Wednesday, January 26, 2011

Hong Kong Stock Market Wrap January 25th, 2011

Chaoda Modern (682 HK) is at less 4x P/E ratio and deserves market watch. Benefited from the climbing prices of vegetables, fruits and rice, the total revenue of the company is expected high. It is anticipated that the profits will increase 21 pc to HK$4.43 billion in 2011, earnings per share at HK$1.32. (Sing Tao Daily B11)

Chaowei (951 HK) increased its facilities to expand its output. Since it was listed in July last year, production plants were constructed in mainland. The company found its support in price at HK$2.16, dropping from HK$3.48. The price is on the upward trajectory. (Sing Tao Daily B11)

China Shipping Development (1138 HK) expects to record a yoy gain of around 60 per cent in its 2010 unaudited net profits on an increase in the freight rates, lower than market’s average projection. (Hong Kong Economic Times A10)

Chinese Estates (127 HK) sets its sights on mainland projects these years. Although real estate market in mainland tends to be nonchalant during these months, some projects of Chinese Estates still see prices climb. Policy adjustment exerts little influence on its home-oriented projects. (Sing Tao Daily B3)

COSTIN New Materials (2228 HK) announces that, based on the preliminary review of the management accounts for the year ended 31 Dec 2010, it is expected to register a sharp yoy gain in its net profit arising from normal operations on an increase in sales and improvement in gross profit margin of its products. (Hong Kong Economic Times A10)

Datang International Power Generation (991 HK) expects its 2010 unaudited net profit to advance by more than 50 per cent yoy, better than market expectation. Shares ended at HK$2.74 yesterday. (Hong Kong Economic Times A10)

Fortune REIT (778 HK) booked net profit of HK$1.613 billion for FY2010, surging 45 per cent yoy. Income available for distribution amounted to HK$406.5 million, a rise of 20.3 per cent from a year earlier. The distribution per unit was HK$24.35 cents, which included a final DPU of HK$12.08 cents. (Hong Kong Economic Journal P9)

IPO: Glencore is weighing going public in London and HK. Market sources say it has submitted listing application to the HKEx. It is expected that the dual listing is to raise US$10 billion. The group may float in HK in Q2 at the soonest. (Hong Kong Economic Journal P4)

Hengan (1044 HK) rebounds at last after a period of dropping of over 20 pc. The upward trend is expected in the short-run. It is capable of transferring cost and the target price in the short-term is at HK$67. (Sing Tao Daily B11)

Suffered from the pressure exerted by the mainland stock market along with low performance of China’s stocks, traditional blue chips gained higher performance, including Hutchison Whampoa (13 HK), which maintained its upward trend at the price of HK$93.85, up 0.86 per cent yesterday, and the subscription warrant of 27855 deserved attention.
(Sing Tao Daily B9)

NVC (2222 HK) lighting is benefited from the environmental trend these days. NVC tends to be very popular with investment banks as the positive rating is highly recommended. (Sing Tao Daily B10)

Pico Far East (752 HK) saw net profit soar 55 per cent to HK$192 million in 2010. Turnover hit HK$3.075 billion for the first time. The board is proposing a final dividend of HK$4 cents a share and a special dividend of HK$1.5 cent a share. (Hong Kong Economic Journal P6)

Tencent (700 HK) performed well in the market on Tuesday, with its price rebounding to over HK$200, up 5 per cent. Many market research reports set Tencent at the rating of buy.
Tencent’s challenge to the high price of HK$205.8 can be considered with reference to the subscription warrant of 28388. (Sing Tao Daily B9)

Tingyi (Cayman)’s (322 HK) beverage business with its diversity and success gained high profits. The total amount of business increased 42. 18 pc in beverage business in the 3rd quarter, higher than that of the same period in 2009, reached US$1.26 billion. (Sing Tao Daily B12)

Youyuan International Holdings (2268 HK) expects to report a significant yoy increase in 2010 net profit on increases in both sales volume and average selling price of products as well as the introduction of new products such as ivory boards and paper towels during the year. (Hong Kong Economic Times A10)

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