Thursday, August 5, 2010

Hong Kong Stock Market Wrap August 4th, 2010

UBS says sales of BaWang International (1338 HK) has gone down by 60 per cent to 90 per cent. It lowers rating on the company from Neutral to Sell, target price to HK$4.3. (Hong Kong Economic Times A12)

BYD Company (1211 HK) lowered full-year sales target by 25 per cent yesterday, from 800,000 units to 600,000 units. Morgan Stanley sets target price at HK$64. (Hong Kong Economic Times A12)

Cathay Pacific Airways (293 HK) posted a net profit of HK$6.84 billion for the six months ended June 30, soaring 7.42 times to set a record high in interim results. Earnings per share were HK$1.739. An interim dividend of 33 HK cents per share was declared. Cathay shares jumped nearly 4 percent to a 30-month high of HK$18.08 yesterday following release of the rosy results. (SingTao Daily B1)

China Aerospace (31 HK) announced that the company has acquired 35 per cent of the equity capital of Hainan Aerospace Investment Management Company Limited through a public tender. The consideration for the acquisition was around 46 million yuan. (SingTao Daily B2)

Clear Media (100 HK) had a 172 per cent increase in net profit to HK$77 million for the six months ended 30 June 2010. Earnings per share were 14.72 HK cents. No interim dividend was declared. (SingTao Daily B2)

Country Garden Holdings (2007 HK) plans to issue 5-year senior notes to repurchase the outstanding convertible bonds due 2013 and to fund existing and new property projects, including construction costs and land premium. S&P gives them a BB- rating. (Hong Kong Economic Journal P8)

First Tractor (38 HK) proposed to acquire a 51 per cent equity interest in Luoyang Tractors Research Company Limited from its parent. The company intends to satisfy the consideration of 150 million yuan by its internal resources. (SingTao Daily B2)

Hong Kong Resources (2882 HK) seek to issue convertible bonds in the aggregate principal amount of HK$216 million due three years. Based on the initial conversion price of HK$1.58 per share, the company will issue around 136.7 million conversion shares, representing about 6.56 per cent of the issued share capital as enlarged upon full conversion of the convertible bonds. (SingTao Daily B3)

Market generally expects Hutchison Whampoa’s (13 HK) net profit to go down 27 per cent and core earnings to go up 20-30 per cent. Credit Suisse suggests Buy, with target price at HK$70.4. (Hong Kong Economic Times A2)

National Investments Fund (1227 HK) plans to place up to 788 million shares at a price of HK$0.041 per share, representing a discount of 18 per cent to its closing price yesterday. It intends to use the net proceeds of about HK$31.8 million from the placing for investments and as general working capital of the company. (SingTao Daily B2)

Poly (Hong Kong) Investments (119 HK) places up to 400 million shares, representing around 11 per cent of the issued share capital as enlarged, to raise around HK$3.5 billion. (Hong Kong Economic Journal P8)

Powerlong Real Estate (1238 HK) said that its contracted sales in July amounted to 666 million yuan; soaring 2.35 times year-on-year and surging 3.01 times month-on-month. (SingTao Daily B2)

Shanghai Forte Land (2337 HK) posted contractual sales amount of 617 million yuan in July, with sales area around 50,000 square metres. Sales area amounted to 4.7 million m2 in the first 7 months, involving 6.627 billion yuan. (Hong Kong Economic Journal P11)

StanChart (2888 HK) posted a 11.4 per cent increase in first-half profit to touch a record US$2.098 billion (around HK$16.28 billion) year-on-year. Earnings per share were US$1.049. An interim dividend of 23.35 US cents (around HK$1.82) per share was paid. StanChart shares in Hong Kong ended down 1.75 per cent to HK$225. (SingTao Daily B2)

Suncorp Technologies (1063 HK) acquires fiber optic backbone network business for HK$4.98 billion. It also intends to consolidate every four shares into one consolidated share and place up to 6.9 billion new consolidated shares at no more than HK$0.5 per placing share. (Hong Kong Economic Times A12)

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