Monday, October 25, 2010

Hong Kong Stock Market Wrap October 21st, 2010

AIA Group (1299 HK) closed its retail book yesterday. Retail tranche is said to be over 9.4 times oversubscribed, equivalent to locking in almost HK$110 billion. (Hong Kong Economic Times A8)

Alibaba Group (1688 HK), parent of, is planning to establish a huge logistics network in the mainland, financial Times UK reports. (SingTao Daily B2)

PLANS TO ACQUIRE MAINLAND COMPANY China Metal Resources (8071 HK) announces that it is currently under negotiation with independent third parties for a possible acquisition of a mainland company engaged in the provision of technology development, logistics services, distribution management and marketing for lottery sales system. The possible acquisition is yet to be fixed. (SingTao Daily B2)

Daisho Microline (567 HK), an industrial company, eyes the mainland real estate businesses, announcing that the company will cooperate with mainland developer Yi Rui to set up a joint venture company Hua Rui. The interest of the jv firm will be owned as to 50 per cent by Daisho Microline, and as to the other 50 per cent by Yi Rui, so as to develop property business in Huizhou. (SingTao Daily B2)

Mainland menswear company Evergreen International (238 HK) kicks off IPO today to raise up to 1.09 billion. International placing reportedly was oversubscribed. According to its prospectus, 2010 profit is expected to be no less than 150 million yuan and last year profit reached 105 million yuan. It offers 237 million shares at an offer price ranging between HK$3.8 and 4.6 a share. Maximum offer price a lot is HK$4646.37. (Hong Kong Economic Times A8)

Freeman Corporation (279 HK) places 2 billion shares, around 63.49 per cent of the issued share capital as enlarged, to not fewer than 6 placees at HK$0.275 per share to raise HK$535.8 million for expanding financial services business. Shares closed at HK$0.32 yesterday. (Hong Kong Economic Journal P6)

Russian company IRC Limited (1029 HK) closed at HK$1.65, down 8.33 per cent over the offer price of HK$1.8, with trading volume of 226 million shares. Shareholders lost HK$300 in face value for a lot of shares. (Hong Kong Economic Times A8)

Maanshan Iron & Steel (323 HK) posted a net profit of 3.03 million yuan for the third quarter, plunging 99 per cent year on year. If including the first two quarters, the net profit for the first nine months was over 1 billion yuan, surging 150 times year on year. (SingTao Daily B3)

Richfield Group (8136 HK) places up to 150 million shares, around 4.87 per cent of the entire issued share capital as enlarged, at HK$1.2 per share, a discount of 14.8 per cent to yesterday’s closing price of HK$1.41, to raise HK$174 million. (Hong Kong Economic Journal P12)

Springland International (1700 HK) shares closed at HK$6.68, up almost 13 per cent over the offer price of HK$5.93, with trading volume of 445 million shares. Shareholders gained HK$750 in face value for a lot of 1000 shares, not taking charges into account. (Hong Kong Economic Times A8)

Sihuan Pharmaceutical (460 HK) closed its retail book last Wed. It is said that the price is determined at HK$4.6. That is to raise HK$5.75 billion. The company is to list on 28 Oct, next Thur. Retail tranche was over 474 times oversubscribed, locking in around HK$275 billion. (Hong Kong Economic Times A8)

Tai-I International (1808 HK) released an announcement in relation to a MOU resulting in possible change in control of the company, the reorganisation and the distribution on 14 Sep 2010. The company updates that the proposed transactions are still in discussion amongst the relevant parties and no formal agreement has been reached. (SingTao Daily B2)

Tse Sui Luen Jewellery (417 HK) says that the disputes between the company and the Inland Revenue Department have been settled. The IRD agreed not to take any further action upon receiving a payment of surcharge of HK$9 million. The payment will be made by instalments. (SingTao Daily B2)

Wynn Macau (1128 HK) announces that a board meeting will be held on Tuesday, 2 Nov 2010 for the purpose of considering and approving the payment of a special dividend and transacting other business. (SingTao Daily B2)

Q3 TURNOVER UP 30% Xinyi Glass recorded at least 30 per cent increase in turnover of four kinds of glass product in the third quarter, as compared to the average turnover of the first two quarters. Demand for float glass in Q3 is robust, leading to an 80 per cent surge in turnover, nearly reaching the total turnover for the first half, with selling price also rising 10 per cent to 250 yuan per tonne. (SingTao Daily B2)

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