Friday, February 11, 2011

Hong Kong Stock Market Wrap Feburary 10th, 2011

AIA Group Limited (1299 HK) (“the company”) is expected to witness 18 per cent of new business value in 2011. The company entered into an agreement of cooperation with ICBC (1398) to expand insurance markets in Mainland China. (Sing Tao Daily B11)

According to HKEx, Capital Research sold 25.57 million shares in Agricultural Bank of China (1288 HK) at HK$3.814 each on average on 7 Feb. (Hong Kong Economic Times A10)

Aluminum Corporation of China Limited (CHALCO) (2600 HK), holding approximately 9 per cent of equity interest of Rio Tinto, announced that they would not underweight Rio Tinto. Benefited from growing copper prices, Rio Tinto had satisfying performance in 2010 and the company’s net profit surged to US$14.32 billion last year. The net profit of CHALCO increased nearly 20 per cent last year. (Sing Tao Daily B4)

China Longyuan Power Group’s (916 HK) Jan power generation amounted to 2.373 million MWh, an increase of 18.98 per cent yoy, mainly boosted by the increase in wind power generation. (Hong Kong Economic Times A10)

China Overseas Land & Investment Limited (“the company”) (688 HK) announced that the building revenue of this company reached HK$7.77 billion, or up 89.3 per cent year-on-year. In January, the company built five new projects in Changsha, Changchun, Zhongshan and Yantai. (Sing Tao Daily B3)

According to Reuters, Cheung Kong’s (1 HK) RMB REITs planned to go public in Hong Kong before the end of March, raising funds of approximately US$1.5b (9.9 billion yuan), the fund value is expected to reach no more than 33 billion yuan. Assets of this fund include property-leasing businesses of Beijing New Oriental Plaza. (Sing Tao Daily B2)

Esprit Holdings (330 HK) posted net profit of HK$2,140 million for the 6 months ended 31 Dec 2010, down 20 per cent. Turnover amounted to HK$ 17.693 billion. Gross profit margin rose to 55.6 per cent. It has declared an interim dividend of HK$1 per share (Hong Kong Economic Journal P4)

Hong Kong Resources Holdings Company Limited (“the company”) (2882 HK), wholly owner of 3D-Gold Jewellery, is seeking joint-venture opportunities with diamond bands overseas and the company is also making efforts in expand the company’s gift business in China. Kennedy Wong Ying-ho, Chairman of Hong Kong Resources Holdings, said he anticipated 3D-Gold to improve diamond business while decreasing the proportion of gold business in the company. (Sing Tao Daily B4)

The resignation of North Asia Resources’ (61 HK) executive directors King Jun Chih Joseph and Chan Kwan Hung constitutes a breach of subscription agreements with a CB subscriber. The subscriber says it may exercise its right to require the company to redeem the CBs unless the company will notify it immediately on each occasion after the company has withdrawn US$1 million or more out of the bank account where proceeds from the CBs are credited and the company will submit to it a copy of the bi-weekly electronic bank statements in relation to the account within 3 business days after the end of each of the reporting period. North Asia Resources has resolved to accept the offer. (Hong Kong Economic Journal P8)

Shandong Molong Petroleum Machinery (568 HK) yesterday received a “Notification of Successful Bid” that it successfully bid for an order of 14,016 tons of oil country tubular goods, which account for 40.05 per cent of the total target tender from China National Offshore Oil Corporation for 1H11. (Hong Kong Economic Journal P8)

Shanghai Forte Land (2337 HK) announces that Jan contractual sales area and sales amount were 63,400 square metres and 692 million yuan respectively. (Hong Kong Economic Times A10)

Mr. Li Dajun, CEO of Smartone Telecommunications Holdings Limited (315 HK), said that 80 per cent of new customers who signed up with Smartone during these two months are iPhone, Android and Blackberry users. The company intended to invest HK$650 million to upgrade its networks and capacity expansion. Mr. Li also noted that the company applied to bid for the spectrum auction at the end of this month. (Sing Tao Daily B3)

Texhong Textile Group Limited (“the company”) (2678 HK) is exploring production expansion projects in Vietnam. It is anticipated that the output of the company’s production plants in Vietnam will account up to 60 percent of its total production capability after year 2012. The company’s profits are expected higher. (Sing Tao Daily B11)

The Wharf (Holdings) (4 HK) proposes to raise HK$10,052 million before expenses by way of a rights issue of around 275 million shares at HK$36.5 per share on the basis of 1 rights share for every 10 existing shares. Underwriter to the issue is Wheelock And Company (0020). (Hong Kong Economic Journal P2)

PetroChina Co Ltd. (857 HK) announced that it has agreed to buy a 50-percent stake in a natural gas project with North American gas giant Encana Corporation for 5.4 billion Canadian dollars (HK$42.2 billion). The cooperation agreement between Encana and PetroChina International Investment Company Limited allows PetroChina to acquire a 50-percent interest in Encana's Cutbank Ridge business assets in British Columbia and Alberta, Canada. The assets cover 1.3 million acres of land, with a gas processing capacity of approximately 700 million cubic feet per day, 3,400 kilometers of pipelines and underground gas storage. (Sing Tao Daily B4)

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