HONG KONG and TORONTO, May 28 /CNW/ - Harmony Asset Limited (TSX: HAR; HKEX: 0428) announced that as at April 30th 2008, the unaudited consolidated net asset value ("NAV") per share of the Company was HK$7.78 (C$0.99), as compared to NAV of HK$7.61 (C$0.97) in March, a 2.23 percent increase. This result reflects the approximately HK$6.6M (C$0.84M) increase in fair value of Harmony's listed and unlisted securities.
The strongest contributing factor in the NAV increase was the rise of the Hong Kong stock exchange. A secondary factor was the impressive performance of Challenger Group Holdings Limited (HKEX: 8203), one of Harmony's holdings, profiled below. The market value of Challenger for April, 2008, increased by 20 percent as compared to the previous month.
Value Gap for Harmony Asset NAV Compared to Share Price on HKEX and TSX
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October 12, 2007 May 15, 2008 % change
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Harmony Asset NAV (HK$) 6.11 7.78 27.3
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0428 on HKEX (HK$) 5.65 5.17 -8.5
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HAR on TSX (C$) 6.50 5.42 -16.6
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Other Activities
- The unaudited 1st quarter results for Harmony were recently
announced. Detailed reports can be found on the Hong Kong Stock
Exchange (www.hkex.com.hk) website and on SEDAR (www.sedar.com).
- The company confirmed an increase in its annual dividend, from
HK$0.15 to HK$0.17 per share. The dividend payout will take place at
the end of May.
Company of the Month-Challenger Group Holdings Limited
Background
Challenger Group Holdings Limited (formerly known as Ultra Group Holdings Limited) designs, manufactures, and sells a wide range of office furniture. By the end of 2007, the company's entire office furniture business was sold to Steelcase (NYSE: SCS). After evaluating several potential projects, Challenger acquired a coking coal mine.
Coking Coal - Challenger's Newest Venture
Coking coal is a low-ash, low-sulfur bituminous coal that is heat-treated to produce coke, a low-smoke fuel highly desirable in many industrial applications. In 2003 about 388 million tons of coke were produced worldwide, of which more than 40 percent was produced in China. Coke is used in various industry sectors, such as foundry, merchant pig iron, lead and zinc smelting, ferrochrome production, production of manganese alloys, soda ash, stone wool, and sugar refining, and it is also used in the domestic heating sector. But the vast majority of coke is used in the steel industry, for iron refinery and stainless steel and alloy production.
There has been significant recent growth in coke and coking coal demand in the steel industry. China plays a dominant role in both coke and steel production.
Present Status
The Hong Kong Stock Exchange has approved the acquisition of the coking coal mine by the Challenger shell. Prior to the injection of the coking coal mine into the shell, Harmony owned 15 percent of Challenger Group Holdings Limited. Because of the strength of demand for coking coal, Harmony looks for further share price appreciation.
ABOUT HARMONY
Harmony Asset Limited is a Hong Kong-based investment company focused primarily on unlocking the value in overlooked, privately and publicly held, emerging Chinese companies. Harmony focuses on the private industry that is shifting to process technology and value-added services. It positions itself in sound emerging private companies, with the emphasis on those focusing on high growth from the domestic market in the following markets: resources and materials, manufacturing/technology, and food and retail.
Disclaimer
Every attempt has been made to ensure the information contained herein
is valid at the time of publication. Any statements involving matters
of opinion or estimates, whether or not so expressly stated, are set
forth as such and not as representations of fact, and no
representation is made that such opinions or estimates will be
realized.