Denway Motors 0203

Denway Motors 0203

Postby gladiator » Mon Aug 04, 2008 3:30 pm

Guangzhou Auto may delist Denway -report

HONG KONG, Aug 4 (Reuters) - Guangzhou Automotive Industry Corp may delist 37.9-percent owned subsidiary Denway Motors (0203.HK: Quote, Profile, Research, Stock Buzz) through a share buyback after it concludes a dual listing in Hong Kong and Shanghai by early November, the South China Morning Post reported Monday, citing sources.

A buyback would fold Denway back into Guangzhou Automotive as the Guangzhou government wants only one car maker in the province, eliminating the listing hurdle of what to do with the subsidiary, the newspaper said.

Guangzhou Automotive plans to sell shares in the domestic A-share market by the end of October and then H-shares in Hong Kong in early November, aiming to raise $1 billion in the dual listing, the newspaper added. It gave no further details.

Denway is a joint venture partner of Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) and Guangzhou Automotive is a joint venture partner of Toyota Motor (7203.T: Quote, Profile, Research, Stock Buzz).

Guangzhou Automotive is interested but is unlikely to make a serious bid for Ford Motor's (F.N: Quote, Profile, Research, Stock Buzz) Volvo passenger car business until after completion of its dual listings in Hong Kong and Shanghai, the newspaper added.

Guangzhou Automotive said in July that it was investing 6.8 billion yuan ($993.8 million) to build a production base that would start assembling its first car under its own brand by 2010.

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Re: Denway Motors 0203

Postby winston » Mon Aug 04, 2008 9:08 pm

Hong Kong-listed Denway Motors says no plans for share delisting

HONG KONG (XFN-ASIA) - Denway Motors Ltd said it has no plans to delist from the Hong Kong stock exchange, contrary to a media report.

"The company is not aware of the source of the article, and cannot confirm its accuracy," Denway Motors said in response to a report in the South China Morning Post.

The report quoted unnamed sources as saying that Guangzhou Automotive Industry Corp may seek to delist its 37.9 pct-owned unit Denway from the Hong Kong exchange bourse through a share buyback to pave the way for Guangzhou Auto's listing in Shanghai.

Official Chinese media have reported that Guangzhou Auto, China's sixth-largest carmaker, plans to sell shares first in Shanghai before the end of October and then in Hong Kong in early November to raise a total of 1 bln usd.

China's regulations ban "red chips" like Denway from being listed in the domestic markets. The restriction has effectively blocked Guangzhou Auto's Shanghai listing.


Red-chip companies are China-invested enterprises incorporated and listed overseas whose business is focused on the mainland.

At 3:16 pm, shares of Denway was up 0.06 hkd or 2.16 pct at 2.84.
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Re: Denway Motors 0203

Postby winston » Tue Jan 06, 2009 2:47 pm

DJ MARKET TALK: Merrill Upgrades Denway Motors To Buy From Sell

1228 [Dow Jones] STOCK CALL: Merrill Lynch upgrades Denway Motors (0203.HK) to Buy from Underperform on view stock is "downside protected." Says, if industry growth rises from current trend of falling sales to above 8%, would mark significant volume improvement. "Even if average selling price stays lackluster, economies of scale alone would enable the manufacturer to offset the depreciation cost. This alone gives comfortable support on the EPS downside." Notes, according to Dongfang Daily today, Premier Wen Jiabao confirms NDRC has already enacted new policies to revive country's auto industry. Keeps target at HK$3.33. Stock off 5% at HK$2.84
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Re: Denway Motors 0203

Postby winston » Mon Apr 06, 2009 3:18 pm

DJ MARKET TALK: Denway May Stabilize;China Policy To Benefit-BOCI

0820 [Dow Jones] Denway Motors (0203.HK) may stabilize after 12.8% drop to HK$2.87 Friday on weaker-than-expected FY08 results, 67% cut in final dividend. BOCI downgrades stock to Hold from Buy as "valuation is not cheap;" still, says looking forward, Denway likely to reap some benefits from China's auto industry stimulus policy, which will help improve demand for passenger vehicles, especially small cars, over next few months.

Notes 51%-owned Guangzhou Honda sold 42,025 vehicles in first two months this year, +19.5% on-year vs 6% rise in total vehicle sales nationwide; tips GH's 2009 car sales to grow 8% to 330,000 units; GH is Denway's main earnings contributor. House raises Denway target to HK$3.25 vs HK$2.69 on higher target P/E of 10X FY09 earnings. Friday's intraday low of HK$2.78 likely near-term floor.
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Re: Denway Motors 0203

Postby winston » Mon Nov 23, 2009 10:56 am

Not vested. From Phillips:-


Risk

1)Continuing deteriorated economy dampens car demand.
2)Competition through price-cuts and new model launch may accelerate.
3)Raw material price may go up.


Valuation

We expect Denway's EPS for 2009 and 2010 to RMB0.31、0.33, equivalent to of HK$0.35、0.37.

As for valuation, we mainly choose comparable auto list in Asia. the present Japan auto companies P/E ratios reaches 28, Hong Kong at 20 and India TATA at 25,and the historic P/E range of Denway was between 6 and 16, we give P/E 13 x2010, 12-month target price at HK$4.9 and a “HOLD” rating.
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