Monday, March 7, 2011

Hong Kong Stock Market Wrap March 4th, 2011

IPO: Foreign media reports that UK listed Kazakhmys may sell around 2 per cent equity interest to go public in HK. Rumours spread that it is to raise up to 4.68 billion. (SingTao Daily B3)

ASM Pacific Technology (522 HK) booked net profit of HK$2,842 million for the year ended 31 December 2010, surging 203.8 per cent. A final dividend of HK$2.1 and a special dividend of HK$1.1 per share were declared. (SingTao Daily B4)

Beijing Capital Land (2868 HK) announced that the company’s revenue from contract sales amounted to 470 million yuan, or 30 percent year-on-year increase, for February, with a contract sales area of 39,000 sqm, or 18 percent year-on-year increase. (Hong Kong Economic Times A14)

It is reported that China Kingstone Mining’s (1380 HK) international tranche has been fully covered. The group plans to raise up to 1.943 billion. (SingTao Daily B3)

Citic Pacific Limited (267 HK) announced that the company’s profit attributable to shareholders achieved HK$8.92 billion, with an annual increase of 50 percent, for the year ended 31 December 2010, the second highest in the history of the company. The company recommends paying a final dividend of HK$0.3 per share. (Hong Kong Economic Times A12)

Culturecom Holdings’ (343 HK) chairman and non-executive director Chu Bong Foo transferred 24.29 million shares to a non-profit making charity organisation in the realm of culture yesterday. (SingTao Daily B6)

Glorious Property (845 HK) announced the company’s revenue from contract sales increased to 680 million yuan, with a contract sales area of 45,000 sqm for February. (Hong Kong Economic Times A14)

Guangzhou Pharmaceutical Company (874 HK) announces that Guangzhou Wang Lao Ji Pharmaceutical and Guangzhou Baiyunshan Hutchison Whampoa Chinese Medicine have held a cooperation signing ceremony. Wang Lao Ji was authorized as the national agent of Baiyunshan Herbal Tea Series. (SingTao Daily B3)

Hutchison Telecommunications (215 HK) was successful in bidding for acquiring the assigned spectrum for the provision of mobile telecommunications services in Hong Kong for a 15-year term. The spectrum utilization fee will be HK$1,077 million. The spectrums are 900 MHz. (Hong Kong Economic Journal P12)

MTR’s (66 HK) projects in Shenyang, Liaoning Province were suspended due to personnel changes among Shenyang Operating Maintenance Joint Venture (“沈陽營運及維修合營公司”), who holds 49 percent of stakes in the company. (Hong Kong Economic Journal P6)

SIM Technology Group (2000 HK) posted profit attributable to owners of HK$233 million for the year ended 31 December 2010, an increase of 80.9 per cent. It has recommended the payment of a final dividend of HK3 cents per share. (SingTao Daily B4)

Smartone Telecommunications (315 HK) announced that they bid for the auction of the Radio Spectrum for public mobile telecommunications services. The use of the Radio Spectrum has a term of 15 years. The spectrum utilization fee will be HK$875 million. The spectrums are 832.5 MHz – 837.5 MHz paired with 877.5 MHz – 882.5 MHz(i.e. 2 x 5 MHz). (Hong Kong Economic Times A14)

Sunac China (1918 HK) plans to issue senior notes of approximately US$300 million, with a term of 5 years. The proposed notes issue is being undertaken to enable the company to finance new land bank acquisition and for general corporate purposes. (Hong Kong Economic Times A14)

SIM Technology Group (2000 HK) posted profit attributable to owners of HK$233 million for the year ended 31 December 2010, an increase of 80.9 per cent. It has recommended the payment of a final dividend of HK3 cents per share. (SingTao Daily B4)

BaWang International (1338 HK) expects to lose not more than 130 million yuan for the year ended 31 Dec 2010, which was principally attributable to a substantial decline in the sales of its shampoo products in 2H10 in connection with the “dioxane incident” as disclosed in its announcement dated 14 Jul 2010. (Hong Kong Economic Journal P5)

It is reported that BYD Company’s (1211 HK) Feb sales was 26,521 vehicles, down 49 per cent as compared to the 52,054 vehicles in Jan. (Hong Kong Economic Times A11)

China Gas (384 HK) has resolved by majority vote that Li Xiao Yun and Xu Ying be removed as the chairman and the vice chairman respectively and that Wong Sin Yue, Cynthia, remaining as an independent non-executive director, be appointed as the non-executive chairman all with effect from 3 Mar 2011. (Hong Kong Economic Journal P5)

China Resources Cement (1313 HK) saw profit attributable to owners climb 102 per cent to HK$2.04 billion for the year ended 31 December 2010. Earnings per share was HK$0.313. A final dividend per share of HK$0.045 was proposed. (Hong Kong Economic Journal P5)

Hutchison Whampoa (13 HK) proposes to spin off and list Hutchison Port Holdings Trust. The Singapore public offer will commence on Monday, 7 Mar 2011. (Hong Kong Economic Times A11)

JP Morgan sets a Neutral rating and HK$31.8 price target for MTR Corporation (66 HK). Credit Suisse sets an Outperform rating and Goldman Sachs sets a Buy rating on the company. (Hong Kong Economic Journal P6)

Xinjiang Tianye Water Saving Irrigation System (840 HK) has been informed by its ultimate parent company Xinjiang Tianye (Group) that Tianye Holdings is currently engaged in preliminary discussions with Guo Shu Qing and Wang Xiao Xian regarding a possible acquisition of all the shares of the company they held. Guo and Wang hold 61,386,798 domestic shares and 50,335,128 domestic shares respectively. (Hong Kong Economic Journal P5)

IPO: Hilong Group kicks off roadshow today for its IPO in Hong Kong of HK$1 billion -HK$1.48 billion. (Sing Tao Daily B14)

China XLX Fertiliser (1866 HK) plans to speed up its expansion of upstream coal business to offset the effects brought by hiking coal prices. The company is expected to see a higher gross margin for the year along with raising sale prices of products at the second half of the year. (Hong Kong Economic Journal P4)

Digital China (861 HK) is cooperating with a number of cities in Mainland China on exploring “Octopus” business for Mainland China. The company aims to promote its gross margin to 20 percent. (Hong Kong Economic Journal P6)

Mr. Lee Ka Kit, vice-chairman of Henderson Land Development (12 HK), anticipates that the company will see turnovers of properties in Mainland China reach 10 billion yuan this year. Due to high land prices in the first-tier and second-tier cities in Mainland China, the company now looks for land bank for development in the third-tier cities in Mainland China. (Sing Tao Daily B15)

Mr. Liu Chuanzhi, chairman of Lenovo Group (992 HK), noted yesterday that the company experienced a slowdown in its business in Mainland China for the fourth quarter last year. Benefited from increases in market shares of European & US markets and emerging markets, the company is expected to see an increase of 1.4x in profit year-on-year. (Sing Tao Daily B15)

Skyworth Digital (751 HK) launched the world first CCFL 3D TV sets last week. The price of a CCFL 3D TV is roughly the same with that of an ordinary LCD TV. The company anticipates the sales of 3D TVs will account for 20 percent of the sales volume of the company at the end of this year. (Hong Kong Economic Times A16)

The United Laboratories International Holdings (3933 HK) anticipates its profit is expected to be at least 1.76 times of that for the year ended 31 December 2009, or to be at least HK$950 million for the year ended 31 December 2010. (Sing Tao Daily B14)

Zhaojin Mining Industry Company (1818 HK) recorded its profit at 1.2 billion yuan, or an increase of 59.4 percent year-on-year. Earnings per share attributable to ordinary equity holders of the Company amounted to approximately 0.82 yuan. (Sing Tao Daily B14)

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