Tuesday, February 15, 2011

Hong Kong Stock Market Wrap Feburary 14th, 2011

IPO: Sinosoft Technology PLC (“Sinosoft Technology”) planned to launch its IPO in Hong Kong this year. Sinosoft Technology’s business is the development and sale of software products, the provision of software related services and systems integration, including export tax software, e-Government software and information integration software. Alibaba.com Ltd. bought a 25% stake in Sinosoft Technology PLC for CNY170 million early this month. (Hong Kong Economic Journal P6)

Ausnutria Dairy (1717 HK) expects 2010 profit attributable to the shareholders to decline by 30 to 40 per cent, which are primarily due to an increase in advertising and promotion activities after listing, a temporary decrease in revenue as a result of the restructuring of the distribution system and an increase in operating expenses for the establishment of sales offices and expansion of sales forces in key markets, etc. (SingTao Daily B2)

Brilliance China Automotive Holdings Limited (“Brilliance China”) (1114 HK) issued positive profit alert yesterday. Brilliance China is expected to record a net profit for the year ended in 31st December 2010 as compared to a net loss for the year ended in 31st December 2009. This good performance is mainly attributable to the significant increase in the sales volume of BMW sedans produced by BMW Brilliance Automotive Ltd., the Company’s 50% indirectly owned jointly controlled entity, and the discontinuation of the Zhonghua sedan business. (Hong Kong Economic Journal P4)

Dr. Li Minji, Board Chairman of Capinfo Company Limited (“Capinfo”) (1075 HK), notes Capinfo will carry out direct charges on services of top-notch information technology of the company. Capinfo initially sets revenue targeted at 1 billion yuan. Dr. Li also says that in the past three years, Capinfo has already paid dividends to its shareholders at amount of 115 million yuan. Capinfo does not intend to issue TDR. (Hong Kong Economic Journal P10)

China Shenhua Energy Company (1088 HK) posted Jan commercial coal production of 21.5 million tonnes, up 10.8 per cent yoy. Coal sales reached 27.9 million tonnes, up 15.8 per cent, of which export dropped 33.3 per cent. (SingTao Daily B2)

Geely Automobile Holdings (175 HK) announces that its Jan total sales volume was 45,634 units, up around 4 per cent yoy, down almost 19 per cent from the record high level achieved in Dec. (SingTao Daily B1)

Great Wall Motor (2333 HK) expects its 2010 profit attributable to equity holders to increase by more than 50 per cent, which is mainly attributable to an increase in sales of automobiles. (SingTao Daily B1)

Hutchison Whampoa Limited (“the company”) (13 HK) announced that on 31 January 2011, the Hong Kong Stock Exchange confirmed that the Company may proceed with the proposed spin-off of HPH Trust, and on 14 February 2011, HPH Management received an eligibility to list letter from the SGX-ST, subject to the fulfilment of certain customary conditions. The Company’s EBITDA is expected to see increase for this year and next year. (Hong Kong Economic Times A7)

NagaCorp (3918 HK) saw net profit climb around 73 per cent to about US$44 million for the year ended 31 Dec 2010. EPS amounted to 2.12 US cents. Proposed final dividend was 0.77 US cent a share. (SingTao Daily B2)

Sources said that Orange Sky Golden Harvest Entertainment (Holdings) Limited (“the company”) (1132 HK) postponed to issue RMB bonds. It is reported that the company continues to negotiate with investors and watch market moves. RMB bond subscription received less satisfying feedback from investors, sources said. (Hong Kong Economic Journal P10)

Labour-intensive enterprises set their paces into industrial automation along with the increase of labour costs. Mr. Lin Guangru, CEO of Starlite Holdings Limited (“Starlite”) (403 HK), noted industrial automation should be the trend for future development of enterprises. Starlite automated some paper rolling related processes in its packaging business. Starlite also aims to realize environmental production technology. (Hong Kong Economic Journal P8)

Sunlight REIT (435 HK) reported a turnover of HK$262.5 million for the 6 months ended 31 Dec 2010, a 9.4 per cent yoy growth. Net property income came in at HK$199.9 million, up 10.9 per cent yoy. The total distributable income rose 43.8 per cent yoy to HK$127.8 million. (SingTao Daily B4)

Xiamen International Port Co., Ltd (“the company’) (3378 HK) issued positive profit alert. The company is expected to record an increase of approximately 50 per cent in its unaudited net profit for the year ended 31 December 2010 as compared to the net profit of the company for the year ended 31 December 2009. (Hong Kong Economic Times A8)

Zijin Mining Group (2899 HK) announces that its wholly-owned subsidiaries Xinyi Zijin and Xinyi Baoyuan have received notices of response to proceedings, notifying them that the Guangdong Province Xinyi City People’s Court has determined that it will hear the proceedings commenced by 852 villagers in relation to a claim of compensation of around 171 million yuan. (SingTao Daily B2)

ZTE (763 HK) is reported to secure contract sales worth up to 100 billion yuan and a growth rate of 26 per cent last year. It has reportedly achieved 29 per cent growth of its contract sales in overseas markets and 22 per cent growth in the domestic market. (SingTao Daily B4)

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