A-Living (03319) to buy stake in property management firm A-Living Services (03319) said it agreed to acquire 51% equity interest in Nanjing ZiZhu Property Management Co., Ltd. at Rmb205 million. The target company is principally engaged in the provision of professional property management services for residential properties, commercial properties and other institutional properties, including banks and memorials in the Yangtze River Delta region in the PRC, which can complement the existing business of the Group. The acquisition shall be able to expand the Group's business scale and coverage; and enhance the Group's market influence and competitiveness in the Yangtze River Delta region, both of which meet the strategic development requirement of the Group.
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CTEG to invest Rmb42m in ecological & landscape projects CT Environmental Group (CTEG) (01363) said it entered into a capital increase agreement with two individual registered shareholders of Huizhou City Shenghua Agricultural Development Company Limited. CTEG will invest in Rmb42 million by way of cash in Huizhou Shenghua. Upon completion of capital increase, CTEG will hold 60% of interests in Huizhou Shenghua. Huizhou Shenghua owns a mountainous area of about 6,000 mu with an operating period up to 60 years (with forestry ownership certificates obtained). CTEG increased investment in Huizhou Shenghua for making up ecological and high-productivity landscape industry projects. It is expected the project will provide biomass raw materials to the Longtao Recycling Industrial Base of the Group; achieve efficiently and highly-utilized ecological resources for the Group by making use of over 300,000 tons/yea
HSBC HOLDINGS Appoints Malaysia CEO as Asia-Pacific One-Belt-One-Road Biz Manager HSBC HOLDINGS(00005.HK) +1.150 (+1.574%) Short selling $311.30M; Ratio 15.773% announced that Malaysia CEO Mukhtar Hussain was appointed to the newly created position of head of Belt and Road initiative in Asia Pacific, effective from 1 July.
HSI Gains 384 Pts; HSBC Up Nearly 2% Hong Kong stocks saw escalation today. Hang Seng Index peaked at 30,514 and settled the day at 30,229, leaping 384 pts or 1.3%. Hang Seng China Enterprises Index closed up 105 pts or 0.9% to 12,073. The market turnover bounced back to $115.222 billion. Blue chips broadly fared well. HSBC HOLDINGS(00005.HK) +1.150 (+1.574%) Short selling $311.30M; Ratio 15.773% jumped 1.6% and contributed gain of 46 pts alone for Hang Seng Index. HKEX(00388.HK) +4.800 (+1.915%) Short selling $87.02M; Ratio 3.849% and TENCENT(00700.HK) +4.200 (+1.035%) Short selling $1.25B; Ratio 14.351% respectively hiked 1.9% and 1%. SUNNY OPTICAL(02382.HK) +8.400 (+5.874%) Short selling $196.75M; Ratio 15.772% was the top gainer of blue chips, upsurging 5.9%. China financials mirrored the uptrend. PING AN(02318.HK) +0.900 (+1.132%) Short selling $860.45M; Ratio 23.958% and CHINA LIFE(02628.HK) +0.250
TUS Intl (00872) in strategic team-up with Yunmanman TUS International (00872) said it entered into a strategic cooperation agreement with Yunmanman, which is the largest logistics capacity management platform in China. The parties agreed to cooperate to develop the integrated capabilities for intelligent logistics industry of the following products including next-generation sensors for vehicles, in-vehicle computing platforms, in-vehicle intelligent terminals, and core solutions of autonomous driving; to develop in-vehicle Tbox, sensors for vehicles, control system and other products to fulfill the requirements for the development of Yunmanman's logistics business, and use the cargo trucks as a platform for the joint demonstration of the applications of the abovementioned products; and to jointly develop the next-generation logistics industry service system based on the "Cloud Control Platform" and the new model in the logistics industry which applies &quo
Eagle Ride Inv (00901) to set up fund with Oceantec Valley Eagle Ride Investment (00901) said it entered into a memorandum of understanding with Oceantec Valley Investment Management Co. Ltd. Both parties agreed to explore possible cooperation and investment opportunities and, subject to the terms and conditions of the MOU, Oceantec Valley proposed and initiated to establish an equity investment fund which to be positioning in the new energy materials and energy storage sectors and Eagle Ride Investment agreed to jointly initiate and establish the fund. The parties would collaborate with investment platforms of the Chinese local governments, relevant listed companies and well-known investment institutions to jointly initiate to establish the fund with a size of Rmb1 billion. Oceantec Valley is a company incorporated in the People's Republic of China with limited liability. Its principal businesses are equity investment, investment management, establishment and manageme
Blockchain Group (00364) to form JV with Edra Korea Blockchain Group (00364) said it entered into a non-legally binding memorandum of understanding with Edra Korea (EDRA). The parties intend to establish a joint venture in Korea for the purposes of operating cryptocurrency calculation data centers globally and operating other blockchain related projects. It is proposed that the JV will be established with an initial registered capital of KRW2,500 million (equivalent to about HK$18.61 million) which will be fully contributed by Blockchain Group. It is intended that the share capital of the JV will be held as to 85% and 15% by Blockchain Group and EDRA respectively. EDRA shall be responsible for the operations of the JV and shall support the JV with its technical team and procure the enjoyment by the JV of EDRA's rights under the low electricity cost cooperation agreements in Kazakhstan and Belarus. Blockchain Group also clarified the Group is not related to and is not
UBS lifts 3SBio Inc (01530) to HK$20.35 UBS Global Research lifted its target price for 3SBio Inc (01530) to HK$20.35 from HK$18.53 on better growth prospects, and reiterated its "buy" rating. The research house noted growth acceleration of its major drugs in 2H. UBS had said that YSP has the potential to develop into a Rmb5bn drug even after considering 40% price cut and a material market share loss due to competition. Trading at 30x 2018 PE, 3S Bio has become one of UBS's top picks considering its visible growth and attractive valuation.
Prosper One (01470) co-CEO He Guangrui resigns Prosper One International (01470) said He Guangrui has tendered his resignation as an executive director and the co-chief executive officer in order to pursue other career opportunities with effect from 1 April. Meng Guangyin, who was an executive director of the company and the chairman of the Board, has been re-designated as an executive director, the chief executive officer the company and the chairman of the Board. Liu Guoqing, who was an executive director, the chief financial officer and co-chief executive officer of the company, has been re-designated as an executive director and the chief financial officer.
Chinese Est (00127) raises stake in Evergrande to 6.5% Chinese Estates (00127) said it has acquired a total of about 857 million shares in China Evergrande Group (03333), representing about 6.5% of the total issued share capital of China Evergrande, at a total consideration (including transaction costs) of around HK$13.2 billion in the open market during the period from April 2017 and up to today. By aggregating the Group's shareholding in China Evergrande, executive director Chan, Hoi-wan is deemed to be interested in about 8% stake in China Evergrande.
UBS cuts China Eastern Airlines to HK$7.05 UBS Global Research cut its target price for China Eastern Airlines (CEA)(00670) to HK$7.05 from HK$7.8, and reiterated its "buy" rating. Following its 2017 earnings miss, the research house lowered its 2018-20 EPS estimates for CEA by 13-20%. However, given a 14% share price drop in March, UBS believes the disappointing 4Q 2017 performance has been priced in. In the near term, UBS forecast weak 2Q 2018 results, while consensus may come down further. Nevertheless, it remains confident that CEA's returns will increase in 2018, with a yield improvement more than enough to offset rising costs. UBS thinks CEA's lower-than-peers' P/BV, but higher leverage due to the lifting of the domestic price cap has not been priced in.
UBS lifts COSCO Ship Energy (01138) to HK$5.3 UBS Global Research lifted its target price for COSCO Shipping Energy Transportation (01138) to HK$5.3 from HK$5.2, and reiterated its "buy" rating. The research house believes COSCO Shipping's current one-year forward P/BV of 0.43x, which is near its historical trough, has priced in the current oversupply in tanker market and higher fuel cost. UBS expects the upside would come from COSCO Shipping's LNG growth as well as the better market condition beyond 3Q 2018. In 2018, it expects gradual improvement in supply-demand dynamic and therefore lower pressure on rates. Factoring in its revised forecasts leads to a 27% drop in EPS forecasts over 2018-20. UBS also trimmed its dividend payout forecasts to 20% from 2018 onward to reflect the increasing capex, and forecast capex of 3.4bn/1.3bn/4.1bn for 2018-21 following the reduced payout in 2017.
China Fin Leasing (02312) to raise HK$28.96m from placing China Financial Leasing (02312) said it agreed to place up to 220 million new shares at HK$0.135 per share, representing a discount of 16.7% about to the closing price of HK$0.162. The placing shares represent around 16.58% of the enlarged issued share capital of China Financial Leasing. The estimated net proceeds of about HK$28.96 million will be used for general working capital of the Group and potential investments to be identified.
ArtGo Holdings (03313) to raise HK$476m from CBs placing [ArtGo Holdings (03313) said it agreed to issue 5% coupon convertible bonds convertible into maximum of 900 million conversion shares to be issued in maximum of 10 tranches, each due on the date falling 24 months from the issue date. The conversion shares represent around 28.18% of the enlarged issued share capital of ArtGo Holdings. Assuming the conversion price is HK$0.531 per share, the estimated net proceeds of about HK$476 million will be applied as to about HK$32 million for general working capital of the Group; about HK$90 million for financing the expansion of the existing business of the Group; about HK$74 million for repayment of bank and other borrowings; and about HK$280 million for financing any potential investment opportunities of the Group that might arise from time to time. ArtGo Holdings also proposes to increase its authorised share capital from HK$30 million HK$50 million by the creation of an ad
SMI Holdings (00198) to issue HK$1.3bn convertible bonds SMI Holdings (00198) said it agreed to issue 7.5% coupon convertible bonds due 2020 in the aggregate principal amount of up to HK$1,300 million. The initial conversion price of HK$3.91 per share represents a premium of about 15% over the closing price of HK$3.4. A total of 332 million conversion shares will be allotted and issued upon exercise of the conversion rights attaching to the convertible bonds in full, which represent around 10.89% of the enlarged issued share capital of SMI Holdings. The estimated net proceeds of about HK$1,287 million will be used for general working capital of the Group and developing its existing business including expanding the theatre network of the Group.
UCD (01599) plans to raise Rmb600m from A shares issue Beijing Urban Construction Design & Development Group (UCD) (01599) said it proposes to apply for initial public offering of Renminbi ordinary shares and listing. The number of public issuance of shares amounts to not more than 149.86 million shares. The issuance price of A shares shall not be lower than Rmb2.91 per share. The total proceeds raised from the issuance of A shares amount to Rmb600 million, which will be used for upgrading and reconstructing project of the design centre, the national engineering laboratory project, the construction of the R&D base project and the supplement to working capital project
CLSA lowers Beijing Ent Water (00371) to HK$6 CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating. The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not necessarily bad. CLSA cut its 2018-19 earnings forecasts by 19%. At the current level, it believes many of the negatives are already priced-in.
Macquarie cuts Chow Sang Sang (00116) to HK$22 Macquarie Research lowered its target price for Chow Sang Sang (CSS)(00116) to HK$22 from HK$23, and reiterated its "outperform" rating. The research house said the company, in 1Q 2018, saw strong momentum of gem-set jewellery in HK, and a stabilized Mainland market. Looking forward, Macquarie expects the favorable product mix and double-digit decline in rentals will help to deleverage operating leverage. It trimmed its net profit estimates by 6% and 12% for FY2018 and FY2019, by lowering its SSSg assumption to 3.7% from 6.7%. Macquarie projected the GPM to be 24.5% for 2018, up 0.9ppt compared with that of 2017. As for operating profit margin, it only projected a 4% increase of staff cost to factor in the 20% decline of employees based in HK as well as the rising employees in mainland. Plus the rental savings, Macquarie expects operating profit margin will arrive at 7.6%, increasing b
Macquarie ups China Vanke (02202) to HK$36.37 Macquarie Research lifted its target price for China Vanke (02202) to HK$36.37 from HK$28.14, and reiterated its "outperform" rating. The research house said the most surprising part about Vanke's results was not the cut in dividend payout ratio from 41.5% to 35.4% but the strong political correctness in both the speech of newly elected Chairman Yu Liang at the analysts' briefing and the longer-than-usual "To Shareholders" section in the annual report. "19th NCCPC" and its spirit were mentioned 8 times (7 more throughout the rest of the report) versus "shareholder" only twice. This may be due to Shenzhen Metro now owning 29.38% of the company, the retirement of Wang Shi from the Board and stronger influence of the central government. Chairman Yu commented that the company is no longer in search of just profits and growth but is looking for a path o
MacQ lifts Brilliance China (01114) to HK$26.2 Macquarie Research lifted its target price for Brilliance China Automotive (01114) to HK$26.2 from HK$25.90, and reiterated its "outperform" rating. The research house said the positive surprise from Brilliance China's 2017 results was higher-than-expected revenue for BMW-Brilliance (BBA), up 16.9% YoY despite the slower sales of the 5 Series ahead of the model change. Margins for BBA also showed a good uplift, with the segment margin rising to 12.6% from 11.2% in 2016, and the net profit margin up 100bps to 9.4%. The full-year contribution of the new 5 Series and the addition of the new X3 to the line-up in a couple of months should underpin another strong year of growth. Macquarie believes the recent weakness in the share price, which appears to be in part on misplaced concern that BBA's growth prospects could be hurt by Sino-US trade tensions, offers an excellent buying op