Nomad Investors

HSI Eases Back 69 Pts; Auto Makers Muted Last night, Dow Jones Industrial Average slipped 218 pts or 0.9% on concern over US-Russia conflicts due to Syria tensions. HKD once bottomed at 7.85, first hitting the weak-side Convertibility Undertaking since the implementation of linked rate reform in 2005. This morning, Hang Seng Index opened up 196 pts or 0.6% to 31,094. Yet, with resistance at 31,000, the benchmark index eased back. At midday, it shed 69 pts or 0.2% to 30,827. Hang Seng China Enterprises Index fell 57 pts or 0.5% to 12,267. Market turnover totaled $54.565 billion. AIA (01299.HK)    -0.450 (-0.628%)    Short selling $166.19M; Ratio 12.908%   receded 0.6% to $71.2 after hitting a new high on last trading day. TENCENT (00700.HK)    -4.800 (-1.144%)    Short selling $506.87M; Ratio 14.118%   dropped 1.3%. SUNNY OPTICAL (02382.HK)    +2.800 (+1.831%)    Short selling $86.21M; Ratio 15.435%   and AAC TECH (02018.HK)    +0.300 (+0.208%)    Short selli

C Suisse: Brokers, Exchanges Operators Benefit from Widened SH, SZ-HK Connects Quota Credit Suisse' research report had it that a very clear timetable was seen in the expansion of daily quota under the Stock Connect. Along with the launch of the Shanghai-London Connect, brokers and exchanges would immediately benefit in terms of income. In addition, barrier removal for foreign capital in financial sector could be meaningful. While it might change the landscape in a long run, but it would not impose immediate threats to Chinese financial institutions. The broker believed it would take time for foreign institutions to to introduce businesses and that they would focus on certain niche areas, instead of competing with local companies in various sectors.

Citi: SH, SZ-HK Connects Expansion Near-term Impact Limited; Remains Upbeat on HKEX   Citigroup's report pointed out that the near-term impact of the elevated Stock Connect daily quotas is estimated to be limited, as the current quotas are far away from being used up. It is believed that the Stock Connects will be further relaxed in the future, such as adjusting the RMB500,000 account size eligibility, which would have greater impacts. The broker remains bullish on HKEX(00388.HK)    +0.800 (+0.302%)    Short selling $43.85M; Ratio 5.400%   as it will continue to be a preferred listing platform for Mainland companies, for which it is rated Buy at the target price $420.

Changan Automobile-Tencent JV Develops Car Networking Platform   CHANGAN AUTOMOBILE (000625.SZ) announced that it proposed to increase capital of RMB98 million in its wholly owned subsidiary . The subsidiary will then contribute RMB98 million for a JV with a company  of TENCENT, which will also contribute RMB102 million in the JV. The shareholding of the two companies in the JV was 49% and 51% respectively. The JV is principally engaged in the development of car networking platform and big data analysis. 

Golden Eagle (3308) granted dual-currency term loan facility   [Nomad Investors, 12 April 2018]  Golden Eagle Retail (03308) said it entered into a  facility agreement relating to the dual-currency three-year term loan facility of US$430   million and HK$1,781 million to be made available by a group of financial institutions.    The facility, together with the Group's internal resources, will be used to refinance  the entire dual-currency three-year term loan facility in the outstanding principal  amounts of US$603 million and HK$1,015 million, which will be repaid in full on 16 April   2018. The facility will become due for full repayment on 12 April 2021.

AVIC Joy (00260) to sell CNG refueling stations business   [Nomad Investors, 12 April 2018]  AVIC Joy Holdings (00260) said it agreed to sell  the entire equity interest in Shenzhen Sinogas Environmental Protection Technology Limited and debt for Rmb25.5 million.    The target group is principally engaged in the operation of compressed natural gas (CNG) refueling stations in the Shandong Province of the PRC.    AVIC Joy expects to record a gain on disposal of about HK$44.8 million. It intends to  apply the net proceeds of about Rmb15.5 million for general working capital of the Group. 

SiS Int'l (00529) to buy Kwun Tong property at HK$182m [ Nomad Investors, 12 April 2018]  SiS International (00529) said it agreed to acquire the entire issued share capital of Glorious Prime Limited and sale debt at HK$182 million.   The target group holds factory Units 1-3 and 5-13 and 15-22 on 31st Floor, No.1 Hung To  Road, Kwun Tong, Kowloon. The property is an industrial property with a total gross floor  area of around 22,766 square feet. The acquisition is in line with the Group's strategy in investing in income generating real estate with a potential of capital appreciation in the long run. 

CMBC Capital (01141) to grant US$30m loans   [Nomad Investors, 12 April 2018]  CMBC Capital (01141) said it agreed to make   available to a borrower the loans in the principal amount of US$30 million at an interest  rate of 8% per annum.

Wang On Properties (01243) buys land in Tsing Yi for HK$867m   [Nomad Investors, 12 April 2018]  Wang On Properties Limited (01243) said it has won  the tender for a quality land plot located at the junction of Liu To Road and Hang Mei   Street, Tsing Yi at a total consideration of HK$867.3 million.   It intends to develop the land under the exquisite residential property series "The  Met.", to build on the brand's remarkable track record, further strengthening the presence of the group's residential property brand.   The land occupies 14,376 square feet, with an expected total permitted residential floor area of 80,000 square feet. It can be used for both commercial and residential development and is to provide a public transportation terminal (minibus station).

EB Securities (06178) March net profit down 67% to Rmb139m   [Nomad Investors, 12 April 2018]  Everbright Securities (06178) said its net profit   and revenue for March amounted to Rmb139 million and Rmb482 million, a decrease of 66.6%   and 21.2% from a year earlier.

GTJA (02611) net profit up 11.7% to Rmb1.2bn in March   [Nomad Investors, 11 April 2018]  Guotai Junan Securities (GTJA) (02611) said its net profit and operating revenue for March amounted to Rmb1.196 billion and Rmb2.5 billion, an increase of 11.7% and 29.8% from a year earlier. 

GCL-Poly Energy unit to form JV for monosilicon ingots biz   [Nomad Investors 11 April 2018]  GCL-Poly Energy (03800) said its subsidiary   GCL-Poly (Suzhou) New Energy Co., Ltd. entered into a non-legally binding investment   agreement with the Qujing Municipal People's Government in the People's Republic of China  and the Management Committee of the Qujing Economic and Technological Development Zone.  GCL-Poly Suzhou agreed to establish, together with strategic partners, a joint venture   company for the purposes of setting up a monocrystalline silicon manufacturing facility  for the research and development, production and sale of monosilicon ingots with a   designed capacity of 20 gigawatts in Qujing, the People's Republic of China. Qujing  Government and the QETDZ Management Committee will facilitate the construction of the  manufacturing facility. The intended total investment for the JV will be about Rmb9

AK Medical (01789) to buy orthopaedics firm at HK$184m   [Nomad Investors]  AK Medical (01789) said it agreed to acquire the  entire issued share capital of JRI Orthopaedics Limited at GBP16.73 million (equivalent to about HK$184 million).   The target company is a private company limited by shares incorporated in England and  Wales and is principally engaged in designing, manufacturing and supplying orthopaedic   implants and related instruments. AK Medical believes the acquisition is in line with the  long-term strategy of the Group and will enhance the overall financial performance of the  Group in the future.

New Sports (00299) to buy Shenzhen residential apartments [Nomad Investors]  New Sports Group (00299) said it agreed to purchase a total 56 residential apartments situated at Nanshan District, Shenzhen, the PRC at   Rmb421 million.    The properties have a total floor area of about 6,342.3 square metres. The land use  right of the properties commenced on 23 October 2012 and will end on 22 October 2082.

Century Legend (00079) to buy Macau property at HK$16m   Century Legend (00079) said it agreed to purchase a residential unit in ONE CENTRAL located at EM Macau, Avenida De Sagres N58, EDF Complexo   "IAT HOU KUONG CHEONG" (One Central) - 26 Andar T1/B at HK$16 million.   The property has a total gross floor area of around 1,359 square feet and is restricted  to domestic use. It is located on an exclusive waterfront site in downtown Macau in the  proximity of luxury hotel and casino resort like Wynn Macau, MGM Grand Macau and Grand   Lisboa.    The Group intends to hold the property for investment purpose. The acquisition would   provide capital appreciation potential to the Group

Vision Values (00862) sells US$4m bond    Vision Values (00862) said it disposed of a   corporate bond with a total nominal value of US$4 million at a total of US$4.05 million.   The maturity of the bond is 30 November 2022. The coupon rate is 4.375% per annum  payable at semi-annually.    The estimated net proceeds generated from the bond disposal of about HK$31.53 million  will be used as general working capital of the Group and / or potential investments of the Group in future (if any). It is expected that the Group will record a loss of about  HK$647,000 arising from the bond disposal.     The issuer of the bond is NWD (MTN) Limited.

Citi cuts Brilliance China (01114) to HK$27.9   Citi Research cut its target price for Brilliance   China Automotive (01114) to HK$27.9 from HK$34.5, and reiterated its "buy" rating.   The research house said Brilliance-BMW's (BBA) March retail sales increased 18% YoY  (5ppts below Citi's estimate), lifting 1Q volume growth to 20% YoY.    During the Boao Forum for Asia yesterday, President Xi Jinping articulated that China  will meaningfully lower the import tariff on vehicles this year. Citi regarded this as a   share price and valuation overhang for Brilliance, as retail prices for imported models  will reduce by 9/13% under 15/10% import tax versus the current 25%.   Citi noted that prices for BBA's domestic variants will remain competitive even under a  severe 5% import tax scenario (i.e. 20ppts tariff cut) for both X1 and 3-series, but   5-series will start to loss its price advantage if import tariff becomes 15% or lower

Morgan lifts Anta Sports (02020) to HK$48.2                        Morgan Stanley lifted its target price for Anta   Sports (02020) to HK$48.2 from HK$43.6, and reiterated its "overweight" rating.    The research house expects consensus sales and earnings estimates to catch up with its   forecasts after 20-25% retail sales growth for ANTA brand and 80-85% for other brands in   1Q 2018.   Morgan thinks strong sales growth, driven by improvement in new products and store   productivity, is the key to re-rating.   For 2018, Morgan estimated 27% sales growth, implying 24% sales growth for ANTA brand  and FILA, and Rmb600mn incremental sales yoy generated from Descente, Sprandi, Kolon, and  Kingkow. It estimated 20% net income growth - i.e., net margin to decline.  The research house expects higher input costs to slow gross margin expansion, higher  opex/sales because of marketing activities (e.g., sponsorship of the Chinese Olympic   Com

China Res Power (00836) March net generation down 1.5%                         China Resources Power (00836) said total net  generation of subsidiary power plants in March dropped 1.5% year-on-year to about 12.35  million MWh. Total net generation of subsidiary power plants for the first three months of 2018 rose 7.7% year-on-year to about 39.34 million MWh.    On a same plant basis, total net generation of subsidiary coal-fired power plants for  the first three months of 2018 grew 5.1% compared to the same period of 2017. Power plants located in Henan, Hubei, Hebei, Guangdong and Other provinces recorded 32.1%, 10.5%, 6.3%, 4.8% and 2.8% increases year-on-year, respectively. Power plants located in Jiangsu  province recorded 9.2% decreases year-on-year.   Total net generation of subsidiary wind farms rose 44.7% to about 3.76 million MWh for   the first three months of 2018.

HKEx (00388) notes expansion of Stock Connect daily quota Hong Kong Exchanges and Clearing Limited (HKEx)   (00388) said it noted from the joint announcement made today by the China Securities   Regulatory Commission and the Securities and Futures Commission about the expansion of the existing daily quota under the Stock Connect.    The Northbound daily quota will be increased from Rmb13 billion for each of the Shanghai Connect and the Shenzhen Connect to Rmb52 billion and the Southbound daily quota will be   increased from Rmb10.5 billion for each of the Shanghai Connect and the Shenzhen Connect   to Rmb42 billion, effective 1 May 2018.

Ping An Good Doctor Said to Undergo Listing Hearing This Thu; Public Offering at End-Apr Ping An HealthCare and Technology Company Limited, whose principal business is Ping An Good Doctor and which is the first new economy enterprise spun off from PING AN (02318.HK)    +1.200 (+1.493%)    Short selling $860.45M; Ratio 23.958%   , will undergo listing hearing this Thursday (12 April), Hong Kong Economic Journal cited people with the knowledge of the matter. The raising amount is approximately US$1 billion (about HK$7.8 billion). Ping An Good Doctor is expected to have pre-listing roadshow next week and public offering as soon as end-April or early May. The listing will tentatively be in later May.

HSBC Trims RMB Fixed Deposit Rate HSBC lowered RMB fixed deposit rates. For six-month and one-year RMB fixed deposits, the rates were cut by 0.3% and 0.35% to 3.4% and 3.45%. The three-month rate was trimmed by 0.15% to 3.35%. The one-month rate was left at 2.7% unchanged. The entry fee was RMB20,000.

Fordoo (02399) may buy stake in SOE, securities dealing biz   China Fordoo Holdings (02399) said it is  considering the potential acquisition of 10% equity interest in a state-owned company from an independent third party.    The state-owned company is an investment holding company incorporated and registered in  Tianjin with a number of direct and indirect subsidiaries operating in a diverse range of  businesses, including import and export businesses, wholesales and retails of various  goods, property development, leasing of properties and logistic services.    Fordoo is also in discussion with an independent third party, in relation to the   potential acquisition of a controlling equity interest in a Hong Kong investment holding   company with wholly owned subsidiaries which are mainly licensed corporations. The   licensed corporations can conduct Type 1 (dealing in securities), Type 4 (advising on  se

Kangda Env (06136) 3-month contracts executed up 11.8%     Kangda International Environmental (06136) said its treatment capacity for executed concession agreements was about 4.159 million tonnes per   day as at 31 March 2018, representing a growth of about 11.8% on a year-on-year basis and  a growth of about 0.2% on a month-on-month basis.    Projects under operation was about 3.117 million tonnes per day, a growth of about 24.2% on a year-on-year basis and a growth of about 3.1% on a month-on-month basis; projects   under construction was about 775,000 tonnes per day, a growth of about 20.2% on a  year-on-year basis and a growth of about 1.3% on a month-on-month basis; and projects to   be operated was about 267,000 tonnes per day, a decrease of about 52.7% on a year-on-year  basis and a decrease of about 25.8% on a month-on-month basis.

Huadian Fuxin (00816) power generation up 15.6% in 1Q    Huadian Fuxin Energy (00816) said its gross power   generation for the first quarter of 2018 amounted to about 10.71 million MWh, an increase  of 15.6% over the corresponding period of 2017.    Of which, the hydropower generation was about 1.11 million MWh, a decrease of 47.6% over the corresponding period of 2017; the coal-fired power generation was about 4.18 million   MWh, an increase of 35.9% over the corresponding period of 2017; the wind power generation was about 4.56 million MWh, an increase of 40.2% over the corresponding period of 2017;  the solar power generation was 389,203.2 MWh, an increase of 35.7% over the corresponding  period of 2017; the natural gas-fired (distributed) power generation was 435,333.7 MWh, a  decrease of 12.6% over the corresponding period of 2017; and the power generation of other clean energy was 39,980.9 MWh, a decrease of 10.3% ove

CALC (01848) to lease aircraft to Yunnan Hongtu Airlines   China Aircraft Leasing (CALC) (01848) said agreed   to lease one new Airbus A320ceo aircraft to Yunnan Hongtu Airlines Co., Ltd.   The lease term is 144 months from the date when the aircraft is delivered to and   accepted by Yunnan Hongtu Airlines. The expected average annual return on assets in  respect of the aircraft lease agreement is 1.2%.   The aircraft is expected to be delivered to Yunnan Hongtu Airlines in the first half of  2018.