Tuesday, October 5, 2010

Hong Kong Stock Market Wrap October 4th, 2010

From now until 30 Oct, BOCHK’s (2388 HK) customers can enjoy preferential interest rates (RMB/ up to 1.3 per cent pa; AUD/ up to 5.2 per cent pa) upon placement of a 6-month "Flexi Time Deposit" with new funds of HK$50,000 or above or via currency exchange of existing funds. They can partially or fully withdraw the principal a month after the placement and can enjoy a currency exchange offer of up to 50bps. (Hong Kong Economic Times A12)

Chevalier Pacific Holdings (508 HK) has ceased discussion with placing agent regarding a share placement in view of the recent low in its share price. The company announced a possible placing of shares last month and its shares dropped 33.8 per cent on the news to yesterday’s closing price of HK$0.455. It stresses that no legally-binding agreement has been entered into and no placing price has been agreed. (Hong Kong Economic Journal P6)

Citigroup sets Buy rating on China State Construction International (3311 HK), with target price at HK$6.3, around 18 per cent higher than yesterday’s closing price. It raises 2011 and 2012 earnings forecast for the company by 10 per cent to 15 per cent. Shares rose 14 per cent to close at HK$5.34 yesterday. (Hong Kong Economic Times A14)

Digital China (861 HK) announces that the board approved the Taiwan TDR issue, involving around 240-260 million units, or equivalent to 60-70 million shares. The net proceeds from the TDR issue will be used for repaying loans and constructing a science and technology park and a logistics park. (SingTao Daily B2)

Esprit (330 HK) announces that it has granted 2 million share options to some individuals. The exercise price of the granted options was HK$42.34. (SingTao Daily B2)

Eternite International (8351 HK) announces that its substantial shareholders are in preliminary discussion with a potential investor regarding a possible disposal. However, their discussion with the potential investor is still ongoing and no agreement has been reached yet. The possible disposal, if materialised, may result in a change in control of the company and a possible general offer. (SingTao Daily B2)

US private equity firm Warburg Pincus & Co. increased holding of shares in Franshion Properties (China) (817 HK) by about 550 million shares at undisclosed price on 27 Sep according to info from HKEx, taking its shareholding in the company from 0 per cent to 5.98 per cent. (Hong Kong Economic Journal P11)

Good Friend International (2398 HK) received sales orders of 2,786 units in respect of CNC machine tools business for the nine months ended Sep 30, amounting to around 1.396 billion yuan, surging 1.42 times year-on-year. The total sales orders for the first nine months this year amounted to about 1.614 billion yuan, soaring 1.25 tiems over the same period a year ago. (SingTao Daily B2)

Contracted sales amount and sales areas of R&F Properties (2777 HK) in September reached 3.629 billion yuan and 260,860 sq m respectively, rising 19 per cent and 8 per cent respectively from August. Total contracted sales income for the first nine months was around 21.663 billion yuan, up 17 per cent from last year. (SingTao Daily B3)

Kaisa Group Holdings (1638 HK) recorded contracted sales of 626 million yuan in Sep, up 74 per cent. Sales area amounted to around 69,845m at 8,965 yuan per meter on average. Contracted sales reached around 6.94 billion yuan for the first 9 months. Contracted sales area amounted to around 585,000m at 11,865 per meter on average. (Hong Kong Economic Journal P11)

Lijun International Pharmaceutical (2005 HK) shareholder Wide Luck plans to place 100 million option shares, around 4.07 per cent of the total issued share capital as enlarged, at HK$2.9 per share, a discount of about 4.61 per cent to the closing price of HK$3.04 per share on 30 Sep, the last trading day before the issue. The company expects the placing to be completed on 7 Oct. (Hong Kong Economic Times A14)

New World Department Store (825 HK) China saw net profit grow 5.5 per cent to 577.6 million yuan for the year ended Jun 30. A final dividend of 7 HK cents per share was recommended. The company is also planning to acquire properties in Shenyang from New World China Land (0917) for over 456 million yuan. (SingTao Daily B3)

Goldman Sachs raises rating on Sands China (1928 HK) from Neutral to Buy. It expects gaming income in Macau to go up 50 per cent yoy to 22 billion dollars this year. It expects the growth of gaming income in Macau will slow down in Q4. (Hong Kong Economic Journal P6)

Vitop Bioenergy (1178 HK) plans to issue HK$30 million worth convertible notes at coupon rate of 3 per cent per annum due 18 months at a price of HK$0.25 per conversion share. A total of 120 million conversion shares will be issued upon full conversion of the convertible notes, which represents around 12 per cent of the enlarged issued share capital. The estimated net proceeds of around HK$29.8 million will be used for the general working capital. (SingTao Daily B2)

Z-Obee (948 HK) announces that it has submitted application to Taiwan authorities for a TDR issue. The company has yet to obtain the required approval from the Taiwan Securities and Futures Bureau for the offering and listing of the TDRs on the Taiwan Stock Exchange. (SingTao Daily B2)

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