STOCKWATCH: China Merchants higher on China Everbright Asia Pacific stake buy

HONG KONG (AFX-ASIA) - China Merchants Holdings International) Co Ltd  shares were higher after the company acquired a 23.9 pct stake in  Singapore-listed China Everbright Asia Pacific for 17.42 mln sgd from China  Everbright Group, dealers said.      They said the acquisition highlights the company's efforts to streamline  its business and focus more on its core business, with a special interest in  operating ports along the western coast of Shenzhen.      China Everbright Asia Pacific currently operates four port terminals in  Mawan, Shenzhen, with its throughput in 2000 totalling 121,500 TEUs.      At 11:33 am, China Merchants was up 0.10 hkd or 1.86 pct at 5.45 hkd on  volume of 3.43 mln shares.      The Hang Seng Index was up 9.09 points at 12,959.58.      An analyst with South China Securities said the acquisition focuses the  company's effort on reinforcing its ability to capture port terminal business  along the western Shenzhen coastline.      "The acquisition should be positive for China Merchants as this should  help it to further integrate its ports business in Shenzhen," he said.      The analyst said the handling fee for port operations in western Shenzhen  is much lower compared with other ports on the mainland, while competition  remains mild," he added.      The analyst said he believes the acquisition price is fair.      He said his house forecasts the company's 2000 net profit at 818 mln hkd,  against 704.47 mln hkd a year earlier.      He said he has a "buy" recommendation on the stock, with a 12-month  target price of 7.05 hkd.			

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