Shares of mainland developer Sun Century soar 240pc

PUBLISHED : Saturday, 15 September, 2012, 12:00am
UPDATED : Saturday, 15 September, 2012, 3:37am

Investors turned their sights on little-known Sun Century Group yesterday after its shares closed up 239.7 per cent.

Shares in the mainland property developer rose to HK$1.97 from Thursday's close of 58 HK cents, after soaring 517.2 per cent to reach a day high of HK$3.58.

Sun Century said it was not aware of any reasons for the stock's rise and added that it was not engaged in any negotiations or agreements relating to intended acquisitions or disclosable transactions.

Headquartered in Shenzhen, the group develops offices, residential units and retail shops. The company is also engaged in the leasing of commercial properties in Guangdong, Anhui and Liaoning provinces.

Yesterday's strong bounce in the share price came after it plunged 33 per cent on September 6 after the group announced a 6-for-1 rights issue to raise at least HK$313 million.

The rights issue followed an announcement on August 30 of a loss of 74.25 million yuan (HK$91.1 million), with turnover plunging to 18.16 million yuan for the six months to June, from 181.45 million yuan in the same period last year.

The group said the disappointing result was due to no stock properties being delivered in the first half and a decrease in income from property leasing.

As at June 30, the group's leasable gross floor area was about 64,000 square metres.

Sun Century was formerly known as Hong Long Holdings. It changed its name to Sun Century in February after its current chairman, Alvin Chau Cheok-wa, took over the company.

Chau, 38, was born in Macau and is a Portuguese national. He is the founder and co-owner of SunCity Group, one of the largest junket operators, or VIP room operators, in the gaming city.

He operates 10 entertainment VIP clubs at hotels including StarWorld Hotel Macau and Venetian Macao Resort Hotel. He also operates a VIP club in Seoul.

Chau is also active in the Hong Kong property market, with the recent purchase of a unit in Cullinan at Kowloon Station for HK$50 million.