Thursday, September 30, 2010

Hong Kong Stock Market Wrap September 29th, 2010

Beijing Yu Sheng Tang (1141 HK) placed 517 million shares at a placing price of HK$0.285 per share on Sep 28, representing a discount of over 17 per cent to the closing price on that day. The net proceeds of about HK$143 million will be used as general working capital. (SingTao Daily B4)

China Resources Land (1109 HK) entered into an agreement relating to a HK$800 million four year term loan facility with a bank yesterday. According to the facility agreement, China Resources Land’s largest shareholder CRH shall hold not less than 35 per cent equity interest in the company. CRH currently owns almost 63 per cent of the issued share capital of China Resources Land. (SingTao Daily B4)

CK Life Sciences (775 HK) Int’l sold 40 million shares of Ruinian International Limited (2010) at HK$6.55 each on Monday, reaping HK$203 million. The net proceeds of HK$257 million arising from the placing will be used for general working capital. (SingTao Daily B4)

The copper project of Lady Annie, a subsidiary of CST Mining (985 HK) in Australia, announced the resumption of mining days ago. CST mining chairman Chiu Tao said that the first batch of electrolytic copper will be produced in December this year. He expects CST’s results to swing to the black in 2012. (SingTao Daily B3)

Dah Sing Banking (2356 HK) plans to issue US$150 million 3-yr senior unsecured floating rate notes to raise funds for general banking and corporate purposes. Fitch Ratings and Moody's assign 'A' and ‘A3’ rating to the notes respectively. (Hong Kong Economic Times A11)

Hang Lung Group (10 HK) and Hang Lung Properties (0101) appoint Ho Hau Cheong as executive director. Ho is entitled to receive from Hang Lung Properties emoluments of HK$4.4 million per annum (including basic salary, pensions and director’s fee) and a discretionary performance bonus and to receive from Hang Lung Group a director’s fee. Ho will be granted an option to subscribe for 2 million shares in Hang Lung Properties. (Hong Kong Economic Journal P16)

Hong Kong Energy (987 HK) has entered into a non-legally binding term sheet with a potential investor yesterday in relation to a proposed issue of certain preference shares in the company. The investor plans to subscribe convertible preference shares of the company at a price of US$25 million (around HK$194.5 million). (SingTao Daily B4)

Goldman Sachs (1398 HK) placed 3.031 billion shares of ICBC after closing yesterday at HK$5.74 per share, a 3.8 per cent discount to yesterday’s closing price. Shares of ICBC rose HK$0.12 to close at HK$5.97 yesterday. Goldman Sachs still holds 10.1498 billion shares of ICBC, representing 12.26 per cent of ICBC’s H shares. (Hong Kong Economic Times A4)

Nine Dragons Paper (2689 HK) Cheung Yan family ranked third in Hainan Clearwater Bay 2010 Hurun Rich List released yesterday with a wealth of 38 billion. (Hong Kong Economic Journal P10)

Proview International (334 HK) announces that the ruling of Brazil court regarding the bankruptcy of a Brazil subsidiary was published in the official gazette on 10 Sep. The company says that the subsidiary has ceased operation and around HK$185 million due from it will be written off as bad debts. According to Proview International, the subsidiary does not have significant financial relationship such as corporate guarantee with other members of the group. (Hong Kong Economic Times A13)

Sichuan Expressway (107 HK) aims to issue debt-financing instruments in the mainland. The size of the issue will not more than 40 per cent of the company’s net asset value, subject to the prevailing market conditions at the time of the issue.

Sun.King Power Electronics Group (580 HK) kicks off IPO today to issue 409.8 million shares at HK$1.45-1.93 per share to raise HK$594 million-791 million. Listing date is 13 Oct. Sponsor is Deutsche Bank. (Hong Kong Economic Journal P8)

Sun Hung Kai Properties (16 HK) bought a site in Fanling for HK$459 million at yesterday’s land auction. It says that investment amount for the project is around HK$900 million and the site will be developed into a residential project. (Hong Kong Economic Times A3)

The results of Yueshou Environmental (1191 HK) for the year ended 31 July 2010 are expected to turn into the red. The reasons of the loss are primarily attributable to the slowdown of the sales order for sulphur fixing agents and desulphurization projects, and the impairment of goodwill of the environmental protection operations. (SingTao Daily B4)

Zhongsheng Group (881 HK) is seeking to acquire two mainland automobile dealerships for a total consideration of 1.3 billion yuan payable in cash that will be satisfied by internal resources. Upon completion of the deals, Zhongsheng’s dealerships will increase to 14, which are located at Beijing, Tianjin and Fuzhou respectively. (SingTao Daily B3)

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

Wednesday, September 29, 2010

Hong Kong Stock Market Wrap September 28th, 2010

Brightoil Petroleum (933 HK) recorded a net profit of HK$1.144 billion for the year ended June 30, benefiting from a remarkable increase of 120 per cent in marine bunker sales volume. Earnings per share amounted to 19 HK cents and a final dividend of 3 HK cents per share was declared. (SingTao Daily B4)

China Shipping Development (1138 HK) has signed purchasing agreement with controlling shareholder’s subsidiaries, China Shipping Industrial Co., Ltd. and China Shipping Industrial (Jiangsu) Co., Ltd., regarding the construction of 12 vessels for the transportation of coal and other bulk cargo. The total consideration for the construction of the vessels is around 2.553 billion yuan. (SingTao Daily B4)

China Unicom (762 HK) proposes to issue a total of US$1.839 billion (around HK$14.27 billion) five-year convertible bonds, carrying a rate of 0.75 per cent per annum. The initial conversion price is HK$15.85 per share, representing a premium of 35 per cent to its closing price yesterday. The stock of China Unicom plunged 4.2 per cent to close at HK$11.2 yesterday. (SingTao Daily B2)

Country Garden (2007 HK) repurchased RMB-denominated US dollar settled 2.5 per cent convertible bonds due 2013 in aggregate principal amount of 60 million yuan through over-the-counter market on 27 Sep. The aggregate principal amount of the bonds remaining outstanding would be 1.3036 billion yuan. (Hong Kong Economic Journal P8)

Forefront Group (885 HK) shareholder meeting passed a resolution that approved an investment of US$10 million in AITS, a company engaged in automobile air conditioner parts. (SingTao Daily B4)

Fosun International (656 HK) was approved by the Forte Group to take up a new business opportunity under the condition that Fosun will not directly compete with the latter. The new business is in relation to a bid for a property development project to be developed on five pieces of land located at Donggang Area, Zhongshan District, Dalian. The bid price for the land was around 3.602 billion yuan. (SingTao Daily B4)

Franshion Properties (China) (817 HK) plans to issue perpetual convertible securities to raise up to US$600 million at HK$2.83 each. The rate of distribution shall be 6.8 per cent per annum. After full conversion, 1.644 billion new shares will be involved, representing 15.22 per cent of the enlarged issued share capital. Shares closed at HK$2.29 yesterday. (Hong Kong Economic Times A12)

Hopewell Holdings’ (54 HK) managing director Wu Thomas Jefferson increased holding of shares in the company by 100,000 shares on 24 Sep at HK$24.95 apiece on average. Wu also increased holding of shares in Hopewell Highway Infrastructure (0737) by 200,000 shares on 24 Sep and 27 Sep, involving a total of HK$11.84 million. (Hong Kong Economic Journal P11)

King Fook (280 HK) said its same-store sales booked a 5-6 per cent growth for the period from April to September this year. The company requires relocating or closing several outlets due to expiry of tenancy agreements. There has been a net decrease of at least three outlets since the beginning of the year. (SingTao Daily B4)

Canada listed company Power Corporation of Canada decreased holding of shares in Lai Sun Development (488 HK) by 77.26 million shares on 22 Sep at HK$0.183 per share on average, reaping HK$14.1386 million. (Hong Kong Economic Journal P11)

Midas Holdings (1021 HK) will list in HK on 6 Oct (Wed). It announces that the final offer price for the secondary listing has been set at HK$5.43 per share, 11 per cent lower than the maximum offer price of HK$6.1 a share and around 4 per cent discount to yesterday's closing price in Singapore. (Hong Kong Economic Times A3)

New Media Group (708 HK) posted a profit of around HK$45.6 million for the year ended Jun 30. Earnings per share was 7.6 HK cents. A final dividend of 1.3 HK cents per share was distributed. (SingTao Daily B4)

Pou Sheng International (3813 HK), subsidiary of Yue Yuen Industrial (0551), posted unaudited consolidated profit attributable to owner of US$ 14.423 million for the nine months ended June 30 2010, down 9.99 per cent year on year. (Hong Kong Economic Times A12)

Walker (1386 HK) expects to record a net profit or net loss for the six months ending Sep 30, 2010, depending on the sales performance in the month of Sep 2010 and the fair value of the financial investment as of Sep 30. (SingTao Daily B4)

Yue Yuen Industrial (551 HK) saw unaudited consolidated profit attributable to owners drop almost 5 per cent yoy to US$346 million for the nine months ended 30 Jun. Turnover rose over 10 per cent yoy to US$4.2 billion. Loss from fair value changes on derivative financial instruments amounted to US$4.12 million. (Hong Kong Economic Times A12)

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

Tuesday, September 28, 2010

Hong Kong Stock Market Wrap September 27th, 2010

Agile Property (3383 HK) announced that Agile Royal Mount Zhongshan was launched on Sep 25 and recorded contract sales amount of more than 400 million yuan on that day. (SingTao Daily B3)

Real estate stocks outperformed yesterday. Cheung Kong (1 HK) shares rose over 2 per cent to close at HK$115.6. Morgan Stanley raises target price on the company from HK$115 to HK$130, maintaining Overweight rating. Cheung Kong may outperform other developers in the short term as it will record strong sales in the coming 3 months. (Hong Kong Economic Journal P10)

China Huiyuan Juice (1886 HK) has received a notice from China Hui Yuan Holdings held by substantial shareholder and chairman Zhu Xinli to convert US$6 million convertible bonds into 9.1366 million Huiyuan shares at HK$5.1 each, taking Zhu’s shareholding in the company to 41.89 per cent. (Hong Kong Economic Times A13)

China XLX Fertiliser (1866 HK) plans to construct a fourth production plant to expand its production capacity for urea. It plans to acquire a piece of land at Xinxiang Economic and Technology Development Zone, Henan to construct production and office buildings and buy new equipment and machinery. It plans to invest 3 billion yuan in the plan and expects it to be fully completed by the end of 2013 to increase its production capacity for urea to over 2 million tons a year. (Hong Kong Economic Journal P12)

Sources say that 2 shareholders of Comba Telecom (2342 HK) Systems place 30 million shares at HK$8.46-8.63 per share to raise up to HK$259 million. Shares closed at HK$8.9 yesterday. If the placing is well received, an additional 5 million shares will be placed. (Hong Kong Economic Journal P10)

Heng Xin (8046 HK) China booked a net profit of around HK$181 million for the year ended June 30, surging 64 per cent year-on-year. Earnings per share was 11.96 HK cents. The company also distributed one bonus share for every 30 shares. (SingTao Daily B3)

Hua Xia Healthcare (8143 HK) plans to carry out a rights issue to raise HK$92.9 million to over HK$97 million. The rights issue involves the issue of 1.498 billion shares to 1.578 billion shares at a subscription price of HK$0.062 apiece. The net proceeds of the rights issue will be mainly used to repay loans. (SingTao Daily B3)

Mongolian Mining Corporation (975 HK) is set to kick off IPO today. It is said that its international tranche has been oversubscribed and several investors including Henderson Land Development (0012) chairman Lee Shau-kee, The Hong Kong and China Gas (0003) and Singaporean GIC have bought the shares. MMC’s offer price is at HK$6.48 to HK$7.56. Entry cost is HK$3,818.1 per board lot of 500 shares. (SingTao Daily B2)

Nine Dragons Paper (2689 HK) saw profit attributable to shareholders increase by 30.42 per cent to 2.166 billion yuan for the year ended June 30. Earnings per share amounted to 0.4792 yuan and a final dividend of 10 fen per share was declared. Chairlady Cheung Yan expects the company’s total design production capacity in 2011 and 2012 to reach 10 million tpa and 12 million tpa respectively. (SingTao Daily B2)

Orange Sky Golden Harvest (1132 HK) plans to acquire 3.33 per cent equity interest in Legendary Pictures, a US film production firm, for US$25 million. Orange Sky will appoint an executive director to sit on the board. (SingTao Daily B3)

Oriental City (8325 HK) proposes to raise HK$19.5 million by issuing about 300 million rights shares at a price of HK$0.07 apiece, on the basis of one rights share for every two shares. The company also plans to issue bonus share on the basis of one bonus share for every share. (SingTao Daily B3)

Sources say that Ruinian International’s (2010 HK) shareholders place 100 million shares at HK$6.41-6.55 each to raise up to HK$655 million. Shares closed at HK$6.86 yesterday. Shareholders include Turrence, Raffles and Templeton Private Equity. (Hong Kong Economic Journal P10)

SOHO China (410 HK) achieved contract sales of 18.3 billion yuan as of 25 Sep 2010, up 1.32 times from the first nine months in 2009, reaching the 2010 full year sales target of 18 billion yuan ahead of schedule. Chairman Pan Shiyi expects full year sales amount to reach 20 billion yuan. (SingTao Daily B3)

United Company RUSAL (486 HK) plans to acquire a stake in a sales and marketing subsidiary of China North Industries Corporation (NORINCO). Both parties have signed a Letter of Intent. NORINCO also intends to invest into the high-tech production capacities of RUSAL’s Siberian smelters. RUSAL will, under a long-term contract, deliver up to 2 million tonnes of aluminum alloys worth more than US$4 billion every year to Asian markets from its Siberian smelters. (Hong Kong Economic Journal P12)

It is said that Vinda International (3331 HK) and a shareholder place a total of 32.5 million shares at HK$9.2-9.5 apiece to raise up to HK$309 million, among which 28.5 shares are new shares and 4 million shares are existing shares. Shares closed at HK$9.8 yesterday. (Hong Kong Economic Journal P10)

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

Monday, September 27, 2010

Hong Kong Stock Market Wrap September 24th, 2010

AEON Credit Service (Asia) (900 HK) booked interim profit of HK$116 million for the six months ended 20th August, down 6 per cent. EPS amounted to 27 HK cents per share. An interim dividend of 16 HK cents per share was declared. (SingTao Daily B12)

Buildmore International (108 HK) incurred a loss of around HK$199 million for the six months ended 31 July, as compared to the loss of around HK$20.53 million over the same period last year. Revenue was about HK$11.25 million. Loss per share reached HK$1.51. No dividend was declared. (Hong Kong Economic Journal P4)

China Resources Enterprise (291 HK) plans to sell the entire issued share capital of CR Vogue to its parent China Resources (Holdings) Company for HK$53.98 million. CR Vogue is mainly engaged in apparel retail distribution for the brand “ck Calvin Klein” in the PRC. (Hong Kong Economic Times A8)

China Water Industry (1129 HK) announces that minority investors will restructure existing convertible bonds issued in 2007. Both parties have agreed to certain key terms, including redemptions by instalments: the bonds held by the latter will be redeemed for around HK$128 million in cash (excluding interest costs and discounts for early repayment), payable in instalments starting from next month and ending in July 2012. (Hong Kong Economic Journal P4)

Solargiga Energy’s (757 HK) subsidiary Rising Sun has entered into a subscription agreement and a JV agreement with 3 individual shareholders of a JV, Qinghai Chenguang New Energy. Rising Sun will acquire 51 per cent interest in the JV, engaging in manufacturing monocrystalline silicon solar ingots, through cash injection of 45.9 million yuan. Solargiga Energy expects the JV to construct a production plant with a planned annual production capacity of 2,000 tonnes of monocrystalline silicon solar ingots commencing in Oct and expects the plant to reach full capacity in mid 2013. (Hong Kong Economic Times A8)

Texwinca Holdings (321 HK) is to purchase 10 per cent interest in its subsidiary Baleno Holdings, engaging in the retailing and distribution of casual apparels and accessories, for around HK$203 million, around HK$60 million of which is payable by cash and the rest by issuing new shares at HK$8.9 each.

Uni-President China (220 HK) issues an announcement regarding the recovery of debts from Guangdong Zhong Gu Tang Ye of 110 million yuan, stating that the percentage of recovery for general claims is around 28.35 per cent according to the draft reorganisation plan of the latter. Based on the percentage, the company expects to recover around 31.2 million yuan. (SingTao Daily B12)

IPO: AIA that is going to kick off presentation ahead of listing today at the earliest, expects the profit before tax for the year ended Nov 30, 2010 to amount not less than US$2 billion (around HK$15.6 billion). AIA plans to launch a roadshow on Oct 6 and list on Oct 29, aiming to raise about US$15 billion (around HK$117 billion). (Hong Kong Economic Journal P2)

Art Textile Technology (565 HK) saw the profit tumble 23.65 per cent to HK$5.55 million for the year ended Jun 30, 2010. Earnings per share amounted to 0.53 HK cents. No dividend was declared.

China Communications Construction (1800 HK) has successfully bid for several contracts that include a highway project located in Guizhou Province. The amount involved was about 1.07 billion yuan. (SingTao Daily B3)

China Merchants Bank (3968 HK) has sought to open an office in Taiwan previously, which was rejected by Taiwan’s Financial Supervisory Commission for the reason of not meeting related requirements. It is said that applicant organizations are required to have operated in countries within the Organisation for Economic Co-operation and Development for two years or above. (Hong Kong Economic Times A11)

China Qinfa Group’s (866 HK) Australian-listed subsidiary, Tiaro Coal, has collaborated with Dynasty Metals Australia in the operation of Australian Munna Creek project area. In the project area, 20-30 million tonnes of coal (mostly coking coal and exporting thermal coal) have been explored. (SingTao Daily B3)

China Resources Gas (1193 HK) is actively seeking to acquire 20-30 gas projects, with the acquisition criteria of not less than 15 per cent of internal return rate. The company expects the capital expenditure used in the acquisition of these projects in three years to be about HK$10 billion, which will be raised through bank loans and refinancing from capital markets.

Chinasoft International (354 HK) aims to acquire a 100 per cent equity interest in MMIM Technologies, Inc for a consideration of not more than HK$709,8 million. MMIM is a technology firm engaged in the mobile internet messaging, community social network services, add-on multimedia applications and innovative cross-network technologies. (SingTao Daily B3)

Metallurgical Corp of China (1618 HK) issued the second tranche of short-term financing bills for 2010 on Sep 17. The issued bills amounted to 10 billion yuan, bearing an interest rate of 2.97 per cent, which are repayable on maturity with a one-off interest payment. (SingTao Daily B3)

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

Friday, September 24, 2010

Hong Kong Stock Market Wrap September 22nd, 2010

21 Holdings (1003 HK) proposes the consolidation of every 20 issued existing shares into 1 issued consolidated share and a rights issue on the basis of 10 rights shares for every 1 adjusted share at HK$0.19 per rights share, to raise HK$214 million for acquiring real estate agency business in the PRC. (SingTao Daily B11)

China Overseas Land & Investment (688 HK) CEO Hao Jian Min decreased holding of shares in the company by 300,000 shares at HK$17.65 on 20 Sep, reaping HK$52.95 million. (Hong Kong Economic Journal P6)

HSBC’s (5 HK) CEO Michael Geoghegan reportedly threatens that he would quit if he was not made a chairman, expressing his dislike for John Thornton to be his superior. HSBC spokesperson McGuinness says the rumour is just nonsense. (Hong Kong Economic Journal P2)
Kader Holdings (180 HK) will sell 16 commercial units at 66 Lujiazui Road, Shanghai to 2 purchasers for over HK$77 million, to reap 31.22 million. (SingTao Daily B11)

RCG Holdings’ (802 HK) chairman Raymond Chu Wai Man has sold 5 million ordinary shares at HK$4.9 each to an institutional buyer, reaping HK$24.5 million. Chu’s total interests dropped from 18.8522 million shares or 6.49 per cent to 13.852 million shares or 4.77 per cent. (Hong Kong Economic Times A7)

Substantial shareholder of Tai-I International (1808 HK) Taiwan Tai-I entered into a non-binding MOU on 20 Sep with an independent purchaser regarding the possible sale of 32.79 per cent interest in Tai-I International held by Taiwan Tai-I to the purchaser at HK$0.3925 per share. (SingTao Daily B11)

Tcl Communication (2618 HK) Technology has appointed Andrew Look as independent non-executive director, entitled to an annual remuneration of HK$180,000, and granted him share options to subscribe for 600,000 ordinary shares, with validity period of 6 years. (SingTao Daily B11)

BBMG (2009 HK) plans to acquire assets of a cement production line, which is situated at Lingchuan Xian, Shannxi and is owned by Henan Mendian Group, at a total consideration of 350 million yuan. The company will increase its cement production capacity by about 1.5 million tons per annum through the acquisition. (Hong Kong Economic Journal P4)

BOC Hong Kong’s (2388 HK) rating was raised by Standard & Poor’s to “positive”. Shares price on Wednesday was seen HK$23.7 and to close 3.5 per cent higher at HK$23.5 finally, becoming the most powerful blue-chip. (SingTao Daily B10)

Leading brokerages have lowered rating on China Unicom (762 HK). Deutsche Bank forecast that China Unicom’s income from mobile phone business in 2010 and 2011 will decrease by 3 per cent and 6 per cent respectively, thus lowering its rating on the company from “buy” to “sell” and slashing target price from HK$11.7 to HK$10. (SingTao Daily B10)

Hutchison Whampoa’s (13 HK) subsidiary had signed a memorandum of understanding with Thailand’s state-owned CAT Telecom in relation to the sale of its mobile network, Bloomberg reports, citing Thailand newspapers. But the deal is cancelled as it does not get approval from Thailand authorities. (Hong Kong Economic Times A16)

Lenovo Group (992 HK) plans to launch hybrid personal computers in the mainland market early next year. Chief marketing officer David Roman expects the company to maintain the better-than-peers performance and to become the biggest personal computer producer in the world eventually. (SingTao Daily B3)

Ping An Insurance (2318 HK) has won approval to set up a fund management joint venture with United Overseas Bank, Xinhuanet reports. However, the spokesperson of Ping An Insurance said there is no announcement regarding the news. (SingTao Daily B3)

StanChart (2888 HK) aims to double its branch network in Nigeria over the next three years to tap into the country's growing middle class, its country chief executive Christopher Knight told foreign media. The lender is reportedly planning to take its number of branches to 50 from 26 and invest in new products rather than expand through acquisitions. (Hong Kong Economic Journal P6)

Vinda International (3331 HK) announced that shareholder Cathay Fund has distributed its entire stake, amounting to 9.2 per cent equity interest in the company, to its partners. The shares involved were about 83 million shares. Upon completion of the distribution, Cathay Fund will not hold any shares of the company. (SingTao Daily B3)

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

Wednesday, September 22, 2010

Hong Kong Stock Market Wrap September 21st, 2010

Asia Cement (China) (753 HK) signed an agreement in relation to a 5-year term syndicated loan of US$144 million in Taipei yesterday, with an interest rate of LIBOR plus 0.58 per cent. The real interest rate currently is below 1 per cent. (SingTao Daily B4)

Bossini International (592 HK) recorded an 80 per cent year-on-year surge in net profit to HK$90 million for the year ended June 30. Earnings per share was 5.66 HK cents. The board of directors proposed to pay a special dividend of 0.3 HK cent per share in addition to a final dividend of 2.3 HK cents apiece. (SingTao Daily B4)

Cheung Kong Infrastructure (1038 HK) plans to issue 5-yr perpetual notes at yield of 6.625 per cent to raise US$1 billion, around HK$7.8 billion, with JP Morgan as underwriter. It is said that it kicked off roadshow in HK and Singapore last Friday and this Monday respectively and the response was positive. (Hong Kong Economic Times A13)

HSBC, Deutsche Bank, JP Morgan and Morgan Stanley raise target price on China Resources Land (1109 HK) to HK$21.8, HK$18.8, HK$17 and HK$16.8 respectively. JP Morgan raises rating on it to Neutral. Deutsche Bank sets Buy rating. Shares dropped over 1.7 per cent to close at HK$16.94 yesterday. (Hong Kong Economic Times A13)

First Mobile Group (865 HK) incurred a loss of HK$2.164 billion for the year ended 31 December 2009, mainly due to the impairment of trade receivables of HK$1.85 billion for the year and included under general and administrative expenses. Revenue was around HK$3.106 billion. Loss per share was 111.23 HK cents. No dividend will be paid. (Hong Kong Economic Journal P8)

Greenfield Chemical (582 HK) acquires from China Century Worldwide the entire issued share capital of Ace Winner Holdings at HK$400 million. The consideration will be satisfied by cash or by issuing convertible bonds or a combination of both. Ace Winner Holdings has not recorded turnover or business activities since incorporation. It was set up solely for effecting reorganization. (Hong Kong Economic Journal P8)

ICBC (1398 HK) chairman Jiang Jianqing said that he has not heard about CBRC’s requirement for raising the capital adequacy ratio of banks by 15 per cent, Reuters reported. The Basel III rules have no impact on China’s banking sector in the near term, Jiang added. (SingTao Daily B4)

New Century Group (234 HK) has sold a building located at Nan Fung Industrial Building, Nos. 15-17 Chong Yip Street, Kwun Tong. The company owns three storeys of the building, which have a total gross floor area of over 48,000 square feet. The net proceeds from the disposal are estimated to be around HK$91 million and will be used for future investment purpose. (SingTao Daily B4)

RCG Holdings (802 HK) announced that substantial shareholders Tony Chan and his wife sold 5 million shares in the company to an institutional buyer on 17 September 2010, decreasing their shareholding to 18.42 per cent from 20.14 per cent. The transaction price was not disclosed, but it might involve around HK$24.5 million based on the share’s closing price of HK$4.9 last Friday. (SingTao Daily B4)

Richfield Group Holdings (8136 HK) saw profit climb 4.9 times to HK$140 million for the year ended 30 June. Basic earnings per share from continuing operations amounted to 4.77 HK cents. No dividend will be paid. Turnover rose 1.6 times to HK$310 million during the period. (Hong Kong Economic Journal P8)

Skyworth Digital (751 HK) said that total TV sales volume in August amounted to 600,000 units, declining 22 per cent year-on-year, sales amount down 2 per cent. The sales volume of CRT TV for the China TV business unit in August significantly decreased by 99 per cent to only 1,100 units. The main reason is the demand of traditional CRT TV has increasingly diminished in the mainland market. (SingTao Daily B4)

Solargiga Energy (757 HK) has confirmed to set up a joint venture company to engage in the business of manufacturing multicrystalline silicon solar ingots and wafers. The JV will be owned as to 37 per cent equity interest by Solargiga. The amount of total investments and registered capital of the JV will be 675 million yuan and 200 million yuan respectively. (SingTao Daily B4)

Goldman Sachs, JP Morgan, Credit Suisse and Royal Bank of Scotland raise target price on Sun Hung Kai Properties (16 HK) to HK$141, HK$138, HK$136 and HK$123.31 respectively. Morgan Stanley sets target price on the company at HK$155. Credit Suisse sets Outperform rating on it; Nomura and Goldman Sachs, Buy rating. Shares closed at HK$123 yesterday. (Hong Kong Economic Times A13)

Yuzhou Properties (1628 HK) has successfully bid for 3 parcels of residential land in Tianjin for a total of 360 million yuan, with a gross floor area of over 320,000 square meters. Land price per floor area is about 1,000 yuan per sqm. It is estimated that the average price will reach 8,000 yuan per sqm upon construction. (SingTao Daily B4)

At Yinyan Tin Mine, in Xinyi, Guangdong, of Zijin Mining (2899 HK) subsidiary Xinyi Zijin Mining, Yinyan Tin Mine tailing dam collapsed on 21 Sep because of the mud and rock slides caused by torrential rainfall brought by typhoon no. 11 “Fanapi” and electricity supply, communication and transportation there are currently suspended. The company says the effect of this incident on the mine cannot be assessed at present. The mine is in trial production and the tailing pool is in an initial operation stage. (Hong Kong Economic Times A13)

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

Monday, September 20, 2010

Hong Kong Stock Market Wrap September 17th, 2010

Sri Lanka government has issued to a consortium formed by China Merchants Holdings (International) (144 HK) a non-binding letter of intent. The consortium shall fulfill various conditions to the satisfaction of the authority within 180 days. After that, it may develop the South Container Terminal at the Port of Colombo under the Colombo Port Expansion Project. (Hong Kong Economic Times A10)

Hi Sun Technology (China) (818 HK) has submitted application to spin off and list Pax Global Technology, engaging in EFT-POS terminal solutions business, on the main board of the HK Stock Exchange. (SingTao Daily B12)

Oriental Ginza (996 HK) will sell a flat in The Mayfair, No. 1 May Road, The Peak and properties in the PRC Oriental Kenzo Plaza and Jing Gang City for HK$1.2 billion. It is estimated that there will be a gain of about HK$19 million. (SingTao Daily B12)

Pine Technology (8013 HK) booked net profit of around US$4.05 million for the year ended the end of June this year, up 2.64 times over the previous year. Dividend of HK$0.01 per share was

Wah Nam International (159 HK) has entered into agreements with placing agents to place up to 178 million existing shares at HK$1.15 each, around 4.77 per cent of existing issued share capital, around 4.56 per cent of issued share capital as enlarged, to raise up to around HK$200 million, HK$180 million of which will be used to fund its mining business. (Hong Kong Economic Journal P5)

Wing Tai Properties (369 HK) sells 40 per cent interest in a joint venture company for US$79.48 million, around HK$620 million. The JV company is interested in land with site area of 1.275 million square meters in the Shenbei District and the Hunnan District in Shenyang for developing high quality residences. The group expects to realize a gain of HK$37.44 million from the disposal. (Hong Kong Economic Journal P6)

ZTE Corporation (763 HK) announces that The European Commission opened on 16 Sep an anti-subsidy investigation in respect of data card products imported from the PRC. As operating revenue generated from the sales of data card products in EU nations accounted for a relatively small percentage of the total operating revenue of the company, according to data in 2009 audited financial statements, the investigations have little impact over the overall operations of the company. Shares rose 2.8 per cent to HK$31.2 on 17 Sep. (Hong Kong Economic Times A10)

Asia Energy Logistics (351 HK) announced that the cargo vessel named “Haibao” launched its maiden voyage on September 18. “Haibao”, which is owned by the joint venture company under Asia Energy, transports coal for Asia Energy’s business partners. (SingTao Daily B15)

Bosideng International’s (3998 HK) menswesar Spring/Summer 2011 trade fair will end tomorrow. The garment firm is optimistic on the prospect of the menswear market, targeting order amount to grow by 25-30 per cent year-on-year. Goldman Sachs has raised its target price for Bosideng from HK$2.7 to HK$3.1, but downgrading the rating from Buy to Neutral. (Hong Kong Economic Times A16)

Celestial Asia Securities (1049 HK) has signed MOU with vendors for acquiring 51 per cent equity interest in a company engaged in mobile digital entertainment business in China. The consideration of 81.6 million yuan will be settled as to 50 per cent in cash and 50 per cent by issue of consideration shares. (SingTao Daily B17)

Chun Wo Development (711 HK) chairman Dominic Pang Yat-ting said that the costs of mainland development projects are relatively lower whereas Hong Kong land prices are surprisingly high. For the targeted acquisition projects, he frankly expressed “he has no regrets even no acquisition deal can be achieved”. (Hong Kong Economic Journal P10)

According to China’s real estate brand value study, Evergrande Real Estate’s (3333 HK) brand value amounted to 8.016 billion yuan, ranking first. The developer’s sales amount hit 30.5 billion yuan for the first eight months amid a downward trend. Its sales areas also ranked first in the mainland. (SingTao Daily B15)

Modern Media (72 HK) plans to place 10 million new shares to HM Fund. In addition, it also aims to place 7 million new shares for Value Partners Funds at a price of HK$1.30 per share. The net proceeds of around HK$21 million will be used as general working capital. (SingTao Daily B15)

Shui On Construction (983 HK) plans to sell property assets in Chengdu to Ping An Insurance for a consideration of 718 million yuan. Shui On will gain 161 million yuan from the transaction. (SingTao Daily B15)

Sundart International (2288 HK), mainly engaged in renovation project business, does not exclude collaborating with other shareholders of Kailong REI Holdings Limited in acquiring mainland projects, aiming to strive for higher returns. Sundart announced previously that it has formed a strategic alliance with Kailong REI. (Hong Kong Economic Journal P10)

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

Friday, September 17, 2010

Hong Kong Stock Market Wrap September 16th, 2010 (1688 HK) parent Alibaba Group says it has talked to Yahoo suggesting buying back the around 39 per cent interest held by Yahoo and Yahoo has rejected the suggestion. (Hong Kong Economic Times A14)

Anhui Tianda Oil Pipe (839 HK) has introduced French oil pipe manufacturer Vallourec as a strategic investor. The company will sell the enlarged shares by 19.45 per cent to Vallourec at a price of HK$3.96 each, involving a consideration of HK$776 million. (SingTao Daily B4)

BYD Company (1211 HK) will acquire 18 per cent equity interest in Zhabuye Lithium for 201 million yuan. As at 30 Apr, the appraised net assets of Zhabuye Lithium amounted to 431 million yuan. The company is in Shigatse, Tibet, principally engaged in developing lithium mine, boron mine and products of lithium and boron series. (Hong Kong Economic Journal P9)

Brilliance China (1114 HK) announced yesterday that BMW Brilliance Automotive Ltd. (BBA) and BMW will form and operate a joint venture BMW Automotive Finance (China) Co., Ltd., which has been approved by China Banking Regulatory Commission. The JV will be owned as to 42 per cent by BBA and as to 58 per cent by BMW with a registered capital of 500 million yuan, which is expected to start operations in the fourth quarter of 2010.

Cathay Pacific Airways (293 HK) has confirmed to order 30 A350-900 aircraft from Airbus for HK$60.84 billion, with an option to buy 30 more A350 aircraft. The new aircraft will begin delivery in 2016 and are scheduled to arrive over a three-year period. Share price of Cathay pacific Airways closed 1.7 per cent higher at HK$20.7 yesterday. (SingTao Daily B2)

Fantasia Holdings Group (1777 HK) aims to buy a parcel of land owned by a company in Chengdu. The gross floor area of the land is 16,564 square meters. (SingTao Daily B4)

Guoco Group (53 HK) is planning to sell the 30.14 per cent equity interest in Pepsi-cola Products Philippines. The consideration will be around HK$685 million. (SingTao Daily B4)

Huaneng Power International (902 HK) has received from controlling shareholder Huaneng Group an undertaking on relevant matters for further avoidance of business competition by Huaneng Group with it. Huaneng Group undertakes, for example, to treat it as the only platform for integrating the conventional energy business and to take about 5 years to improve profitability of the conventional energy business assets of Huaneng Group in Shandong and inject them into it when the terms become appropriate. (Hong Kong Economic Journal P10)

ICBC Asia (349 HK) said it is launching its first offshore 2 billion yuan certificates of deposit. These two-year certificates of deposit yield 2.25 per cent that will be distributed once for every six months. HSBC and Standard Chartered are underwriting the offering. The proceeds will be used as general working capital to support the development of yuan businesses of the bank. (SingTao Daily B4)

ICBC (1398 HK) announces that during 10–14 Sep it successfully issued 22 billion yuan subordinated bonds in the China national inter-bank bond market. (Hong Kong Economic Times A14)

Interchina Holdings (202 HK) plans to place HK$495 million convertible notes bearing interest rate of 5 per cent per annum for developing environmental protection and water treatment operation and exploring investment opportunities in the future. Initial Conversion Price is HK$0.9 per share. (Hong Kong Economic Journal P10)

L.K. Technology (558 HK) is expected to record a significant increase in profit for the six months ending 30 September 2010. This remarkable improvement is primarily attributable to a significant increase in sales of the company’s products in the mainland market as a result of market recovery. (SingTao Daily B4)

The board of directors of Rainbow Brothers (33 HK) has recommended distributing a special dividend of 5 HK cents per share. All transfers of shares are required to be lodged for registration not later than September 21, 2010. (SingTao Daily B4)

Silver Base Group (886 HK) CEO Chen Sing Hung, Johnny and CFO Chung Wai Man will resign with effect from 25 Sep. Shares dropped 9.8 per cent to HK$3.86 on the news yesterday. Executive director Wang Jindong will take Chung’s place as CFO while chairman Liang Guoxing will assume the duties of CFO for the time being. (Hong Kong Economic Times A14)

Yuexiu Property (123 HK) acquires a parcel of land in Zhongshan for 416 million yuan. Price of acquisition per sq. m. is 1,138 yuan. The land is on Bo-ai Road in Zhongshan City, with a site area of around 138,000 sq. m. and a gross floor area of around 366,000 sq. m., for residential and commercial use. (Hong Kong Economic Journal P13)

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

Thursday, September 16, 2010

Hong Kong Stock Market Wrap September 15th, 2010

BOC Life (2388 HK) under BOC Hong Kong says that it has been selling 3 types of yuan policies since 20 July and recorded over HK$1.7 billion of sales so far, among which the 5-yr-term policies are the most popular and almost sold out. (Hong Kong Economic Times A8)

Cheung Kong Infrastructure (1038 HK) which has acquired the UK electricity networks, is reportedly planning to sell bonds denominated in US dollars for part of its financing scheme. The company will launch roadshow to meet investors on Friday. JP Morgan is appointed as the underwriter. (SingTao Daily B3)

China Merchants China Direct Investments (133 HK) disclosed that from December 2009 up to 31 August 2010, the company has disposed of a total of 32.48 million A shares of China Merchants Bank (3968) and 5.6 million A shares of Industrial Bank. Total net proceeds arising from the disposals amounted to 597 million yuan. (SingTao Daily B3)

CLP (2 HK) plans to bid for large coal-fired plants in India, involving project investment amounting to US$3.4 billion (HK$26.45 billion) in total, foreign media reported. The power producer may consider selling shares to fund the project development, Ranjan Mishra, managing director of CLP India Pvt. said. CLP share price ended up 1 per cent at HK$60.55 yesterday. (SingTao Daily B3)

After the redemption of 75 million yuan worth of bonds days ago, Country Garden (2007 HK) is seeking to redeem another 90 million yuan worth of convertible bonds, bearing an interest rate of 2.5 per cent, also yuan-denominated and to be settled in US dollar. The maturity date of these bonds is 2013. (SingTao Daily B3)

While GOME (493 HK) chairman Chen Xiao and substantial shareholder Wong Kwong Yu are competing with each other, a mysterious Chinese buyer bought a large amount of GOME shares in the past one month, taking shareholding up from 100 million shares to 350 million shares. Shares closed at HK$2.34 yesterday. (Hong Kong Economic Times A2)

Henderson Land Development (12 HK) appoints the current GM of property development department Wong Ho Ming, Augustine as executive director. Director’s fee is HK$70,000 per annum and other remunerations amount to HK$533,000 a month. (Hong Kong Economic Journal P10)

HKR International (480 HK) has appointed Benjamin Cha Yiu-chung, son of Victor Cha Mou Zing, as executive director. Benjamin, aged 36, joined the company in 2002 and now is general manager and director of development of the South East Asia Business Unit of the company. (SingTao Daily B3)

Merrill Lynch says HSBC Holdings (5 HK) may double its dividends next year, maintaining Buy rating on the bank, raising target price by 1 per cent to HK$109. Morgan Stanley maintains “In Line with Market” rating on the bank, with target price at HK$90. (Hong Kong Economic Times A8)

Lippo (226 HK) announced that its subsidiary Lippo China Resources (0156) will sell the entire issued share capital of All Around, which is involved in the operation of a Chinese restaurant, for a consideration of HK$31 million. It is expected that Lippo China Resources will gain a profit of almost HK$16 million from the transaction. (SingTao Daily B3)

Maoye International (848 HK) has signed agreement to issue via JP Morgan HK$1.165 billion worth of 5-year term convertible bonds, with an interest of 3 per cent per annum. Conversion price is HK$4.212 per share, representing 20 per cent premium to its closing price on that day. (SingTao Daily B3)

Modern Beauty Salon (919 HK) announced that Lee Soo-ghee, husband of the chairman, and Kwong Chi-ching have resigned as executive directors due to changes in management responsibilities, but Lee Soo-ghee will remain as CEO. In addition, the company has appointed chief financial officer Leung Man Kit as executive director. (SingTao Daily B3)

Deutsche Bank raises rating and target price on Shui On Land (272 HK) from Hold to Buy and from HK$4.1 to HK$5.31 respectively. HSBC Securities expects its 2H contracted sales and capital spending to be 4.5 billion yuan and 6.6 billion yuan respectively, setting Overweight rating and HK$4.3 target price on the company. Shares rose 4.2 per cent to HK$3.9 yesterday. (Hong Kong Economic Journal P8)

Sun Hung Kai Properties (16 HK) will announce full-yr results next Monday. Thomson Reuters with reference to forecasts on the company from 22 analysts expects its profit attributable to shareholders to go up 52 per cent yoy to HK$15.758 billion for the year ended the end of June. JP Morgan sets Overweight rating on the company, with target price at HK$126. (Hong Kong Economic Journal P10)

Reuters reports that Trony Solar (2468 HK) plans to issue 380 million shares at a preliminary price range between HK$4 and HK$4.8 apiece. The report says it will kick off roadshow next Monday and list in early Oct, with JP Morgan as sponsor. (Hong Kong Economic Journal P6)

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

Wednesday, September 15, 2010

Hong Kong Stock Market Wrap September 14th, 2010

Celestial Asia Securities and CASH Financial Services Group (0510) jointly announce that CFSG has decided not to proceed with the negotiation in relation to the sale of financial services business and the possible transaction will not proceed. Share price of Celestial Asia closed down 0.21 per cent to HK$4.76, while CFSG ended 0.83 per cent lower at HK$1.2 yesterday. (SingTao Daily B3)

China Eastern Airlines (670 HK) plans to increase a capacity of around 8-10 per cent over the next few years. China’s aircraft industry is seeing a period of unprecedented expansion, with a growth more rapid than expected, executive director Luo Zhuping said when interviewed by foreign media. He expected demand of airline capacity would be over supply. (SingTao Daily B2)

China Life Insurance (2628 HK) booked an original premium income of around 227.7 billion yuan for the first 8 months ended 31 Aug, up 8.07 per cent over the same period last year. Goldman Sachs maintains Neutral rating on the insurer, lowering target price from HK$39 to HK$32.5. (Hong Kong Economic Journal P8)

China Mobile (941 HK) will continue to join force with Vodafone on 4G business, president Wang Jianzhou said during the meeting with Vodafone in Tianjin. Both companies are intending to cooperate in the areas such as develop new markets, technology and environmental development. (SingTao Daily B3)

China National Building Material (3323 HK) places 238.9 million new shares at HK$15.85-16.65 each via Morgan Stanley to raise up to HK$3.978 billion to repay loans and use as general working capital, among which 218.3 million shares are new shares. Shareholder NSSF sells almost 20.65 million existing shares. (Hong Kong Economic Journal P4)

China Resources Gas (1193 HK) places 230 million shares at HK$10.75 apiece to raise HK$2.473 billion so as to acquire more downstream city gas distribution businesses in the PRC. Trading of shares resumes today. (Hong Kong Economic Journal P4)

Sources say that China Starch (3838 HK) shareholder places 400 million existing shares at HK$0.73-0.75 each to raise up to HK$300 million. Shares closed at HK$0.82 yesterday. (Hong Kong Economic Journal P4)

Apple said yesterday that iPads (Wi-Fi version) will be put to the market in Beijing and Shanghai starting this Friday at a minimum price below 4000 yuan. iPhone agent in the mainland China Unicom (762 HK) said yesterday that it has not received any related information yet. It also made no comments as to the rumours that it starts selling iPhone4 today. (Hong Kong Economic Times A12)

The Mina (985 HK) Justa Project, which is located in Southern Peru and owned 70 per cent by CST Mining Group, has obtained approval from the Ministry of Energy and Mines of Peru for the Environmental Impact Assessment. The project will start operation next year, expecting to produce 110,000 tonnes of copper per annum. (SingTao Daily B3)

Hua Xia Healthcare (8143 HK) aims at selling the entire issued share capital of Large Forever. The consideration involved will be HK$6.7 million. (SingTao Daily B3)

Lenovo’s (992 HK) parent Legend Holding is planning to pour 18 billion yuan for construction of a coal chemical base located in Shangdong. It is said that Legend Holdings has signed agreement with the municipal government of Zaozhuang city, Shangdong, expecting annual sales income to reach over 10 billion yuan after operation of the phase 1 coal chemical industry chain starting in 2013. (SingTao Daily B3)

Former ATV shareholder Chan Wing Kee said yesterday that all his shares in ATV have been sold to Prosperity International Holdings (H.K.) (803 HK) chairman Wong Ben Koon at undisclosed price. He will resign his position as director in the short term. (Hong Kong Economic Times A9)

Shenguan Holdings (829 HK) has acquired the T-bonds in a total of over 89 million yuan from the Ministry of Finance of the PRC through subsidiary Wuzhou Shenguan. Maturity date of the non-transferable T-bonds is September 14, 2011 with an interest rate of 2.6 per cent per annum. (SingTao Daily B3)

The United Laboratories International (3933 HK) places 77 million shares at HK$15.22-15.54 per share to raise up to HK$1.197 billion. JP Morgan arranges for the placing. JP Morgan raised target price on the company by 18.4 per cent to HK$22.5 last week, setting Overweight rating on it. Chairman Choy Kam Lok increased holding of shares several times at prices between HK$13.654-14.2 from 24 Aug to 31 Aug. Shares closed at HK$16.2 yesterday. (Hong Kong Economic Journal P4)

Yuexiu Property (123 HK) has proposed to raise HK$3.447 billion to HK$3.463 billion by issuing offer shares at a price of HK$1.61 per share, in the proportion of 3 offer shares for every 10 shares. The proceeds raised from the offer will be used for future land bank acquisition. (SingTao Daily B3)

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

Tuesday, September 14, 2010

Hong Kong Stock Market Wrap September 13th, 2010

Air China (753 HK) carried 4.4446 million passengers in Aug, up 16 per cent over the same period last year. Passenger load factor was 84 per cent on average, up 0.9 percentage point over last month. For the first 8 months, it carried 30.8967 passengers, up 17.9 per cent yoy. (Hong Kong Economic Journal P10)

Cheung Kong Infrastructure (1038 HK), Hong Kong Electric (0006) and Hutchison Whampoa (0013) jointly announce that on September 10, 2010 (UK time) the vendors of the UK electricity distribution networks have accepted their acquisition offer. French utility Electricite de France SA expects the electricity network deal will be completed by November this year. (SingTao Daily B3)

Chiho-Tiande (976 HK) Investments has signed a joint venture agreement with independent third party ISA to establish a Hong Kong JV for the development of metal recycling and related businesses. The Hong Kong JV is expected to have a total issued capital of HK$35 million and will be subscribed by Chiho-Tiande Investments as to 55 per cent. (SingTao Daily B3)

China Lilang (1234 HK) says that sales order amount will have an increase of 26.5 per cent year-on-year in the Summer/Spring trade fair next year. In addition, the sales order amount last year rose 25 per cent year-on-year, reflecting a rising trend. Average sale prices of products also had a double-digit growth. (SingTao Daily B3)

China Resources Gas (1193 HK) will acquire city gas distribution businesses from substantial shareholder China Resources Holdings for HK$2 billion, businesses including natural gas pipelines, natural gas facilities repair and maintenance and bottled LPG distribution. (Hong Kong Economic Times A13)

China Strategic (235 HK) and Primus Financial were rejected for acquisition of Nan Shan Life Insurance. But Taiwan media, citing top-level sources, reported that Primus believes the rejection by Taiwan financial regulators is based on insufficient legal grounds. It is said that Primus refuses to give up on the Nan Shan unit and will bid again if AIG put the unit back on sale. Primus plans to lodge the appeal before October 1, the deadline for appeal. (SingTao Daily B3)

Contracted sales of Fantasia Holdings (1777 HK) in August amounted to 298 million yuan, dropping 26 per cent year-on-year. Contracted sales in the first eight months rose 8 per cent year-on year, amounting to 1.822 billion yuan in total. (SingTao Daily B3)

The proposal for acquisition by Li & Fung (494 HK) of Integrated Distribution Services (2387) by way of privatization was approved at Li & Fung’s SGM yesterday. Li & Fung said after the meeting that the company will be able to tap Asia consumption market through distributing products such as health care and cosmetic products via IDS. (Hong Kong Economic Times A13)

Road King Infrastructure (1098 HK) is planning to issue US$300 million (around HK$2.334 billion) 5-year notes, foreign media reports, citing market sources. The proceeds raised from the notes issue will be used for redeeming the existing notes that are to expire in 2011 and 2012 and for property business investment. (SingTao Daily B3)

Shui On Land (272 HK) has exercised the additional option in full for 5-year term convertible bonds, bringing the total issue size of the bond issue to increase from US$300 million to US$400 million (around 2.72 billion yuan). (SingTao Daily B3)

Starlight International (485 HK) clarifies that the “warrant issue price” should be “HK$0.01” and the “subscription price” should be “HK$0.33”, representing a “premium” of about 44.68 per cent of the average closing price for the last five trading days. Starlight will resume trading today. (SingTao Daily B3)

TCL Communication Technology (2618 HK) announces that Aug sale of mobile phones and related components rose 118 per cent yoy, up 4 per cent over last month. Sale of mobile phones and related components for the first 8 months rose 153 per cent yoy, among which sales in the overseas market jumped 193 per cent yoy. (Hong Kong Economic Times A13)

TCL Multimedia Technology (1070 HK) announced yesterday that LCD TV sales dropped 35.4 per cent and 4.6 per cent yoy in Aug and for the first 8 months respectively, mainly attributable to the decline in sales in N. America, Europe and the strategic OEM business. The sale of LED backlight LCD TVs accounts for 10.8 per cent of the sale of LCD TVs in Aug, up from the 9.7 per cent in July. (Hong Kong Economic Times A13)

BEA (23 HK) launches a new RMB insurance plan. The 6-yr-term plan includes a guaranteed annual return of 1.75 per cent. Premium payment period is 3 years. (Hong Kong Economic Journal P10)

VST Holdings (856 HK) has been notified by chairman and executive director Li Jialin that legal proceedings had been commenced against him for his trading in the company’s securities and omission of disclosure thereof allegedly contrary to the Securities and Futures Ordinance. Li says that he will defend for his innocence in the proceedings. (Hong Kong Economic Journal P10)

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

Monday, September 13, 2010

Hong Kong Stock Market Wrap September 10th, 2010

Pan Gong Sheng of AgBank (1288 HK) says the bank expects net profit to exceed 100 billion yuan next year. 1H net profit amounted to 45.84 billion yuan this year. H shares hit a high of HK$3.79 on 10 Sep. (Hong Kong Economic Journal P4)

Trading in the shares of BaWang (1338 HK) was suspended with effect from 10 Sep. The company says there were newspaper articles alleging that some of its products contain certain exaggerated wording in their labeling. It clarifies that the incident relates to the mis-description of labelling of 2 recently launched products only and that sales of these products only represent a very insignificant proportion of the overall sales, adding that it has no relation to the quality of its products. (Hong Kong Economic Times A10)

Huadian Power International (1071 HK) will establish a JV company with substantial shareholder Shandong International Trust to operate 2 x 1,000MW coal-fired generating units of Shandong Laizhou Project Phase I, which is expected to commence operation in 2012. Total investment of the JV company is 7.2 billion yuan and registered capital is 1.44 billion yuan. Huadian Power International’s interest in the JV company will be 75 per cent and it will contribute 1.08 billion yuan to the registered capital. (SingTao Daily B13)

Kaisa Group (1638 HK) announces that Aug contracted sales was 2.05 billion yuan and accumulated contracted sales was 6.32 billion yuan for the first eight months this year. It, however, clarifies that the amounts have included the 1.9 billion yuan in relation to the disposal of interest of China Agriculture Technology. (SingTao Daily B13)

Prosperity Investment (310 HK) has entered into termination agreements with a placing agent to terminate a convertible notes placing agreement and with Favor Hero to terminate a convertible notes subscription agreement. (SingTao Daily B13)

Sparkle Roll Group (970 HK) plans to sell JDH, which is engaged in comics development in HK and the PRC. Jade Sparkle, owned by Wong Chun Loong and Liu Qiang, has offered to pay HK$30 million for the company. The deal is yet to be confirmed. (SingTao Daily B13)

Yuexiu Property (123 HK) has acquired three parcels of land in Foshan approved for residential and commercial use for 1.35 billion yuan. They were acquired by way of a bundled auction and will be developed into a landmark city complex. Total gross floor area is 199,000 sq. m. and price of acquisition per sq. m. is 6,767 yuan. (SingTao Daily B13)

Recently, there are concerns over the potential change of Yahoo’s stake in Alibaba’s (1688 HK) parent company. But Yahoo reiterates that it will maintain the 39 per cent shareholding in Alibaba Group, and that mainland firms being Yahoo HK’s advertising clients will not affect this investment. (Hong Kong Economic Times A13)

Century Sunshine Group (509 HK) has confirmed to acquire the entire equity interest and shareholder’s loan of Gold Strategy for a total consideration of HK$367 million. HK$342 million of which will be satisfied in cash and the remaining HK$25 million will be paid by way of issuance of consideration shares. (SingTao Daily B16)

China Huiyuan (1886 HK) acknowledges that there is a syndicated bank loan of US$250 million that breaches certain financial covenants under certain loan facility agreements. It has initiated negotiations with the lending banks to obtain waivers from the breach. The company has also proposed to pay an aggregate amount equal to 0.5 per cent of the principal amount in consideration for the lending banks to grant the waiver. (SingTao Daily B16)

HKR International has set up a joint-venture company with Katevongkote (Thailand merchant) and CVC for the acquisition of a piece of land in Thailand for HK$600 million, of which HKR’s financial commitment totaled HK$325 million. The Hong Kong developer has subscribed for 49 per cent of the issued share capital of the JV company for HK$6.17 million. (Hong Kong Economic Journal P6)

Effort Wonder, a wholly owned subsidiary of Media China (419 HK), has signed an acquisition agreement with Winshine Group and Tian after trading hours on September 10. Under the acquisition agreement, Effort Wonder will purchase shares and shareholder’s loan from Winshine Group for a consideration of HK$280 million that is payable on completion. (Hong Kong Economic Journal P6)

Ruinian International (2010 HK) announced that chaiman and CEO Wang, Fucai has exercised the option agreement, part of its private loan. Wang is required to reduce shareholding of 8.4 million shares at 1 HK cent each, taking its stake in the company to 37.3 per cent. (Hong Kong Economic Times A13)

Sun Hung Kai Properties (16 HK will announce its annual results next Monday. Securities sector expects that the developer will record a 6.6 per cent to over 12 per cent growth in basic earnings for the year ended June 30, amounting to no less than HK$13.235 billion. (SingTao Daily B16)

Rusal Plc’s indirect wholly owned subsidiary RUSAL TH (486 HK) has signed two agreements with Energoprom Management on September 10. According to the signed graphitized carbon products purchase agreement, Energoprom Management agreed to sell up to 2,624 tonnes of graphitized carbon products to RUSAL TH for a term from 10 September to 31 December this year. (Hong Kong Economic Journal P6)

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

Friday, September 10, 2010

Hong Kong Stock Market Wrap September 9th, 2010

AgBank (1288 HK) shares rose 3.6 per cent to HK$3.74 yesterday, up almost 17 per cent over its offer price. Credit Suisse sets Outperform rating on the bank for the first time, setting target price on its H shares at HK$4.5, 20 per cent higher than the current price. (Hong Kong Economic Journal P8)

Birmingham International (2309 HK) major shareholder and executive director Yeung Ka Sing Carson is sued by Heritage International (0412) executive director Ong Peter in relation to Ong’s introducing Yeung to acquire SMI Publishing (8010) shares. Ong is seeking HK$20 million. (Hong Kong Economic Times A10)

Chevalier Pacific (508 HK) says it is planning a placing of shares but the placing may not proceed. Shares went down over 5 per cent on the news yesterday. (Hong Kong Economic Journal P4)

Chigo Holding (449 HK) proposes to launch an open offer of shares at HK$1 each to raise HK$255 million on the basis of one offer share for every two existing shares in order to enhance production facilities and distribution network and increase general working capital. (Hong Kong Economic Times A10)

China Life Insurance (2628 HK) chairman Yang Chao says one of the company targets is to build a big banking business via acquisitions. He does not mention a concrete acquisition target or timetable but says that he also plans to develop securities and fund management businesses. (Hong Kong Economic Journal P4)

It is said China High Speed Transmission Equipment (658 HK) has placed 187 million shares, which includes 130 million top-up placing shares and 57 million existing placing shares, at a price between HK$16.65 and HK$17.65 per share via Goldman Sachs. The price per placing share represents 4.59-10 per cent discount to its closing price of HK$18.5 yesterday. (SingTao Daily B3)

The total sales volume of Geely Automobile (175 HK) in August was 25,303 units of vehicles, an increase of 10.4 per cent over the same period last year and up around 16.7 per cent from July. The total sales volume in the first eight months amounted to 242,700 units, up 31 per cent from the same period a year ago, achieving 60.7 per cent of the full year sales volume target. (SingTao Daily B4)

Haier Electronics (1169 HK) aims at developing integrated channel service business, focusing on tier 3 and tier 4 cities in the mainland. The electronics group is planning to construct 91 logistics centers throughout China, of which 11 will be operated by Haier and the remainder will be franchised. (SingTao Daily B4)

AIA has signed cooperation agreement with ICBC (1398 HK) in Beijing. According to the agreement, AIA will build a strategic partnership with ICBC via branches in China to work together in areas such as investment banking and cash management. (Hong Kong Economic Journal P9)

Kaisa Group (1638 HK) recorded sales revenue of around 2.446 billion yuan for the month of August, up 6.34 per cent over the same period last year. Sales areas were around 152,900 square meters. (SingTao Daily B4)

Sunevision (8008 HK) net profit surges 97 per cent to HK$360 million for the year ended June 30, though revenue recorded a slight increase of 4 per cent. Earnings per share amounted to 17.73 HK cents. The company recommended a final dividend of 8 HK cents per share and declared one bonus share for every existing share. (SingTao Daily B4)

Sunlight Real Estate’s (435 HK) distributable income went down almost 31 per cent to HK$186.5 million for the year ended June 30, 2010. The distribution per unit for the year was 14.39 HK cents, declining over 41 per cent from last year. Final distribution per unit slid nearly 51 per cent to 7.51 HK cents. (SingTao Daily B4)

Trading in the shares of The Hong Kong Parkview (207 HK) was suspended yesterday. It is finalising the terms of a possible very substantial acquisition and very substantial disposal. They may constitute connected transactions for the company. (Hong Kong Economic Journal P9)

The Wharf (4 HK) which has just won the bid for a residential land in Pudong New District in Shanghai, has substantially raised its land bank target in the mainland by 50 per cent. The Hong Kong developer expects its mainland land bank to increase to 150 million sq. ft. from 100 million sq. ft. over next two to three years. (SingTao Daily B3)

Yue Yuan (551 HK) booked a net consolidated operating revenue of about US$528 million (around HK$4.12 billion) for August, 2010. Net consolidated accumulative operating revenue for the first eight months was around US$3.943 billion (about HK$30.76 billion).(SingTao Daily B4)

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

Thursday, September 9, 2010

Hong Kong Stock Market Wrap September 8th, 2010

China Mobile (941 HK) shares tumbled 3.78 percent yesterday, after Vodafone sold its entire stake (640 million shares) in the mainland's largest mobile carrier. Vodafone disposed the shares at a price of HK$79.2 each, reaping a total of HK$50.9 billion. (SingTao Daily B2)

China Overseas Land & Investment (688 HK) recorded HK$38.06 billion of sales in the first 8 months this year, with sales area of 3.028 million sqm, up 12 per cent and down 16.2 per cent yoy respectively. (Hong Kong Economic Times A9)

China Southern Airlines Company (1055 HK) received a notice from China Securities Regulatory Commission yesterday, approving it to issue around 312.5 million H shares to Nan Lung Holding. (Hong Kong Economic Times A10)

China Grand Forestry (910 HK) intends to place 1 billion shares at a price of HK$0.21 per share. The net proceeds from the placing will amount to around HK$204.5 million, which will be used for future business investment. (SingTao Daily B4)

City Telecom’s (1137 HK) broadband subscriptions growth and the earnings before interest, tax, depreciation and amortization (EBITDA) were largely in line with its positive profit alert announcement. The telecom firm says it is aiming at getting broadband subscriptions growth from 526,000 subscriptions as of 31 August 2010 to exceed 600,000 subscriptions by 31 August 2011. (SingTao Daily B4)

Executive director of CST Mining (985 HK) Damon Barber has increased shareholding by about 50 million shares. Barber was also offered 100 million share options, making his stake in the mining group increasing to 1.69 per cent. (SingTao Daily B4)

Evergrande Real Estate Group (3333 HK) booked sales of 30.5 billion yuan for the first 8 months this year, jumping 102.9 per cent yoy. Sales area amounted to 4.902 million sqm. Average selling price reached 6221 yuan per sqm. (Hong Kong Economic Times A9)

Haitian International Holdings (1882 HK) has been informed by Sky Treasure, held by chairman Zhang Jing Zhang and a number of directors, placed 59.85 million shares, about 3.75 per cent of the total issued share capital, at HK$5.78 apiece for HK$346 million yesterday. Upon completion, the latter will hold 64.64 per cent of the total issued share capital. (Hong Kong Economic Times A10)

(0005) HSBC HOLDINGS PLC GEOGHEGAN EXPECTED TO BE NEW CHAIRMAN Group chief executive Michael Geoghegan appears to have the upper hand over long-term favorite and former Goldman Sachs president John Thornton, foreign media reports. It is said existing chairman Stephen Green is expected to stay until next spring at least. (SingTao Daily B4)

Yam Chi Kwong Joseph has been appointed by Johnson Electric (179 HK) as an independent non-executive director for a term of two years with effect from 30 Sep. Johnson Electric shares rose 3.3 per cent to close at HK$3.75. (Hong Kong Economic Times A9)

Kong Sun Holdings (295 HK) plans to issue not less than 239.65 million offer shares at HK$0.25 each on the basis of one offer share for every two shares. The company intends to utilize the net proceeds from the open offer for the general working capital and future business development. (SingTao Daily B4)

North Asia Resources Holdings (61 HK) has issued convertible bonds in the aggregate principal amount of US$33 million in two tranches. Proceeds from the issue around HK$243 million will be used for general working capital or acquisition of iron concession in Mongolia. (Hong Kong Economic Journal P6)

Shui On Land (272 HK) plans to issue 5-yr-term RMB denominated USD settled 4.5 per cent convertible bonds to raise up to US$400 million and major shareholder Lo Hong Sui Vincent and Standard Chartered will conduct an equity swap. (Hong Kong Economic Times A9)

The Wharf (4 HK) has successfully bid for two parcels of residential land situated in Pudong New District, Shanghai for 4.828 billion yuan within one week. Price per square meter of floor area amounts to 35,490 yuan, hitting a new record high in price of floor area of Shanghai residential land parcels. (SingTao Daily B2)

Veeko International (1173 HK) has placed up to 150 million shares at a price of HK$0.268 per share to Value Partners, Alliance Asia Opportunity Fund LP, Insight China Focus Fund and Ajia Partners Asset management. Share price of Veeko closed 34.37 per cent higher to HK$0.43 yesterday. (SingTao Daily B4)

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

Wednesday, September 8, 2010

Hong Kong Stock Market Wrap September 7th, 2010

361 Degrees International (1361 HK) announces that 2011 contracted sales for Spring and Summer rose 20 per cent yoy. Also, “361 Towns” has increased to 5 stores. (Hong Kong Economic Times A13)

JP Morgan bought 46.972 million shares in AgBank (1288 HK) at an average price of HK$3.54 on 2 Sep, taking its shareholding in the bank to 5.12 per cent. (Hong Kong Economic Times A12)

BOC (3988 HK) issues 1 billion to 5 billion yuan bonds starting today. The 2-yr bond bears an annual interest rate of 2.65 per cent and the 3-yr bond, 2.9 per cent. The minimum order set at 10000 yuan. To purchase the bonds, investors can go to banks including DBS, Fubon, Standard Chartered and Wing Lung. (Hong Kong Economic Times A2)

Vodafone launched the sale of its stake in China Mobile (941 HK) last night, attempting the market with a rate up to HK$82 per share. Market response is more positively to the price between HK$76.5 and HK$79 per share. If all the 3.3 per cent stake, equivalent to 642 million shares, held by Vodafone is sold at the highest rate of HK$79 per share, it is expected Vodafone will raise over HK$507 million. (SingTao Daily B2)

China Railway Group (390 HK) says its subsidiary China Railway Erju has successfully bid for several construction projects including the new Tianjin-Baoding railway construction project. The bidding price is more than 2.98 billion yuan. (SingTao Daily B4)

Far East Holdings International (36 HK) announces that David Chiu resigned as a non-executive director, with effect from 7 Sep, as Chiu would like to concentrate more efforts in the recent business expansion in Far East Consortium International (0035). (Hong Kong Economic Journal P4)

Hopson Development (754 HK) has successfully bid for a residential land situated in the Songjiang New District, Shanghai at a price of 1.246 billion yuan. Land price per floor area is around 16,500 yuan per square meter, hitting a record of land price in residential land at Songjiang District. (SingTao Daily B4)

HSBC (5 HK) Holdings announces that it has agreed that Stephen Green will step down as chairman before the end of the year so as to accept the invitation of the UK’s Prime Minister David Cameron to become Minister of State for Trade and Investment in Jan 2011. (Hong Kong Economic Times A4)

ICBC (1398 HK) announced that the issue of subordinated bonds in an amount of not exceeding 22 billion yuan among banks throughout China was approved by The People’s Bank of China. The current issue of subordinated bonds is used to substitute for the redeemed portion of the subordinated bonds issued in 2005. (SingTao Daily B4)

Lippo China Resources (156 HK) plans to subscribe 42.4 million new Asia Now shares at a subscription price of around HK$95.4 million. Upon completion of the subscription, LCR is expected to hold nearly 50 per cent interest in Asia Now, a company engaged in the business of exploration of mineral deposits in the mainland, (SingTao Daily B4)

Magic Holdings (1633 HK) spun off from Hua Han Bio-Pharmaceutical (0587) will start IPO on Friday. According to the sales documents, offer price ranges between HK$2.4 and HK$3.3. The board lot size is 1000 shares. The shares will list on 24 Sep. The company plans to issue 200 million new shares to raise up to HK$660 million. (Hong Kong Economic Journal P6)

Shanghai Forte Land (2337 HK) has planned to issue domestic shares to Fosun International (0656). The special resolution was not approved at the EGM and class meeting of holders of H Shares yesterday. The payment of around HK$260 million already made to Forte Land by Fosun International will be refunded accordingly. (Hong Kong Economic Journal P8)

Smartone (315 HK) posted a 5.9 times growth year-on-year in net profit to HK$294 billion for the year ended June 30, 2010. Earnings per share was 55.3 HK cents. An interim dividend of 35 HK cents per share was recommended. Handset subsidy amortization in the period rose by 10% to HK$280 million. (SingTao Daily B3)

Swire Pacific (19 HK) is reorganizing its non-core-businesses, planning to sell 44.57 per cent of the Crown Can interests for a total consideration of US$150 million (equivalent to about HK$1.17 billion). The net book value of the Crown Can interests is HK$372 million. Swire Pacific will realize a profit on disposal of around HK$797 million. (SingTao Daily B3)

Yeebo (259 HK) announced that China Securities Regulatory Commission has approved the application of Nantong Jianghai to proceed with the IPO in Shenzhen. Yeebo is holding 50 per cent stake in Nantong Jianghai. Trading in the shares of Yeebo on the local bourse will be resumed today. (SingTao Daily B4)

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

Tuesday, September 7, 2010

Hong Kong Stock Market Wrap September 6th, 2010

Hong Kong Monetary Authority (3988 HK) introduced a pilot scheme for simplified sales procedure of yuan bonds yesterday. Those yuan bond issuers such as Bank of China, which sets to launch yuan bonds on Wednesday, can benefit from the scheme. But it is required that the yuan bond issuers are not issuing yuan bonds for the first time in Hong Kong, the bonds to be issued are of non-national debt nature, and the bonds consist of no leverages and derivatives as well. (SingTao Daily B2)

BYD Company’s (1211 HK) auto sales in the mainland went down almost 6 per cent mom in Aug, down 19 per cent yoy. Auto sales exceeded 353,000 units in the first 8 months this year. (Hong Kong Economic Journal P6)

China Properties Investment (736 HK) aims to place up to 360 million new Shares at a price of HK$0.056 per share, representing 16.5 per cent of the Company’s entire issued share capital as enlarged. The net proceeds of about HK$19 million will be used for general operating capital. (SingTao Daily B2)

China Strategic’s (235 HK) share price was expectedly to plunge up to 40 per cent after trading resumed yesterday. Market value evaporated almost HK$780 million in a half day. China Strategic announced yesterday it has received formal notice from the Ministry of Economic Affairs of Taiwan that the application for the acquisition of Nan Shan Life Insurance was rejected. (SingTao Daily B1)

Coolpoint Energy (8032 HK) has granted share options to certain individuals to subscribe for a total of 108 million shares. The exercise price of the granted options is HK$0.83 per share, same as its closing price yesterday. (SingTao Daily B2)

Evergrande Real Estate (3333 HK), whose sales were robust in the first half, has been recommended by several leading brokerage. Goldman Sachs has raised its core profit per share in 2011 an d 2012 by 21 per cent and 33 per cent respectively, with a target price upgraded to HK$4 from HK$3.47. Share price of Evergrande ended 6 percent higher to HK$2.84 yesterday. (SingTao Daily B2)

Trading in shares of Far East Holdings International (36 HK) was suspended last Friday. The company issued an announcement yesterday, stating that it was informed last Friday that one director and 2 employees have been charged by the Commercial Crime Bureau in respect of alleged offences including section 157H (2)(a) of the Companies Ordinance. (Hong Kong Economic Times A10)

Credit Suisse expects 2011 net profit of Hongkong Electric Holdings (6 HK) before buying UK networks to be HK$7.32 billion and after buying UK networks to be HK$8.17 billion, setting Neutral rating and HK$48.8 target price on the company. Morgan Stanley expects its 2011 net profit before buying UK networks to be HK$6.89 billion and after buying UK networks to be HK$8.14 billion, setting HK$47.9 target price on the company. (Hong Kong Economic Journal P6)

The State-owned Assets Supervision and Administration Commission has approved Huaneng Power International’s (902 HK) revised proposal regarding the new issue of shares. The company will convene a shareholders’ meeting on 10 Sep for approving the revised proposal. It plans to sell up to 500 million H shares at HK$4.73 apiece. (Hong Kong Economic Journal P6)

Longrun Tea Group (2898 HK) is planning to acquire “Tea Story” trendy teahouses in the mainland for 4.5 million yuan. Major products served in “Tea Story” trendy teahouses include bubble tea, cocoa drinks, fruity drinks, shakes and Taiwanese snacks and light refreshments. There are over 400 “Tea Story” trendy teahouses currently, which are mainly located in Hunan, Yunnan, Guangdong and Zhejiang Provinces. (SingTao Daily B2)

Luoyang Glass (1108 HK) says China Luoyang Float Glass, its controlling shareholder, has sold 20 million shares of the company, representing 4 per cent of the total share capital. CLFG’s shareholding in the company reduced to 31.8 per cent after completion of the transaction. (SingTao Daily B2)

Shanghai Forte Land’s (2337 HK) contractual sales area and sales amount for August were around 167, 200 square metres and 1.427 billion yuan respectively, up 2.34 times yoy and up 1.92 times yoy respectively. (Hong Kong Economic Journal P6)

The Hong Kong Parkview Group (207 HK) expects to book a profit of HK$24.5 million from the liquidation of subsidiary Qiao-Yi. The application for liquidation of Qiao-Yi was approved at the end of August. (SingTao Daily B2)

Yanzhou Coal Mining (1171 HK) plans to acquire 51 per cent equity interest in Haosheng Coal Mining for a total of 6.649 billion yuan. The company plans to acquire the 23.08 per cent and 12.41 per cent equity interests held by Jinchengtai and Jiutai Technology in it at 3.009 billion yuan and 1.618 billion yuan respectively and to bid for the 15.51 per cent equity interest held by Shanghai Huayi in Haosheng Coal Mining. (Hong Kong Economic Times A11)

Zijin Mining (2899 HK) announced in May it planned to acquire 2 projects in Congo but the acquisition agreement expired on 31 Aug and the conditions precedent had not been fully satisfied. The company has decided not to extend the agreement. (Hong Kong Economic Times A11)

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

Monday, September 6, 2010

Hong Kong Stock Market Wrap September 3rd, 2010

China Natural Investment (8250 HK) expects the financial year ended 30 June to record a loss mostly due to the absence of one-off gain on early redemption of convertible bonds during the period. (SingTao Daily B14)

JP Morgan lowers both rating and target price on Esprit Holdings (330 HK) to Neutral from Overweight and to HK$47 from HK$66 respectively. HSBC lowers target price on the company to HK$52 from HK$58. Shares dipped 5.36 per cent to HK$40.6 last Friday. (Hong Kong Economic Times A9)

Luoyang Glass (1108 HK) announces that it has received a notice from controlling shareholder China Luoyang Float Glass (Group), stating that it has agreed with China National Building Material Group to discharge the pledge of 20 million shares, around 4 per cent of the total issued share capital, from the 179 million domestic shares pledged in 2008. (SingTao Daily B14)

Pru (2378 HK) announces that its compliance adviser Evolution Watterson Securities has informed it that it is no longer qualified under the listing rules of the Stock Exchange to act as its compliance adviser and it has accepted its resignation with effect from 3 Sep. (SingTao Daily B14)

Renhe Commercial Holdings (1387 HK) issues US$300 million 13 per cent senior notes due 2016 for around US$290 million in order to finance existing projects, to acquire and develop new projects and for working capital requirements. The notes have been rated “BB (Stable)” by S&P’s and “Ba2 (Negative)” by Moody’s. (Hong Kong Economic Journal P6)

Wing Hing International (621 HK) announces that with effect from 1 Sep Leung Pui Kwan resigned as executive director, chairman and authorised representative, executive director and CEO Li Hok Yin was appointed as chairman and executive director Cheung Pak Sum as authorized representative. (SingTao Daily B14)

Z-Obee Holdings (948 HK) issues an announcement in relation to the issue of Taiwan depository receipts on the Taiwan Stock Exchange, stating that SGX-ST has given in-principle approval for the issue of 40 million new shares. (SingTao Daily B14)

New Zealand suffered a powerful 7.1-magnitude earthquake on September 4. Cheung Kong Infrastructure (1038 HK) responded when asked about the incident that its business in New Zealand was not affected by the earthquake and the operation is normal as usual. (Hong Kong Economic Times A10)

China BlueChemical (3983 HK) says that the development strategy of chemical fertilizer in the future is to acquire upstream resources. It also expects the prices of chemical fertilizer to have a slight increase in the second half. (Hong Kong Economic Times A10)

Huaneng Power International (902 HK) is reported it is intending to acquire the US-based overseas power firm InterGen. Once successful, it will be Huaneng’s biggest overseas acquisition deal. InterGen is currently worth US$2.5 billion, but the buyer is required to repay a debt of US$4.4 billion at the same time. (Hong Kong Economic Journal P8)

Info Communication (8082 HK) has acquired 45 per cent stake in Suzhou Celebrities Cemetery Industrial Co., Ltd. at a consideration of HK$107.65 million. Suzhou Celebrities owns a cemetery in Xishan Town, Wuyuan City, Jiangsu Province, occupying a total area of 99.2 Mu, equivalent to approximately 66,140 square meters. The consideration will be satisfied in cash and convertible bonds. (SingTao Daily B15)

New Times Energy (166 HK) is managed by Stewart, Cheng Kam-chiu, nephew of local billionaire Cheng Yu-tung. The energy firm is worth HK$1.7 billion currently. HKEx data show that Chow Tai Fook, owned by Cheng Yu-tung, is the single controlling shareholder that holds 990 million shares or around 12.3 per cent interest in New Times Energy, worth around HK$200 million currently. (Hong Kong Economic Times A11)

Although the revenue and profit of Peak Sport Products (1968 HK) in its interim results this year could not surpass several leading firms in the sector, the profit margin was maintained at a nearly 30 per cent growth. The firm expects to have a stable increase of 15 per cent in the next four to five years. (SingTao Daily B15)

Shougang Concord (521 HK) is seeking to reorganize its digital television business in Guangdong Province. The company will consult Southern Yinshi about the sale of its stake in Southern Yinshi and in more than 16 existing project companies. (Hong Kong Economic Times A11)

Zhojin Mining (1818 HK) plans to construct a gold production plant with a processing capacity of 2,000 tonnes per day for about 500 million yuan within next three years. The gold mining firm has partnered with the Government of Qinghe County, Xingjiang to construct the plant located in Qinghe County. (SingTao Daily B15)

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

Friday, September 3, 2010

Hong Kong Stock Market Wrap September 2nd, 2010

IPO: It is said that AIA has filed an application with the local stock exchange seeking approval to list. AIA is expected to list by mid October if the process runs smoothly. The insurer plans to raise as much as US$20 billion (around HK$156 billion) through the listing, sources said. (SingTao Daily B2)

China Precious Metal Resources (1194 HK) has signed a letter of intent regarding acquisition of a mineral resource business. According to the letter of intent, the buyer shall pay an earnest money in the amount of HK$200 million, which shall be treated as part of the consideration if the agreement is confirmed between both parties, or otherwise be refunded to the buyer without interest. (SingTao Daily B4)

CIL Holdings (479 HK) recorded loss attributable to shareholders of HK$274,000. Loss per share amounted to 0.004 HK cent. No interim dividend was declared. (SingTao Daily B4)

CITIC 1616’s (1883 HK) parent injects telecommunication business into the company. CITIC 1616 will change its company name to “CITIC TELECOM INTERNATIONAL HOLDINGS LIMITED” and will acquire from CITIC Group 49 per cent equity interest in China Enterprise Communications for HK$258 million. (Hong Kong Economic Journal P6)

Esprit (330 HK) posted a 11 per cent drop in profit to shareholders to HK$4.226 billion for the year ended June 30. Turnover fell 2.2 percent from the previous fiscal year to HK$33.734 billion. Earnings per share was HK$3.35 and a final dividend of HK$0.67 cents per share was declared. Esprit shares fell 3 percent to HK$42.9 after the announcement yesterday. (SingTao Daily B3)

Far East Consortium (35 HK) announced yesterday that it is planning to spin off Cosmo Hotel listed on the main board of The Stock Exchange of Hong Kong. It is expected the company would raise HK$1.062 billion at the least. (SingTao Daily B3)

Li Ka-shing (13 HK) increased holding of shares in Hutchison Whampoa by 700,000 shares on Monday and Tuesday, involving HK$40.37 million. (Hong Kong Economic Journal P6)

Man Wah (1999 HK) has signed agreement with Bombardier Sifang (Qingdao) Transportation Ltd. The former agreed to supply furniture including sofa beds and sofas for the latter’s CRH high-speed trains, along with the related after-sale services. Total consideration involved is about 26.4 million yuan. (SingTao Daily B4)

Newbridge sold the remainder of its stake in Ping An Insurance (2318 HK) for up to HK$9.082 billion, immediately after the insurance giant resumed trading yesterday. Newbridge placed 139 million H shares at between HK$64.68 and HK$65.3 each, a discount of 1.2 to 2.2 per cent to Ping An's closing price yesterday. (SingTao Daily B2)

Sino Hotels (Holdings) (1221 HK) saw net profit climb 69.5 per cent to HK$131 million for the year ended 30th June. Earnings per share amounted to15.08 HK cents. Turnover dipped 1.6 per cent to HK$214 million. The company recommends a final dividend of 3.4 HK cents per share. (Hong Kong Economic Journal P8)

Sino Land Company (83 HK) posted net profit of HK$6.094 billion for the year ended 30th June, surging 63.3 per cent yoy. Turnover dropped 20.6 per cent to HK$7.698 billion. A final dividend of 30 HK cents per share was recommended. (Hong Kong Economic Times A11)

Taifook Securities Group (665 HK) acquires Hai Tong asset management business from Hai Tong (HK) for HK$20.11 million and acquires via Taifook Finance under it the entire issued share capital of Hai Tong Capital for HK$10.02 million. (Hong Kong Economic Times A11)

Gross profit margin of Tao Heung (573 HK) went down 0.2 to 15.4 per cent year-on-year, mainly due to a rise of 8 per cent in food cost during the period. It is expected that the gross profit margin to be improved through enhancing the production efficiency. It also expects net profit margin to grow 8 per cent in the second half. (SingTao Daily B4)

Tsim Sha Tsui Properties (247 HK) recorded net profit of HK$3.287 billion for the year ended 30th June, jumping 80.7 per cent yoy. Turnover went down 20.5 per cent to HK$7.777 billion. Earnings per share was 223.01 HK cents. A final dividend of 30 HK cents per share was recommended. (Hong Kong Economic Journal P8)

Xingda International (1899 HK) placed up to around 175.3 million shares at HK$5.5 apiece via Citigroup for around HK$760 million yesterday in order to enhance production facilities, finance its development of new products and general working capital. (Hong Kong Economic Journal P6)

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

Thursday, September 2, 2010

Hong Kong Stock Market Wrap September 1st, 2010

AgBank (1288 HK) announces that its wholly owned Agricultural Bank of China Financial Leasing Co., Ltd. was approved to commence its operation, with registered capital of 2 billion yuan. It was approved to carry out businesses including financial leasing business and interbank lending. (Hong Kong Economic Journal P9)

C C Land Holdings (1224 HK) posted contracted sales of HK$3.1 billion as of the end of the third week of August. The figure accounted for 90 per cent of its sales target of HK$3.4 billion. (Hong Kong Economic Times A9)

China Communications Construction’s (1800 HK) contracts signed in the first half ended June 30 amounted to 188.27 billion yuan, rising over 21 per cent year-on-year. CCC is currently holding contracts totaled 439.23 billion yuan, growing 22 per cent year-on-year. (SingTao Daily B4)

New contracts of China Railway (390 HK) in July and August reached 100 billion yuan. The construction firm says new contracts signed in the first half amounted to above 370 billion yuan, rising 45 per cent year-on-year. Of which overseas contracts were around 40 billion yuan, accounting for about 10 per cent of the overall newly signed contracts. (SingTao Daily B4)

China Strategic (235 HK) and Primus’ deal to acquire Nan Shan Life has been rejected by the Taiwan authority. Ma Si Hang and Or Ching Fai Raymond said in a conference yesterday that no formal notice has been received yet but the company will talk to AIG and Primus in the next few days to discuss whether to file an appeal.
(Hong Kong Economic Times A9)

Embry Holdings (1388 HK) saw net profit climb 30.6 per cent to HK$80.75 million for the six months ended June 30. An interim dividend of 3 HK cents per share was declared, unchanged from the previous year. Same-store sales in the first half generated a high single-digit growth. (SingTao Daily B4)

Guangzhou R&F Properties’ (2777 HK) contracted sales amounted to around 18.2 billion yuan as of the end of August, up 11 per cent over the same period last year, around 60 per cent of the full-year target. Total sales area reached 1.48 million meters, down 12 per cent over the same period last year. (Hong Kong Economic Journal P10)

HSBC (5 HK) says it has started providing mortgage services in Russia since yesterday. The bank said in a statement that in the coming 10 years demand for mortgage in Russia may grow 10 times. (Hong Kong Economic Journal P9)

Mainland Purchase Managers Index (PMI) bounced back in August after slowing for three straight months, leading to a general rebound in the Asian stock markets yesterday. King Fook (280 HK) was one of the four retail stocks amid the top ten having largest turnover. Its share price ended 21.36 per cent higher to HK$1.25 yesterday. (SingTao Daily B2)

KWG Property's (1813 HK) contracted sales reached 8.2 billion yuan by the end of last month, hitting about 80 percent of its full-year presale target of 10 billion yuan, with a better-than-expected average price of 1,1600 yuan per square meter. Chairman Kong Jianmin expects home prices in the second half to remain stable and the average price can be maintained at the current level. (SingTao Daily B4)

Mainland largest glauber salt producer Lumena Resources (67 HK) posted a 40 per cent growth in net profit to 357 million yuan in the first half. An interim dividend of 5.2 HK cents per share was distributed for the first time. (SingTao Daily B4)

Natural Dairy (NZ) (462 HK) said it has acquired quality dairy cow farm in New Zealand and has completed 20 per cent of the first substantial transaction, with remaining 80 per cent pending New Zealand OIO’s approval. (SingTao Daily B4)

Ping An Insurance (2318 HK) and Shenzhen Development Bank announces a plan to transfer Ping An Insurance’s 90.75 per cent interest in Ping An Bank to Shenzhen Development Bank. The insurer plans to buy 1.639 billion shares to be issued by Shenzhen Development Bank at 17.75 yuan apiece. (Hong Kong Economic Times A8)

Powerlong Real Estate plans (1238 HK) to issue senior notes and will begin a series of meetings with institutional investors, with HSBC and Royal Bank of Scotland as joint lead managers and joint bookrunners. (Hong Kong Economic Journal P10)

Sino Land (83 HK) will announce its full-year results ended June 30 today. It is expected that its basic profit will be between HK$3.089 billion and HK$3.541 billion, dipping 1.7-14.2 per cent year-on-year, whereas profit in the second half is set to see the upside trend again. (SingTao Daily B4)

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

Wednesday, September 1, 2010

Hong Kong Stock Market Wrap August 31st, 2010

Beijing Enterprises (392 HK) recorded a net profit of HK$1.563 billion for the six months ended June 30, growing over 10 per cent year-on-year. An interim dividend of 25 HK cents per share was declared. Executive director and financial controller Tam Chun Fai said capital expenditures incurred during the period was around HK$400 million, expecting to invest not more than HK$5 billion in water and gas construction projects in the latter half. (SingTao Daily B3)

Celestial Asia Securities (1049 HK) recorded a net profit of nearly HK$1.1 million for the six months ended June 30. Earnings per share were 0.5 HK cent. An interim dividend of 2 HK cents per share was proposed. It also declared one bonus share for every five shares. (SingTao Daily B4)

China Communications Services (522 HK) recorded net profit of 906 million yuan in 1H, up 19.4 per cent over the same period last year. Turnover amounted to 21.72 billion yuan, up 18.9 per cent. No interim dividend was declared. (Hong Kong Economic Journal P8)

China Mengniu Dairy Company (2319 HK) saw revenue rise 19.3 per cent to 14.43 billion yuan in 1H. Net profit dropped 6.5 per cent to 619 billion yuan, worse than expected. No interim dividend was declared. (Hong Kong Economic Times A9)

China Pharmaceutical Group’s (1093 HK) profit down 20 per cent to HK$426 million in 1H. Earnings per share was 27.77 HK cents. The selling prices of vitamin C products dropped 20 per cent during the period. No interim dividend was declared. (Hong Kong Economic Times A9)

China Railway Construction (1186 HK) recorded 1H turnover of 17.4 million yuan, up 38 per cent yoy. Net profit reached almost 3.38 billion yuan, surging 52 per cent. Full-year income target is to exceed 400 billion yuan. (Hong Kong Economic Journal P8)

The consortium led by China Strategic planning (235 HK) to buy AIG's Asian insurance business Nan Shan was turned down yesterday by Taiwan regulatory authorities. Shares of China Strategic suspended trading in the afternoon yesterday. Investors are worried that a selling pressure would emerge after resuming trading. (SingTao Daily B2)

Coolpoint Energy (8032 HK) signs MOU to acquire from Victory Mind Assets, Dragon City and Alpha Talent 325 million or 30.9 per cent Li Ning (2331) shares. On the other hand, it will issue 590 million new shares at HK$0.678 apiece to pay for the acquisition of Viva China and 1 billion new shares at HK$0.7 apiece for a Shenyang real estate project. The company name ‘‘Coolpoint Energy Limited’’ will be changed to ‘‘Viva China Holdings Limited’’. (Hong Kong Economic Times A9)

Guangzhou (2238 HK) Automobile recorded a 260.6 per cent growth in net profit to 2.308 billion yuan for the six months ended June 30. Gross profit rose 54.2 per cent to 5.284 billion yuan. Revenue amounted to 28.897 billion yuan, climbing 39.8 per cent. Earnings per share was 58.66 fen and an interim dividend of 9 fen per share was declared. (SingTao Daily B4)

Hopewell Holdings (54 HK) net profit for the full year soared 151 per cent to HK$4.223 billion. Turnover went up 42 per cent to HK$4.382 billion. Earnings per share was HK$4.81, rising 153 per cent from a year ago. The company distributed a final dividend of HK$0.54 per share, slashing 6.9 per cent from last year.

Recurrent core profit of Shun Tak (242 HK) posted a 96.8 per cent rise to HK$61 million for the first half. Profit attributable to equity holders tumbled 84.3 per cent to 266 million. Earnings per share amounted to 13.1 HK cents, plunging 82.5 per cent from last year. No interim dividend was paid. (SingTao Daily B2)

United Company RUSAL (486 HK) posted net profit of US$1.27 billion for the six months ended 30 June as compared to net loss of US$870 million for the same period last year. Revenue rose 41.6 per cent to US$5.32 billion. Earnings per share amounted to US$0.08. (Hong Kong Economic Times A8)

Xinyi Glass (868 HK) has signed a HK$1.1 billion worth of 4-year term consortium loan agreement with 14 financial institutions. Interest rate will be HIBOR plus 1.27 per cent. (SingTao Daily B4)

Yuexiu Property (123 HK) acquires two parcels of land in the Southern District of the central city area of Panyu for residential, commercial and financial use at a total consideration of 2.875 billion yuan, with permissible gross floor area up to 416,000 sq. m.. Prices of acquisition per sq.m. are 7,300 yuan and 5,500 yuan each. (Hong Kong Economic Journal P9)

Zhong An Real Estate (672 HK) had a loss before tax of around 50 million yuan as compared with the profit of around 56 million yuan over the same period a year ago. The property developer has reserved a capital of around 3.5 billion yuan in land acquisition. (SingTao Daily B4)

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