotion schemes next week following the approval from the Hong Kong Listing Committee yesterday. The bank expects to sign deals with about 20 institutional investors, including Singapore's Temasek and Qatar's sovereign fund. (SingTao Daily B2)

China Wireless Technologies (2369 HK) expects to have a sharp rise in the profit for the six-month ending 30 June this year as compared to the profit for the corresponding period last year, mainly attributable to the swift growth of mainland 3G mobile phone market and the increased sales of its 3G mobile phone products. (Hong Kong Economic Times A12)

Tam Shing Chi, chief financial officer of Chow Sang Sang (116 HK), said that the company plans to establish 50 new stores in China after setting up 20 mainland branches early this year. He estimates that the full year expenditure for setting up new stores will be HK$400-$500 million. (SingTao Daily B3)

After Geely Automobile (175 HK) announcing its May sales figures, a report issued yesterday by Credit Suisse wrote that its May sales slowing down month over month is because of weakening wealth effect and that the firm feared this might have negative impact over its profit. The firm sets rating for the company at “underperform”, with target price at 1.92. (Hong Kong Economic Times A12)

New mortgage amount decreased for the past two months, but it is in question whether the land sale of Ho Man Tin site will boost the property market, according to Mrs. Margaret Leung, Vice-Chairman of Hang Seng Bank (11 HK). She added that buyers should be cautious about the affordability in the event of any shift in interest rate. (SingTao Daily B3)

Henderson (12 HK) chairman Lee Shau Kee increased 295,000 shares of Henderson Land Development on June 4 at a consideration of HK$13.71 million, with average price at HK$46.487 per share, according to the disclosure of interests of the major shareholders released yesterday. (SingTao Daily B3)

Kingboard Chemical Holdings (148 HK) dropped 8.96 per cent to 30.5 yesterday. Credit Suisse has lowered its rating for the company to “neutral” and target price to 35.5 as the company has been affected by European debt crisis and its May laminates production unexpectedly dropped by 16 per cent as compared to that in previous month. (Hong Kong Economic Times A10)

Kunlun Energy Company (135 HK) will focus on developing liquefied natural gas distribution business. Internal return on investment of LNG business will reach 12 per cent as the company doesn’t have to bear the price risk of importing LNG. The company also plans to use HK$5 billion for M&A relating to natural gas business. (Hong Kong Economic Journal P10)

Since Prudential (2378 HK) cancelled the AIA acquisition deal with AIG, the American insurer may sell parts of its Asian units through other channels, foreign media reported, citing sources from United States Department of the Treasury. It is said that AIG may reap proceeds as much as $35.5 billion from listing AIA, that is the reason AIG did not sell AIA at a low price. (SingTao Daily B2)

Shanghai Shimao under Shimao Property Holdings (813 HK) has cancelled its plan to raise funds via issuing shares on the changes in mainland housing policies. Its original plan was to issue not more than 150 million shares at a price no less than13.81 yuan per share to raise not more than 1.7 billion yuan for real estate development.
(Hong Kong Economic Journal P12)

Li Dongsheng, chairman of TCL Multimedia (1070 HK), sold yesterday 15 million of TCL shares by cash amounting to HK$84.75 million, with placing price at HK$5.65 per share. He is holding about 1.71 per cent of the total number of shares issued by the company. (SingTao Daily B3)

The price of aluminium went down in recent months because of European debt crisis. The chairman of United Company Rusal (486 HK) said that the company has no intention to reduce production. He added that the plunge of aluminium price may lead to the close of some aluminium factories.
(SingTao Daily B3)

Weichai Power Co., Ltd. (2338 HK) fell 7.15 per cent to 51.3 yesterday. Merrill Lynch rated the company “underperform” yesterday, with target price at 40, saying that its Q1 profit peaked and expecting the growth of heavy trucks sales to slow down in the second half of the year. (Hong Kong Economic Times A10)

Winsor Properties (1036 HK) has signed a provisional sales and purchase agreement selling a property located at San Po Kong at a consideration of HK$601 million. It is estimated that the company will cash in about HK$250 million for the transaction. (SingTao Daily B3)

A media report said Universal Entertainment Corp., major shareholder of Wynn Macau’s (1128 HK) parent Wynn Resorts, plans to spin off a casino project and list the operation in HK within 3 years after the opening of the first phase of the US$2.7 billion Manila casino resort project.
(Hong Kong Economic Times A12)

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

Hong Kong Stock Market Wrap June 9th, 2010

Niu, Gensheng, chairman of China Mengniu (2319 HK), said after the AGM that Shanghai Expo boosts sales on beverages. The sales condition in the first five months this year meets its expectation, and there is growth for Mengniu every year, he added. (SingTao Daily B4)

China Resources Power (836 HK) said accumulated electricity sales amounted to 25.85 million mwh in the first five-month, up 40.9 per cent year on year and May electricity sales was 7.038 million mwh , up 31.4 per cent year on year. (Hong Kong Economic Times A10)

CHANGE OF AUDITORS First Mobile Group (865 HK) has changed its auditors PricewaterhouseCoopers. The reason for PwC’s resignation is that there is a substantial part of the professional fee for the audit of First Mobile’s 2008 consolidated financial statements has yet to be settled by the company, and this may potentially affect their independence as auditors of the company. The Board had resolved to appoint ANDA CPA Limited as auditors of the company for the financial year ended 31 December 2009. (SingTao Daily B3)

Fulbond (1041 HK) plans to purchase interests of a Xi’an commercial and residential project from its chairman Zhang Xi at the consideration of 285 million yuan. Fulbond resumed trading yesterday and the share price ended up 30 per cent to 2.6 HK cents. (SingTao Daily B3)

Kingdee International Software (268 HK) plans to establish a service team with its strategic shareholder IBM, forming an operation model as “Kingdee software plus IBM service” to provide all-in-one software service for mainland companies. Kingdee International closed at HK$2.62 yesterday, edging down 1.5 per cent. (SingTao Daily B3)

(0175) GEELY AUTOMOBILE HOLDINGS LIMITED MAY SALES UP 14.6% The total sales volume of the Group in May was around 31,000 units of vehicles, an increase of 14.6 per cent over the same period last year, but down approximately 4.3 per cent from April 2010. The total sales volume in the first five months of 2010 was around 166,000 units of vehicles, up 45.5 per cent from the same period last year. (SingTao Daily B3)

Qingdao Haier (1169 HK), 51.05 per cent owned by Haier Electronics Group, plans to increase its shareholding in Haier Electronics Group via the secondary market within the next 12-month with the approval from the board and depending on Haier Electronics Group’s share price. (Hong Kong Economic Times A10)

King Stone Energy Group (663 HK) said a subsidiary Jetway Group has entered into a framework agreement with All Aces Investments regarding to the proposed acquisition. Pursuant to the agreement Jetway Group will acquire 60 per cent equity interest in Triumph Fund A1 from All Aces Investments for 3.6 billion. (Hong Kong Economic Journal P8)

Li Ning Company (2331 HK) chairman Li Ning and his brother have bought shares in Coolpoint Energy (8032) for a total consideration of 700 million. A report from Deutsche Bank wrote the business of the latter will not include the sales of sportswear, shoes and equipment. (Hong Kong Economic Times A10)

NWS Service (659 HK) plans to acquire 8 per cent equity interest of China United International Rail Containers Co., Limited from the vendor at the consideration of 350 million. Completion of the share transfer agreement will take place upon the obtaining of all necessary approvals from the relevant PRC governmental authorities. Upon completion, NWS Service will hold an aggregate of 30 per cent equity interest in CUIRC and will remain as the second largest hareholder of CUIRC. (SingTao Daily B3)

Qin Jia Yuan Media Services (2366 HK) reported turnover of HK$249 million for the six months ended 31 March 2010, up 1.15 times year on year. Net profit was over HK$40 million. It declared an interim dividend of 1.28 HK cents per share. (Hong Kong Economic Journal P6)

SouthGobi Energy Resources (1878 HK) plans to buy up to 2.5 million shares on the Toronto Stock Exchange and the Hong Kong Stock Exchange separately, in total up to around 5 million shares or 2.7 per cent of issued shares. (Hong Kong Economic Times A10)

Tencent Holdings (700 HK) has plummeted for three consecutive days to close at HK$137.4 yesterday, down nearly 10 per cent since last Friday. It is rumoured that fund companies sold Tencent shares by large lots. (SingTao Daily B2)

United Company RUSAL Plc (486 HK) is the first Russian company trying to list in Hong Kong. Its listing process is full of twists and turns. In the end only high net worth investors are allowed to subscribe. VTB bank said that its chairman Andrei Kostin said yesterday Hong Kong should loosen terms on public offering for Russian companies. (Hong Kong Economic Times A10)

Willie International (273 HK) plans to place as much as 171 million shares at a price of HK$0.255 per placing share. The placing price of HK$0.255 per placing share represents a discount of approximately 19 per cent. The net raising amount HK$425 million will be used for general operation capital. (SingTao Daily B3)

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

Hong Kong Stock Market Wrap June 8th, 2010

BoCom (332 HK) announced that the financial departments of the two major shareholders as well as HSBC have pledged to fully participate in its rights issue. If A-share shareholder’s rights issue ratio achieves 70 per cent, HSBC’s stake holding of the bank will increase to 19.55 per cent after completion of the rights issue. (SingTao Daily B3)

China Overseas (688 HK) announced that its sales performance in May achieved the target of HK$3.45 billion, dropping 39 per cent year-on-year, involving 418 thousand square meters of floor area. (SingTao Daily B3)

China Resources (1109 HK) announced that the company entered into a facility agreement in relating to a $100 million term loan facility with a bank. It stipulated that China Resources Holdings should hold not less than 35 per cent in the issued share capital of the company. CRH owns approximately 63 per cent of the issued share capital of the Company for the time being. (SingTao Daily B2)

China Resources (836 HK) Power Executive Director Wang Xiao Bin expects coal production to reach 16 million tons by the end of this year and to next year the number to go up over 43 per cent year-on-year to 23 million tons. (Hong Kong Economic Times A12)

China SCE property (1966 HK) announced that it bid Beijing Hualong Building development project under Sinopec Group at a consideration of 126 million yuan last Thursday. (SingTao Daily B2)

Denway Motors (203 HK) and Guangzhou Automobile revise terms for privatisation of Denway Motors. Exchange ratio is raise to 0.474026 Guangzhou Automobile H Shares for every Denway share. Other terms stay the same. (Hong Kong Economic Times A12)

Evergrande Real Estate (3333 HK) announced that its contracted sales in May reaped 4.05 billion yuan, rising 33 per cent over the same period last year, involving 640 thousand square meters of sales area. (SingTao Daily B3)

Jutal Offshore Oil Services (3303 HK) 55 per cent owned JV company JVC sells a full revolving hoisting engineering vessel with a gross tonnage of 5,384 tons for 125 million yuan, expecting a gain of 10.521 million yuan from the disposal. (Hong Kong Economic Times A12)

Metallurgical Corporation of China (1618 HK) plans to issue up to 14.9 billion yuan of medium term notes and up to 14.4 billion yuan of short-term financing bills within the PRC. The company said it will lower the cost of borrowings and have no material effect on the debt to assets ratio. (Hong Kong Economic Times A12)

PCCW Limited (5 HK) subsidiary PCCW Global has signed a MPLS Inter-Carrier Interconnection agreement with Pakistan Telecommunications Company to strengthen network coverage and service availability. The company will be able to offer seamless connectivity into Pakistan. On the other hand Pakistan Telecommunications Company will be able to use its infrastructure to satisfy requirements in over 100 countries. (Hong Kong Economic Journal P10)

Qin Jia Yuan Media Services (2366 HK) completes its acquisition of 51 per cent of the issued share capital of Rich State Media Enterprises for a consideration of 75 million, partly paid by cash and by issue of new shares. (Hong Kong Economic Journal P8)

Sun Hung Kai Properties (16 HK) just got Tsueng Kwan O site in Feburary this year. It won again yesterday in an auction for Ho Man Tin site, increasing floor area it holds by almost 900,000 feet. (Hong Kong Economic Journal P2)

Tack Fat Group (928 HK) announced that the company will implement the open offer of new shares on the basis of 339 offer shares for every 5 new shares, for reorganizing its business and repaying the debts. (SingTao Daily B3)

Vitasoy International (345 HK) announced that for the year ended 31 march 2010, it posted a net profit of HK$260 million, rising 20 per cent year-on-year, earnings per share amounted to 25.6 HK cents. A final dividend of 13.4 HK cents per share and a special dividend of 10 HK cents each are recommended. (SingTao Daily B3)

Zhongsheng Group (881 HK) signed an agreement with Bank of Communications Beijing Branch that BoCom Beijing will grant a line of credit with a total amount of 4 billion yuan in various forms of credit facilities to the Company. (SingTao Daily B2)

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

Hong Kong Stock Market Wrap June 7th, 2010

IPO: Xinjiang Goldwind Science & Technology plans to launch its IPO on Thursday to raise over HK$9 billion at a price of HK$19.8-23 per share. Entry fee is HK$4646.41 yuan per board lot of 200 shares. (Hong Kong Economic Times A6)

China.com Inc. (8006 HK) declares a special dividend of HK$0.88 per share. The company said it has a strong balance sheet and will still have sufficient cash in the long term after distributing the dividends. (Hong Kong Economic Times A8)

China Resources Microelectronics (597 HK) said Executive Director and CEO Wang Guoping had replaced Song Lin as chairman of the Company. Song after his resignation will focus on overall strategies and business of China Resources (Holdings) as its chairman. (Hong Kong Economic Journal P4)

Glorious Sun Enterprises (393 HK) said mainland sales went up in the first 4-month this year and May sales in the mainland saw 2-digit growth but sales in Australia was not satisfactory. The company is confident this year earnings can keep up with last year’s level. (Hong Kong Economic Times A8)

Hang Lung Properties (101 HK) and Hang Lung Group executive director Ng Sze Yuen Terry exercised share options to buy shares in the 2 companies for 37.14 million on 31 May. After the increase in shareholdings, he holds 0.08 per cent and 0.09 per cent stakes of Hang Lung Properties and Hang Lung Group respectively. (Hong Kong Economic Journal P6)

Hongkong Electric Holdings (6 HK) will acquire a 25 per cent stake in Seabank Power from Cheung Kong Infrastructure (1038) for HK$1.234 billion. After the transaction, the company and Cheung Kong Infrastructure will hold seperately 25% of the issued share capital of Seabank Power. (SingTao Daily B12)

Johnson Electric Holdings (179 HK) non-executive director Wang Koo Yik Chun has increased holding of shares in the company by 3 million shares for over HK$12 million. Her shareholding has risen to 59.17 per cent. (SingTao Daily B12)

Wo Kee Hong (720 HK) plans to issue HK$25 million 2-year convertible bonds bearing interest at 4% per annum to raise around HK$24 million for business expansion plan, repaying bank borrowings and general working capital. Initial Conversion Price is HK$0.16 each. (SingTao Daily B12)

Bank of Communications (3328 HK) proposed H share rights issue of shares, on the basis of 1.5 H rights shares for every 10 existing H shares at HK$5.14 per H rights share payable in full on acceptance, being discounted as much as 37.2 per cent compared to its closing price last Friday. (Hong Kong Economic Times A10)

(1211) BYD COMPANY LIMITED ELECTRIC CAR SALES GROWTH SLOWS Distributors said that the sales price for the plug-in hybrid F3DM is 169.8 thousand yuan (excluding licence fee) and there will have 50,000 yuan of subsidy according to the central government’s subsidy policy for new energy -saving cars. The net price is very attractive at an amount within 100 thousand yuan, but the sales growth is slowing. (SingTao Daily B11)

The net interest spread is growing this year, reaching 2.56 per cent in the first quarter and it may reach 2.7-2.8 per cent of net interest spread level, China merchants Bank (3968 HK) said. (Hong Kong Economic Times A10)

China Railway (1186 HK) A-share announced with immediate effect that its executive director and deputy managing director Ding, Yuanchen to retire and will not be responsible for the posts of executive director and deputy managing director. (SingTao Daily B11)

Ping An Insurance’s (2318 HK) insurance funds have started to enter the market and it has set Taiwan Cathay Life Insurance as its strategy target, according to a media source. It also said that Ping An Insurance’s subsidiary, Ping An Property, has also started to organize its property business structure, the source added. (SingTao Daily B11)

Playmates (635 HK) that are mainly engaged in toys industry have several rental properties. The company remains bearish on the future growth of Hong Kong property market. It tends to increase its liquidity and will not consider for any real estate projects investments tentatively. (Hong Kong Economic Journal P7)

DENIED TO REPEAT BUYOUT OF AIA Prudential PLC (2378 HK) denied the rumour that it could have another chance to table an offer of AIA acquisition before the end of this year. (Hong Kong Economic Times A6)

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

Hong Kong Stock Market Wrap June 4th, 2010

AAC Acoustic (2018 HK) announced yesterday that it is going to set up a joint venture company Xenon Technologies with an international private-equity firm. AAC Acoustic will hold 39 per cent of its share holding to further acquire the flash light business. (Hong Kong Economic Journal P6)

Sales in the Mainland property market last month plunged, as the government’s tightening measures started to bite. Agile Property (3383 HK) and Kaisa Group Holdings Ltd. (1638) announced that the contract sales amount in May went down 33 per cent and 17 per cent respectively compared to those in April. (Hong Kong Economic Journal P13)

IPO: Sources said that AgBank’s net profit in 2009 amounted to 65 billion yuan, rising 26 per cent year-on year. The bank expects that its net profit can reach 84 billion yuan this year, being equivalent to 29 per cent of growth. (Hong Kong Economic Times A10)

Ajisen (China) (538 HK) said 1H overall same store sales went up and same store sales in HK returned to the black. The company is confident to achieve full-year gross profit margin of 68-69 per cent, targeting to add 120 stores this year. (SingTao Daily B4)

Continental Holdings (513 HK) acquires from MMCL and Famous Key a total of 18.09 per cent of the issued share capital of MMS through an indirect wholly-owned subsidiary Trade Bloom for around HK$139.8 million, to be fully satisfied by issuing convertible notes.
(SingTao Daily B4)

Coolpoint Energy (8032 HK) has appointed gymnastics hero Li Ning to take over Wang Yi Nan’s position as chairman of the company. Share price of the company closed at HK$0.445 yesterday, up 1.15 per cent. (SingTao Daily B4)

(493) GOME ELECTRICAL APPLIANCES HOLDING LIMITED CHINA TO EXTEND HOME APPLIANCE TRADE-IN PROGRAM China will extend its home-appliance trade-in program to other regions throughout the country from 1 June 2010 and to end tentatively on 31 December 2011, the Ministry of Commerce said. (Hong Kong Economic Times A12)

Haier Electronics (1169 HK) announced that for the purpose of further improving the product structure, it will launch its first global Internet-of-Things washing machine and the EASY series of washing machine products, which were developed to satisfy the end-users’ differentiated demand. (Hong Kong Economic Times A12)

Announcement from CIB shows that Hang Seng Bank (11 HK) holds around 766.9 million shares or 12.8 per cent shares of CIB, up 0.02 percentage points over the figure before rights issue, keeping its place as the second largest shareholder of CIB. (SingTao Daily B4)

XINHUANET quoting comment from Industrial and Commercial Bank of China (1398 HK) chairman Jiang Jian Qing reported that the bank planned to add 5 branches in Europe. The report said the bank had 180 branches overseas at present. (SingTao Daily B4)

Mongolia Energy (276 HK) awards Leighton Asia an AUD273 million worth 6-year contract to develop and operate the Khushuut coal mine project in western Mongolia, the second contract the former has awarded to the latter in western Mongolia. The latter will be responsible for all mining activities. Initial output of coking coal sets to be 3 million tonnes per annum. (SingTao Daily B4)

Pan Asia Environmental Protection (556 HK) chairman Jiang Quan Long said the group intended to enter new environmental protection businesses and had bought in equipment for producing green wall material to be put into operation in Oct 2010. (SingTao Daily B4)

Tanrich Financial (812 HK) CEO Kwok Kam Hoi said Tanrich Securities planned to sponsor 3 HK companies to list in Hong Kong in 2H this year, including a food company planning to raise funds in the main board and an underwear and men’s suit enterprise to be listed on GEM by way of placement of shares. (SingTao Daily B4)

TPV Technology Limited (903 HK) announced that it recorded US$2.4 billion of total revenue in the first quarter ended 31 March 2010, up 72.9 per cent compared to that of the last year. Profits attributable to shareholders rose to 170.1 per cent year-on-year to HK$40.2 million. (Hong Kong Economic Journal P6)

Victory City (539 HK) announced that it plans to split its subsidiary Fuyuan Group, which is involved in the businesses of purchasing management, production and clothing products trading, to list on Main Board. (Hong Kong Economic Times A12)

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

Hong Kong Stock Market Wrap June 3rd, 2010

IPO: AgBank will attend its H-share IPO hearing next Thursday (June 10), a source said. If everything is going well, it may launch it’s A-share IPO on July 15 and to list in Hong Kong on July 16. (SingTao Daily B1)

Aeon Stores (Hong Kong) (984 HK) Managing Director Lam Man Tin Soul said April retail sales in HK grew substantially driven by rising number of mainland tourist but expected the growth in 2H to be slightly slower than that in 1H. Capital spending amounted to around HK$100 million this year. (Hong Kong Economic Journal P10)

ANTA Sports Products (2020 HK) announced its results in 2010 winter order fair. Order amount went up over 25 per cent over the same period last year. JP Morgan said order amount for the full-year of 2010 went up 22 per cent yoy, 3 percentage points higher than its forecast. (Hong Kong Economic Times A8)

Directel Holdings listed (8337 HK) on GEM yesterday, closing at HK$0.38, up 27 per cent. Transaction volume for the whole day reached HK$35.4 million. (Hong Kong Economic Journal P4)

Foxconn International (2038 HK) will increase salaries and wages to workers, supervisors and leaders engaged on production lines in the mainland by 30 per cent. The company said this was expected to help staff retention and recruitment but would increase operating costs. (Hong Kong Economic Journal P1)

Galaxy Entertainment (27 HK) saw EBITDA increase 79 per cent over quarter one 2009 to HK$417 million in the first quarter this year. Revenues rose 51 per cent over quarter one last year to HK$3.95 billion. Galaxy Macau™ will be opened in early 2011. (Hong Kong Economic Times A8)

Henderson Land Development (12 HK) chairman Lee Shau Kee increased holding of shares in the company by 1.1086 million shares, 851,000 shares and 1.0007 million shares on 27 May, 28 May and 31 May respectively. (Hong Kong Economic Journal P12)

I.T. (999 HK) saw profit climb 5.17 times to HK$263 million for the year ended 28 February 2010. Earnings per share were HK$0.23. Final dividend of HK$0.105 per share was declared with an option to elect scrip shares. (Hong Kong Economic Times A8)

International Elite Ltd. (1328 HK) has noted a press article alleging that the PRC Telecom Operator has stopped using RF-SIM as its standard for its future mobile payment development. The Company responded that the PRC Telecom Operator has not made any affirmative final decision in relation to the standard for its future mobile payment development; and the Sunward Group’s customers that RF-SIM cards are still being produced and supplied ultimately to the PRC Telecom Operator. (SingTao Daily B2)

(0960) LONGFOR PROPERTIES CO. LTD. WUXI PROJECTS 105 SETS SUBSCRIBED The company announced that its Wuxi projects have been subscribed for 105 sets, over 95 per cent of subscription rate, involving capital of around 420 million yuan. (SingTao Daily B2)

Prudential’s plan (2378 HK) for AIA acquisition was cancelled following strong opposition from fund shareholders. The company is required to pay handling charges for AIG and bear financial consulting fee amounting to as much as HK$5.1 billion. (SingTao Daily B1)

Shui On Construction (983 HK) and Materials sold around 317 million shares of Shanghai Electric Group Company Limited to Shui On Group for around HK$1.08 billion. (SingTao Daily B2)

Guoco Group (23 HK) has repeatedly increased its interests on the Bank of East Asia, holding up to 9.12 per cent of its stocks. David Li Kwok Po, chairman of BEA, said that it was not clear about the motive of Guoco Group’s increasing stake holding. (SingTao Daily B3)

The Link Real Estate Investment (823 HK) announced yesterday that its distributable proceeds amounted to 2.134 billion for the year ended 31 March 2010, up 17 per cent year-on-year. A final dividend of 49.02 HK cents per fund unit was declared. (SingTao Daily B2)

CHAIRMAN ARRESTED RUMOUR; PLUNGE 11% It was rumoured that Mainland public security department arrested the company chairman Wang Yusuo following the opening of the stock market yesterday. The stock price plummeted 22 percent just in one hour. The company’s spokesperson said the message is incorrect. (SingTao Daily B3)

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

Hong Kong Stock Market Wrap June 2nd, 2010

Bank of China (3988 HK) is reviewing the regional government’s loan financing platform as required by China Banking Regulatory Commission, BOC’s President Li Lihui said at a road show via Internet for 40 billion yuan worth of A-share convertible bonds. He expects that the move will not affect the bank’s capital quality. (Sing Tao Daily B4)

China Everbright (165 HK) announced yesterday that its subsidiary Everbright ALAM has sold up to a 39% stake to the UK-owned Ashmore Investment Management Limited. China Everbright and Ashmore will become new strategic partners following the transaction. Ashmore will also provide funds for China Everbright for future growth of Mainland real estate business. (Sing Tao Daily B4)

The natural gas price increased by the National Development and Reform Commission only has little impact on China Bluechemical (3983 HK), Citibank reported. The bank set its rating of China Bluechemical as “buy” and the target price at HK$6.4. (Sing Tao Daily B11)

CR Cement (1313 HK) announced on June 1 that it agreed to acquire from Mr. Xing 72 per cent of the issued share capital of Guardwise Investments for a consideration of $72. Both parties agreed to provide Fulong Cement with a total amount of not exceeding 2.11 billion yuan. (Sing Tao Daily B4)

China Sci-Tech (985 HK) chairman Chiu Tao said the company would focus on copper resources and G-Resources (1051) would focus on investing in gold ores. On being asked about the placing of shares by the company, he said he would subscribe US$100 million shares with 2-year lock-up period. (Hong Kong Economic Times A12)

CNOOC New Energy Investment under CNOOC (883 HK) announced forming a JV with Altona Energy last year. Altona Energy said yesterday Australian Foreign Investment Review Board had approved of the project and of their developing Arckaringa project in Southern Australia jointly.
(Hong Kong Economic Journal P4)

First Pacific (142 HK) plans to repurchase up to US$130 million in value of its shares from the open market in 24-month. Based on the yesterday’s closing price of HK$5.09, the company said it would repurchase around 5 per cent existing share capital via the plan. (Hong Kong Economic Times A12)

Guangzhou R&F Properties (2777 HK) saw contracted sales and areas in May this year drop 48.9 per cent and 42 per cent over those of April respectively to 1.253 billion yuan and 106,000 sqm, down 48 per cent and 58 per cent over the same period last year. (Hong Kong Economic Times A12)

Guoco Group (53 HK) increased holding of shares in The Bank of East Asia (0023) by 2.5 million shares for over HK$66.98 million at a price of HK$26.793 per share in average last Friday. (Hong Kong Economic Journal P4)

HSBC Holdings (5 HK) said yuan deposits in the bank in April grew over 10 per cent and the growth continued in May. Bloomberg quoting a comment from the bank said May yuan deposits in the bank enjoyed reasonable growth, reflecting that Europe debt crisis didn’t affect interests in yuan deposits. (Hong Kong Economic Journal P7)

Le Saunda (738 HK) announced that its net profit surged almost 20 per cent over the last year. It is expected that the market will re-evaluate the share price and to pick up under the weakened market, as its value is undervalued. (Sing Tao Daily B11)

Prosperity Minerals (803 HK) announced yesterday that it is to set up a joint venture to develop Fujian resort and residential projects including developing facilities of hot spring resort, residents and commercial buildings, etc. (Sing Tao Daily B4)

(2378) PRUDENTIAL PLC MAY CANCEL TRANSACTION WITH AIA The transaction between the two insurance giants may be cancelled, leading to the listing of AIA being discussed again. Perhaps the cancellation is not bad to both sides, as there are risks for the merger of two companies. (Sing Tao Daily B2)

(0891) TRINITY LIMITED TO INCREASE 55 NEW MAINLAND STORES THIS YEAR The company reaped desirable proceeds in the first five-month period and it is confident that it may reach a double-digit growth for the full year same-store sales. The company’s sale mobility comes from China’s second-tier and third-tier cities, so it will increase at least 55 new stores in the Mainland this year. (Sing Tao Daily B4)

Yuzhou Properties (1628 HK) acquires the entire registered capital of Shanghai Xiersi for a total consideration of 285.5 million yuan so as to enter large-scale shopping mall projects in Shanghai. (Hong Kong Economic Journal P12)

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

Hong Kong Stock Market Wrap June 1st, 2010

BBMG Corporation (2009 HK) announced that the company plans to acquire assets of cement, new building materials, property development and real estate investment for a consideration of 2.65 billion yuan. (SingTao Daily B4)

Air China Limited was approved by the shareholders to issue new H and A shares so as to strengthen its capital and develop its business. As Cathay Pacific (293 HK) was not on the list of H-share investors, it bought Air China at a price of HK$7.087 to increase 18 million shares of Air China for HK$127.5 million on May 26, edging up its share holding 0.1 per cent to 18.48 per cent. (SingTao Daily B2)

Macquarie has rated China Merchants Holdings (144 HK) shares “outperform”, with target price of HK$31, saying that exports from China to Northern America and in Asia will recover strongly. (Hong Kong Economic Times A12)

China WindPower Group (182 HK) has entered into two contracts to purchase wind power electricity generation equipment for a total of HK$1.346 billion. Consideration will be paid in cash by installment. (Hong Kong Economic Journal P4)

China XLX Fertiliser (1866 HK) chairman Liu Xing Xu expected demand for chemical fertilizers to go up 5 per cent in China this year and overall gross profit margin of the company this year, driven by oil and food prices, to be slightly above the figure last year. (Hong Kong Economic Times A14)

Heng Tai Consumables (197 HK) issues 100 million units of TDRs today, involving 500 million underlying shares, representing 17.68 per cent of its issued share capital. (Hong Kong Economic Journal P8)

Johnson Electric Holdings Limited (179 HK) announced yesterday that for the financial year ended 31st March 2010, its net earnings increased to US$75.5 million, up 28 times year-on-year. A final dividend of 5 HK cents per share was recommended. (SingTao Daily B4)

Le Saunda (738 HK) announced that its profit increased by 70 per cent to HK$123 million for the year ended 28 Feb 2010. Profit per share is 19.2 HK cents. A final dividend 7 HK cents per share was declared. (SingTao Daily B4)

The old-share allotment transaction by Midland’s (1200 HK) chairman and founder was listed last week. It shows that Wong and his wife decreased holding of 60 million shares holding of Midland at a price of HK$5.9 per share, according to disclosure of interest of major shareholders. (SingTao Daily B4)

Netel Technology (8256 HK) announced that the company entered into the subscription agreements with the two subscribers to allot and issue each for 15 million shares at a price of HK$0.17 per share, around 19 per cent discount compared to its closing price yesterday. (SingTao Daily B4)

PICC Property and Casualty (2328 HK) plans to issue 10-year subordinated term debts with an aggregate principal amount of not exceeding 8 billion yuan in order to raise its solvency margin. (Hong Kong Economic Journal P8)

Qin Jia Yuan Media (2366 HK) announced that the Japanese privately-offered fund will issue as much as HK$121 million of 5-year term Series A and Series B non-listed convertible bonds to privately-offered fund Advantage Partners L.L.P. (SingTao Daily B4)

Shimao Property (813 HK) executive director Hui Sai Tan Jason said contracted sales was around 1.5 billion yuan in May, lower than the 2.5 billion yuan in April. It is expected that the sales will be back to April’s level in June. (Hong Kong Economic Times A14)

Yuexiu Property (123 HK), GZI Transport (1052) and GZI REIT (0405) announced that Guangzhou Municipal People’s Government had transferred its interest in the entire issued share capital of Yue Xiu Enterprises to Guangzhou Yue Xiu Holdings, a company newly formed by the Guangzhou Government. (Hong Kong Economic Journal P8)

Xinjiang Goldwind Science and Technology (2208 HK) is to raise HK$7.827-9.092 billion for 395.3 million shares at a price of HK$19.8-23 per share. The entry fee is HK$4646 per lot (200 shares). It will be listed on Jun 22. (SingTao Daily B4)

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

Hong Kong Stock Market Wrap May 31st, 2010

Cheung Kong (Holdings) (1 HK) chairman Li Ka-shing increased holdings of shares in Cheung Kong (Holdings) and Hutchison Whampoa (0013) separately on 26 May for a total of HK$31.95 million. (Hong Kong Economic Times A10)

China Haidian (256 HK) said that sales of watches in the first 5-month went up faster than the same period last year and that it was confident that the sales would grow over 26 per cent this year. (Hong Kong Economic Journal P4)

Mainland media said Shanghai International Port, 26 per cent interest held by China Merchants Holdings (144 HK), had bought 25 per cent interest in Belgium Zeebrugge for HK$265 million. (SingTao Daily B12)

China Pharmaceutical (1093 HK) recorded net profit of HK$235 million in the first quarter this year, down over 10 per cent. Earnings per share were 15.3 HK cents. No dividend was declared. (SingTao Daily B12)

China Resources Enterprise (291 HK) said capital spending went up almost 20 per cent to around HK$7 billion this year. The company is exploring 6-7 acquisition projects and expects to confirm at least 1-2 projects this year. (Hong Kong Economic Times A10)

Emperor Capital (717 HK) earned over HK$48.5 million for the six months ended 31 March 2010. Revenue went up almost 3 times over the same period last year. An interim dividend of HK$0.01 per share was declared. (Hong Kong Economic Journal P5)

SinoMedia Holding (623 HK) chairman Chen Xin said operating income went up over 50 per cent over the same period last year in the first 4-month this year but 2010 target for gross profit was to keep last year’s level as costs were also rising. (SingTao Daily B12)

Bank of China Limited (3988 HK) announced in the Shanghai Exchange yesterday that it will hold a road show via internet on June 1 for its 40 billion yuan convertible bonds. Investors can buy the six-year bond on June 2. The share price was adjusted to 3.88 yuan per share from 4.02 yuan per share. (SingTao Daily B11)

Beiren Printing Machinery Holdings Limited (187 HK) is in the process of negotiation in relation to several important transactions if the same can be approved. The company announced that its trading in the A shares of the company will be suspended for 3 days on 31 May 2010 (Monday), 1 June 2010 (Tuesday) and 2 June 2010 (Wednesday), as it is in the interests of the investors and to ensure fair disclosure of information. (SingTao Daily B11)

Recently, certain media published or reproduced articles about China National Building Material Company’s (3323 HK) subsidiaries, headed “Over 3,000 claims against BNBM were brought to the court for an amount probably exceeding US$1 billion in the US” and “Gypsum board of BNBM aroused complaints in US, experts insisted on its innocence”. The company said the report is incorrect. (Hong Kong Economic Times A12)

Gold Peak Industries (Holdings) Limited (40 HK) announced that the company recorded a profit of S$33.9 million, compared to a loss of HK$32.9 million last year. A final dividend of 10.88 HK cents per share is recommended. (SingTao Daily B11)

IPO: International Taifeng Holdings Limited is to launch its first IPO today to raise 577 million to 865 million yuan at a price of 2.06- 3.09 yuan per share. Entry fee is 6242.36 yuan per lot (2000 shares). (Hong Kong Economic Journal P2)

Legend Holdings Ltd. (992 HK), parent company of Lenovo Group Limited, plans to list in Hong Kong in five to seven years, according to CEO of Lenovo Group. In addition, its property business may also be listed to the Mainland stock market. (Hong Kong Economic Journal P4)

SMI Corporation Limited (198 HK) has acquired Australia-based Photon shares and it expects to start building a 3D producing base and a training school. (SingTao Daily B11)

Standard Chartered PLC (2888 HK) has completed a successful book-building process for its proposed listing of Indian Depository Receipts (“IDRs”), and has now closed the offer. The issue price per IDR will be INR 104. A total of 240 million IDRs will be issued producing gross proceeds of approximately INR 24.9 billion. The net proceeds receivable by the bank are approximately INR 24.6 billion. (SingTao Daily B11)

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