Friday, July 16, 2010

Hong Kong Stock Market Wrap July 15th, 2010

Amber Energy (90 HK) said that it has received an official notice from Zhejiang Provincial Price Bureau regarding the adjustment of natural gas price. It is specified that effective on 15 July 2010, natural gas price offered by Zhejiang Province Natural Gas Development Company, the sole natural gas supplier of the company, to its gas-fired power plants will be adjusted to 2.41 yuan per m3 from 2.08 yuan per m3, price raising by nearly 10 per cent. (SingTao Daily B4)

AMS Public Transport (77 HK) posted net profit of HK$48 million for the year ended 31 March 2010, up 22 per cent year-on-year. Turnover went up 3.4 per cent to HK$439 million. A final dividend of 11 HK cents per share is recommended. (Hong Kong Economic Journal P7)

Bank of Communications (3328 HK) announced its results of the H share rights issue yesterday. As of 9 July 2010, there have been a total of around 36,900 valid acceptances in respect of nearly 3.435 billion H rights shares provisionally allotted received, representing around 99.28 per cent of the total number of the H rights shares available. (SingTao Daily B4)

Bauhaus (483 HK) announced its annual results for the year ended 31 March 2010. Its net profit increased by about 36 per cent to around HK$83 million. A final dividend and a special one of 13.5 HK cents per share were declared. Bauhaus shares closed at HK$2.23 yesterday, rising over 20 per cent. (SingTao Daily B3)

BaWang International (1338 HK) share price went down 8 per cent yesterday. BofA Merrill Lynch lowers target price for the company by 38 per cent to HK$4.4 while Morgan Stanley and HSBC are bullish on its outlook, maintaining Overweight rating. (Hong Kong Economic Times A10)

China Coal Energy (1898 HK) announced the change of the investment projects by using the net proceeds raised from the A-share issue yesterday. The proposed Heilongjiang coal mine project will be suspended, in which the company has planned to invest around 17 billion yuan, due to economic conditions significantly deteriorated by the global financial crisis. (SingTao Daily B4)

China Eastern Airlines (670 HK) estimates that the net profit for the first half of the year will have over 50 per cent growth, rising to HK$1.76 billion yuan at least. The profit increase is mainly due to the rapidly recovering air transportation market, a substantial growth in the passenger traffic brought by Shanghai World Expo and steady growth of operational efficiency brought by the company’s efforts in continual improvement and enhancement of operations and management standard. (SingTao Daily B3)

CITIC 21CN (241 HK) recorded a turnover of HK$280 million for the year ended 31 March 2010, slightly rising 4.7 per cent over the same period of last year. Net loss attributable to shareholders for the year ended 31st March 2010 amounted to around HK$51 million, representing a decrease of 65 per cent from last year. The basic loss per share was 1.39 HK cents. No final dividend was recommended. (SingTao Daily B4)

HSBC Holdings (5 HK) will announce its interim results in early August. CLSA sets Underperform rating for the bank, with target price at HK$69, 7.9 per cent lower than current price. Although HSBC’s business in the US returned to the black in 1H, CLSA estimates ROA in 2011 will be 0.66 per cent. Share price closed at HK$74.9 yesterday, down 0.86 per cent. (Hong Kong Economic Times A10)

Linmark Group (915 HK) earned HK$46 million for the year ended 30 April 2010, successfully returning to the black. A final dividend and a special dividend of totally 6.75 HK cents per share were paid. The company recorded a loss of HK$96 million last year. (SingTao Daily B4)

Only listed for 7-month so far, MOBI Development (947 HK) expects 1H net profit to go down sharply over the same period last year. The company says domestic 3G network operators deferring their central procurement to after June affected revenue. (Hong Kong Economic Times A10)

O-Net Communications (877 HK) expects profit attributable to equity holders in the first six-month to exceed prospectus forecast according to preliminary review of the management accounts as products in core business rose in sales volume and their gross profit margins improved. (Hong Kong Economic Times A10)

Standard Chartered (2888 HK) will announce its interim results in early August. CLSA sets Buy rating for the bank, with target price at HK$271. CLSA estimates ROA in 2011 will reach 1.18 per cent. Share price closed at HK$207.4 yesterday, down 0.2 per cent. (Hong Kong Economic Times A10)

Stella International (1836 HK) had revenue of around $540 million (HK$4.2 billion) for the six months ended 30 June 2010, representing a growth of 18 per cent over the same period of last year. The company also announced it earned around $319 million in the second quarter, up 23 per cent over the same period of last year. (SingTao Daily B4)

Nike plans to launch low priced products in tier 2 and 3 cities in the PRC. Xtep International (1368 HK) executive director Ho Yui Pok Eleutherius observes Nike new strategy will not have material impact over Xtep International’s development, saying that its major competitors are brands such as Li Ning and Anta. (Hong Kong Economic Times A10)

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