Metallurgical Corp of China 1618

[winston]

DJ MARKET TALK: MCC May Not React Much To Tower Sale News

0841 [Dow Jones] Metallurgical Corp. of China (1618.HK) may not rise much despite news it's planning to sell MCC Tower to parent for CNY2.35 billion and lease it back for use as its office premises at rental rates that won't be higher than prevailing market rent.

"I don't think this will push up the price too much as too many people have lost money in the stock, while selling pressure at various price levels remains significant," says Mark To at Wing Fung Financial.

Stock has been listed in HK since September 24, but it's still well below its issue price of HK$6.35; stock ends +3.0% at HK$4.45 yesterday. Company says proceeds from disposal intended to be used as general working capital and future development, which To says "is almost equivalent to saying nothing specific." Suggests investors cut losses and sell stock.

Source: Dow Jones Newswire

[winston]

Still have a small position from IPO.

DJ Metallurgical Corp Of China OKs US$200 Mln Resourcehouse Stake Buy

HONG KONG (Dow Jones)--Metallurgical Corp. of China Ltd. (1618.HK) said Monday it approved the purchase of a US$200 million stake in privately held Resourcehouse Ltd., controlled by Australian mining billionaire Clive Palmer.

Metallurgical also said it gained approval to undertake engineering, procurement and construction work on a Resourcehouse coal project in Queensland known as China First. Metallurgical will receive a 4% commission from the sale of 30 million metric tons of coal from the project, it said in a statement.

In November, Palmer said he hoped construction on the coal project would start 2010, and mining would begin in 2013.

Source: Joyce Li, Dow Jones Newswires

[winston]

China Metallurgical to Buy $200 Million of Resourcehouse Shares

Feb. 3 (Bloomberg) -- Metallurgical Corp. of China Ltd. said it will buy $200 million of Resourcehouse Mining Group shares, according to a filing to Shanghai’s stock exchange. The company will own no more than a 5 percent stake in Resourcehouse, according to the statement.

Source: Bloomberg

[winston]

MCC to double capital spending
Tuesday, May 04, 2010

Resources and construction firm Metallurgical Corp of China (1618) will double capital spending this year to 20 billion yuan (HK$22.75 billion).

"We plan to use more than 10 billion yuan for resource exploitation and development," the state-owned enterprise's finance chief said.

"The rest will go into engineering and construction."

MCC may also take over the real-estate business of other SOEs banned from the property market.

Source: SOPHIE HE, The Standard HK

[winston]

by millionairemind

MCC Land uses Bukit Batok base to tap the region
By EMILYN YAP

(SINGAPORE) A Chinese state-owned enterprise is quietly growing its global footprint out of a nondescript industrial building in the leafy suburbs of Bukit Batok.

Mr Tan: We will pursue long-term development here. We aren't here to offer just one or two projects. We will offer long-term real estate services just like a local developer

The 19th floor has been taken up by China Metallurgical Group Corporation (MCC), which has businesses stretching across natural resource exploration, equipment fabrication, engineering, construction and property development around the world.

MCC has been in Singapore for almost 20 years, registering its construction unit China Jingye Engineering Corporation as early as 1996. But it was only with the recent incorporation of its property development unit MCC Land that the market sat up and took notice.

MCC Land is eyeing expansion - literally. Managing director Tan Zhiyong has hanging in his office a large map of Singapore dotted with stickers: two pink ones for the land parcels it has bagged, and more than 20 green ones for other plots that the government has to offer.

'We will pursue long- term development in Singapore,' says Mr Tan in Mandarin in an interview with The Business Times. 'We are not here to offer just one or two projects. We plan to offer long-term real estate services just like a local developer.'

'Every market is the same - the Chinese come to Singapore, Singaporeans go to China. We are all competing in the same market.'
- Mr Tan

In time to come, MCC Land may even go regional, partnering other developers to enter countries such as Malaysia and Indonesia.

Registered only in February, MCC Land stirred up the property market in March when it pipped big boys such as Far East Organization to win the state tender for an executive condominium site in Yishun. Its bid of $127.8 million or $281 per square foot per plot ratio (psf ppr) far exceeded analysts' expectations.

Just three months later, it took home another residential plot in Sembawang by offering $131.7 million or $387 psf ppr - a price that again surpassed market estimates.

There were rumblings among market watchers about the high bids but Mr Tan plays down these concerns. MCC Land made reasonable bids given that they were not too far off from the second and third-placed ones, he says.

Furthermore, China Jingye will be the contractor for both sites and construction costs will be lower, giving MCC Land a competitive edge, Mr Tan says. 'On the whole, we will not be charging high prices just because our bids were higher.'

MCC Land plans to launch The Canopy, an executive condominium project with about 400 units in Yishun in Q4. And in Sembawang, it could roll out a condominium with about 300 units in Q1 next year. Both projects will have lush landscaping and water features for a tropical resort feel.

Mr Tan acknowledges that consumers may not be familiar with MCC Land yet. 'We can't say we weren't worried. Some may know us as a contractor but we are quite new to the market as a developer,' he says.

To ensure that its projects will appeal to consumers here, the firm engaged local architects Surbana and SAA. It also sought feedback from local employees during the design process. 'I believe many people will like our products when they are launched,' Mr Tan says.

Some have wondered why MCC Land chose to enter the Singapore property market this year, amid fierce competition for sites and rising land prices. And there is a bigger question: why would a Chinese developer be interested in tiny Singapore when there are still so many business opportunities in vast China?

MCC has property projects in cities such as Beijing, Nanjing and Wuhan but it has to venture abroad, Mr Tan says. This is something that the Chinese government has been encouraging state-owned enterprises to do. 'To be an international corporation, we can't have operations only in China . . . To build our brand, we have to expand overseas,' he says.

MCC has gained a good understanding of the Singapore market, so becoming a developer here was the next logical step. 'We have handled so many construction projects and real estate is a major part of MCC's business. So it's quite a natural progression for us to go into property development,' Mr Tan says.

Singapore's property market is attractive because it carries lower risks, offers more stable returns, and provides opportunities for regional expansion, he adds. MCC Land has plans to use the experience it gains here to enter other markets such as Indonesia and Malaysia.

It also helps that Singapore's culture is not too different from China's, Mr Tan says. Perhaps as proof of how easy it is to live here, he has settled down with his wife and two children for the last 14 years.

MCC Land is taking competition with local developers in its stride. 'No company can monopolise a market. It's not good for consumers too,' Mr Tan says. 'Every market is the same - the Chinese come to Singapore, Singaporeans go to China. We are all competing in the same market.'

In fact, he believes more developers from the Chinese mainland could come for a slice of the property pie. There is evidence of this happening. Last year, China Sonangol Land bought 21 Angullia Park from OUE for $283 million. Qingdao Construction, which started taking on property development projects some years ago, also won the tender for a site in June.

'Singapore is a free market and there aren't many investment restrictions. Some private developers like Singapore and may even wish to immigrate here,' Mr Tan says. 'I think there will be more and more Chinese developers entering the Singapore market.'

[winston]

DJ MARKET TALK: Metallurgical +6.3%; Land Buy Positive -Wing Fung

1057 [Dow Jones] Metallurgical Corp. of China (1618.HK) +6.3% at HK$3.91, on resumption of trade after company says it bought 2 sites at land auction in Nanjing for CNY20.03 billion.

Unit on Sunday won 2 plots of land in Xiaguan District in Nanjing, with total planned site area of around 1.3 million square meters; company plans to start construction in 1H 2011, but it didn't provide details of project.

"It's a long-term positive," says Mark To at Wing Fung Financial. Standing on cash and cash equivalent of CNY44.7 billion as at end-2009, group unlikely to have any funding pressure for site buys, he adds.

But thinks shares may succumb to profit-taking soon as tightening concerns in mainland real estate sector still remain. Tips firm resistance at HK$4.00.


Source: Dow Jones Newswire

[winston]

DJ China MCC To Resume Construction At Afghan Copper Mine
Sep 8, 20109

SHANGHAI (Dow Jones)--Metallurgical Corp. of China (601618.SH) executives said Tuesday that construction will resume later this year at a copper mine in Afghanistan it owns with Jiangxi Copper Co. (600362.SH).

Two executives from MCC confirmed a report appearing earlier Tuesday in the Century Weekly saying that construction of the Aynak project, which has proven reserves of 12 million metric tons, will resume later this year and that it will start production in 2012. The executives asked not to be named.

The initial annual copper concentrate capacity of the project will be 200,000 tons, the weekly cited MCC president Shen Heting as saying.

MCC and Jiangxi Copper, the country's largest copper producer by output, signed a deal to invest US$4.39 billion to develop a large copper project in the Aynak field in Afghanistan in June 2008, with MCC to own 75% of the mine and Jiangxi Copper 25%.

The project quickly stagnated after its launch in July 2009 initially due to 'an election in Afghanistan' that caused delays in all previous commitments of the Afghan government, the weekly cited Shen as saying.

Source: Yue Li and Yajun Zhang; Dow Jones Newswires

[winston]

Vested.

Mainland firm banned for fraud

A subsidiary of China Metallurgical Group Corporation (MCC), a state-owned construction, resources and property conglomerate, has been banned by the World Bank.

Source: SCMP

[winston]

not vested

MCC (01618.HK) 1Q NP up 21%

MCC (01618.HK) announced, for the first quarter, the business income fell 2.7% yearly to RMB43.624 billion;

Net profit rose 20.9% to RMB1.044 billion, representing EPS of 5 fens.

The Company expects the 1H results will swing into profit.

During the quarter, the newly signed contract amount fell 20.8% yearly to RMB41.907 billion.


Source: AAStocks Financial News

[winston]

vested

MCC (01618.HK) may develop markets in South America, Middle East & Africa
Sep 1, 2014

MCC (01618.HK) President Zhang Zhaoxiang stated the metallurgy business had grown stably in 1H, and new contracts of non-metallurgy segment jumped 1.18x yearly to $129.02 billion, since the group had strengthened the regional development.

He mentioned the company may develop overseas markets in South America, the Middle East and Africa in the future.

Nevertheless, Zhang pointed out the outlook of the mining industry is gloomy, thus the group will be cautious when investing in new projects. ~

Source: AAStocks Financial News