Infrastructure builder may post 81pc net increase
China Communications Construction: Tomorrow
China Communications Construction's (1800) net profit may soar 81 per cent to 5.89 billion yuan (HK$6.54 billion) for the year to December last year, thanks to strong growth in overseas orders. Thomson Financial estimates that full-year sales may have risen 30 per cent to 150 billion yuan. CLSA says net profit is likely to have surged 78 per cent with sales up 31 per cent.
'New orders booked should have risen 55 per cent to 234 billion yuan last year from a year ago and will further surge 28 per cent to 299 billion yuan this year,' said CLSA analyst Zhe Li. He has a target price of HK$18.64 per share. The stock has surged 280 per cent since its debut in December 2006. Credit Suisse says the firm benefits from its overseas expansion, especially in the Middle East and Africa. It expects earnings per share to have grown 59.6 per cent to 40 fen last year and jump 70.4 per cent to 68 fen this year.
Cosco Pacific: Today
Cosco Pacific (1199) will probably post 48.6 per cent growth in last year's net profit to 3.03 billion yuan following its business restructuring, including selling its non-core operations such as container leasing. Last month, the firm bought an additional 4.25 per cent stake in China International Marine Container for 1.67 billion yuan.
ABN Amro said the deal would help boost earnings for this year by about 3 per cent. Both ABN Amro and Deutsche Bank rate Cosco Pacific a 'buy'.
Shanghai Petrochemical: Today
Net profit at Sinopec Shanghai Petrochemical (338) probably increased 108 per cent to 1.76 billion yuan last year, despite the price control on oil and refinery products. Citigroup, which had cut its price target for the shares from HK$5.70 to HK$3, said the subsidy of US$1.90 per barrel of oil was far too low to offset the average loss of US$6 to US$7 per barrel.
China Mengniu Dairy: Tomorrow
China Mengniu Dairy (2319) may report 40.3 per cent growth in its full-year net profit to 916 billion yuan with sales climbing 46.5 per cent to 21.4 billion yuan on strong domestic demand. BNP Paribas retains its 'buy' call on Mengniu, saying the dairy raised its product prices by 8.1 per cent in January before the state imposed price controls on food and beverages.
Shun Tak Holdings: Tomorrow
Shun Tak Holdings (242) may report 40 per cent growth in last year's net profit to HK$926 million, boosted by the strength of Macau's economy.
Credit Suisse has upgraded its rating on Shun Tak to 'outperform' and maintained its price target at HK$12.90.
China Construction Bank: April 11
Net profit at China Construction Bank Corp (939) is expected to have risen 64.8 per cent to 68.6 billion yuan with revenue up 54.4 per cent to 212 billion yuan last year due to its superior net interest margin, says Thomson Financial. HSBC expects CCB full-year profit growth of 48 per cent and revenue expansion of 44 per cent. 'We expect its net profit to grow 53 per cent this year due to its roughly stable net interest margin of 318 basis points, compared with 319 basis points last year,' said analyst Todd Dunivant, who rated the stock 'overweight' with a price target of HK$7.55.
Look ahead: companies reporting this week
Final: AAC Acoustic Tech Holdings, Amvig Holdings, Cosco Pacific, Omnicorp, Prosperity Investment Holdings, Shanghai Allied Cement, Sinopec Shanghai Petrochemical, Sinopec Yizheng Chemical Fibre, Tristate Holdings, Wasion Meters Group
Interim: Far East Pharmaceutical Tech
Final: APT Satellite Holdings, Beijing Development (Hong Kong), Beijing Enterprises Holdings, Build King Holdings, China Communications Services, China Flavors & Fragrances, China Mengniu Dairy, China Travel Int'l Investment HK, COL Capital, Guangdong Tannery, GZI Transport, Hantec Investment Holdings, High Fashion Int'l, Ju Teng Int'l Holdings, Kwang Sung Electronics HK, Pearl River Tyre (Holdings), Road King Infrastructure, Shui On Construction and Materials, Shun Tak Holdings, Singamas Container Holdings, Symphony Holdings, Theme Int'l Holdings, Wai Kee Holdings, Xingda Int'l Holdings
Final: China Coal Energy, China Innovation Investment, China Yurun Food Group, EcoGreen Fine Chemicals Group, Guangdong Nan Yue Logistics, Sun Hung Kai & Co, TPV Tech, United Labs Int'l Holdings, Varitronix Int'l