Muse China & Hong Kong

Muse China & Hong Kong (beta version) - Daybreak 630am Beijing/HK time - Monday, 6 February, 2006

HEADS UP - Top - Next
Gongxi Facai and welcome back to work for those in the Mainland. Do you have colleagues that want to receive this newspaper (currently free until we finish beta testing, at least until July)? If so please drop us a line. (Denise Andersen)

TABLE OF CONTENTS - Prev - Next

Top | Heads Up | Table of Contents | Hot off the Press this Morning | Sector Talk | Management Talk | Deal Talk | Company News in Brief | Results Announcements | Share Buybacks | Event Calendar | Disclosures | Copyright Notices and Important Disclaimers |

HOT OFF THE PRESS THIS MORNING - Table of Contents - Next

Stocks listed in Hong Kong

(8) PCCW: Texas Pacific brought in at controlling shareholder's request
Also: (65) Pacific Century Ins.
Apple Daily interviewed Richard Li, the controlling shareholder of the company who said that he introduced Texas Pacific to acquire the minorities' stake in Pacific Century Development (PCD SP) and said Texas Pacific can improve corporate governance, management capability, deal making ability and shareholders' value at affiliates PCCW and Pacific Century Insurance.
(8 HK) @ HK$4.975: market cap. US$4,180.3m, daily liquidity US$8.4m. Broker forecasts: 4 buys, 8 holds, 7 sells, 15.2x current year P/E, 3.3% yield.

(65) Pacific Century Ins: CPA association and stock exchange enquiring into revision incident
Ming Pao interviewed Richard Li, the controlling shareholder of the company who said that he is still trying to understand the situation regarding the revision to reported net profit figures for the first nine months of 2005, and commented that he is confident that management can "improve on things" in the future. The report said without citing a source that the Hong Kong Institute of Certified Public Accountants and the HK Stock Exchange have both been following-up this incident with the company.
(65 HK) @ HK$2.825: market cap. US$298.9m, daily liquidity US$0.4m. Broker forecasts: 3 buys, 0 holds, 0 sells, 11.9x current year P/E, 2.7% yield.

(2628) China Life: China Life looks to sell 10% stake to strategic investors
Caijing interviewed the chairman of the company, Yang Chao, who said that China Life is looking to introduce three strategic shareholders to acquire 10% of the company, with two from overseas and one from the Mainland to "improve its structure of investors" rather than trying to raise funds and "introduce more advanced (things)". Yang Chao confirmed that Citigroup is definitely not one of those investors according to Caijing.
(2628 HK) @ HK$7.6: market cap. US$25,392.2m, daily liquidity US$57.5m. Broker forecasts: 15 buys, 7 holds, 4 sells, 21.3x current year P/E, 0.8% yield.

(8222) CK Life: Management due to announce acquisitions today
Ming Pao reported without citing a source that the company is looking to acquire a health products business for an amount exceeding HK$100m. A press conference is scheduled for today to be attended by its chief executive and chief operating officer, according to the newspaper.

SECTOR TALK - Table of Contents - Prev - Next

Mainland China Industries

China Aviation: Passenger yield of 69.6% over Chinese New Year holidays
The Civil Aviation Administration of China reported that during the 7-day Chinese New Year golden week period China ran 25,745 flights carrying 2.9m passengers, up 12.4% year on year. In the 52 major cities tracked by the government agency, 22,198 flights ran, with 2.57m passengers, for a passenger yield of 69.6%.

China C oal: Shanxi reiterates plans to control coal production
Xinhua reported citing the provincial economic commission that the province is looking to control coal production to no more than 700m tonnes by 2010 with the number of mine shafts at no more than 2,500.

China Steel: Raw steel production rose 25% year on year
Beijing Morning Post reported citing the vice chairman of the China Steel Industry Association that China's production of raw quenched steel rose 25% year on year to 349m tonnes but said China remains on course to eliminate 100m tonnes of capacity in the form of smaller steel furnaces in the next two years.

China Telecoms: Macau looks to issue 3G licenses third quarter of this year
Also: (315) SmarTone. (2332) Hutchison Telecom. (762) China Unicom Limited.
Oriental Daily interviewed the head of the Office for the Development of Telecommunications and Informat ion Technology in Macau who said that that the Macau government is looking to confirm 3G license issuing procedures and is looking to issue licenses in the third quarter of this year. Currently Hutchison Telecom, SmarTone and China Unicom operate mobile services in Macau.
(315 HK) @ HK$8.6: market cap. US$683.7m, daily liquidity US$0.8m. Broker forecasts: 1 buys, 5 holds, 9 sells, 25.2x current year P/E, 3.1% yield.
(2332 HK) @ HK$11.6: market cap. US$6,732.8m, daily liquidity US$6.5m. Broker forecasts: 6 buys, 5 holds, 1 sells, 0.0x current year P/E, 0.0% yield.
(762 HK) @ HK$6.9: market cap. US$11,042.4m, daily liquidity US$11.0m. Broker forecasts: 5 buys, 16 holds, 6 sells, 18.3x current year P/E, 1.6% yield.

China Tourism: Tourist numbers up 14% in Chinese New Year holidays
Xinhua reported that preliminary official statistics suggested that China recorded 78.32m tourists, up 13.5% year on year. The Ministry of Railways reported that 26m people travel ed by rail last year, on average 3.67m people, up from 3.54m on average last year.

MANAGEMENT TALK - Table of Contents - Prev - Next

Stocks listed in Hong Kong

(590) Luk Fook: Satisfactory Chinese New Year sales
Apple Daily interviewed the chief executive of the company who said that sales in the first half of January rose by more than 10% and expects satisfactory sales for the Chinese New Year; he also commented that higher gold prices have only had a mild impact on sales.
(590 HK) @ HK$1.49: market cap. US$80.7m, daily liquidity US$0.3m. Broker forecasts: 0 buys, 1 holds, 1 sells, 11.7x current year P/E, 4.2% yield.

(769) China Rare Earth: Management looks to acquire stake in Baotou Steel
Apple Daily interviewed the vice chairman of the company who said the company is looking to acqu ire a small stake in Baotou Steel (600111 CH) when the latter's shareholding reforms are completed but said that any acquisition discussions are preliminary at this stage.

(1179) Mirabell: Almost 20% gain in Chinese New Year sales
Apple Daily interviewed a director of the company who said that the company's Chinese New Year sales rose by nearly 20% year on year with solid sales from areas not frequented by tourists, with Mainland tourists not picking up speed until after the third day of the Chinese New Year period.
(1179 HK) @ HK$2.125: market cap. US$74.2m, daily liquidity US$0.0m. Broker forecasts: 1 buys, 0 holds, 0 sells, 7.5x current year P/E, 8.7% yield.

(8052) Convenience Retail Asia: Double digit gains in Chinese New Year sales
Apple Daily interviewed the chief executive of the company who said that overall Chinese New Year sales rose by double digits and same store sales rose by single digit levels; he also comm ented that rising rental income remains his biggest concern over operating costs for this year.
(8052 HK) @ HK$2.65: market cap. US$228.7m, daily liquidity US$0.2m. Broker forecasts: 0 buys, 2 holds, 2 sells, 24.3x current year P/E, 2.0% yield.

(8206) ChinaInfo: Management expects turnaround this year
Apple Daily interviewed the chairperson of the company who said the company should be able to turnaround and make a profit this year as a result of the HK$150m acquisition of franchise rights to an Internet games business. Under the deal the company stands to collect RMB20m in royalty payments per year for the next 10 years, rising at a rate of 10% per year, according to the company.

DEAL TALK - Table of Contents - Prev - Next

Transactions in the Hong Kong market
(919) Modern Beauty: Apple Daily reported on Saturday without citing a source that the underwriters (Sun Hung Kai) was "better than market expectations" without citing further information.

(2788) Yorkey: Apple Daily reported on Saturday without citing a source that the international tranche was 19x oversubscribed while the Hong Kong public offering was 200x oversubscribed, with pricing expected to be near the top of the range of HK$1.63-2.35.

COMPANY NEWS IN BRIEF - Table of Contents - Prev - Next

Stocks listed in Hong Kong

(279) Hansom Eastern: The company's shares rose 22% after announcing plans to place 1bn shares at HK$0.2.

(302) Wing Hang Bank: China National Business Daily reported that Guangzhou Honda is looking to increase the number of dealers from 251 last year to 290 this year.

(493) GOME Electrical Appliances: The company's shares rose 21% after announcing plans to place a convertible bond to Warburg Pincus.

(648) Softbank Investment: The company said on Friday it would issue HK$14m in 3-year convertible bonds at a coupon of 6% and a conversion price of HK$0.1.

(857) PetroChina: The company said its offer to privatize the A shares of Jilin Chemical (000618 CH) (delisted in Hong Kong) will end on 12 February.

(2000) SIM Technology: The company said it has signed a licensing agreement to manufacture and sell 3G modem cards using CDMA technologies.

(8128) IIN International: Apple Daily interviewed the chairman of the company who said the company is hoping to record a profit this year and the spate of write-offs come to an end.

Stocks dual-listed in Hong Kong and Mainland China

(347) Angang New Steel (H): The company has formally published the A share version of its acquisition of RMB20bn of steel assets from its parent in return for issuing 2.97bn tradable A shares and RMB7bn in cash payable over three years.

(670) China Eastern Airlines (H): China National Business Daily reported that the company has started to offer discounted flights for travel between Chengdu and Beijing with a stopover, marking the first time of price cuts on this route that do not involve direct travel.

(1055) China Southern Airlines: The company's cross straits charter flights ended on 5 February.

FINANCIAL RESULT ANNOUNCEMENTS - Table of Contents - Prev - Next

No relevant entries in this section.

SHARE BUYBACKS IN HONG KONG - Table of Contents - Prev - Next

(700) Tencent bought back 522 shares on 2006/2/2 for HK$0.010 per share on average.

EVENT CALENDAR FOR TODAY - Table of Contents - Prev - Next
No relevant entries in this section.

DISCLOSURES BY MAJOR SHAREHOLDERS & DIRECTORS - Table of Contents - Prev - Next

Disclosures by major shareholders

(914) Anhui Conch Cement shareholder JPMorgan Chase & Co. varied the relevant holding by 412000 shares, trigging a whole percentage number threshold on on 27/01/2006. The interest went from 51,965,000 (long) (11.99%), 18,885,000 (lending) (4.36%) shares to 52,377,000 (long) (12.09%), 18,885,000 (lending) (4.36%) shares.

(1088) Shenhua Ene rgy shareholder Genesis Fund Managers, LLP obtained an interest in 850000 shares (triggering the 5% threshold) on on 11/01/2006. The interest went from 203,150,500 (long) (5.98%) shares to 204,000,500 (long) (6%) shares.

(530) Fortuna Intl shareholder Emperor International Holdings Limited obtained an interest in 1025363644 shares (triggering the 5% threshold) on on 26/01/2006. The interest went from (long) (0%) shares to 1,025,363,644 (long) (25.13%) shares.

(530) Fortuna Intl shareholder Gomes Maria Da Silva Rubi Angela obtained an interest in 950000000 shares (triggering the 5% threshold) on on 26/01/2006. The interest went from (long) (0%) shares to 950,000,000 (long) (23.28%) shares.

(530) Fortuna Intl shareholder Jumbo Wealth Limited obtained an interest in 1025363644 shares (triggering the 5% threshold) on on 26/01/2006. The interest went from (long) (0%) shares to 1,025,363,644 (long) (25.13%) shares.

(530) Fortuna Intl shareholder Wong Ching Ping Alex obtained an interest in 950000000 shares (triggering the 5% threshold) on on 26/01/2006. The interest went from (long) (0%) shares to 950,000,000 (long) (23.28%) shares.

(1175) Fu Ji Food & Catering shareholder Million Decade Limited varied the relevant percentage holding by a whole number on on 02/02/2006. The interest went from 210,000,000 (long) (45.65%) shares to 210,000,000 (long) (44.88%) shares.

(1175) Fu Ji Food & Catering shareholder Yao Juan varied the relevant percentage holding by a whole number on on 02/02/2006. The interest went from 285,000,000 (long) (61.95%) shares to 285,000,000 (long) (60.91%) shares.

(191) Lai Sun Garment (Intl) shareholder PMA Capital Management L td. obtained an interest in 43309000 shares (triggering the 5% threshold) on on 27/01/2006. The interest went from 44,908,000 (long) (2.78%) shares to 88,217,000 (long) (5.45%) shares.

(221) Leroi Holdings shareholder So Chi Hiu varied the relevant holding by 205000000 shares, trigging a whole percentage number threshold on on 27/01/2006. The interest went from 424,024,000 (long) (52.37%) shares to 219,024,000 (long) (27.05%) shares.

(221) Leroi Holdings shareholder Wai Yuen Tong Medicine Holdings Limited obtained an interest in 50000000 shares (triggering the 5% threshold) on on 27/01/2006. The interest went from 205,000,000 (long) (25.32%) shares to 255,000,000 (long) (29.67%) shares.

(221) Leroi Holdings shareholder Wang On Group Limited obtained an interest in 50000000 shares (triggering the 5% threshold) on on 27/01/2006. The interest went from 205,000,000 (long) (25.32%) shares to 255,000,000 (long) (29.67%) shares.

(304) Peace Mark shareholder Arisaig Greater China Fund Limited varied the relevant holding by 640000 shares, trigging a whole percentage number threshold on on 01/02/2006. The interest went from 85,440,119 (long) (9.5%) shares to 84,800,119 (long) (9.43%) shares.

(304) Peace Mark shareholder Cooper Lindsay William Ernest varied the relevant holding by 640000 shares, trigging a whole percentage number threshold on on 01/02/2006. The interest went from 85,440,119 (long) (9.5%) shares to 84,800,119 (long) (9.43%) shares.

(8013) Pine Technology shareholder Zhang Guo Qing disclosed an interest in 1088000 shares on on 28/01/2006. The interest went from 109,500,732 (long) (16.04%) shares to 108,412,732 (long) (15.88%) shares.

(8261) Molong Petroleum shareholder Commonwe alth Bank of Australia varied the relevant holding by 168000 shares, trigging a whole percentage number threshold on on 27/01/2006. The interest went from 17,090,000 (long) (6.94%) shares to 17,258,000 (long) (7.01%) shares.

(2878) Solomon Systech shareholder Genesis Fund Managers, LLP obtained an interest in 2112000 shares (triggering the 5% threshold) on on 17/11/2005. The interest went from 150,302,000 (long) (5.99%) shares to 152,414,000 (long) (6.07%) shares.

(125) Sun Hing Vision shareholder OCM Emerging Markets Fund, L.P. ("EMF") obtained an interest in 3000000 shares (triggering the 5% threshold) on on 27/01/2006. The interest went from 12,824,000 (long) (4.69%) shares to 15,824,000 (long) (6.03%) shares.

(547) Sun Innovation shareholder Station Investments Limited exercised a right or an option for 2000000 shares on 25/01/2006. The interest went from 1 3,354,366 (long) (16.91%) shares to 13,354,366 (long) (16.91%) shares.

(2088) Xiwang Sugar shareholder JPMorgan Chase & Co. obtained an interest in 10432000 shares (triggering the 5% threshold) on on 27/01/2006. The interest went from 29,998,000 (long) (3.73%), 24,998,000 (lending) (3.11%) shares to 40,430,000 (long) (5.03%), 30,430,000 (lending) (3.79%) shares.

Disclosures by directors and insiders

(144) China Merchants Holdings director Li Yinquan exercised a right or an option in respect of 50000 shares on on 01/02/2006. The interest went from 700,000 (long) (0.03%) shares to 700,000 (long) (0.03%) shares.

(291) China Resources Enterprise director Keung Chi Wang Ralph disposed of 456000 shares on on 26/01/2006. The interest went from 2,078,000 (long) (0.09%) shares to 1,622,000 (long) (0.07%) shares.

(291) Chi na Resources Enterprise director Lau Pak Shing disposed of 380000 shares on on 26/01/2006. The interest went from 1,760,000 (long) (0.08%) shares to 1,380,000 (long) (0.08%) shares.

(291) China Resources Enterprise director Song Lin disposed of 684000 shares on on 26/01/2006. The interest went from 3,568,000 (long) (0.16%) shares to 2,884,000 (long) (0.13%) shares.

(2) CLP director Whittle Jason Holroyd disposed of 2073600 shares on on 27/01/2006. The interest went from 240,483,371 (long) (9.99%) shares to 238,409,771 (long) (9.9%) shares.

(1199) COSCO Pacific director Xu Lirong disposed of 500000 shares on on 27/01/2006. The interest went from 1,000,000 (long) (0.05%) shares to 500,000 (long) (0.02%) shares.

(1175) Fu Ji Food & Catering director Wei Dong disclosed a transaction involving 7851356 share s on on 02/02/2006. The interest went from 285,000,000 (long) (61.95%) shares to 285,000,000 (long) (60.91%) shares.

(14) Hysan director Yu Pauline Wah Ling disposed of 10000 shares on on 01/02/2006. The interest went from 264,000 (long) (0.03%) shares to 254,000 (long) (0.02%) shares.

(590) Luk Fook director Tse Moon Chuen entered into a contract to sell 42000 shares on on 01/02/2006. The interest went from 246,235,520 (long) (50.46%) shares to 246,193,520 (long) (50.46%) shares.

(8013) Pine Technology director Chiu Hang Tai disclosed a transaction involving 1088000 shares on on 28/01/2006. The interest went from 137,176,000 (long) (20.09%) shares to 136,088,000 (long) (19.93%) shares.

(2324) Sino Katalytics Investment Corporation director Chow Ka Wo, Alex obtained an interest in 200000 shares on on 27/01/2006. T he interest went from (long) (0%) shares to 200,000 (long) (0.2%) shares.

(532) Wong's Kong King director Wong Senta obtained an interest in 150000 shares on on 01/02/2006. The interest went from 333,900,723 (long) (48.2%) shares to 334,050,723 (long) (48.22%) shares.

IMPORTANT DISCLAIMERS - Table of Contents - Prev
Copyright (C) 2006. All rights reserved. Sub-editors: Theresa Neale, Gregory Xiao, Denise Andersen. For subscription or editorial enquiries please email us at hkg@oratio.com. Please read important disclaimers at http://www.oratio.com/muse/disclaimers.html.

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