Muse China & Hong Kong (beta version) - Daybreak 630am Beijing/HK time - Friday, 10 February, 2006

HEADS UP - Top - Next
Results season in Hong Kong starts today with Bank of East Asia, the traditional lead, reporting later this evening. Positive surprises in Mainland China results announcements include Yili Industrial (600887), Mengniu's (2319 HK) bitter rival where 2005 earnings rose 30% year on year and revenue rose 39%.

On a side note Wei Christianson was referred to as "the beautiful lady of finance" in a report in National Business Daily discussing her move from Citigroup to MS. Have a nice weekend. (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

(700) Tencent: QQ boasts of 2m PCUs
The company said its peak concurrent users for the QQ casual games site crossed the 2m barrier o n the evening of 7 February and it claims that it now has 65% of the market with 150m registered users.  
(700 HK) @ HK$9.95: market cap. US$2,144.5m, daily liquidity US$5.2m. Broker forecasts: 7 buys, 4 holds, 4 sells, 38.7x current year P/E, 0.7% yield.

(941) China Mobile: MII wants WCDMA trial stations shut in favour of TD-SCDMA
Also:   (906) China Netcom (HK).   (728) China Telecom (H).
China Business News asserted citing unnamed sources at the Ministry of Information Industry that China Mobile, China Telecom and China Netcom had built more than 800 WCDMA base stations and 80 trial WCDMA networks without authorization from the Ministry and the Ministry is trying to force the operators to shut them and to build more TD-SCDMA trial stations.    
(941 HK) @ HK$38.1: market cap. US$97,054.1m, daily liquidity US$85.1m. Broker forecasts: 16 buys, 8 holds, 4 sells, 15.8x current year P/E, 2.5% yield.

(2628) China Life : China Life wins Shanghai market share race with Ping An losing no.1 slot
Also:   (2318) Ping An.
China National Business Daily reported that the company's Shanghai subsidiary said its premium income came to RMB6.9bn last year, with 28% market share, wresting the no.1 back from rival Ping An which saw premium income fall 1% last year to RMB6.7bn; AIG remains third with RMB2.1bn.  
(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.



SECTOR TALK - Table of Contents - Prev - Next

Mainland China Industries

China Coal: Heilongjiang Coal wants to cut coal supply
People's Daily International Finance News reported that Heilongjiang Longmay Coal said that it plans to cut planned production of coal from 52.9m tonnes in 2005 to 49m tonnes in 2005 given that the company had previously exceeded capacity in production to capture the higher prices in 2005 and wants to cut production to ensure safety.  

China Electricity: Shenhua, China Coal start to ship coal with prices still unknown
Also:   (1088) Shenhua Energy.
China Business News reported without citing a source that coal producing companies have started to ship coal based on those "confirmed volume but no price agreement" contracts agreed at the recent coal-electricity conference in Jinan, Shandong and that Shenhua, China National Coal and Datong Coal have requested prepayments prior to shipping coal despite the lack of an agreement on prices.  
(1088 HK) @ HK$9.95: market cap. US$21,104.6m, daily liquidity US$26.9m. Broker forecasts: 12 buys, 5 holds, 2 sells, 11.5x current year P/E, 1.9% yield.

China Retail: Golden Eagle IPO approved by stock exchange
South China Morning POst reported that the Nanjing department store operator has received approval for its HK$1bn IPO with pre-marketing starting next week; ABN Amro is leading the deal, according to the newspaper.  



MANAGEMENT TALK - Table of Contents - Prev - Next

Stocks listed in Hong Kong

(409) Stone Group: Management vows plans to sell health products
Wen Wei Po interviewed the chairman of the company who said its health products company will launch its third product later this year; its vice president commented that sales rose during the Chinese New Year period.  

(653) Bonjour Holdings: Management commented on profit warning announcement
Ming Pao interviewed the chief financial officer of the company who clarified that it warned of a loss because of a 20-30% rise in rents in renewal s last year and that its seven new stores opened in anticipation of better traffic from Disneyland all failed.  
(653 HK) @ HK$2.3: market cap. US$52.4m, daily liquidity US$0.2m. Broker forecasts: 1 buys, 1 holds, 1 sells, 14.7x current year P/E, 3.4% yield.



DEAL TALK - Table of Contents - Prev - Next

Transactions in the Hong Kong market
(203) Denway Motors: The company is looking to sell its 50% stake in a car processing plant for no more than HK$40m to a connected party.  

(563) Neo-China: The company said it has acquired a 96k sqm site in Chongqing for HK$422m.  

(919) Modern Beauty: The shares closed 9% below the offer price on the first day of trading.  

(8065) Innovis: The company said its rights issue was 232% subscribed with its chairman taking t he opportunity to raise his stake from 56% to 61%.  



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

Stocks listed in Hong Kong

(77) AMS Public Transport: The company said its new minivan rental agreement with its chairman raising the annual rent cap from HK$60m to HK$70m.  

(251) SEA Holdings: The company said New Zealand-listed subsidiary Trans Tasman Properties sold two rental properties in Auckland, New Zealand for NZ$28.5m.  

(699) Chia Hsin Cement: The company said its Jingyang subsidiary made RMB63m in net unaudited revenue in January this year, up 6% year on year.  

(836) China Resources Power: The company said it sold 3.8M MWh in electricity in January, up 12% year on year.  

(928) Tack Fat: Apple Daily report ed that the company signed a 3 year HK$480m syndicated loan, paying HIBOR+0.65%.  

(8228) Vertex: The company said its joint venture with China Power on supplying power to Hong Kong will initially raise HK$20m in capital, with the company contributing HK$3m over its 15% stake.  

(8279) Megainfo: The company said it has signed a contract with its parent Vodatel (8033 HK) for purchasig equipment with a cap of HK$10.5m each year.  

Stocks dual-listed in Hong Kong and Mainland China

(763) ZTE (H): Xinhua interviewed a division manager of ZTE who said it is aggressively expanding in Haiti with sales of CDMA equipment and said it is the only Chinese company with an office in a Caribbean country.  



FINANCIAL RESULT ANNOUNCEMENTS - Table of Contents - Prev - Next

Financial re sults for the following widely held Hong Kong listed stocks:

(444) Sincere Watch HK: cumulative 3rd quarter results ended December 16% BELOW consensus.
Revenue of HK$287m (-24%) (vs forecast HK$321m), net profit of HK$37.7m (+75%) (vs forecast HK$45m), EPS of HK$0.112(+60%) vs forecast HK$0.1275), DPS of HK$0. (Forecast figures based on full year estimates).

Financial results for the following Hong Kong listed stocks:

(8007) Digitalhongkong.com: cumulative 3rd quarter results ended December: revenue of HK$3.755m (+2%), net profit of HK$0.543m (+27%), EPS of HK$0.004(+27%) and DPS of HK$0.

(8008) SunEVision: first half results ended December: revenue of HK$132.383m (+10%), net profit of HK$125.333m (+204%), EPS of HK$0.062(+203%) and DPS of HK$0.

(8026) Prosten Technology: cumulative 3rd quarter results ended December: revenue of HK$48.869m (+14%), net loss of HK$-19.839m (-35%), EPS of HK$0.039(-35%) and DPS of HK$0.

(8136) FX Creations: cumulative 3rd quarter results ended December: revenue of HK$54.154m (+2%), net loss of HK$0.285m (-95%), EPS of HK$0.001(-95%) and DPS of HK$0.

(8203) Ultra Group: cumulative 3rd quarter results ended December: revenue of HK$183.905m (+59%), net profit of HK$12.926m (+506%), EPS of HK$0.024(+498%) and DPS of HK$0.

(8213) Armitage: cumulative 3rd quarter results ended December: revenue of HK$44.6m (+25%), net loss of HK$1m (-83%), EPS of HK$0.150(-81%) and DPS of HK$0.



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

(765) Perfectech bought back 290,000 shares on 08/02/2006 for HK$0.528 per share on average.

(1062) New Capital bought back 710,000 shares on 08/02/2006 for HK$0.158 per share on average.

(566) RBI Holdings bought back 408,000 shares on 08/02 /2006 for HK$1.200 per share on average.

(1105) Singtao News bought back 1,270,000 shares on 08/02/2006 for HK$0.565 per share on average.

(981) SMIC bought back 671,500 shares on 08/02/2006 for HK$0.291 per share on average.

(700) Tencent bought back 1,650,000 shares on 08/02/2006 for HK$9.839 per share on average.


EVENT CALENDAR FOR TODAY - Table of Contents - Prev - Next

The following widely held Hong Kong listed stocks report today:

(23) Bank of East Asia: full year results (year end 12/31/05) due today. Consensus expects revenue of HK$5,732m, net income of HK$2,513m, EPS of HK$1.681 and DPS of HK$1.138.


No relevant entries in this section.


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


Disclosures by major shareholders

(3383) Agile  shareholder JPMorgan Chase & Co. obtained an interest in 11750000 shares (triggering the 5% threshold) on on 03/02/2006.  The interest went from 171,095,170 (long) (4.94%),  25,745,170 (lending) (0.74%)  shares to 182,845,170 (long) (5.28%),  26,595,170 (lending) (0.77%)  shares.

(347) Angang New Steel (H)  shareholder JPMorgan Chase & Co. disclosed an interest in 6846000 shares on on 03/02/2006.  The interest went from 102,517,000 (long) (11.52%),  39,830,000 (lending) (4.48%)  shares to 109,363,000 (long) (12.29%),  41,030,000 (lending) (4.61%)  shares.

(21) Beauforte  shareholder Get Nice Incorporated obtained an interest in 70000000 shares (triggering the 5% threshold) on on 07/02/2006.  The interest went from  (long) (0%)  shares to 70,000,000 (long) (19.92%)  shares.

(392) Beijing Enterprises  shareholder Deutsche Bank Aktiengesellschaft varied the relevant holding by 4901500 shares, trigging a whole percentage number threshold on on 02/02/2006.  The interest went from 94,142,200 (long) (15.12%),  22,593,000 (short) (3.63%)  shares to 89,240,700 (long) (14.34%),  22,693,000 (short) (3.65%)  shares.

(632) China Merchants Dichain Asia  shareholder Farsight Holdings Limited varied the relevant holding by 6000000 shares, trigging a whole percentage number threshold on on 07/02/2006.  The interest went from 2,607,523,083 (long) (47.95%)  shares to 2,601,523,083 (long) (47.84%)  shares.

(728) China Telecom (H)  shareholder JPMorgan Chase & Co. disclosed an interest in 54116000 shares on on 03/02/2006.  The interest went from 987,004,583 (long) (7.11%),  566,984,583 (lending) (4.09%)  shares to 932 ,888,583 (long) (6.72%),  536,878,583 (lending) (3.87%)  shares.

(855) China Water Affairs  shareholder Deutsche Bank Aktiengesellschaft varied the relevant holding by 2530000 shares, trigging a whole percentage number threshold on on 03/02/2006.  The interest went from 39,000,000 (long) (7.24%)  shares to 36,470,000 (long) (6.77%)  shares.

(362) Daqing Petroleum & Chemical  shareholder Pope Asset Management, LLC varied the relevant holding by 5000000 shares, trigging a whole percentage number threshold on on 07/02/2006.  The interest went from 178,645,000 (long) (10.7%)  shares to 183,645,000 (long) (11%)  shares.

(1072) Dongfang Elect. Machinery (H)  shareholder Fidelity International Limited varied the relevant holding by 840000 shares, trigging a whole percentage number threshold on on 06/02/2006.  The interest went from 8,608,000 (long) (5.06%)  shares to 7,768,000 (lo ng) (4.57%)  shares.

(8317) Finet  shareholder Nebulamart Limited obtained an interest in 38738477 shares (triggering the 5% threshold) on on 06/02/2006.  The interest went from  (long) (0%)  shares to 38,738,477 (long) (7.8%)  shares.

(809) Global Bio-Chem Technology  shareholder Morgan Stanley lent 182000 shares on on 06/02/2006.  The interest went from 161,624,977 (long) (6.97%),   18,454,141 (short) (0.8%),    (lending) (0%)   shares to 161,624,177 (long) (6.97%),   18,456,141 (short) (0.8%),    (lending) (0%)   shares.

(525) Guangshen Railway  shareholder Sumitomo Life Insurance Company varied the relevant percentage holding by a whole number on on 03/02/2006.  The interest went from 101,432,000 (long) (7.09%),    (short) (0%),    (lending) (0%)   shares to 97,328,000 (long) (6.8%),    (short) (0%),   &nb sp;(lending) (0%)   shares.

(2777) R&F Properties  shareholder Pleasant View Limited varied the relevant holding by 300000 shares, trigging a whole percentage number threshold on on 07/02/2006.  The interest went from  (long) (0%)  shares to 300,000 (long) (0.14%)  shares.

(2332) Hutchison Telecom  shareholder Massachusetts Financial Services Company ("MFS") disposed of an interest in 2000000 shares, ceasing to have a position of 5% on on 06/02/2006.  The interest went from 238,356,970 (long) (5.02%)  shares to 236,356,970 (long) (4.97%)  shares.

(8065) Innovis  shareholder Haijing Holdings Limtied disclosed an interest in 134500000 shares on on 09/02/2006.  The interest went from 211,229,000 (long) (56.33%)  shares to 345,729,000 (long) (61.46%)  shares.

(1083) Panva Gas  shareholder Deutsche Bank Aktiengesellschaft disposed of an interest in 156000 shares, ceasing to have a position of 5% on on 02/02/2006.  The interest went from 47,143,694 (long) (5%),  290,000 (short) (0.03%)  shares to 46,987,694 (long) (4.99%),  290,000 (short) (0.03%)  shares.

(304) Peace Mark  shareholder Arisaig Partners (Mauritius) Limited varied the relevant holding by 870000 shares, trigging a whole percentage number threshold on on 06/02/2006.  The interest went from 75,500,119 (long) (7.63%)  shares to 74,630,119 (long) (7.54%)  shares.

(566) RBI Holdings  shareholder Arisaig Greater China Fund Limited disposed of an interest in 442000 shares, ceasing to have a position of 5% on on 07/02/2006.  The interest went from 17,050,000 (long) (5.11%)  shares to 16,608,000 (long) (4.97%)  shares.

(566) RBI Holdings  shareholder Cooper Lindsay William Ernest disposed of an interest in 442000 shares, ceasing to have a position of 5% o n on 07/02/2006.  The interest went from 17,050,000 (long) (5.11%)  shares to 16,608,000 (long) (4.97%)  shares.

(2324) Sino Katalytics Investment Corporation  shareholder Li Yiu Keung varied the relevant holding by 300000 shares, trigging a whole percentage number threshold on on 07/02/2006.  The interest went from 12,700,000 (long) (13.05%)  shares to 13,000,000 (long) (13.36%)  shares.

(397) Starbow  shareholder Tsang Chiu Ming varied the relevant percentage holding by a whole number on on 26/01/2006.  The interest went from 50,000,000 (long) (5.66%)  shares to 50,000,000 (long) (4.72%)  shares.

(511) TVB  shareholder OppenheimerFunds, Inc disposed of an interest in 3537690 shares, ceasing to have a position of 5% on on 07/02/2006.  The interest went from 25,154,600 (long) (5.74%)  shares to 21,616,910 (long) (4.94%)  shares.

(39) Wealthmark  shareholder Ho Ka Wang disposed of an interest in 2000000 shares, ceasing to have a position of 5% on on 06/02/2006.  The interest went from 15,000,000 (long) (5%)  shares to 13,000,000 (long) (4.33%)  shares.

(8277) Wumart  shareholder Oppenheimerfunds, Inc. obtained an interest in 2695000 shares (triggering the 5% threshold) on on 07/02/2006.  The interest went from 4,000,000 (long) (3.79%)  shares to 6,695,000 (long) (6.34%)  shares.


Disclosures by directors and insiders

(77) AMS Public Transport  director Ng Sui Chun obtained an interest in 32000 shares on on 07/02/2006.  The interest went from 156,212,000 (long) (68.66%)  shares to 156,244,000 (long) (68.68%)  shares.

(519) Applied International  director Hung Kai Mau Marcus obtained an interest in 40000 shares on on 06/02/2006.  The interest went from 1,660,000 (long) (0.18%)  shares to 1,700,000 (long) (0.18%)  shares.

(682) Chaoda Agriculture  director Chan Chi Po exercised a right or an option in respect of 200000 shares on on 06/02/2006.  The interest went from 201,500 (long) (0.01%)  shares to 401,500 (long) (0.02%)  shares.

(1109) China Resources Land  director Keung Chi Wang Ralph exercised a right or an option in respect of 1300000 shares on on 03/02/2006.  The interest went from 3,300,000 (long) (0.11%)  shares to 3,300,000 (long) (0.11%)  shares.

(828) Dynasty Fine Wines  director Cheung Benny Wai Ying entered into a contract to sell 336000 shares on on 06/02/2006.  The interest went from 10,336,000 (long) (0.83%)  shares to 10,000,000 (long) (0.8%)  shares.

(60) Four Seas Good  director Tai Tak Fung obtained an interest in 50000 shares on on 07/02/2006.  The interest went from 88,525,177 (long) (34.1%)   ;shares to 88,575,177 (long) (34.12%)  shares.

(2777) R&F Properties  director Li Sze Lim obtained an interest in 20000 shares on on 08/02/2006.  The interest went from 200,000 (long) (0.09%)  shares to 220,000 (long) (0.1%)  shares.

(3) HK & China Gas  director Lee Ka Shing obtained an interest in 1645000 shares on on 03/02/2006.  The interest went from 2,169,751,776 (long) (39.39%)  shares to 2,171,396,776 (long) (39.42%)  shares.

(754) Hopson Development  director Tam Lai Ling exercised a right or an option in respect of 3000000 shares on on 06/02/2006.  The interest went from 5,000,000 (long) (0.41%)  shares to 5,000,000 (long) (0.41%)  shares.

(8065) Innovis  director Chao Pang Fei obtained an interest in 134500000 shares on on 09/02/2006.  The interest went from 211,229,000 (long) (56.33%)  shares to 345,729,000 (long) (61.46%) & nbsp;shares.

(683) Kerry Properties  director Ho Shut Kan disposed of 55000 shares on on 07/02/2006.  The interest went from 967,044 (long) (0.08%)  shares to 912,044 (long) (0.07%)  shares.

(1131) Kwong Hing Intl  director Li Mei Lin obtained an interest in 100000 shares on on 07/02/2006.  The interest went from 165,588,000 (long) (42.61%)  shares to 165,688,000 (long) (42.64%)  shares.

(234) New Century Group  director Ng Lilian obtained an interest in 400000 shares on on 07/02/2006.  The interest went from 755,224,773 (long) (67.48%)  shares to 755,624,773 (long) (67.52%)  shares.

(234) New Century Group  director Ng Siew Lang, Linda obtained an interest in 200000 shares on on 06/02/2006.  The interest went from 756,524,773 (long) (67.6%)  shares to 756,724,773 (long) (67.61%)  shares.

(234) New Century Group  director Ng Wee Keat obtained an interest in 200000 shares on on 06/02/2006.  The interest went from 756,524,773 (long) (67.6%)  shares to 756,724,773 (long) (67.61%)  shares.

(234) New Century Group  director Ng Wilson obtained an interest in 200000 shares on on 06/02/2006.  The interest went from 757,024,773 (long) (67.64%)  shares to 757,224,773 (long) (67.66%)  shares.

(234) New Century Group  director Sio Ion Kuan obtained an interest in 400000 shares on on 07/02/2006.  The interest went from 765,592,773 (long) (68.41%)  shares to 765,992,773 (long) (68.44%)  shares.

(577) Paul Y. Engineering  director Lee Hon Chiu obtained an interest in 1500000 shares on on 03/02/2006.  The interest went from  (long) (0%)  shares to 1,500,000 (long) (0.26%)  shares.

(531) Samson Holdings  director Aminozzakeri Mohamad assigned a righ t for 250000 shares for subscription on on 06/02/2006.  The interest went from  (long) (0%)  shares to 250,000 (long) (0.01%)  shares.

(751) Skyworth  director Ding Kai exercised a right or an option in respect of 1000000 shares on on 06/02/2006.  The interest went from 12,000,000 (long) (0.53%)  shares to 12,000,000 (long) (0.53%)  shares.

(403) Starlite Holdings  director Lam Kwong Yu obtained an interest in 100000 shares on on 07/02/2006.  The interest went from 230,062,174 (long) (53.57%)  shares to 230,162,174 (long) (53.59%)  shares.

(1223) Symphony Holdings  director Chan Lu Min disposed of 10449896 shares on on 06/02/2006.  The interest went from 10,449,896 (long) (0.63%)  shares to  (long) (0%)  shares.

(1223) Symphony Holdings  director Cheng Kar Shing disposed of 329997 shares on on 06/02/2006.  The interest w ent from 329,997 (long) (0.02%)  shares to  (long) (0%)  shares.

(1223) Symphony Holdings  director Li Kwok Lung Alfred Ronald disposed of 5499945 shares on on 06/02/2006.  The interest went from 33,939,831 (long) (2.04%)  shares to 28,439,886 (long) (1.71%)  shares.

(700) Tencent  director Ma Huateng disclosed a transaction involving 232483080 shares on on 07/02/2006.  The interest went from 232,483,080 (long) (13.17%),   (short) (0%)  shares to 232,483,080 (long) (13.17%),   (short) (0%)  shares.

(273) Willie International  director Wong Ying Seung Asiong obtained an interest in 7840000 shares on on 07/02/2006.  The interest went from 34,336,000 (long) (1.11%)  shares to 42,176,000 (long) (1.36%)  shares.

(259) Yeebo  director Li Kwok Wai Frankie obtained an interest in 100000 shares on on 07/02/2006.  The interest wen t from 722,148,381 (long) (69.2%)  shares to 722,248,381 (long) (69.21%)  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.