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