Thursday, July 29, 2010

Hong Kong Stock Market Wrap July 28th, 2010

China Huiyuan Juice (1886 HK) substantial shareholder Danone will sell all the shares held by it, which represents nearly 23 per cent of the total issued share capital of the company, at a price of HK$6 per share to an equity firm SAIF Partners III. The capital involved in the transaction is HK$2.025 billion in total. (SingTao Daily B2)

It is said that 2 shareholders of China Mengniu Dairy (2319 HK) placed over 50 million shares for up to HK$1.225 billion yesterday. It is the 6th share placement from the two since the company listed. The 5 share placements involved around HK$7.3 billion in total. (Hong Kong Economic Times A13)

China Merchants (144 HK) has signed agreement with Chu Kong Shipping Development Company (0560) in which CKSD agrees to sell 20 per cent of its equity interest in Chu Kong River Trade Terminal Company Limited to the Company. The selling price is pending confirmation. (SingTao Daily B3)

China Southern Airlines (1055 HK) expects its profit for the first six months to substantially increase over 50 times. It is expected that its first half net profit will be over 1.938 billion yuan, The increase in profit is mainly due to the positive impact brought by the robust mainland economic growth and the completion of selling its equity interest in MTU Maintenance Zhuhai Co.,Ltd. (SingTao Daily B3)

China Star (764 HK) proposes to raise not less than HK$330 million at a price of HK$0.4 per rights share that is nearly 30 per cent discount off from its close yesterday. The rights issue will be based on three rights shares for every one existing share. (SingTao Daily B3)

Chu Kong Petroleum and Natural Gas Steel Pipe (1938 HK) expects that its unaudited consolidated net profit for the first half may decrease by about 50 per cent from the previous year. The expected decrease is mainly due to the decrease in export sales in the period. (SingTao Daily B3)

GCL-Poly Energy Holdings (3800 HK) announced yesterday that the board has approved to invest an additional US$300 million, around HK$2.34 billion, in the silicon wafer business in the mainland with an additional capacity of around1GW. (Hong Kong Economic Journal P7)

Golden Eagel Retail (3308 HK) announces it will bid for the total interest in Anhui Ruijing for a consideration of 267 million yuan, which will be satisfied by its internal resources. Anhui Ruijing is operating two high-end department stores in Hefei, Anhui. (SingTao Daily B3)

Hang Lung Properties (101 HK) had a paper gain of HK$6.674 billion for the six months ended June 30, soaring 179 per cent to hit record high, which is in line with market estimates. A final dividend of 54 HK cents was recommended, rising 6 per cent year-on-year. (SingTao Daily B3)

Hong Kong Electric (6 HK) posted a net profit of HK$2.754 billion for the six months ended 30 June 2010, an increase of 3.2 per cent from a year ago. Earnings per share were HK$1.29. An interim dividend of 62 HK cents was declared. The higher first half earnings were primarily due to the increased holding in the UK Northern Gas Networks and the acquisition of interest in the Seabank Power Station. Hong Kong Electric shares ended 30 HK cents higher to close at HK$46.6 yesterday. (SingTao Daily B2)

Husky Energy under Hutchison Whampoa (13 HK) says it is evaluating a plan to spin off its subsidiary Husky Asia Pacific. The assets to be spun off include a number of natural gas fields in the mainland. (Hong Kong Economic Journal P5)

Glue maker for shoes Infinity Chemical (640 HK) starts IPO today to raise around HK$73.125 million to 93.75 million. Offering price is HK$0.585 to 0.75 per share. The board lot size is 4000 shares. (Hong Kong Economic Times A12)

Natural Beauty Bio-Technology (157 HK) expects profit for the six months ended 30 June may drop significantly over the same period last year. The company, however, announces that interim dividend will be similar to that of 2009. It plans to publish interim results on 17 August. (Hong Kong Economic Times A13)

The Wharf (Holdings) (4 HK) and Nan Fung Development won the site at 103 Mount Nicholson Road for HK$10.4 billion yesterday, HK$32,014 psf, which fell within market expectations. (Hong Kong Economic Times A2)

Zijin Mining Group (2899 HK) announced yesterday that Chen Jiahong, its vice president and the former head of Zijinshan Gold and Copper Mine, was detained as suspect in relation to the major pollution incident by the police department on 27 July. Chen has worked as vice president since 2006. (Hong Kong Economic Journal P4)

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