Tuesday, December 7, 2010

Hong Kong Stock Market Wrap December 6th, 2010

Cathay Pacific Airways (293 HK) will focus on developing the mainland market over the next few years. It has no plans for a share placement although its share price has jumped to a new record high. In addition, the current chief operating officer John Slosar will take over from Tony Tyler who will resign as chief executive with effect from 31 Mar 2011. (SingTao Daily B3)
C C Land Holdings’ (1224 HK) Nov contracted sales sank 39.4 per cent mom to 372 million yuan, a gain of 33 per cent yoy. (Hong Kong Economic Times A14)

Changsha Zoomlion Heavy Industry Science and Technology (1157 HK) plans to start its IPO on 13 Dec and float on 23 Dec, aiming to issue 870 million shares. Sources close to underwriters disclose that the company's shares will be priced between HK$13.98 and 18.98 each. Maximum offer price a lot is HK$3834.26. CICC, Goldman Sachs and JP Morgan are sponsoring the issue. (Hong Kong Economic Journal P8)

China Automation Group (569 HK) has entered into a term loan facility agreement with a syndicate of banks and financial institutions. The facility agreement relates to the provision of a multi-currency 3.5-year term loan facility amounting to around US$50 million. (SingTao Daily B4)

China Resources Cement (1313 HK) is planning to acquire 50 per cent equity interest in target companies engaging in the production and sale of clinker, cement and concrete in Guangzhou and Hong Kong. The total consideration will be HK$1.24 billion that is intended to be satisfied by internal resources of the company. (SingTao Daily B4)

China Resources Enterprise (291 HK) that is actively expanding its retail network has acquired 98 per cent equity interest in a supermarket situated at Hongcheng, Guangzhou, at a consideration of around 36.7 million yuan. The company plans to open at least 300 retail stores in the mainland next year. (SingTao Daily B3)

Galaxy Entertainment Group (27 HK) proposes to issue 3-yr 1 billion yuan fixed rate senior unsecured bonds. Application has been made to the HKEx (0388) for listing of the RMB denominated bonds. BofA Merrill Lynch, BOCI International, HSBC and UBS are the joint bookrunners. (Hong Kong Economic Journal P12)

Geely Automobile Holdings (175 HK) booked Nov sales volume of 44,160 units of vehicles, up 24.5 per cent yoy, up 10.3 per cent mom. 90 per cent of the full year sales volume target of 400,000 units of vehicles was achieved. (Hong Kong Economic Journal P10)

Hongkong Electric Holdings (6 HK) proposes to change the name of the company from “Hongkong Electric Holdings Limited” to “Power Assets Holdings Limited”, following the recent substantial acquisition of a 40 per cent interest in electricity distribution assets in the UK. (SingTao Daily B3)

IRC (1029 HK) has entered into a contract with CNEEC, a major Chinese state-owned contractor. Under the contract, CNEEC will act as an engineering, procurement and construction contractor for the design and construction of stage 1 of the company’s mining operations at K&S, involving US$400 million (over HK$3.1 billion). (SingTao Daily B4)

Lee & Man Paper (2314 HK) Manufacturing has entered into a facility agreement in relation to a term loan facility amounting to HK$2.5 billion for a period of 6 months, for the refinancing of the existing facilities, general working capital requirements and capital expenditure of the company. (SingTao Daily B4)

Poly (Hong Kong) Investment (119 HK) posted contracted sales of around 10.1 billion yuan for the first 11 months, up 38.4 per cent yoy. Contracted sales area amounted to 1.31 million sqm. (Hong Kong Economic Times A14)

Powerlong Real Estate Holdings (1238 HK) registered a mom jump of 86 per cent in Nov contracted sales, which rose to 1.3 billion yuan. Sales area hit 175,000 sqm. Contracted sales reached around 4.3 billion yuan for the first 11 months. (Hong Kong Economic Journal P13)

SRE Group (1207 HK) plans to acquire a target company that holds two parcels of commercial and residential land located in Jiaxing, Zhejiang, involving US$36 million (around HK$280 million). The two pieces of land have a total site area of more than 129,800 square metres. (SingTao Daily B4)

Yuexiu Property Company (123 HK) has acquired 5 parcels of land, with a total permissible gross floor area of about 818,000 sqm, for residential, office and commercial uses, in Lin-an, Hangzhou at 589 million yuan. It has also agreed to sell to China Resources Enterprise (0291) the entire issued share capital of and the shareholder’s loan to Durman at around 37 million yuan. Durman holds about 98 per cent equity interest in Guangzhou Homecity Supermarket. (Hong Kong Economic Journal P13)

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