Muse China & Hong Kong

Muse China & Hong Kong (beta version) - Daybreak 630am Beijing/HK time - Monday, 13 February, 2006

HEADS UP - Top - Next
Welcome back to the trading floor and we hope that you have had a nice weekend off. Front page headlines on most HK newspapers that we saw are about the Marathon on Sunday sponsored by Standard Chartered which saw several people injured due to heavy exercise in a polluted environment with bad air quality. On the finance pages, the well known stories are reported: HSI rebalancing and entry of H shares. Apple Daily ran a complaint from CLP (2 HK) about the government's policy failure in invest ments in energy protection. The epic battle between coal and power companies still dominate China pages. (Denise Andersen, Theresa Neale).

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

(65) Pacific Century Ins: Sino Life deal in progress
China Business News interviewed the managing director of Sino Life who said that Pacific Century Insurance's acquisition of a stake in Sino Life looks set to be completed this month. PCI currently holds an indirect 22% stake in Sino Life through convertible notes worth HK$508m.
(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.

(966) China Insurance Intl: Asset management unit permitted to manage insurers' foreign exchange funds
China Business News reported citing an unnamed official at CIIH that the company's asset management affiliate looks set to become the first asset manager affiliated with an insurer to be permitted to manage the foreign exchange funds of insurance companies; in China insurers permitted to invest overseas currently tend to use major foreign banks such as Citibank and HSBC as asset managers, according to the report.
(966 HK) @ HK$3.3: market cap. US$573.2m, daily liquidity US$0.4m. Broker forecasts: 5 buys, 3 hol ds, 1 sells, 0.0x current year P/E, 0.2% yield.

(1088) Shenhua Energy: Shenhua Group said long term coal contracts saw RMB15/tonne price rise; Yanzhou signs none
Also: (1171) Yanzhou Coal (H).
China National Business News quoted an unnamed investor relations official at Shenhua Group (parent of Shenhua Energy) as stating that its long term contracts (80% of full year sales) had already been signed with a RMB15 increase in coal prices. The report also stated without citing a source that Yanzhou Coal has signed absolutely no long term contracts as it believes in strong coal prices and a supply short fall in coal for electricity use.
(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.

(8277) Wumart: MerryMart sale to Wumart due to Wumart's willingness to retain current management
The Economic Observer interviewed the managing director of Beijing MerryMart (Meilianmei) who said that they chose to sell a 75% controlling stake to Wumart instead of to foreign partners as Wumart allowed current management to stay in control and retain its brand whilst all foreign partners were looking to evict current management and impose their own brands.
(8277 HK) @ HK$16.3: market cap. US$0.0m, daily liquidity US$0.0m. Broker forecasts: 4 buys, 7 holds, 3 sells, 28.7x current year P/E, 1.3% yield.

SECTOR TALK - Table of Contents - Prev - Next

Mainland China Industries

China Auto: Beijing Hyundai cuts prices, launches new vehicles
Beijing Star Daily reported that Beijing Hyundai has cut prices on its Elantra sedans by RMB8,000 with Sonata prices also down by RMB8,000-10,000. Beijing Hyundai has also launched its low emissions Accent vehicles with prici ng in the RMB80k range; deliveries will start at the end of this month, according to the newspaper.

China Auto: China officials exports more cars than imports by volume
The Ministry of Commerce said China exported more than 170k vehicles worth nearly US$1.6bn in 2005 whilst it imported just under 170k vehicles worth US$5.2bn at the same time, marking the first time that China exported more vehicles by volume compared with imports.

China Oils: Refining industry lost RMB30bn in 2005; reiterates scope for improving pricing mechanism
The National Development and Reform Commission said in a report that China's refining industry had a net loss of RMB30bn in 2005 compared to a profit of RMB20.8bn in 2004 as oil prices kept rising with refining prices were held at unprofitable levels but reiterated that relevant authorities are looking at improving the pricing mechanism for refined products.

China Retail: Jingkelong acquires Blue Island Tower
Beijing Business reported that the soon to be listed Jingkelong chain in Beijing has acquired the rights to the Blue Island Tower department store in Chaoyang as the convenience store chain seeks to diversify into other retail formats ahead of its IPO in Hong Kong. According to its web site Blue Island Tower has 27k sqm of retail space and started operations in 1993.

MANAGEMENT TALK - Table of Contents - Prev - Next

Stocks listed in Hong Kong

(1114) Brilliance China Auto: Brilliance looks to sell more cars, tries to repay its CB
Apple Daily reported on Saturday, citing the company's new CEO that the company targets to sell at least 100k vehicles this year, 42% more than previous year's 70k. However, company has no intention to raise funds further and is still under discussion o n how to repay its US$200m CB due at the end of November this year.
(1114 HK) @ HK$1.19: market cap. US$573.8m, daily liquidity US$2.2m. Broker forecasts: 3 buys, 0 holds, 12 sells, 0.0x current year P/E, 0.6% yield.

DEAL TALK - Table of Contents - Prev - Next

No relevant entries in this section.

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

Stocks listed in Hong Kong

(8) PCCW: Apple Daily reported on Sunday that over 310k people applied for its free 3G trial service as of 10 February.

(13) Hutchison Whampoa: The company said it has sold a 10% stake in 3 Italia to Goldman Sachs (with the latter having a right to sell back the stake in 3 years time) for Euro420m to establi sh pricing benchmarks for the firm as it calls off its IPO. The company is 50.0% owned by (1 HK) Cheung Kong.

(64) Get Nice: The company had terminated negotiations with Golden Capital, an individual third party on a securities joint venture and the HK$6m it had raised will be used as company general operating costs.

(242) Shun Tak Holdings: Apple Daily reported that the company's airline, Hong Kong Express will follow its original plan to start Hong Kong to Nanjing route in April even though its only two remaining routes Hanzhou and Ninbao are still losing money and having earlier axed its Hong Kong-Guangzhou route.

(343) Culturecom: The company terminated its acquisition of assets and licence of certain technologies from Transmeta and received a refund of HK$89m.

(412) Heritage International: The company and Universal Technology Systems (holding 19.5% interest of the compa ny) is currently under negotiation on the possibility on developing the soft and hardwares of lottery ticket machines in Mainland.

(416) GST Holdings: The company said one of its fire detectors has won an invention patent in Mainland China.

(563) Neo-China: The stock is suspended pending an announcement on issuing new shares.

(697) Shougang Concord Intl: The stock is suspended pending an announcement on issuing new shares.

(731) Samson Paper: The company signed a syndicated loan comprised 11 local and international banks for HK$300m for a term of 3.5 years.

(751) Skyworth: The company said it has appointed Lin Wei-ping, spouse of chairman Wong Wang-sang (who is currently facing fraud charges) as an executive director of the company.

(883) CNOOC Limited: The company said its Huizhou field in China Sea is producing 1,500 barrels of oil per day via one well currently; the peak gross production capacity of the field is 2,000 barrels of oil per day.

(1068) Yurun Food: China National Business Daily reported that Yurun is looking to add 500 sellers of Yurun hot food products through franchising in Shanghai.

(2369) China Wireless: The company said its wholly owned subsidiary in Shenzhen signed an agreement with Qualcomm of US worth several million US dollars to jointly develop, manufacture and market 3G CDMA standard mobile phone sets.

(2788) Yorkey: The stock rose 64% to hit HK$3.875 per share at one time on the first day of trading, the best performance for recent IPOs.

FINANCIAL RESULT ANNOUNCEMENTS - Table of Contents - Prev - Next

Financial results for the following widely held Hong Kong listed stock s:

(23) Bank of East Asia: full year results ended December 9% ABOVE consensus.
Revenue of HK$3760m (4%) (vs forecast HK$5,732m), net loss of HK$2748.7m (17%) (vs forecast HK$2,513m), EPS of HK$1.83(15%) vs forecast HK$1.681), DPS of HK$0.93 (vs forecast HK$1.138).

(53) Guoco Group: 3rd quarter results ended March 39% ABOVE consensus.
Revenue of HK$6179m (23%) (vs forecast HK$2,022m), net profit of HK$3752m (140%) (vs forecast HK$2,690m), EPS of HK$0.024(140%) vs forecast HK$8.781), DPS of HK$1. (Forecast figures based on full year estimates).

Financial results for the following Hong Kong listed stocks:

(182) Hong Kong Pharma: 3rd quarter results ended March: revenue of HK$63m (-55%), net loss of HK$-4m (-95%), EPS of HK$0.024(-95%) and DPS of HK$0.

(188) SW Kingsway Capital: second half results ended December: revenue of HK$71164m (-26%), net profit of HK$26215m (-56%), EPS of HK$0.024(-56%) and DPS of HK$ 0.33.

(8009) IMerchants: 3rd quarter results ended March: revenue of HK$0.3m (-85%), net profit of HK$7m (-333%), EPS of HK$0.024(-401%) and DPS of HK$0.

(8046) Tiger Tech: 2nd quarter results ended June: revenue of HK$5m (150%), net loss of HK$-1m (-85%), EPS of HK$0.024(-92%) and DPS of HK$0.

(8050) Flexsystem: 3rd quarter results ended March: revenue of HK$55m (12%), net profit of HK$3m (650%), EPS of HK$0.024(628%) and DPS of HK$0.

(8130) Mikyway Image: 3rd quarter results ended March: revenue of HK$1m (-97%), net loss of HK$-15m (1400%), EPS of HK$0.024(911%) and DPS of HK$0.

(8143) Grandy Corp: 3rd quarter results ended March: revenue of HK$24m (-4%), net profit of HK$1m (-150%), EPS of HK$0.024(-130%) and DPS of HK$0.

(8153) China Chief Cable TV: 3rd quarter results ended March: revenue of HK$12m (33%), net loss of HK$-14m (180%), EPS of HK$0.024(156%) and DPS of HK$0.

(8175) Kanhan Technologies: 3rd quarter results ended March: revenue of HK$66m (8%), net profit of HK$4m (-55%), EPS of HK$0.024(-58%) and DPS of HK$0.

(8200) Sau San Tong: 3rd quarter results ended March: revenue of HK$224m (83%), net loss of HK$-38m (22%), EPS of HK$0.024(7%) and DPS of HK$0.

(8206) ChinaInfo: 3rd quarter results ended March: revenue of HK$2m (-50%), net loss of HK$4m (-300%), EPS of HK$0.024(75%) and DPS of HK$0.

(8239) MP Logistics: 3rd quarter results ended March: revenue of HK$58m (-3%), net loss of HK$-6m (50%), EPS of HK$0.024(54%) and DPS of HK$0.

(8266) Mobile Telecom Network: 3rd quarter results ended March: revenue of HK$14m (-12.5%), net loss of HK$-2m (-33%), EPS of HK$0.024(-50%) and DPS of HK$0.

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

(1037) Daiwa Associate bought back 20,000 shares o n 09/02/2006 for HK$0.500 per share on average.

(765) Perfectech bought back 140,000 shares on 09/02/2006 for HK$0.513 per share on average.

(1105) Singtao News bought back 1,670,000 shares on 09/02/2006 for HK$0.580 per share on average.

(700) Tencent bought back 691,000 shares on 09/02/2006 for HK$9.883 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

(347) Angang New Steel (H) shareholder Deutsche Bank Aktiengesellschaft varied the relevant short position by 568000 shares, tri gging a whole percentage number threshold on on 02/02/2006. The interest went from 52,222,167 (long) (5.87%), 36,020,180 (short) (4.05%) shares to 52,698,167 (long) (5.92%), 35,452,180 (short) (3.98%) shares.

(395) Asia Zirconium shareholder Value Partners Limited varied the relevant holding by 676000 shares, trigging a whole percentage number threshold on on 06/02/2006. The interest went from 40,516,000 (long) (8.04%) shares to 39,840,000 (long) (7.9%) shares.

(193) Capital Estate shareholder Hill David Henry Christopher obtained an interest in 166430500 shares (triggering the 5% threshold) on on 31/12/2005. The interest went from (long) (0%) shares to 166,430,500 (long) (12.56%) shares.

(193) Capital Estate shareholder Newcorp Holdings Ltd. voluntarily disclosed an interest in shares on on 09/02/2006. The interest went from 166,430,500 (long) (12.56%) shares to 166,430,500 (long) (12.56%) shares.

(193) Capital Estate shareholder Roberts David William obtained an interest in 166430500 shares (triggering the 5% threshold) on on 31/12/2005. The interest went from (long) (0%) shares to 166,430,500 (long) (12.56%) shares.

(632) China Merchants Dichain Asia shareholder Farsight Holdings Limited varied the relevant holding by 44000000 shares, trigging a whole percentage number threshold on on 08/02/2006. The interest went from 2,601,523,083 (long) (47.84%) shares to 2,557,523,083 (long) (47.03%) shares.

(991) Datang Intl Power shareholder UBS AG varied the relevant holding by 6191000 shares, trigging a whole percentage number threshold on on 06/02/2006. The interest went from 217,489,926 (long) (15.2%), 49,279,821 (short) (3.44%) shares to 211,298,926 (long) (14.77%), 47,688,821 ( short) (3.33%) shares.

(35) Far East Consortium shareholder Cheah Cheng Hye obtained an interest in 1904000 shares (triggering the 5% threshold) on on 06/02/2006. The interest went from 70,964,000 (long) (4.96%) shares to 72,868,000 (long) (5.09%) shares.

(8317) Finet shareholder Finet International Holdings Limited disclosed an interest in 91460028 shares on on 06/02/2006. The interest went from 365,840,000 (long) (73.68%) shares to 274,379,972 (long) (55.26%) shares.

(8317) Finet shareholder United Business Media PLC 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.

(525) Guangshen Railway shareholder Sumitomo Mitsui Asset Management Company, Limited varied the relevant holding by 5750000 shares, trigging a wh ole percentage number threshold on on 07/02/2006. The interest went from 91,178,000 (long) (6.37%), (short) (0%), (lending) (0%) shares to 85,428,000 (long) (5.97%), (short) (0%), (lending) (0%) shares.

(317) Guangzhou Shipyard shareholder Everest Capital Limited varied the relevant holding by 1870000 shares, trigging a whole percentage number threshold on on 08/02/2006. The interest went from 7,824,000 (long) (4.97%) shares to 9,694,000 (long) (6.16%) shares.

(448) Hang Ten Group shareholder Value Partners Limited varied the relevant percentage holding by a whole number on on 06/02/2006. The interest went from 83,500,000 (long) (9.82%) shares to 83,500,000 (long) (8.5%) shares.

(148) Kingboard Chemical shareholder The Capital Group Companies, Inc. varied the relevant holding by 548500 shares, trigging a whole per centage number threshold on on 06/02/2006. The interest went from 95,562,969 (long) (12.07%) shares to 95,014,469 (long) (12%) shares.

(980) Lianhua Supermarket shareholder Fidelity International Limited varied the relevant holding by 400000 shares, trigging a whole percentage number threshold on on 06/02/2006. The interest went from 18,576,000 (long) (8.97%) shares to 18,976,000 (long) (9.17%) shares.

(9) Mandarin Entertainment shareholder Zee Ven Chu Lydia voluntarily disclosed an interest in 80000 shares on on 08/02/2006. The interest went from 157,544,000 (long) (47.74%) shares to 157,624,000 (long) (47.76%) shares.

(8085) New Chinese Medicine shareholder Ng Siu Fung varied the relevant holding by 69444445 shares, trigging a whole percentage number threshold on on 08/02/2006. The interest went from 138,888,890 (long) (19.67%) shares to 69,444,445 (lon g) (9.84%) shares.

(1207) Shanghai Real Estate shareholder Morgan Stanley received the return of 1000000 shares previously lent on on 06/02/2006. The interest went from 117,576,218 (long) (7.79%), 45,354,000 (short) (3%), (lending) (0%) shares to 117,576,218 (long) (7.79%), 45,354,000 (short) (3%), (lending) (0%) shares.

(338) SNP Shanghai Petroleum shareholder Credit Suisse Group varied the relevant short position by 11236000 shares, trigging a whole percentage number threshold on on 03/02/2006. The interest went from 155,784,869 (long) (6.69%), 129,824,000 (short) (5.57%), 5,585,110 (lending) (0.24%) shares to 162,175,869 (long) (6.96%), 141,060,000 (short) (6.05%), 5,585,110 (lending) (0.24%) shares.

(1063) Suncorp Technologies shareholder GAM Hong Kong Limited obtained an interest in 8976000 shares (trig gering the 5% threshold) on on 14/08/2003. The interest went from 7,800,000 (long) (2.78%) shares to 16,776,000 (long) (5.97%) shares.

(1063) Suncorp Technologies shareholder GAM Hong Kong Limited varied the relevant holding by 1500000 shares, trigging a whole percentage number threshold on on 21/08/2003. The interest went from 18,600,000 (long) (6.62%) shares to 20,100,000 (long) (7.16%) shares.

(2338) Weichai Power shareholder Government of Singapore Investment Corporation Pte Ltd varied the relevant percentage holding by a whole number on on 07/02/2006. The interest went from 10,511,000 (long) (8.31%) shares to 9,605,000 (long) (7.59%) shares.

(8259) Andre Juice shareholder Mitsui & Co., Ltd. obtained an interest in 28245000 shares (triggering the 5% threshold) on on 08/02/2006. The interest went from 22,725,000 (long) (4.07%) shares to 28,245,000 (lon g) (5.06%) shares.

Disclosures by directors and insiders

(682) Chaoda Agriculture director Ip Chi Ming disposed of 600000 shares on on 09/02/2006. The interest went from 35,200,000 (long) (1.49%) shares to 34,600,000 (long) (1.46%) shares.

(1051) Credit Card DNA Security director Ha Ping assigned a right for 2000000 shares for subscription on on 07/02/2006. The interest went from 1,000,000 (long) (0.01%) shares to 3,000,000 (long) (0.02%) shares.

(1051) Credit Card DNA Security director Sin Chi Keung, Mega assigned a right for 5000000 shares for subscription on on 07/02/2006. The interest went from 5,000 (long) (0%) shares to 5,005,000 (long) (0.04%) shares.

(1051) Credit Card DNA Security director Wong Che Man Eddy assigned a right for 2000000 shares for subscription on on 07/02/2006. The interest went fro m 1,000,000 (long) (0.01%) shares to 3,000,000 (long) (0.02%) shares.

(1051) Credit Card DNA Security director Wong Kam Fu assigned a right for 100000000 shares for subscription on on 07/02/2006. The interest went from 3,101,376,543 (long) (24.05%) shares to 3,201,376,543 (long) (24.83%) shares.

(8317) Finet director Yu Gang disclosed a transaction involving 91460028 shares on on 06/02/2006. The interest went from 393,566,000 (long) (79.26%) shares to 302,105,972 (long) (60.84%) shares.

(3366) Huali director Zhou Guang Neng obtained an interest in 1700000 shares on on 07/02/2006. The interest went from (long) (0%) shares to 1,700,000 (long) (0.85%) shares.

(273) Willie International director Wong Ying Seung Asiong obtained an interest in 13700000 shares on on 08/02/2006. The interest went from 42,176,000 (long) (1 .36%) shares to 55,876,000 (long) (1.8%) 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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