Sun Hung Kai Properties 0016

[winston]

Hong Kong graft probe takes toll on Sun Hung Kai investors

HONG KONG (Reuters) - More than $7 billion has been wiped off the market value of Sun Hung Kai Properties since the billionaire Kwok brothers who run the Asia's biggest developer were arrested in a corruption investigation in late-March, sapping shareholder confidence in the Hong Kong conglomerate.

Five Sun Hung Kai-connected men arrested in the investigation are expected to appear at Hong Kong's anti-corruption agency later on Monday, according to sources involved in the case.

Shareholders say the company has lacked transparency and clarity over the probe.

http://www.chicagotribune.com/business/ ... 0461.story

[winston]

vested

SHK PPT (00016) reiterated OW with TP cut to HK$118
2012-06-12

HSBC Global Research said SHK PPT (00016) runs as normal under the leadership of experienced management team, although the bribery investigation is still an ongoing process.

Comparing to peers, dividend yield of SHK PPT is compelling, said HSBC Global Research.

SHK PPT's target price was cut to HK$118 from 136 with 39% of potential return.

The rating for SHK PPT was maintained at Overweight.

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: JPM Hikes SHK Properties To Overweight From Underweight

0945 [Dow Jones] STOCK CALL: JPMorgan raises its rating on SHK Properties (0016.HK) to Overweight from Underweight, and its target price to HK$109.00 from HK$100.00.

The house says it downgraded SHKP's rating after the arrest of three executive directors in late March, but "we think the share price has factored in the news, given the deep 44% NAV discount."

It adds the recent expansion of the executive committee board could mitigate the risk of management changes, and business is as usual for the developer, which has participated in major land tenders including Tai Wai Station and TKO Area 66B2, while the Tuen Mun Station project (Century Gateway) could be launched in 3Q12.

Source: Dow Jones Newswire

[winston]

vested

Huge Hong Kong plot sold to Sun Hung Kai for only $890 mln

HONG KONG, July 11 (Reuters) - Sun Hung Kai Properties , Asia's largest property developer by market value, agreed to pay HK$6.9 billion ($889.8 million) for a huge waterfront plot in Hong Kong, a price far less than the market had expected.

Hong Kong's Lands Department said in a release that the site, located at Java Road and Tin Chiu Street in the city's North Point district, would go to Choice Win Limited on a 50-year land grant. A Sun Hung Kai Spokeswoman confirmed that the site will go to the company.

The waterfront area, on Hong Kong island's northern edge along Victoria Harbour, has a site area of 23,400 square metres and is designated for non-industrial purposes.

Three real estate agencies had told Reuters they expected the site to fetch between HK$8.15 billion and HK$8.47 billion.

Hong Kong's residential and commercial property markets, among the world's most expensive, has seen parts of the sector hit by China's economic slowdown.

On Monday, Hong Kong's subway operator MTR Corp withdrew its tender of a site on top of a railway station in the New Territories after bids from three major developers came in below expectation.


http://in.reuters.com/article/2012/07/1 ... 0C20120711

[winston]

Vested

Graftbusters may charge Kwok brothers, Hui today

The Independent Commission Against Corruption could lay charges against the Kwok brothers and former chief secretary Rafael Hui Si-yan as early as today, when they report to the North Point headquarters.

According to a source, the ICAC is waiting for the word from the Department of Justice and hopes it will come before Hui and the three Kwok brothers of Sun Hung Kai Properties - Walter Kwok Ping- sheung, Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen - report to them.

It is said that the SHKP management has made contingency plans in the event that their co- chairmen, Thomas Kwok and Raymond Kwok, are served with a prosecution notice.

Raymond Kwok, Thomas Kwok and Hui were arrested in March for alleged bribery and misconduct in public office. Hui is alleged to have provided land sales information to SHKP. However, none of them has been charged with any offense so far.

The graftbuster is said to have painstakingly collected evidence between mid-2005 and mid-2007 when Hui was chief secretary.

It is said that deputy commissioner and head of operations of the ICAC, Daniel Li Ming-chak, who extended his service until the end of this month, but is currently on leave before his departure, visited the ICAC office to check on the progress of the case.

Walter Kwok, a non-executive SHKP director, was arrested on May 3 to help the ICAC investigation.

Sun Hung Kai Properties shares fell 0.78 percent yesterday to close at HK$95.4.

Credit Suisse and Standard Chartered have said the arrest of the co-chairmen of SHKP will not affect the developer's business.


http://www.thestandard.com.hk/news_deta ... 20713&fc=8

[winston]

vested

DJ MARKET TALK: North Point Site Win Enhances SHKP Value - CS

0809 [Dow Jones] Credit Suisse says the North Point site win by SHK Properties (0016.HK) at HK$6.91 billion (equivalent to an accommodation value of HK$7,672) "not only represents a value enhancement to the company but also the fact that business is as usual in SHKP despite the investigation by ICAC to the senior management."

It estimates the project will provide a decent margin of about 26% to SHKP, and keeps the stock at Outperform with a target price of HK$126.80.

"SHKP remains our top pick among the developers since we believe the valuation has already taken care of the uncertainty and its overall ROIC should remain stable."

SHKP slid 0.8% to HK$95.40 Thursday.

Source: Dow Jones Newswire

[winston]

vested

Kwoks 'paid HK$34 m in bribes'

Ex-chief secretary Rafael Hui Si-yan took more than HK$34 million worth of bribes from the billionaire Kwok brothers and two others in return for favours, the ICAC alleged yesterday.

Source: SCMP

[winston]

vested

(SHKP update) Raymond Kwok proclaims innocence

Sun Hung Kai Properties (0016) co-chairman Raymond Kwok Ping-luen insisted that he has not done nothing wrong related to the charges involving former chief secretary Rafael Hui Si-yan.

Raymond Kwok and his brother, co-chairman Thomas Kwok Ping-Kwong are on ICAC bail of HK$10 million each. Hui and SHKP executive director Thomas Chan Kui-yuen are on HK$5 million bail apiece. Bail for former senior staff at the Hong Kong stock Exchange Francis Kwan Hung-sang was set at HK$200,000.

They will appear in court again on October 12. The five were formally charged by the Independent Commission Against Corruption today with bribery

Payments and unsecured loans involved amounted to over $35 million.

They face eight charges including two of misconduct in public office and three of conspiracy to commit misconduct in public office; two of conspiracy to offer advantages to a public servant; and one of furnishing false information, the ICAC said in a statement. Hui faces all eight counts.

Hui alone faces two misconduct charges, which allege that he engaged in wilful misconduct by accepting the rent free use of two flats and two unsecured loans, failing to disclose to the government, and involving himself in these matters in his official capacities.

Hui and Thomas Kwok face a joint charge of conspiracy to commit misconduct in public office, while Hui and Raymond Kwok jointly face a similar conspiracy charge.

Hui, Thomas Kwok, Chan and Kwan are also charged with one count of conspiracy to commit misconduct in public office, which alleges them of having conspired together with Hui to receive a series of payments from Thomas Kwok, Chan and Kwan.

Hui and Raymond Kwok face one count of conspiring together to offer Hui the annual extensions of another unsecured loan advanced by a subsidiary of SHKP as a reward for Hui to remain favourably disposed to Raymond Kwok and/or his interests.

Hui, Chan and Kwan are also jointly charged with one count of conspiring together to offer Hui a series of payments from Chan and Kwan as a reward for Hui to remain favourably disposed to Chan and/or his interests.

Hui and Raymond Kwok also jointly face one count of furnishing false information on an invoice for settlement of consultancy fees.

The offences allegedly took place between June 2000 and January 2009.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.

All five persons have been released on ICAC bail, pending their court appearance this afternoon.

Source: The Standard HK

[winston]

vested

DJ MARKET TALK: SHKP Set To Fall; But ICAC Charged Expected

0738 [Dow Jones] SHK Properties (0016.HK) is likely to fall on trade resumption Monday, on news its co-chairmen were charged by Hong Kong's anti-graft body Friday, in connection with a high profile bribery investigation.

Still, the magnitude of any share-price slide is unlikely to be outsized, as analysts say the charges were largely expected, so investors weren't caught by surprise.

Next up is likely a lengthy litigation process, during which while the overhang would remain, investors are also likely to look at the company's fundamentals.

From a March 29 (when the ICAC arrest news broke out) close of HK$111.10, SHKP is down 14.1%, vs Henderson Land (0012.HK) +0.7% and Sino Land down 2.2%. SHKP's 2012 trough is HK$85.30 on May 18; it has since recovered with Friday's pre-suspension price at HK$95.45.


Source: Dow Jones Newswire

[winston]

vested

DJ MARKET TALK: SHKP Down 1.3%; Daiwa Tips HK$87.00-102.20 Band

1120 [Dow Jones] SHK Properties' (0016.HK) modest 1.3% decline to HK$94.25 on resuming trade, is likely to have disappointed investors hoping to buy on a big knee-jerk selloff, on news that its co-chairmen were officially charged by the ICAC.

Daiwa says there are "no major surprises in this development," and tips a HK$87.00-102.20 trading range for SHKP shares in the coming months.

The house believes SHKP's day-to-day operations should not be affected much, and also thinks that the group has been taking steps to address issues related to the potential departures of Thomas and Raymond Kwok from the board, and it expects investor concerns to diminish if SHKP moves towards enhanced professionalization of its management team.

"We continue to see HK$87.00 or below as an attractive entry point for the shares."


Source: Dow Jones Newswire