InvestIdeas

Not vested

China BlueChemical (3983.HK: Quote, Profile, Research), an affiliate of CNOOC (0883.HK: Quote, Profile, Research), surged 6.07 percent to HK$5.42 after the country's top producer of nitrogen fertilisers told Reuters it planned to nearly triple its production capacity by 2011 through growth and acquisitions.

HK-listed China Bluechemical to acquire phosphate business from parent CNOOC

HONG KONG (XFN-ASIA) - China Bluechemical Ltd, a mainland-based fertilizer company, said it agreed to acquire 100 pct of ZHJ Mining Co Ltd and 83.17 pct of Hubei Dayukou Chemical Co Ltd from parent CNOOC group for 1.26 bln yuan.

The target companies exploit phosphate mines and produce phosphoric chemical products, mainly phosphate fertilizers, in Jingmen city, Hubei province.

China Bluechemical said the acquisition will enable it to secure significant phosphate resources and reserves, expertise and technical know-how relating to phosphate mining and processing, as well as production of compound fertilizers.

At 10:22 am, shares of China Bluechemical were 0.21 hkd or 7.3 pct at 3.08.

winston wrote:HK-listed China Bluechemical to acquire phosphate business from parent CNOOC
...... Hubei Dayukou Chemical Co Ltd .....

this underlined...means " big long kang" (big drain), is it ?

Not vested

Fertile hedge
Thursday, March 31, 2011

Hong Kong's richest man, Li Ka-shing, on Tuesday warned that the city will face stiff inflationary pressure this year.

To hedge against such a risk, you can buy hard assets, such as property. You may also try looking at good-quality stocks unlikely to be hurt by inflation.

Makers of methanol and chemical fertilizers such as China Blue Chemical (3983) meet the mark.

Net profit in 2010 rose 19.4 percent year-on-year to 1.175 billion yuan (HK$1.39 billion). Goldman Sachs was disappointed. But Citigroup and Merrill Lynch remain bullish and have set a HK$7.80 target for the stock.

Future CBC schemes in Inner Mongolia and Shanxi along with the expansion of its DYK Phosphate project ensure steady earnings growth.

Many institutional investors are CBC shareholders. They include Commonwealth Bank of Australia with an 8.91 percent stake, Value Partners Group (9.01 percent), JPMorgan (10.77 percent), Merrill Lynch (6.95 percent) and Bank of America (5.64 percent).

CBC has eased 10 percent from February's all-time high of HK$7.17. Around HK$6.30, the pick looks alluring


http://thestandard.com.hk/news_detail.a ... 10331&fc=7