Monday, February 14, 2011

Hong Kong Stock Market Wrap Feburary 11th, 2011

Agricultural Bank of China (“the bank”) (1288 HK) yesterday announced that the bank intended to subscribe for approximately 1.037 billion new shares of Jiahe Life Insurance Company Limited with the subscription amount of approximately 2,592 million yuan. Agricultural Bank of China noted that this move should bring great potential in China’s insurance market and promising profitability to the bank. (Sing Tao Daily B14)

Along with the construction boom of high-speed railways, airports, nuclear power plants, water conservancy facilities and other building projects supported by national policies, An Hui Conch Cement Company (“the company”) (914 HK) is to enter into a business boom this year. It is anticipated that the company will see 50 per cent year-on-year increase in profits in 2010, or at least HK$5.316 billion for the whole year. (Sing Tao Daily B10)

China National Building Material Company Limited (“the company”) (3323 HK) is the dominant company in China’s building material industry. National policies indicated that the government intended to increase efforts in building affordable housing projects, which would definitely boost the demand of building materials. The company points out that they will reduce capital expenditure dramatically in 2011. (Sing Tao Daily B10)

PetroChina Company Limited (857 HK) and Encana Corporation signed a Co-operation Agreement, that PetroChina would acquire a 50 percent interest in Encana’s Cutbank Ridge business assets in British Columbia and Alberta, Canada at a consideration of C$5.4 billion (HK$42.2 billion). PetroChina has outstanding overall advantages in petroleum exploration and production, engineering design and field operation services around the world, while Encana is a world leader in the development of unconventional natural gas business. PetroChina is confident that this strong alliance will boost the company’s unconventional natural gas business. (Hong Kong Economic Journal P4)

Poly (Hong Kong) Investments Limited (119 HK) saw HK$1.05 billion in contract sales for January; sales areas amounted to 119,000 square meters. The company did not launch on new property sales during this period. (Hong Kong Economic Times A6)

Mr. William Chan, Executive Director of Sundart International Holdings Limited (2288 HK), noted that the company entered into subscription of 29 per cent of stake interest in KaiLong REI Investment Consulting (Shanghai) Co., Ltd. (KaiLong REI). The company intends to acquire decoration contracts in Mainland China totaling 300 million yuan to 400 million yuan this year. The company also takes part in Macau’s decoration projects. (Hong Kong Economic Journal P5)

Wynn Macau (1128 HK), Limited is pleased to announce the unaudited consolidated results of the Company and its subsidiaries prepared in accordance with the International Financial Reporting Standards (“IFRS”) for the fourth quarter ended 31 December 2010. The company witnessed 1.7 fold of increase in net profits, or up to US$209 million (HK$1.629 billion), outpacing market expectations. (Hong Kong Economic Journal P4)

Beijing Capital Land (2868 HK) booked Jan contracted sales of 1.18 billion yuan, climbing 1.04x yoy. (SingTao Daily B6)

Celestial Asia Securities (1049 HK) announces that Moli Group and Oberon Media will form a JV. Moli Group will acquire 89.7 per cent equity interest in Oberon Information Technology (Suzhou) Co. from Oberon Media. The consideration is set at about US$10 million. US$3 million of which will be settled by issuing CASH consideration shares at HK$0.724 each.
(Hong Kong Economic Journal P8)

Morgan Stanley suggests buying China Oilfield Services (2883 HK) shares, saying that its profit will go up on rising production capacity in the next 12-18 months. (Hong Kong Economic Times A3)

Fittec International (2662 HK) expects a substantial loss for the 6 months ended Dec 31, 2010, which was mainly attributable to impairment loss on production facilities and inventory in one of its subsidiaries. The company estimates that the amount of impairment loss might amount to about HK$30.7 million. (Hong Kong Economic Journal P8)

HSBC (2689 HK) recommends picking up shares in Nine Dragons Paper (Holdings), saying that paper companies’ costs have not gone up amid inflation and that demand for papers has been strong from Jul to now. (Hong Kong Economic Times A3)

Shanghai Jin Jiang International Hotels (2006 HK) announces that the China Securities Regulatory Commission has approved its plan to acquire assets from its parent. The company will acquire equity interest in Jin Jiang Investment and Jin Jiang Travel from its parent. (SingTao Daily B6)

Macquarie suggests picking up Sun Hung Kai Properties (16 HK) shares, saying that short supply in residential properties will lend support to the housing prices. It reiterates an Outperform rating on the company, upping its price target to HK$162.4. (Hong Kong Economic Times A3)

The Bank of East Asia (23 HK) will announce 2010 results tomorrow. Securities firms expect the bank’s net profit to go up 31-67pc yoy. JP Morgan maintains an Overweight rating on the bank. (SingTao Daily B3)

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