Nomad Investors

Citi Lifts CKI HOLDINGS (01038.HK) Target to $77; Rated Buy Citigroup, in its report, reiterated Buy on CKI HOLDINGS (01038.HK)    +0.200 (+0.298%)       Short selling $32.50M; Ratio 31.691%      with target price raised from $75.5 to $77. The broker said considered that CKI has acquired Canadian company Reliance and German energy management company ista, hence raised CKI's net profit forecast for 2017/18/19 by 5%/7%/8%. The broker said CKI is still the top pick among utility stocks in Hong Kong, and its M&As can boost the EPS performance. Also, POWER ASSETS (00006.HK)    +0.150 (+0.222%)       Short selling $25.78M; Ratio 17.542%      's special dividend payout can support CKI's M&As in terms of capital. The 25% stake acquisition in Reliance can boost CKI's net profit by $75 million in 2017 and $223 million in 2018. The 35% stake acquisition in ista can contribute $120 million and $720 million net profit in 2017 and 2018 to CKI respectively.

Morgan cuts Zhaojin Mining (01818) to HK$8.02 Morgan Stanley cut its target price for Zhaojin Mining Industry (01818) to HK$8.02 from HK$8.2 and maintained its "overweight" rating.   The research house raised its 2017-19 net profit forecasts for Zhaojin by 41%, 23% and  15%, respectively, mainly on better-than-expected cost control achieved in 1H results.   Despite lower volumes, Morgan said Zhaojin's gross margin improved by 59bp with its better costs. It lowered SG&A cost forecast by 3% for this year, and incorporated 2017 new gold price forecast of US$1,263/oz (versus US$1,245 previously).    Morgan said Zhaojin has a high correlation with the gold price at nearly 90%. It is a pure gold play, with 89% of gross profit contribution from gold. 

HKTV (01137) to buy automation system at HK$141m Hong Kong Television Network (HKTV) (said it will acquire from Schaefer Systems international Ltd. an automation system at EUR14.41 milion plus HK$8.37 million (equivalent  to about HK$14  million).   The automation system comprises a conveying system, an automatic picking system, an automatic storage and retrieval system and tote handling systems including the software for the material flow control and automatic management.   HKTV believes the automation system to be installed in HKTV Multimedia and Ecommerce  Centre, located at No.1 Chun Cheong Street, Tseung Kwan O Industrial Estate, will significantly improve the operational efficiency and enhance the order handling capacity  to meet the increasing demand of the growing online shopping market.

Morgan raises CMOC (03993) to HK$5.6 Morgan Stanley raised its target price for China Molybdenum (CMOC)(03993) to HK$5.6 from  HK$3.5, and maintained its "overweight" rating.   The research house raised copper volume of NPM (Northparkes copper/gold mine operated by CMOC in Australia) in 2017-19 to reflect higher recovery rate and raised cobalt volume of Tenke slightly in 2018-19 to reflect normalized seasonality (1H was weighed by heavy  rains).   On the cost side, Morgan lowered moly cash cost as 1H cost realization was better than  it had expected; meanwhile, Morgan lifted tungsten cash cost assumption to reflect  potential impact from environmental controls in China. That said, it still believes overall price increase will more than offset cost hikes in the segment.   The above changes lead to limited adjustments in its 2017 earnings forecast but 54% and 48% earnings improvements in 2018 and 2019, respectively, or -22%, 21% and 16% changes in its 2017-19 EPS, respecti

Country Garden (02007) to assign assets to chairman's sister Country Garden (02007) said it agreed to assign to Guangdong Elite Architectural Co,ltd the rights to all income of certain assets and the right to dispose of and manage the  assets at Rmb2,647 million.   The assets comprise certain shops, composite buildings, parking spaces, commercial premises and/or residential premises held by the subsidiaries of Country Garden respectively, which are unsold and idle for one year or longer.   Upon completion, it is expected that the Group will record a gain of about Rmb924 million from the assignments. Country Garden intends to use the proceeds as general working capital for the Group.   Elite Architectural Co. is wholly-owned by a PRC limited liability company, the two shareholders of which are another PRC limited liability company and a PRC limited partnership enterprise each owned as to 70% by Yang Meirong, a younger sister of Yeung Kwok Keung who is the Chairman of the Board 

Morgan raises Chalco (02600) to HK$8 Morgan Stanley raised its target price for Chalco (02600) to HK$8 from HK$4.7 and maintained its "overweight" rating. The research house lifted its alumina price assumptions by 12-16% in 2017-19 versus 3-9% in aluminium price, as it expects net shortage of alumina this winter in "2+26" regions,  plus tight bauxite supply under environmental control, providing more upside for alumina.   Morgan also factored in a 720Kt alumina volume decline expected by the company due to winter production cuts in Shandong. However, it believes the company has been ramping up  alumina capacity since 3Q amid strong alumina price rally, which could more than offset volume decline. This results in increases of 31%, 83% and 62% in Morgan's 2017-19 EPS forecasts

China Saite (00153) may buy stake in Thailand property biz China Saite Group (00153) said it entered into a memorandum of understanding in relation to  the possible acquisition of the entire issued share capital of Good Effort International ltd.   The target company holds 13% of the equity interests in Hydoo Best. Hydoo Best is a company incorporated in Thailand with limited liability and is principally engaged in real estate development. The principal assets of Hydoo Best is a parcel of land with a site  area of 147,092.4 square metres Hydoo Best proposes to develop such land into a mixed-used property of a total gross build up area of not less than 2.34 million square metres, which includes a permanent exhibition mall, 1-storey permanent exhibition shop, exhibition-convention hall, hotel and Supan-Nahong Building, to be located at Debaratana  road (Bangna-Trad road) at km 29.5, Bang Bor sub-district, Bang Bor district, Samut Prakan Province, Thailand.

Joy City PPT (0207) wins bid for Chongqing land at Rmb1.78bn  Joy City Property (00207) said it won the bid for the land use rights of plots of land in  Yu Bei District, Chongqing, the PRC at a total of Rmb1,780 million.   The land parcels have a total site area of about 116,700 square metres and total planned gross floor area of about 400,000 square metres, which are proposed to be used for  commercial and residential purposes.   In view of the location and the designated use of the land, it is expected to be used for the development of the Joy City urban mixed-use complexes, with the objective of  achieving high investment value after completion of the development of the land, thereby  generating stable and satisfactory revenue and profit to the Group.

Shengli Pipe (01080) to buy stake in wind power business Shengli Oil & Gas Pipe (01080) said it agreed to acquire 25.523% equity interests  of Shanghai Xinfeng Enterprise Group Co., Ltd.   The consideration will be settled by Shengli Pipe's capital contribution to the target  company to pay up the unpaid registered capital in an amount of Rmb191.42 million.  Further, Shengli Pipe agreed to make a capital contribution of Rmb70 million to the target company.   Upon Completion, the registered capital of the target company will be owned as to 31.88% by Shengli Pipe. The total registered capital of the target company will be increased from Rmb750 million to Rmb820 million.   The target company is principally engaged in the business of wind farm studies and  design; development of turbines and spare parts of wind generators, machinery and equipment and software in computerised systems for wind farms; development, advisory and  transfer of power technology; metal sales; industri

HSI Gains 129 pts; Casinos Surge The remarks made by the US Federal Reserve Chair Janet Yellen heightened the market expectation on rate hike. The US stocks receded after early gain yesterday (26 September). Hang Seng Index ticked up after opening lower 9 pts. It then rose 160 pts at most to peak at 27,673. At market close, the benchmark index rose 129 pts or 0.5% to 27,642; Hang Seng China Enterprises Index rose 67 pts or 0.6% to 11,035. Market turnover further declined to $85.829 billion. The share price of Apple Inc. bounced back, shoring up Apple-concept stocks. The best blue-chip player was AAC TECH (02018.HK)    +6.900 (+5.472%)       Short selling $96.05M; Ratio 15.109%      , advancing by 5.5%. Q TECH (01478.HK)    +0.940 (+7.264%)       Short selling $2.19M; Ratio 1.098%      shot up 7.3%. FIT HON TENG (06088.HK)    +0.330 (+7.205%)      and SUNNY OPTICAL (02382.HK)    +7.000 (+5.858%)       Short selling $50.52M; Ratio 5.743%      climbed 7.2% and 5.9%. COWELL (01415.HK

Xiwang Steel (01266) to issue US$30m convertible bond Xiwang Special Steel (01266) said it agreed to issue convertible bond in an aggregate principal amount of US$30 million for a term of two years at 7.5% per annum. The conversion price is initially HK$1.91 per conversion share, representing a premium  of about 20.13% over the closing price of HK$1.59. Assuming full conversion of the convertible bond, a maximum number of 123 million conversion shares will be allotted and issue, representing around 5.75% of the enlarged issued share capital of Xiwang Special Steel. Xiwang Special Steel intends to use the entire amount of the net proceeds as general  working capital of the Group. The subscribers are Haitong Global Investment SPC III acting on behalf of and for the  account of Haitong Dynamic Multi-Tranche Investment Fund II S.P., and Blooming Global Fund.

China Animation to issue HK$300m secured guaranteed note China Animation Characters Company (01566) said it agreed to issue 7.5% secured guaranteed note in the principal amount up to HK$300 million to Wan Tai Investments Limited. The estimated net proceeds of about HK$297.77 million will be applied for general corporate purpose and other investment opportunities. The subscriber is indirectly and wholly-owned by CCB International (Holdings) Limited.  CCB International (Holdings) Limited is an investment services flagship which is  indirectly and wholly-owned by China Construction Bank (00939).

BASETROPHY GP (08460.HK) Expects Jan-Aug Results to Swing to Loss BASETROPHY GP (08460.HK)    -0.013 (-8.280%)      issued a profit warning. The group is expected to record a loss for the eight months ended 31 August 2017 as compared with a net profit for the same period of 2016, mainly due to the decrease in revenue recognised by the group and increase of listing expense