Sun Hung Kai Properties 0016

[winston]

Not charged yet.

ADR tanked 13%; Source: CNBC

[winston]

not vested

DJ MARKET TALK: SHKP Bid Down 19.0% Pre-Open; Barclays Cuts View

0905 [Dow Jones] STOCK CALL: Barclays Capital cuts SHK Properties (0016.HK) to Underweight from Equalweight, after the arrest of the developer's co-chairmen by the ICAC; it keeps its target price unchanged at HK$92.16.

The house says its analysis of NAV discounts for HK property stocks divides the discount into two parts, one part to reflect the returns being generated by the underlying portfolio and a second part to reflect management's ability to add or detract from that value.

"In analysing our NAV discounts for the past 15 years, we have estimated that management discounts for developers range from 5% to 30% with SHKP's discount having historically been at the narrower end of the range."

At pre-open, SHKP is quoted down 19.0% on trade resumption.

Source: Dow Jones Newswire

[winston]

Vested

DJ MARKET TALK: SHKP Off 12.5%; HK$36B Mkt Cap Wiped Out; Peers Down

0949 [Dow Jones] SHK Properties' (0016.HK) 12.5% slump to HK$97.20 wipes out HK$36 billion off its market cap, as the stock resumes trade following the arrest of its co-chairmen by ICAC; but shares are off intraday low of HK$94.00.

Peers are suffering collateral damage with Henderson Land (0012.HK) and Sino Land (0083.HK) each down about 5%, vs the HSI's 0.7% decline.

Still, "I think this is a company-specific issue and shouldn't impact other developers," says SHK Financial strategist Daniel So.

After the knee-jerk reaction, funds may actually be rotated out of SHKP and into blue-chip peers, he notes.

SHKP's volume in the first 12 minutes of trade is already HK$3.37 billion, accounting for 35% of Hong Kong market's total.

Source: Dow Jones Newswire

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vested

Sun Hung Kai Properties Target Price Cut To HK$115.95 Vs HK$165.64 By Citigroup

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vested

DJ MARKET TALK: Arrest Will "Seriously Damage" SHKP Image - CS

1031 [Dow Jones] Credit Suisse says the arrest of SHK Properties' (0016.HK) co-chairmen, along with the former Chief Secretary Rafael Hu, for an alleged bribery case, "will seriously damage the corporate image of SHKP."

It says the extent of the damage is hard to be ascertained at this point and very much depends on how long the issue will drag on or whether this would result in any potential change in the management team.

CS says Henderson Land's (0012.HK) last scandal on the cancellation of the sale of 39 Conduit caused its share prices to drop 13% in three months, but given the "surprise" nature of the current arrest, "we believe the share price reaction of SHKP is likely to be exaggerated."

SHKP is down 12.5% at HK$97.20.

Source: Dow Jones Newswire

[winston]

vested

DJ MARKET TALK: Citi Cuts SHKP To Neutral; Slashes Target 30%

1248 [Dow Jones] STOCK CALL: Citigroup cuts SHK Properties (0016.HK) to Neutral from Buy, and slashes the target price to HK$115.95 from HK$165.64, based on a 30% discount to NAV vs previously at par.

It notes the investigations into the suspected bribery offence should have no impact on its estimated NAV of HK$165.64/share, but investors are likely to apply a deeper NAV discount on the stock due to the uncertainty relating to the investigations.

"We believe SHKP's strong fundamentals should make the stock a long-term leader in the Hong Kong property market; however, we believe in the short term the stock will trade at a relatively deep discount until the ICAC concludes its investigation."

SHKP slumps 11.7% to HK$98.05 at midday.

Source: Dow Jones Newswire

[winston]

vested

DJ MARKET TALK: SHKP Probe Only 'Tip Of Iceberg' - UBS

1419 [Dow Jones] UBS perhaps provides the least sugercoating in its assessment of the arrest of SHK Properties' (0016.HK) joint chairmen, saying that "this is the tip of the iceberg."

It says that Hong Kong blue chips, which historically deserve a premium due to clean management, is at risk, and HK government's credibility is also at risk.

"To take it to the extreme, investors will now wonder if any of their HSI constituents deal with the government and if they do, whether they should hesitate being overweight."

It adds that at least for the short term, SHKP should move towards 30%-40% discount to NAV, and given UBS' NAV estimate of HK$147.90/share, a 40% discount the stock would trade down to HK$89.

SHKP falls 12.9% to HK$96.80 after sliding to as low as HK$94.00 in the morning session; it's the most heavily traded HK stock with HK$8.91 billion, itself accounting for almost 20% of total market volume.

Source: Dow Jones Newswire

[iam802]

the signal is clear from W...

Hidden Content:

Be The Contrarian

[winston]

Ha Ha ... Wait and then try to catch the falling knives, hoping that they are made of plastic

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vested

Sun Hung Kai Loses $4.9 Billion as Kwoks Arrested By Kelvin Wong

Sun Hung Kai Properties Ltd. (16) plunged the most in 14 years and lost $4.9 billion of market value after anti-graft investigators arrested the billionaire brothers who run Hong Kong’s biggest developer.

The two Kwok brothers and their mother lost almost $2 billion on paper today, according to data compiled by Bloomberg. The shares, a 42.9 percent stake in Sun Hung Kai, are in a family trust held by HSBC Holdings Plc and are worth $13.9 billion.

Sun Hung Kai built and runs the 118-floor International Commerce Centre, which at 484 meters (1,588 feet) is Hong Kong’s tallest building, as well as the International Finance Centre complexes in Hong Kong and Shanghai.

http://www.bloomberg.com/news/2012-03-2 ... probe.html