China Construction Bank 0939

China Construction Bank 0939

Postby winston » Fri Jul 11, 2008 9:30 am

China Construction Bank sees H1 net profit up over 50 pct yr-on-yr

BEIJING (XFN-ASIA) - China Construction Bank (SHA 601939; HK 939) said first half net profit is expected to have risen by over 50 pct year-on-year.

In a statement filed with the Shanghai Stock Exchange, the bank said profit growth was due to rising net interest income and fee income, as well as a change in corporate tax rates.

In the first half of 2007, the bank booked a net profit of 34.221 bln yuan, or earnings per share of 0.15 yuan under both international and Chinese accounting standards.

China Construction Bank is due to release audited first half results on Aug 23.
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Re: China Construction Bank 0939

Postby winston » Fri Aug 22, 2008 10:00 pm

China Construction Bank H1 profit rises 71 pct

HONG KONG, Aug 22 (Reuters) - China Construction Bank (0939.HK: Quote, Profile, Research, Stock Buzz), the country's second-largest lender by assets, posted a 71 percent jump in first-half earnings, boosted by higher fee income and margins as mainland banks enjoy pricing power on loans.

Construction Bank (601939.SS: Quote, Profile, Research, Stock Buzz), which is about 11 percent owned by Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz), earned 58.7 billion yuan ($8.58 billion) in the first six months of 2008, compared with 34.22 billion yuan in the same period last year.

Five analysts polled by Reuters were expecting the state-controlled lender to earn 58 billion yuan net profit in the first half.

In order to prevent economic overheating, Beijing has set quotas on loan growth for each bank. While that has curbed growth, continued heavy demand for credit by Chinese companies has given mainland lenders the ability to charge higher interest rates, boosting margins.

Shares in Construction Bank have fallen 10 percent in Hong Kong so far this year, compared with a 27 percent decrease in the benchmark Hang Seng Index .HSI during the same period.
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Re: China Construction Bank 0939

Postby winston » Tue Aug 26, 2008 8:24 am

Pace hard to sustain, says CCB
KatherineNg

As one-off benefits including tax cuts and high interest margin started to fade off, high earnings growth has been seen to peak this first half, said a senior executive at China Construction Bank (0939), the mainland's second-largest lender.

"It is not likely the second half will repeat the high 71 percent growth of the first half," CCB chief financial officer Pang Xiusheng told a Hong Kong press conference. Earnings growth in the next two years may even be well below 50 percent, he added.

In light of a possible selloff of shares by its strategic partner, Bank of America, CCB chairman Guo Shuqing said he has no fear as "there will be lots of parties willing to hold their shares."

Bank of America holds 8.5 percent stake in CCB.

Meanwhile, the Beijing-based lender has set its 3 billion yuan (HK$3.41 billion) bond coupon at 3.24 percent, slightly lower than the 3.25 percent of its rival Bank of Communications (3328) whose yuan bond was sold last month.

Retail investors could submit their applications from Thursday until next Friday, with two of those days overlapping sales of China Export- Import Bank's yuan bond, sources said.
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Re: China Construction Bank 0939

Postby winston » Mon Oct 20, 2008 7:41 am

Not vested.

CCB set to report profit up 48.1pc
BenjaminScent

China Construction Bank (0939), the mainland's second-largest lender, said yesterday it will report net profit for the first three quarters of the year rose 48.1 percent, slowing the rapid growth it recorded in the first half.

The Chinese bank expects to report that unaudited net profit for the nine months ended September 30 rose to 84.55 billion yuan (HK$95.9 billion) under Chinese accounting standards, up from 57.10 billion yuan in the first nine months of 2007.

Unaudited operating income for the period rose 25.2 percent to 198.86 billion yuan under Chinese accounting standards, CCB said.

"The various businesses of the group have continued to maintain their trend of positive development," the bank said in a statement. Part of the increase in net profit was attributable to the mainland's new enterprise income tax rate, the lender added.

CCB's rate of growth has slowed since the time of the first-half results, when it reported net profit for the six months ended June 30 jumped 71.4 percent after a 36 percent increase in operating income.

After the interim results, CCB chief financial officer Pang Xiusheng warned that lending and profit growth would slow in the second half.

Smaller rival China Merchants Bank (3968) said last week its profit for the first three quarters will surge more than 80 percent, based on mainland accounting standards.China Merchants Bank attributed the expected leap in earnings to an increase in the bank's asset scale, growth in non- interest income, increase in interest spread and a decrease in the effective income-tax rate.

Mainland bank shares took a heavier beating than the broader market last week on fears they may report profit declines in 2009. The Hang Seng China H-Financials Index lost 3.7 percent of its value over the past five trading days, compared with a 1.6 percent drop in the blue-chip Hang Seng Index.
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Re: China Construction Bank 0939

Postby winston » Sat Oct 25, 2008 7:50 am

Not vested.

China Construction Bank Q3 net profit up 12 pct

CCB (601939.SS: Quote, Profile, Research, Stock Buzz), which is about 11 percent owned by Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz), reported July-September earnings of 25.6 billion yuan ($3.74 billion) in a statement to the Hong Kong Stock Exchange, citing international accounting standards.

UBS had predicted that Construction Bank's third-quarter earnings would rise 3.6 percent to 23.86 billion yuan.

Construction Bank and rivals including Industrial and Commercial Bank of China (1398.HK: Quote, Profile, Research, Stock Buzz) face challenges from a cooling economy, cuts in lending rates and rising defaults stemming from the global financial crisis.

Its shares are down 56 percent this year in Hong Kong, while the benchmark Hang Seng index .HSI has fallen 55 percent.
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Re: China Construction Bank 0939

Postby winston » Tue Nov 18, 2008 9:12 am

BOA to raise CCB stake for $54.8b
Benjamin Scent

Bank of America announced yesterday it will spend HK$54.82 billion to hike its stake in China Construction Bank (0939) and said it plans to remain a long- term investor in the mainland's second- largest lender.

The American bank said it will exercise its call option to purchase 19.58 billion more H shares of China Construction Bank from state-owned China SAFE Investments, formerly known as Central Huijin Investment. The shares will be bought at 1.2 times CCB's audited net asset value per share as of September 30, meaning a purchase price of about HK$2.80 per share.

The price represents a discount of 31.7 percent to CCB's last closing price. Shares of CCB fell 3 HK cents, or 0.7 percent, to close at HK$4.11 in Hong Kong trading yesterday.

After the purchase, Bank of America will control about 19.1 percent of CCB's total issued share capital, up from 10.75 percent currently. China SAFE Investments will see its interest reduced to 57.03 percent.

The purchase is expected to take place by the end of the month, the banks said. "Bank of America intends to remain a long-term and significant strategic investor in CCB," the Charlotte, North Carolina-based lender said in a statement.

The newly-acquired shares will be subject to a lockup agreement through August 29, 2011. The lockup period for some of Bank of America's existing shareholding in CCB has already expired, which means the cash-strapped American lender could sell them at any time to pocket a handsome profit and offset the losses it has racked up in its home market. The lockup period for 19.133 billion of CCB's H shares held by Bank of America expired on October 27. Bank of America bought the shares at HK$2.62 per share, so it is looking at HK$28.51 billion in paper gains on that investment based on CCB's last closing price.

Bank of America, which is in the process of taking over Wall Street brokerage house Merrill Lynch, recently received US$25 billion (HK$195 billion) in new capital from the US Treasury Department.
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Re: China Construction Bank 0939

Postby winston » Wed Jan 07, 2009 9:28 am

Bank of America to Sell Some China Construction Stock By David Mildenberg

Jan. 6 (Bloomberg) -- Bank of America Corp., the largest U.S. bank, is planning to sell up to $2.8 billion of its China Construction Bank Corp. shares, according to sales documents being distributed in the marketplace.

Bank of America is selling 5.62 billion shares in China’s second-largest lender at HK$3.92 apiece, a 12 percent discount to the share’s closing price in Hong Kong trading, according to a term sheet obtained by Bloomberg. UBS AG is the investment bank handling the sale. Bank of America spokesman Scott Silvestri declined to comment.

The U.S. lender in November almost doubled its three-year- old stake in China Construction to 19.13 percent by buying shares from China SAFE Investments Ltd., a state investment arm that is the Beijing-based bank’s biggest shareholder.

“It’s smart for Bank of America to take some profits,” Sean Ryan, an analyst at Sterne Agee & Leach, said in an interview today. “The Chinese don’t want a large part of the stake to be sold when the price of the shares have already declined significantly.’

China Construction shares declined 36 percent last year, while the benchmark Hang Seng Index fell 48 percent. Bank of America shares lost two-thirds of their value during the year, prompting the company to halve its quarterly dividend to 32 cents a share.

Share Purchase

Bank of America in November paid for China Construction shares denominated in Hong Kong dollars at the equivalent of HK$2.79, according to a China Construction investor relations officer. It was a 32 percent discount to the closing price during the previous day.

The Charlotte, North Carolina-based bank first invested in China Construction in June 2005, buying a $3 billion stake before the lender was publicly listed. It invested another $1.9 billion in June. The value of its holding almost tripled, to $14.5 billion, as of Sept. 30, a regulatory filing showed.

Bank of America plans to be “a long-term and significant strategic investor in CCB,” the U.S. lender said in a November statement. The stock Bank of America bought in 2005 became eligible for sale in October, prompting analysts to suggest the U.S. lender would sell part of its stake.
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Re: China Construction Bank 0939

Postby winston » Wed Jan 07, 2009 2:41 pm

DJ MARKET TALK: Overhang Still Big For China Construction Bk-Citi

1256 [Dow Jones] STOCK CALL: Citigroup says share overhang for China Construction Bank (0939.HK) still big, even after Bank of America's disposal of 5.62 billion shares, as 8.2% of its 19.1% holding has come out of lock up at end of 2008, disposal only 29% of the initial 8.2%.

Notes offer price of HK$3.92 translates to 1.5X 2009 P/B, "these valuations are fair but not super attractive, considering that earnings risks for the Chinese banks remain on the downside and the remaining overhang from Bank of America's stake."

Keeps stock rated Hold, targets HK$4.75; shares down 5.8% at HK$4.19.
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Re: China Construction Bank 0939

Postby winston » Wed Jan 21, 2009 12:16 pm

DJ MARKET TALK:CIMB Tips CCB To Outperform ICBC,Ups To Outperform

1050 [Dow Jones] STOCK CALL: Time to accumulate China Construction Bank (0939.HK), "especially on dips," says CIMB, views stock as beginning to offer value after recent fall, with FY09 net profit tipped to fall by 3%, but current share price "already more than priced" in expected earning drop given shares expected to yield 5.2% during trough year of FY09.

Adds, expects CCB to outperform ICBC (1398.HK) in early FY09 as lockup period for ICBC's foreign strategic stakes ends in late April while CCB's lockup expired already, Bank of America already sold stake; expects investors to continue switching to CCB from ICBC until late April, which will lend support to CCB shares. House ups CCB to Outperform from Neutral, trims target price HK$4.86 vs HK$4.90. CCB down 2.9% at HK$3.68
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Re: China Construction Bank 0939

Postby winston » Wed Feb 18, 2009 11:40 am

DJ MARKET TALK: CS Raises China Construction Bank Target 16.2%

1013 [Dow Jones] STOCK CALL: Credit Suisse cuts China Construction Bank (0939.HK) 2008 EPS forecast by 14% to CNY0.39, but still expects EPS +27.7% on-year, on expectation for large increase in bad-debt provisions in 4Q08. Expects end-FY08 NPL coverage ratio to rise to 138% vs 122%.

"We expect the aggressive 'kitchen sinking' and a larger share of new infrastructure loans (which will lead to little increase in NPLs this year) to improve CCB's near-term earnings visibility although deteriorating asset quality remains a risk for the sector."

Says recent stronger-than-expected system loan growth likely to reduce risk of further aggressive rate cuts, easing concerns on CCB's margins vs peers. Raises target to HK$4.24 from HK$3.65 after increasing 2009 EPS forecast by 5% to CNY0.37, marking 3.9% on-year earnings decline. Keeps at Neutral. Shares down 1.0% at HK$3.77; HSI down 0.8%
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