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