Chalco, China Railway, Wuliangye Yibin: China Equity Preview
Shares of the following companies may have unusual moves in China trading. Stock symbols are in parentheses and prices are as of the previous close, unless stated otherwise.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 5.11, or 0.2 percent, to 2,913.81. The CSI 300 Index fell 0.4 percent to 3,243.30.
Cement producers: Taiwan’s Far Eastern Group is in talks to acquire up to three Chinese companies to help meet its goal of becoming a top-10 cement supplier in the country, Chairman Douglas Hsu said in an interview today.
Anhui Conch Cement Co. (600585 CH) lost 2.6 percent to 34.59 yuan, while Huaxin Cement Co. (900933 CH) fell 0.4 percent to $3.423.
Aluminum Corp. of China Ltd. (601600 CH): The country’s biggest producer of the metal plans to cut 2.25 billion yuan ($342 million) in costs this year, Chief Executive Xiong Weiping said today. China’s aluminum market will continue to be oversupplied in the next few years as production capacity grows, said Hu Changping, director of the aluminum department at the China Nonferrous Metals Industry Association. The shares fell 1.4 percent to 10.82 yuan.
China Railway Group Ltd. (601390 CH): The road builder won 18.9 billion yuan of building contracts for projects including ring roads in Shenyang, railways in Jilin and roads in Hong Kong. The total value of the contracts is equal to about 5.5 percent of its 2009 sales, it said. The shares lost 2.3 percent to 4.59 yuan.
Jiangling Motors Corp. (200550 CH): The carmaker sold 12,585 vehicles in February, up 33 percent from a year earlier. The shares fell 3.2 percent to HK$21.97.
Metallurgical Corp. of China Ltd. (601618 CH): The company has halted work on all construction projects in Libya, including a housing development and a cement plant. The contracts have an outstanding value of 5.1 billion yuan, equal to about 2 percent of the company’s total outstanding contracts at the end of last year. The stock fell 1 percent to 4.05 yuan.
Wuliangye Yibin Co. (000858 CH): China’s biggest distiller said 2010 net income rose 34 percent from a year earlier to 4.3 billion yuan, while sales rose 39 percent to 15.5 billion yuan. The shares fell 1.1 percent to 32.78 yuan.
--Zhang Shidong, William Bi. Editor: Glenn J. Kalinoski
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