Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms

Cathay Pacific Airways could face further pressure for another round of cost cutting in the face of an estimated HK$1.2 billion in losses for the first six months of this year – one of the “worst results in its operating history”, according to analysts. 

The latest financial results for Hong Kong's flagship carrier are due to be released on Wednesday. The expected loss contrasts sharply with the HK$353 million profit made in the same six months last year, and also comes on the back of a HK575 million full-year loss for 2016.

The company earlier trimmed 600 jobs as part of a three-year business restructuring plan aimed at saving HK$4 billion over the period.

More news, Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms

Daily chart.

"Actions Speak Louder than Words"

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source :
1) Metastock
2) www.scmp.com

Who is the investor with a 9 per cent stake in Cathay Pacific in just six months?

Cheung Kwok-wing raised eyebrows when an industrial company he controls, Kingboard Chemical, piled up a 9 per cent stake in Cathay Pacific Airways.

The HK$3.4 billion investment in one of Asia’s premium international airlines through stock market purchases between last December and June 30 marked the start of the 61-year-old chairman’s entry into aviation, despite having no business experience in the sector. 

 

From the oatmeal offered at Cathay Pacific's lounges to its frontline crew services and global reach, Cheung considers the airline a jewel in Kingboard's portfolio, which spans industrial, technology and property sectors.

"I have not made any losses in any investments in the past 20 years," he said confidently. "I made a lot of money in the financial downturn in 2003, and even more in the global financial crisis in 2008. And, despite its current challenges, Cheung described Cathay Pacific as on the best companies to invest in.

More news, Who is the investor with a 9 per cent stake in Cathay Pacific in just six months?

 
Source : 
1)www.scmp.com

China’s Wahaha heiress takes Hong Kong penny stock on a roller coaster ride

An aborted acquisition deal by the heiress of Chinese beverage giant Hangzhou Wahaha has sent loss-making China Candy, a Hong Kong penny stock, into a free fall.

The candy maker's share price has plummeted 70 per cent from 53 HK cents to 16 HK cents since Friday. It marked an abrupt end to a dizzying 400-per cent bull run since April following the announcement of the potential takeover bid by Kelly Zong Fuli, once dubbed "China's richest daughter".

The only scion of billionaire tycoon Zong Qinghou, who had topped China's wealth list in 2013, made a rare move by using her personal social media account to disclose her failed attempt to buy out the little-know Hong Kong firm.

More news, China’s Wahaha heiress takes Hong Kong penny stock on a roller coaster ride

Source:
1) www.scmp.com

Cheung Kong Property Holdings Ltd (HKSE : 1113) - Upside Still Prevail ?

Recently, South China Morning Post reported Cheung Kong Property Holdings, one of Hong Kong’s largest real estate developers, has received 50 per cent fewer registrations for the latest phase of its Ocean Pride apartments in Tsuen Wan, even it sold 95% of available units. A sign that buyers are staying by the sidelines while the world’s hottest residential market appears to be losing heat.

Daily chart.

 
Related post, Demand cools for Ocean Pride apartments, even as Cheung Kong sells 95 per cent of available units

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Demand cools for Ocean Pride apartments, even as Cheung Kong sells 95 per cent of available units

Cheung Kong Property Holdings, one of Hong Kong’s largest real estate developers, has received 50 per cent fewer registrations for the latest phase of its Ocean Pride apartments in Tsuen Wan, in another sign that buyers are staying by the sidelines while the world’s hottest residential market appears to be losing heat.

Up to 6,500 people registered their interest to buy 412 units in the complex, ranging from 497 square feet to 1,163 sq ft, or an average of 16 buyers for every available unit. That’s 50 per cent fewer than the previous phase of Ocean Pride offered for sale in May, when 14,500 buyers registered for 496 units, or an average of 29 buyers for every unit.

More news, Demand cools for Ocean Pride apartments, even as Cheung Kong sells 95 per cent of available units

Related post, Is Hong Kong’s property market heading for its biggest crash since 1997 ?

Source :
1) www.scmp.com

Cathay Pacific Airways Ltd (HKSE - 0293.HK) : On recovery path ?

In the post, dated on 22 March, some challenges ahead for Cathay Pacific Airways were highlighted, as noted below.
1. Where the share price heading to in near future ?
2. Will the organizational restructure revive the company performance ?

Since then, there are some developments made within the organization.
1. Replacement of CEO.
2. Staff layoff.

Last Friday, the company had a meeting with analysts from financial institutions and research firms, disclosing the huge bill of HK$300 million in redundancy payments to those employees been laid off. Its part of 3-year transformation of the business.

Exactly 2 months after the post raised the challenges ahead, the share price broke out all S-Trader Trend Tracker resistance levels, on 22 May. At the same time, the weekly chart also showed a breakout on week ending 26 May.

The price reacted in response to the news that the company confirms it will shed 600 staff from its head office.

More news, Hong Kong’s Cathay Pacific confirms 600 staff to go amid major restructure.

Looking forward, the company upcoming few quarterly earning reports will be closely watch - whether the recent actions will contribute positively. 

Daily chart

Weekly chart.

Source :
1) Metastock
2) www.scmp.com

Cathay Pacific takes a HK$300m hit in redundancy payouts for 600 staff

Cathay Pacific Airways will take a one-off hit of HK$300 million in redundancy payments as it sacks hundreds of employees in a major restructuring and cost-cutting exercise to reverse losses.

Hong Kong's flagship airline disclosed the huge bill at a meeting last Friday with analysts from financial institutions and research firms.

600 people have been laid off since last month, part of a 3-year transformation of the business after the company lost HK$575 million last year.

More news, Cathay Pacific takes a HK$300m hit in redundancy payouts for 600 staff


Source : 
1) www.scmp.com

Hong Kong’s property bubble is a long way from bursting

On 3 June, South China Morning Post published an interesting article on the website titled "Is Hong Kong's property market heading for its biggest crash since 1997 ?", which also brought to your attention in this blog dated on 9 June.

2 days later, South China Morning Post came out with another article in response to earlier publication, titled "Hong Kong's property bubble is a long way from bursting".

More news, Hong Kong’s property bubble is a long way from bursting

Source :
1) www.scmp.com

Is Hong Kong’s property market heading for its biggest crash since 1997 ?

If history is any guide,the long queues of property buyers at Hong Kong’s Tsuen Wan residential project last weekend could be the harbinger of a bubble in the world’s most expensive housing market.

Hundreds of buyers packed into Cheung Kong Property Holdings' sales office, vying to get a unit at the Ocean Pride project built by Li Ka-shing, the city's wealthiest businessman whose property projects had long stood for appreciating value.

They were willing to ignore record-level prices and mortgage rates that had just been raised the night before by four of the city's largest banks.

More news, Is Hong Kong’s property market heading for its biggest crash since 1997 ?


Source :
1) www.scmp.com

China Huishan Dairy Holdings Co. (HKSE - 6863.HK) - Hong Kong regulator bars trading in China Huishan Dairy shares in rare move

South China Morning Post, on 8 May, reported in a rare move, Hong Kong's securities watchdog ordered the suspension of trading in the shares of China Huishan Dairy Holding, amid signs that the troubled dairy operator's financial woes are far from coming to an end.

There have been only six such directions issued by the SFC since 2011, and the repercussions can be severe.

For more story, Hong Kong regulator bars trading in China Huishan Dairy shares in rare move


Source :
1) www.scmp.com 

Air China Ltd (Shanghai SE - 601111) - Feeling the effects of Cathay Pacific's travails

Its net profit dropped 39.8% to 1.5 billion yuan (US$72.8 million) in the 1st quarter, which was in part blamed on its investment losses of 141.6 billion yuan, the majority of which was from Cathay, of which it owns 29.99%.

With the removal of its Cathay stake from the figures, the company gross revenue rose an impressive of 9.8% in the 1st quarter, on the back of 7.8% passenger traffic year-on-year growth. 

Despite the concerns over Cathay, the airline's passenger traffic outlook remains solid given the resilient demand.

More details on the news, click below link :
Air China feeling the effects of Cathay Pacific’s travails 



Source :
1) www.scmp.com

Country Garden Holdings Co. Ltd. (HKSE - 2007.HK) - Negative News With Negligible Impact

On 5 April 2017, South China Morning Post reported Country Garden Holdings, whose Forest City project in Malaysia is the biggest overseas project by a Chinese property developer, will refund money to mainland investors caught up in Beijing’s escalating crackdown on capital outflows. 

The move is the latest consequence arising from Beijing’s tighter policy on capital controls, with most Chinese developers engaged in selling overseas properties now forced to shift their focus from mainland buyers to other countries.

More details, click below link :
Country Garden pledges refund for Forest City buyers caught in Beijing’s crackdown on capital outflows 

In early March 2017, South China Morning Post also reported the company has closed all sales centres in mainland China for its flagship Malaysian housing project amid Beijing’s intensified crackdown on capital flight.

Detailed news, click below link :
Country Garden halts Malaysian housing sales amid capital flight crackdown 

Daily chart of Country Garden.

Despite the negative news, the above chart showed no impact on the company's share price and it still able to climb higher.

Prior to it, South China Morning Report reported the company spent more than any other Chinese developer on land acquisitions last month as it pursues faster sales growth in a bid to catch rivals China Evergrande Group and China Vanke, on 7 Feb 2017.

The company splashed out 10.2 billion yuan for 14 land parcels last month, including a 2.25 billion yuan residential site on the outskirts of Shanghai. The other plots are all in smaller cities such as Hangzhou, Nanchang and Wenzhou, according to a report by Tospur Real Estate Consulting. 

More detailed news, click below link :
Developer Country Garden led its rivals in January’s land purchases

This news drove the company's share price to break out its sideway range on 7 Feb 2017 with high volume transacted as shown by S-Trader Volumetric.


Source :
1) Metastock
2) www.scmp.com 

China Huishan Dairy Holdings Co. (HKSE - 6863.HK) - Debt Bubble Sank The Ship

A treasury head went missing, mysterious 85% stock price plunge, half of its board members resigned and a tycoon chairman's wealth gone with the winds within 1.5 hours. 

The company crisis has exposed a gigantic debt overhang looming over corporate China.

For more details, click the below link :
How the debt bubble burst for China’s Huishan Dairy

On 24 March, the share sank by a record of 85% before it halted trading. 
 

The sudden crash wiped out about $4.1 billion in market value.  A record 779 million shares in the Shenyang-based company changed hands,
the most on Hong Kong’s exchange.

In December 2016, Muddy Waters alleged that Huishan had been overstating its spending on its cow farms by as much as 1.6 billion yuan to "support the company's income statement."

The report also alleged that the company made an unannounced transfer of a subsidiary that owned at least four cow farms to an undisclosed related party and Muddy Waters concluded that Chairman Yang controls the subsidiary and farms.


More details, click the below link :
Huishan Dairy, Muddy Waters Target, Sinks 85% in Hong Kong

On 16 December 2016, the share dropped as much as 4.3% to HK$2.69 before being suspended in Hong Kong, which the Shenyang-based company said was pending a clarification announcement on the report.

It happened after short seller Carson Block's Muddy Waters Capital LLC said the company is "worth close to zero" and questioned its profitability in a report.

Detailed news, click the below link :
Muddy Waters Shorts Top China Dairy Farm as Shares Halted

Here is the daily chart of China Huishan Dairy.

When the share resume its trading on 19 Dec 2016, the price rebounded and broke all S-Trader Trend Tracker resistance on 30 Dec 2016. However, the price break out associated with low volume as noted on S-Trader Volumetric. A possible weak break out action and an early warning alert to shareholders and investors.

Few days before the share plunge, the price move higher on an increasing volume between 15 to 17 March 2017, A very high volume transacted (recorded by S-Trader Volumteric) but the price action failed to break out its side way range. Another possible sign of weakness and warning alert.

Thereafter, is history.

Here is the final price action chart after the share been suspended until now.

Source :
1) Metastock
2) www.bloomberg.com
3) www.scmp.com