Thursday, February 24, 2011

Hong Kong Stock Market Wrap Feburary 22nd, 2011

361 Degrees International (1361 HK) saw turnover jump 29.5 per cent to 2.275 billion yuan for the 6 months ended 31 Dec 2010. Profit attributable to the equity shareholders was 423 million yuan, a growth of 18.5 per cent, meeting market expectations. (Hong Kong Economic Journal P6)

Morgan Stanley lowers its rating on (1688 HK) from Overweight to Hold. Goldman Sachs maintains a Neutral rating and HK$14 price target for the company. (Hong Kong Economic Journal P6)

Bossini International Holdings (592 HK) booked net profit of HK$72.554 million for the 6 months ended 31 Dec 2010, surging 44.9 per cent yoy. It has declared an interim dividend of 2.2 HK cents per ordinary share. (Hong Kong Economic Times A9)

Burwill Holdings Limited (24 HK) planned to place an aggregate of up to 460 million existing shares. The top-up placing price of HK$0.48 per share represents a discount of approximately 14 percent to the benchmarked closing price of HK$0.56 per share. (Sing Tao Daily B4)

The market share of China Automation Group (569 HK) climbed to 30 percent. The company saw an increase of 42.7 percent in turnover last year, totalling 755 million yuan; net profit increased by 32.2 percent to 142 million yuan last year. (Sing Tao Daily B11)

China National Materials Company (1893 HK) announced that it planned to enter into acquisition of a 100 percent equity interest in SCRI (Suzhou Concrete Cement Products Research Institute Company Limited) held by its parent company for a consideration of 95 million yuan. (Sing Tao Daily B4)

China Overseas Land & Investment (688 HK) announces that its subsidiary China Overseas Grand Oceans (0081) has alloted and issued an aggregate of 189 million shares to Wang Tao Guang and Kentrise. China Overseas Land & Investment’s interest in the subsidiary decreased from 50.1 per cent to 40.18 per cent as a result. (Hong Kong Economic Journal P10)

Sinopec kicked off roadshow yesterday for issuing 23 billion A share convertible bonds. Sinopec also intends to purchase overseas upstream assets of its parent company-- China Petrochemical Corporation (Sinopec Group) (386 HK). Project injection standards are low political risks, low cost in the later period and stable returns. (Sing Tao Daily B4)

Digital China (861 HK) announced results for total nine months ended 31 December 2010. The net profit read HK$829 million, or increased by 22.53 percent. The net profit for the first three quarters in the last year exceeded the whole-year net profit of the previous year. (Sing Tao Daily B4)

Morgan Stanley ups its price target and rating for GCL-Poly Energy (3800 HK) from HK$4.3 to HK$4.85 and from In Line With Market to Overweight respectively. The shares closed at HK$3.9 each yesterday. (Hong Kong Economic Times A9)

HL Technology Group entered into Capital Contribution of 58.60 million yuan in aggregate to Tianjin Rituo. Upon completion of the Capital Increase, Tianjin Rituo will be held 55 percent by HL Technology. (Sing Tao Daily B4)

Hutchison Whampoa announces that it has determined the basis of the assured entitlement of qualifying shareholders to the units in the preferential offer. A qualifying shareholder who holds at least 1,000 shares on 3 Mar, being the record date, will be entitled to apply, on an assured basis, for 100 units for every one board lot of 1,000 shares it holds. (Hong Kong Economic Journal P7)

Kingdom Holdings Limited (528 HK) is expected to record a profit for the year ended 31 December 2010 against the loss for the year ended 31 December 2009. Market demand of products of Kingdom Holdings witnessed a tremendous increase last year, which boosted gross margins of products. (Sing Tao Daily B4)

Melco International Development’s (200 HK) 34 per cent owned associate Melco Crown Entertainment booked net revenues of US$2.642 billion last year, climbing 98 per cent yoy. Net loss was US$10.53 million. (Hong Kong Economic Times A9)

Benefited from the expansion of pilots of scheme of Building Materials to the Countryside, Xinyi Glass (868 HK) will enjoy this boost for its profitability. Xinyi invested a high-quality float glass production line (Phase I) in the Industrial Park, Jiangmen City, Guangdong Province. This line will be put into production before the end of this month, with 600 tonnes per day capacity. (Sing Tao Daily B11)

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