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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| West China | WCC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 695.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 695.00 | 695.00 |
| Top Posts |
|---|
Posted at 20/8/2010 10:23 by eddie1980 aim11 - all you have posted is 2 derogatory remarks at me rather than consider what was posted.Yes, I think it is odd that the reallocated so 50% went to retail investors. Why was there not sufficient demand from II at $1.69? That is a serious question. It doesn't affect my postion, I still hold, but you would think they would have had greater support. I certainly did, and I think it is wrong just to discount it. I also think it will increase volatily in the share price, as they do not have as large II backing holding a greater % of the shares. It also means that any movement in the share price on day 1 is likely to come from retail investor demand. I think that could cause the share price to be more erratic with investors chasing it up if it spikes, but then also trying to turn quick profits at certain levels causing dips. It certainly changes my view on whether to sell if it does spike on day 1, with the hope/expectation of buying back again if it settles to a more normal level. (i.e I would now, even tho I intend to keep my core holding long term) |
Posted at 12/8/2010 09:15 by celeritas Brits don't understand Chinese stocks, says mainland CEOChinese companies delist from London's AIM saying their shares are undervalued by British investors. By Lillian Liu | 12 August 2010 Keywords: aim | london stock exchange | chinese stocks | hong | kong | ipo "The British don't understand China," Zhang Jimin, chairman and chief executive officer at West China Cement, has told reporters in Hong Kong. "Our shares have been severely undervalued," he said. The Shaanxi-based cement producer plans to delist from London's Alternative Investment Market (AIM) blaming British investors' ignorance on the value of the stock. Alternatively, it is looking to raise up to HK$1.39 billion ($179 million) through an initial public offering in Hong Kong where Chinese companies are popular bets for investors. The company plans to delist from the London's junior trading board on August 23 and start trading in Hong Kong the same day. It is going to be the second Chinese company to delist from AIM within three months. In June, China Biodiesel International, a Chinese renewable energy group, dropped its listing through a tender offer in which the company bought back the outstanding shares. The company, which develops biodiesel, described its share performance as "disappointing" and "a source of frustration" and said the development of the business and growth potential had not been adequately reflected in the value attributed by the market to the ordinary shares. Some London-based economists agree that investors in the UK don't appreciate how fast-growing China's economy actually is. "That is true, many people in Britain don't understand the scale and pace of China's growth, they haven't seen much of the country," said Gerard Lyons, chief economist at Standard Chartered Bank. Earlier this year, China Eastsea Business Software delisted from AIM citing similar reasons that the stock was valued poorly even when the company's profit growth was exceeding market expectations. Based on 2010 earnings, London-listed shares in West China Cement are trading at a price-to-earnings ratio of 6.7 times. By contrast, London-traded shares of CRH, the world's second-largest maker and distributor of building materials, are trading at a P/E of 16.4 times, according to data from Bloomberg. Hong Kong-listed Chinese cement producers are also trading at higher valuations. Anhui Conch Cement is trading at around 23 times and China Shanshui Cement 10.9 times. In its Hong Kong IPO, West China Cement is selling 823 million primary shares, or 20% of its enlarged share capital, at between HK$1.21 and HK$1.69 a share, which will allow the company to raise between HK$995.8 million and HK$1.39 billion. The share sale comes with a 15% greenshoe option so the deal size could extend to between HK$1.14 billion and HK$1.59 billion if the option is fully exercised. The offering price range was about a 1.5% to 29.5% discount to the company's closing price on the AIM on August 6. The IPO price will be fixed on August 13 and trading is scheduled for August 23. Deutsche Bank and ICBC International are handling the IPO. Proceeds raised from the sale will be used for capacity expansion, including the construction of new projects and for the repayment of loans. The cement company estimates its net profit for the first half will be at least Rmb307 million. In the first four months of this year, revenue soared 93% to Rmb675.3 million while net profit rose 69.9% to Rmb154.3 million ($22.7 million), it said in an IPO prospectus. Unlike British investors, Chinese brokerages see great potential in the cement group. West China Cement has clear earnings potential due to rapid fixed asset investment (FAI) growth. Backed by the mainland government's "Western Development Plan", Shaanxi enjoys stronger GDP and FAI growth than the national average, Shenyin & Wanguo Securities said in a report. "We believe the company's sales volumes will increase significantly, from 5.1 million tonnes in 2009 to 16.6 million in 2012 and [we] expect revenue to grow at 46%," it said in the same report. |
Posted at 09/8/2010 15:37 by mattjos Yes Aim .. here it is.A la ACHL, CMSH, ETC, JHL .. they are slowly all bugging out. 2 years time they'll all be gone from AIM & then most investors will rue their lack of vision. The choices for investors reduce each quarter it seems. Last one out will switch off the lights and leave us stuck for such good targets. WCC's move will at least allow some to start trading over on the HK bourse of the first time and perhaps create funds to pick up on the other AIM-exiters. Zhang's comments echo those of Matthew Ng, the CEO of ETC, that i had when he mailed me back in June after Kuoni took them out: "Many thanks for the email which was great appreciated. For the last 3 years since listed on AIM, the management has tried a lot of things to communicate and educate the UK-based institutional investors but to no avail. Our share price has been lingering around 30 p for the last 12 months and more, hence the KUONI bid was a nice solution to our current UK problem. Equally the management has a lot of hope that by learning from the best in the trade, we can capture the rapidly rising affluent traveler in China. Well, it is a good results for shareholders who would like to see some return, but as you rightly pointed out, that we will be leaving AIM and UK market for good. Again I would like to thank you for your support and encouragement and wish you all the best in your future investment in Chinese companies in UK." |
Posted at 06/8/2010 09:48 by eddie1980 Mattjos - I don't think the 'technical' delays were chosen by WCC - personally I think they should have had everything right considering the original pulling of the relisting. For this to happen the day before investors meetings and 2 days before the prospectus to go out is not very good.As so far as doing it when the markets are stable, that is partly luck as to the external environment at the time (imagine what would have happened if all the Euro banks had failed the (watered down) stress tests 2 weeks ago - carnage) , and it certainly shouldn't result in delaying investor meetings a day befoe they are due. The only consolation for UK investors and the stability of the share price is that TDW (selling anyway), ETX etc have already stopped dealing in WCC until the relisting is completed. |
Posted at 25/7/2010 10:34 by longsight pp - I'm sure you've made loads of money on Rockhopper. Well done. But why shd I invest in it if I know zilch about oil exploration? What is the possible relevance to investors in a cement business in PRC? I have one or 2 great investments - but they are irrelevant to WCC so I don't mention them. Personally, I think it is ludicrous to taunt people on here about how much you've made on some share. If you are the greatest investment adviser then why not start a tipster sheet & publish your full track record like others have to. imo you are not qualified to give investment advice at all. As to baiting investors in WCC, the facxt is that most of them have made a lot of money on it & the business has fantastic prospects & has not let investors down at all. So what's the beef?From the RNS on Friday I can't see that anyone can prejudge the content of the conferance call on Monday. In fact the RNS only made reference to the one relatively modest potential acquisition - which wd hardly involve some massive equity issue. As to the argument that WCC will make a large & heavily discounted issue of equity & the implication that "AIM shareholders" are about to get screwed - given Zhang is the majority holder, I can not see any explanation in your posts as to why Zhang wd wish to screw himself. If you are suggesting that Mr Zhang is a lunatic then you shd provide some evidence for this. |
Posted at 20/7/2010 14:52 by celeritas Good article with a buy on Conch.July 20, 2010 Money Morning Mid-Year Forecast: Why China's Economy Will Exceed Expectations in the Second Half of 2010 [Editor's Note: This is the latest installment in Money Morning's ongoing Midyear Economic Forecast series, which has covered such topics as oil, gold, and the U.S. dollar.] By Larry D. Spears, Contributing Writer, Money Morning The rapid growth China's economy experienced in the first half of the year was a blessing and a curse. It helped propel the world out of a disastrous recession, but it forced policymakers into action to prevent overheating - which scared off many investors. But the fact is that while most of the world was struggling to keep the engine of economic recovery from sputtering to a halt, China spent the first half of 2010 with its foot on the brake. And now that the Red Dragon has reigned in growth, the second half of 2010 will likely look very different from the first. Money Morning Chief Investment Strategist Keith Fitz-Gerald says nearly everyone felt the first quarter's 11.9% growth in Chinese gross domestic product (GDP) was "too hot." But the 10.3% growth China saw in the second quarter will likely be topped in the second half. The reasons for that are simple: Exports remain strong. Chinese stocks are oversold. China's property market isn't the ticking time bomb many analysts believe it is. And policies implemented to cool growth in the first half of the year will likely be relaxed in the next six months. "From an investment perspective, the single biggest concern right now is how hard and for how long the Chinese government will keep tapping on the brakes," says Fitz-Gerald. "I personally don't think it's going to be too much longer - an easing sometime in the third quarter now seems realistic The Red Dragon's Real Estate "Problem" China's government is making progress in reducing the explosive rate of construction growth and property speculation, especially in the housing sector. After real estate investment accounted for 12.8% of China's GDP in 2009 - and 22.1% of all fixed-asset investment - Beijing decided to clamp down this spring, implementing new restrictions affecting loans, land sales and permits for new construction, as well as proposing a plan to gradually introduce property taxes. As a result, nationwide property sales in June declined for the second straight month in volume terms, with the floor area of buildings sold down 3.1% from a year earlier, following a 3.4% drop in May, according to China's statistics bureau. That should ease concerns among global investors about the impact of overbuilding - an issue Fitz-Gerald contends was overblown to begin with. "China has historically built well in advance of what it's going to need, and most of the reports of empty buildings standing around have been confined to three areas - Beijing, Shanghai and Hong Kong - where future growth is expected to be most dramatic," he said. Those areas are also where the recent restrictions have had the largest impact, with both Beijing and Shanghai reporting sharp declines in sales. Analysts also frequently overlook one other critical point regarding China's real estate situation, according to Fitz-Gerald. "Chinese law requires that, once you buy a piece of property, you must build on it within 18 to 24 months. They don't allow 'land banking' like we have here in the United States," he says. "As a result, developers who want to lock up land will buy it, throw up a garbage building and let it sit empty so as to avoid being taxed at higher occupancy rates until they're ready to build what they actually want. Empty buildings there don't necessarily equate to a lack of demand." What's more is that the real estate restrictions are likely to be short-lived. The Ministry of Housing and Urban-Rural Development in May signed an agreement with local and provincial governments to fund construction of 5.8 million new affordable housing units and renovate another 1.2 million homes. Also helping support the construction industry is a new government program to rebuild the earthquake-ravaged provinces of Sichuan, Gansu and Shaanxi. On May 14, the Ministry of Finance allocated more than $3.6 billion (24.8 billion yuan) for nearly 4,000 projects aimed at restoring municipal infrastructure and public services. Additional money was allocated to ensure the funding of about $30 billion (200 billion yuan) worth of municipal bond requests filed with the National Development and Reform Commission (NDRC) since Jan. 1 - funding that had been delayed in the bid to slow economic growth. But now that a visible slowdown has been achieved, the funds are being released. "The government doesn't want to see a bunch of unfinished projects," said Gao Huiqing, a member of the State Information Center Expert Committee. The municipal projects are thus being funded again, but "at a controlled pace." Underestimating Exports Real estate and construction aren't the only sectors that will surprise analysts in the second half of the year, either. China's export sector, still the backbone of the country's economy, remains strong. Despite concerns that Europe's sovereign debt woes and America's wavering recovery would trigger the second trough of a double-dip global recession, dimming China's foreign business prospects, exports have continued to grow. China's total imports were up 34.1% from a year earlier in June, while exports climbed by 43.9%, taking the country's trade surplus to a record high $20 billion. The rising demand also has many companies in China operating at full capacity, meaning they're now under renewed pressure to grow. For example, Caterpillar (NYSE: CAT), the world's leading supplier of construction and mining machinery, says it is operating at 100% in all its Chinese facilities. Rather than being encouraged by the export numbers, some analysts expressed concern they might rekindle inflationary fires, but China's consumer price index actually fell to 2.9% in June from 3.1% in May. "The thing with inflation is that you have to keep it in perspective," said Fitz-Gerald. "China's economy is growing at an annual rate of around 10%, so inflation of 3% is no big deal - unlike here (in the United States), where we're growing at just 2% or so a year and non-government sources estimate real inflation is running around 9%." Of course, the fact that analysts have continually underestimated the Red Dragon's stability has left investors with a tremendous opportunity. Stocks Set to Surge Indeed, Chinese stocks are poised for a big rebound in the third quarter. The Shanghai Composite Index has dropped 17% in the past three months, and the CSI 300 has lost more than 25% of its value. But consider this: From 2004 through 2009, the CSI 300 had five major declines. If you exclude the global collapse in 2008, the other four "internal corrections" have averaged 27.5% over an average time period of 88 days. The current pullback has already exceeded the 88-day mark, and the loss is close to the past average. Given those numbers, Fitz-Gerald recommends that you "double your exposure to China for the second half of the year" - but with a couple of caveats. "Chinese stocks are definitely going to be fairly volatile in the coming months," he warns, "if only because the markets are still relatively immature and the government is going to keep a very careful watch on them to keep growth in check. However, there will be plenty of bullish pressure on prices because the money that's been targeting real estate speculation - now blocked by the government restrictions - will be channeled into stocks." The market also could get a boost from an easing of the European debt situation and a rebound in the value of the euro, which has fallen precipitously. However, Fitz-Gerald cautions against placing too much emphasis on China's import-export numbers, which he says will likely remain "tepid" simply because trade balances have become more of a political than an economic issue. "The more the West pressures Beijing to increase imports and cut exports," he says, "the more China is going to resist." Investing in China If you want to trade a potential second-half upturn in Chinese fortunes there are a variety of options. Some Chinese stocks that trade on U.S. exchanges are worth a look given the potential resurgence in construction and newly authorized spending on public services. Anhui Conch Cement (OTC: AHCHY), recent price: $15.15 - This stock is very thinly traded here in the United States, but it's a good candidate for two reasons. It is China's largest cement producer, having dominated the coastal building markets for years. And its share price has been halved in the recent correction. Fundamental info is scant on most U.S. market websites and, once again, it's very thinly traded, so buy only with limit orders. |
Posted at 07/7/2010 14:19 by aim11 i think we need to forget the current AIM price in respect of a capital raise in HK and an early HK quoted price. ALL IMHO but my belief is that they'll do a small cUSD$50-100mn raise announced at the time of the HK list and the price will be set via a book build from the broker. The company has said to me directly several times and also at the meeting earlier this year that they had some acquisitions planned to get to their 2011 output target and that the AIM price was a long way off where they'd dilute - the primary reason to go to HK is to enable some additional funds to be raised at a "sensible" price...if AIM was pricing the stock at £10+ there wld be no reason to go to HK. WCC is 3.2m/t away from its 2011 target and presumably the gap will be filled by acquisitions - $50-100mn capital raise would be enough to fund this type of expansion. HK investors know the cement sector well and peers are all on 9-15x 2010 p/e...they'll have a good idea by the time WCC relists that 2010 eps will be 125p+ and so the book build for any capital raise should occur at over 1000p per share - a discount will be required to peers probably for the capital raise itself but there will be limited liquidity ex the capital raise for new HK investors to get involved in the WCC story. The listed price should then gap to where the books close on the capital raise. This is all imho, will be interesting to see what actually happens. But overall the capital raise is IMHO important to enable HK investors to buy into the story and demonstrate what they're willing to pay for WCC, in addition to allowing WCC to fund some interesting acquisitions later this year/early 2011. |
Posted at 01/7/2010 11:33 by share_shark Well the share price says it all.If you wish to be convinced further, take a look at the World events first before wondering about our company. NOTHING escapes these factors. Stockmarket investors are in for a rough ride It looks like all those 'death crosses' peppering global markets weren't just a melodramatic figment of chartists' fevered imaginations. Global stock markets continued to slide yesterday. Of particular interest (from a technical point of view at least), the key US index, the S&P 500, closed below the important 1,040 level. Now I realise a lot of people are dismissive of charting. That's a mistake. I'm not going to pretend to be an expert on the topic I can't say that terms like Fibonacci and Bollinger get me terribly excited. But almost every investment professional I have any time for, pays at least some attention to technical indicators. And if for no other reason, that's why you should too. So why is the fall below 1,040 important? Because, as David Rosenberg of Gluskin Sheff put it, it's been "the key line of support for the past five months." Breaking through it is "not good" for equity investors. In fact, "a move to 880 on an interim basis seems likely... a retest of the March 2009 lows cannot be ruled out." So what gives? There were any number of pieces of news yesterday to peg the panic on. And we'll look at them below. But in short, the 'stimulus' rally that kicked off in March 2009 ended in April 2010, in developed markets at least. Now investors are looking for evidence that the economy can stand on its own two feet, without government aid. And in all corners of the globe they're being sorely disappointed. But there is some good news in Europe Let's start with the good news. It seems that European banks aren't quite as dependent on the European Central Bank as might have been feared. Today banks have to repay the ECB the 442bn it loaned them a year ago. The ECB offered banks the chance to 'roll over' the money into three-month loans. But banks have apparently just taken up 131.9bn of this offer. We covered this in more detail a couple of days ago. But in short, this suggests that most banks were able to get hold of any money they needed in the markets, which is reassuring. But of course, when you catch a rare glimpse of positive news for the eurozone, you can be sure that a ratings agency will pop up to remind you of the grim reality. And yesterday was no exception. Moody's pointed out the Spain faces 'deteriorating' growth prospects and challenges in meeting its fiscal targets. And that means its AAA credit rating is in jeopardy. Now this is hardly news. The other two big credit ratings agencies, Fitch and S&P have already downgraded Spain. Yet the timing is rather pointed Spain is trying to borrow 3.5bn over five years in the markets today. It'll be interesting to see how that goes, although no doubt the ECB will step in if Spain's cost of borrowing looks like it'll be driven too high. China's cooling economy is the main threat So Europe remains a worry. But what's really thrown markets into a spin this week is the threat that China's economic growth might be slowing down a little. Investors still seem to harbour this hope that China is going to lead us all into a land of never-ending economic growth as it becomes the next global superpower. So news this morning that China's manufacturing sector is slowing more rapidly than forecast, was more than enough to keep markets in pessimistic mode. Now China has plenty of good things going for it. And we're in no doubt that the rise of Asia and emerging markets in general is a trend that will continue (if you haven't already signed up for Cris Sholto Heaton's free MoneyWeek Asia email, I suggest you do so now. But it's not going to happen overnight. And it's not going to be a smooth transition process. With all the bad debt floating around China's banking system, there's bound to be a bust to go with the boom at some point. China will have enough problems managing its own economy in the years to come without worrying about bailing out the rest of us too. What should investors do? So what can investors do? Rosenberg tips "Safety and Income at a Reasonable Price (SIRP)" as a strategy. Basically this isn't very different to what we've been recommending for a while. "A core holding of precious metals in the portfolio" to protect against "global financial, economic and geopolitical instability". And on stocks, you want to look for "strong balance sheets, positive net free cash flow yield, earnings stability, non-cyclical sectors and dividend growth and yield". |
Posted at 11/6/2010 10:49 by mattjos Possibly but they need the cash to fund expansion at this stage. Although there is some logic to buying back from uk investors @ this level and releasing it again to asian investors at a later date. I feel they'll more likely use the cashflow being generated for expansion while the demand is strong & to hit their FY tonnage targets.That's ETC & CBI this month alone. JHL still intending to go & CREO too. We're running low on opportunities and in the long term will regret all this. Last one standing here will finally get a proper rating as investors pile in on the expectation |
Posted at 23/5/2010 10:38 by longsight pro did call this right in terms of the listing being pulled.However, I don't agree that you can necessarily assume that they were intending to issue further shares at the listing. If we assume that they were not intending to do so, it wd still make absolute sense to delay the listing. Small to mid cap shares are being totally hammered in HK at present. Forget the HK main index & check out the shares below - falls of 5% - 7% on days when the main index falls 1%. Yes really. WCC wd have been totally crazy to list in these circumstances. Many UK investors wd automatically sell on the first day of trading in HK but no one is buying shares in HK at present - investors are moving into cash. If WCC had proceeded & listed & the shares had got off to a bad start then they might have been tainted for a long time. HK investors are I believe influenced by things like "luck". I talked at length with an American fund manager who had been running a HK fund for years & was based in HK. He told me that if HK investors & indeed HK analysts decide that a share is "bad" they will often fail to revise their belief for years & regardless of the underlying truth. I don't agree with Pro that WCC will overpay for acquisitions because the facts tell me that WCC pay great prices when they buy cement business. I bought shares in WCC because I think it is a great business at a great price. Whether the listing is delayed or not is irrelevant to that. I don't intend to sell my shares unless they spike to some crazy price. Far better for shareholders that WCC list when it is absolutely clear that they are hitting above £1.20 eps this year & above £1.80 eps next - & when HK conditions have stabilised. |
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