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
