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