Monday, October 4, 2010

Hong Kong Stock Market Wrap September 30th, 2010

Beijing Capital Land (2868 HK) recorded 1.4 billion yuan of sales last month, up 32 per cent mom. Contracted sales area amounted to 160,000m. Contracted sales reached 7.3 billion yuan for the first 9 months, 73 per cent of the full-year target. (Hong Kong Economic Journal P7)

China State Construction International (3311 HK) will buy from China Overseas Land & Investment (0688) 65 per cent equity interest in Nanjing Changjiang Second Bridge Company at HK$1.69 billion and 15 per cent interest of a residential property project at Newly Reclaimed Land at Outer Harbour, Macau at HK$264 million. (Hong Kong Economic Times A12)

Minmetals Land (230 HK) enters into a cooperation agreement with a vendor and Boluo County Bihua Property Development. It conditionally agrees to buy, in stages, 80 per cent of the equity interests of Boluo County Bihua Property Development at consideration of not more than HK$867 million. (Hong Kong Economic Journal P6)

Sewco International (209 HK) plans to place new shares and 2 per cent 3-yr convertible bonds to the market and substantial shareholders to raise up to HK$1.665 billion. (SingTao Daily B12)

Shui On Land (272 HK) acquires a piece of land at west of Sheng Hong Road, south of Su Hong Road, east of Sheng Chang Road and north of Zhou Hong Road, Hongqiao District, Shanghai at 3.188 billion yuan. The land is a mixed-use development project with a net site area of around 62,300 sqm and an estimated developable above ground GFA of about 233,140 sqm, linked to the Hongqiao Transportation Hub. The hub is expected to become an important economic center of the Yangtze Delta, linking Shanghai to the rest of the country.

Citigroup sets Buy rating on China Longyuan Power Group (916 HK) for the first time, with target price at HK$9.7. It expects the annual growth of its earnings per share to reach 36 per cent. (Hong Kong Economic Times A12)

HSBC (5 HK) has issued 50 million yuan of 2.1 per cent 10-yr Uridashi bonds in Europe. Uridashi bonds are bonds issued by non-Japanese companies and sold to Japanese individual investors. HSBC’s issue of yuan Uridashi bonds reflects the demand for yuan products from Japanese investors. (Hong Kong Economic Times A12)

IPO: AIA has reportedly signed with several cornerstone investors in relation to the sale of shares, representing 20-25 per cent of its IPO amount. The underwriting team will confirm range of offer price today and launch large-scale investor presentation on Wednesday. The roadshow will be launched tomorrow, lasting for about three weeks. AIA will go public on Oct 18 (Mon).

IPO: Markets sources say that Springland Department Stores will be priced at HK$4.85 to HK$5.93 per share, equivalent to around 18.8-23 times its forecast PE ratio in 2011. It plans to raise HK$3.03-3.71 billion by selling 625 million shares. IPO of Springland will be kicked off on Friday and listing date is Oct 21. (Hong Kong Economic Times A14)

Besunyen (926 HK) announces that the over-allotment option was fully exercised by the joint global coordinators on October 1, 2010 to require the major shareholder to sell 63.042 million shares, representing 15 per cent of the offer shares available under the global offering. Besunyen will raise HK$196.69 million additionally. (SingTao Daily B14)

China Mining Resources Group (340 HK) aims to buy 70 per cent equity interest in Year Joy Investments Limited for HK$1.386 billion. The consideration will be satisfied by cash, issue of consideration shares and convertible preference shares. Year Joy is an investment company holding equity interest in China iTV Network Co., Ltd. (SingTao Daily B16)

Evergrande (3333 HK) achieved rosy results for the first three quarters this year, with selling areas of 5.97 million square meters, 90,000 square meters more than its rival Vanke, and ranking first in sales areas among mainland developers. Evergrande also ranked first in sales areas for the first three quarters of 2009 and the first half of 2010. (SingTao Daily B14)

Although mainland property curbs are about to introduce, Shenzhen-based Kaisa Group (1638 HK) said prices of its new flats are always lower than market prices, so the new policy will not have impact on its sales. The developer also expects contract sales amount to reach 20 billion yuan in 2012, increasing by 100 per cent over its 2010 sales target. (Hong Kong Economic Journal P10)

Maoye International plans (848 HK) to acquire 80 per cent equity interest in Shandong Zibo Sugar Wine Co., Ltd. for a total consideration of 388 million yuan. The target company holds Zibo Jindi Shopping Plaza Co., Ltd. and five plots of land with a total area of 56,100 square meters.(SingTao Daily B14)

Sino Prosper State Gold Resources (766 HK) expects the total area covered by the Inner Mongolian gold mine project to increase to 6 sq km from current 2.1 sq km. The company also discloses that the local government has approved mining rights for expanding the mining area. (SingTao Daily B14)

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