Loudong General Nice Resources 0988

Loudong General Nice Resources 0988

Postby winston » Fri Sep 25, 2009 8:20 am

Not vested. From Dr. Check, The Standard HK

New name lifts short-term outlook of coke play


Today, let's focus on a speculative buy. Loudong General Nice Resources (China) Holdings Limited (0988) engages in coal processing and production of industrial coke and coal-related chemicals. It also produces by-products, including coal gas, coal tar and benzene, and generates electricity.

The company was formerly known as The Suns Group Limited and changed its name to Loudong General Nice Resources (China) Holdings Limited on May 8 this year.

Last year it acquired Abterra Coal and Coke for HK$1.35 billion.

For the year ended March 2008, it earned a net profit of 242 million yuan (HK$274.72 million).

It is tipped to produce 2.6 million tonnes of industrial coke per year.

Coke is a major raw material in steel production and most of Shanxi Loudong's clients are steelmakers.

In June it offered shareholders two for every five shares at 66 HK cents. After the offer, the stock rose steadily, closing at HK$1.29 yesterday. Meanwhile, interim profit surged 24-fold to HK$37.8 million.

The firm wants to buy three coal mines. Two institutional investors raised their stakes in Loudong last month buying the stock at HK$1.28.

Invesco and Halbis Capital now hold 8.04 percent and 5.97 percent, respectively, of the company.

http://www.thestandard.com.hk/news_deta ... 90925&fc=8
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