Business Digest
NWS to continue mainland project acquisitions
NWS Holdings, the infrastructure and services flagship of New World Development, will continue its shopping spree on the mainland after spending about 1.1 billion yuan for two power plants and two water projects recently, executive director Tsang Yam-pui said.
Toll roads, power stations and water supply and sewage treatment concessions would be targeted for acquisition with the company looking to spur profit growth and cash inflow in the coming three to five years, he said.
A prerequisite to the acquisitions was that the rate of return would have to meet the group's internal requirement of at least 10 per cent, chief executive Chan Kam-ling said yesterday. Denise Tsang
Sportswear segment to drive growth at Shenzhou
Garment producer Shenzhou International Group said net profit rose 10.7 per cent last year and that sportswear would continue to drive its earnings growth amid strong orders from international brands such as Adidas and Nike.
Net profit of the Ningbo-based manufacturer climbed to 389 million yuan from 351 million yuan in 2005. Turnover surged 20 per cent to 2.98 billion yuan.
The company forecast turnover growth of its sportswear segment would increase 50 per cent per year in the next two to three years after a 101 per cent gain last year. Carol Chan
Citic 1616 to use half of IPO proceeds on acquisitions
Citic 1616 Holdings, the telecommunications arm of Hong Kong-listed conglomerate Citic Pacific, will set aside half of the proceeds of its HK$458 million initial public offering for acquisitions and forming alliances with international peers to enhance its overseas presence, according to its listing prospectus.
The company is selling 187 million new shares at an indicative price range of HK$2.13 to HK$2.58 each, according to a source.
BNP Paribas is the global co-ordinator of the share sale. Trading is set to begin next month. Wong Ka-chun
Hang Seng Bank will not sacrifice profit
Hang Seng Bank will not sacrifice profit for market share amid fierce competition, according to William Leung Wing-cheung, the bank's general manager of personal financial services and wealth management.
Mr Leung said the returns from the bank's mortgage business were still acceptable but he did not rule out the bank reducing its mortgage business if returns fell to an unreasonable level.
'We may not follow if there are further rate cuts in the market,' he said.
Mr Leung said the bank would hire 400 staff this year for his section. Maria Chan
Jiangxi Copper raising funds to buy assets
Jiangxi Copper, the mainland's largest copper producer, is issuing 290 million A shares worth more than four billion yuan to buy a copper mine, two copper processing plants, a chemical firm and other assets from its parent. The acquisition is worth a total of 1.78 billion yuan.
The company will issue 44.63 per cent of the shares to the parent to pay for the assets acquisition, while the remainder will be sold to institutional investors.
Jiangxi Copper did not disclose the selling price of the planned share sale, but based on its A shares' last trading price of 16.39 yuan in Shanghai on March 6, the deal would be worth 4.75 billion yuan. Carol Chan
Parkson investor taps market for HK$382m
An institutional investor of Parkson Retail Group, which operates department stores across the mainland, was tapping the equity market to raise up to HK$382 million after the market closed yesterday, sources said.
The unknown seller hired Goldman Sachs to sell 8.13 million existing Parkson shares at HK$46 to HK$47 each, according to a sale document given to fund managers. The offer price represents up to 4.7 per cent discount to its closing price of HK$48.25 yesterday.
The shares have gained 26 per cent since the start of the year. The stock trades at 45 times this year's earnings. Wong Ka-chun
