Monday, October 25, 2010

Hong Kong Stock Market Wrap October 20th, 2010

Birmingham International issues (2309 HK) an announcement in relation to the unusual price and volume movement of its shares and the delay in its results announcement, clarifying that the delay is due in part to an issue relating to the working capital requirement of its principal subsidiary. (Hong Kong Economic Journal P6)

Chen Hsong Holdings (57 HK) expects to record a significant increase in profit for the six months ended Sep 30, which is primarily due to increase in sales turnover resulting from market recovery and the one-off gain of around HK$94 million on disposal of the shares held in Keyset Development Limited. (SingTao Daily B2)

China Everbright International (257 HK) has successfully developed the biomass for electricity generation project in Linyi Xian, Shangdong and Hanshan County, Anhui. The total investment was around 640 million yuan. (SingTao Daily B2)

China Motor Bus (26 HK) recorded a net profit of HK$493 million for the year ended Jun 30, surging nearly 80 per cent year on year. Earnings per share was HK$10.8. A final dividend of 10 HK cents per share and a special dividend of HK$1.3 apiece were declared. (SingTao Daily B2)

China Mobile (941 HK) saw net profit go up 3.9 per cent yoy to 87.245 billion yuan for the first 3 quarters. EBITDA went up 6 per cent to 177.805 billion yuan. EBITDA Margin was 50.4 per cent, up 0.9 percentage point. Operating revenue amounted to 352.643 billion yuan, up 7.8 per cent. (Hong Kong Economic Times A14)

China Overseas Land & Investment (688 HK) saw operation profit for the third quarter surging 89 per cent year on year to around HK$3.4 billion. The operation profit for the first nine months this year amounted to HK$11.4 billion, up 59 per cent over the same period a year ago.

China Petroleum & Chemical (386 HK) plans to issue 23 billion yuan 6-yr convertible bonds to raise funds for developing infrastructure. It plans to use 11.4 billion yuan for its 800,000 ton-a-year ethylene plant in Wuhan and the rest for pipelines and a processing plant. Shares fell 0.4 per cent to end at HK$7.47. (Hong Kong Economic Times A14)

China State Construction International (3311 HK) posted operating profit of HK$710 million for the first 9 months, up 36.29 per cent yoy. Consolidated revenue reached HK$8.13 billion, up 2 per cent. It secured 32 new contracts with a total attributable contract value of around HK$23.21 billion, up 87.48 per cent yoy. (Hong Kong Economic Journal P11)

Ching Hing (Holdings) (692 HK) proposes a rights issue at HK$0.05 per rights share on the basis of 8 rights shares for every 1 existing share to raise HK$217.89 million to HK$219.94 million for businesses including developing the iron and titanium mine in the PRC, and for reducing liabilities, etc. Shares closed at HK$0.275 yesterday. (Hong Kong Economic Times A14)

GZI Transport (1052 HK) is planning to acquire 90 per cent equity interest in Hubei Han-Xiao Highway Construction and Operations from an independent third party for around 646 million yuan. The target company is mainly engaged in the construction, management, and operation of the Han-Xiao Expressway. It also owns the franchise to operate the Han-Xiao Expressway and the Airport North Extension as well as the advertising billboards and other service facilities, for a term up to Oct 2037. (SingTao Daily B2)

Hang Seng Bank (11 HK) plans to launch a new “Hang Seng yuan bond fund” calculated in RMB today. The bank has lowered the subscription fee from 0.8 per cent to 0.5 per cent as a special offer. (SingTao Daily B2)

It is said that Hutchison Whampoa (13 HK) has appointed Goldman Sachs to arrange for an issue of perpetual dollar notes. The notes reportedly can be bought back in Oct 2015. The notes were assigned an BBB rating by Fitch Ratings and Standard & Poor’s. (Hong Kong Economic Times A14)

K. Wah International (173 HK) chairman Lui Che Woo increased holding of shares by 6.6 million and 6.5 million shares at HK$3.031 and HK$3.022 per share on average last Thur and Fri respectively, involving over HK$39.64 million, taking its shareholding from 59.34 per cent to 59.84 per cent. Shares closed at HK$2.93 yesterday. (Hong Kong Economic Journal P11)

Little Sheep Group (968 HK) clarified that the visit by Koo Benjamin Henry Ho Chung, its non-executive director, and other delegate of Yum! Brands, Inc., its second largest shareholder, to the headquarters in Baotou and operations in Shanghai was aiming to share the experience of both parties in catering business. Little Sheep Group is not aware of any intention or plan of Yum on increase of its shareholding in the company. (SingTao Daily B2)

Controlling shareholder of Shenguan Holdings (829 HK), Rich Top, plans to sell 4.2 per cent equity interest in the company to China Life Insurance (Overseas) Co. Ltd. And other investors at a price of HK$8.6 per share. An aggregated consideration of around HK$600 million was involved. (SingTao Daily B2)

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