China: Hutchison, Geely, Cheung Kong

Mayank Mehta
30 Mar, 2010
New York City

Markets in Shanghai and Hong Kong closed up a fraction. Cheung Kong 2009 net profit rises 53%. Hutchison Whampoa Ltd 2009 net profit gained 12% and revenues declined 14% and Li Ka-Shing said he may consider raising dividend. China Construction Bank said it has no immediate plans to raise funds.

[R]6:00 AM Hong Kong, China – Markets in Shanghai and Hong Kong closed up a fraction. Cheung Kong 2009 net profit rises 53%. Hutchison Whampoa Ltd 2009 net profit gained 12% and revenues declined 14% and Li Ka-Shing said he may consider raising dividend. China Construction Bank said it has no immediate plans to raise funds.[/R]

Hang Seng index in Hong Kong increased 137.36 or 0.65% to 21,374.79, and CSI 300 index in China higher 8.17 or 0.24% to 3,366.71.

Zhejiang Geely Holding Group Co. said it plans to invest $900 million in the recently purchased Volvo Cars. The company hopes that high price models will sell in Chinese markets and sell at least 50% of vehicles for exports.

The Geely founder Li Shufu said to reporters that the company has raised $2.7 billion from investors and half of the capital is from overseas.

American Chamber of Commerce in Shanghai in a statement said that more foreign companies are looking to relocate their manufacturing operations from the coastal regions to central and southwest cities of China. Companies are looking closely to move operations to India, Indonesia and Vietnam.

Multinational corporations still prefer to operate from China to take advantage of its growing domestic economy and cheap international gateways to shipments to the U.S. and Europe.

Shanghai Movers

China Shenhua Energy Company Limited the coal producer rose 0.9% to 29.33 yuan.

China Coal Energy Company Limited the trading of coal, coal chemical industry added 0.6% to 11.91 yuan.

China Construction Bank Corporation rose 0.3% to 5.73 yuan after the lender said it is examining ways of raising capital but has no immediate plans to do so.

Zijin Mining Group Co., Ltd the mining conglomerate fell 1.0% to 8.26 yuan.

HK Movers

Anhui Conch Cement Company Limited gained 5.6% to HK$52.40 after the cement maker reported 2009 net profit rose 34.5%.

Cheung Kong (Holdings) Limited added 0.3% to HK$101.70 after the infrastructure and real estate developer said 2009 revenues rose 48% to HK$24.3 billion from HK$16.4 billion a year ago. Net profit in the year rose 53% to HK$19.9 billion or HK$8.59 per diluted share compared to net profit of HK$13.0 billion or HK$5.63 per share a year ago.

Chigo Holding Limited fell 3.4% to HK$6.39 after the maker of air conditioners was downgraded to “hold” from “buy” at BNP Paribas.

Cosco Pacific Limited decreased 3.6% to HK$11.54 after the port operator said 2009 revenues rose 3.4% to $349.4 million from $338.0 million a year ago. Net profit in the year fell 37% to $172.5 million or 7.66 cents per diluted share compared to net profit of $274.7 million or 12.23 cents per share a year ago.

Hutchison Whampoa Limited declined 1.7% to HK$57.25 after the container terminal operator said 2009 revenues fell 14% to HK$300.5 billion from HK$348.4 billion a year ago. Net profit in the year rose 12% to HK$14.2 billion or HK$3.32 per diluted share compared to net profit of HK$12.7 billion or HK$2.97 per share a year ago.

Industrial and Commercial Bank of China Limited increased 2.4% to HK$5.89 after the bank was downgraded to “hold” from “outperform” at Bank of China.

PetroChina Company Limited rose 1.5% to HK$9.03 after the oil company stock was upgraded to “buy” from “neutral” at BOCOM International.