Friday, August 17, 2012

Daily Morning Watch - 17 August 2012


SINGAPORE
Fraser and Neave Ltd (FNN) and Asia Pacific Breweries Ltd (APB) requested a trading halt pending an announcement.

Singapore Technologies Engineering (STE): ex-div S$0.03 Comfortdelgro Corp (CD): ex-div S$0.029


US indices jumped on Thursday boosted by technology hardware & equipment and automobiles & components sectors. On the US economic data front, initial jobless claims for the week ended August 11th rose to 366K (365K expected). Also, Housing starts fell 1.1% MoM in July (-0.5% expected) and Building permits increased 6.8% for the period of July (+1.2% expected) according to data released by the US Commerce Department. Finally, the Federal Reserve Bank of Philadelphia 's general economic index increased to -7.1 in August (-5 expected) from -12.9 the prior month. Take a look at US stocks, Wal-Mart (WMT -3.09% to $72.15) posted 2Q diluted EPS from continuing operations of $1.18 vs $1.17 expected and $1.09 a year ago on consolidated net sales of $113.5B, up 4.5%. Separately, Sears Holdings (SHLD +6.52% to $60.29) unveiled for its 2Q an adjusted LPS from continuing operations of $0.86 compared with a LPS of $1.18 a year ago with revenue down $671M YoY to $9.5B. In other news, Cisco Systems (CSCO +9.63% to $19.02) posted 4Q adjusted EPS up 17.5% YoY to $0.47 ($0.46 expected) on sales of $11.7B, up 4.4%.

In Europe, euro zone CPI fell 0.5% in July (as expected) vs -0.1% in June. UK retail sales increased 0.3% in July (-0.1% expected) vs +0.8% the month before (revised from +0.1%). Regarding the stocks, Telekom Austria plunged after reduced its sales forecast for 2012. This morning, the Nikkei225 index opened higher, and is now challenging the resistance of its July12's high around 9,140.


CHINA - HK
Hong Kong 's unemployment rate (seasonally adjusted) stood at 3.2% in May-July, same as that in April-June according to the government.

Chalco (2600) swung to a 1H net loss of 3.3B yuan from a net income of 413M yuan a year earlier and to a operating loss of 4.4B yuan from operating profit of 790M yuan on revenue of 71.7B yuan, up 8.7%.

China Shenhua Energy (1088) announced the formation of JV Shenhua Funeng Power Generation Co, "which will help expand the scope of the Co's quality power assets at coastal regions and the power market share", with Fujian Energy Group.

China Coal energy (1898) said it has agreed with China Railway Investment and others to establish JV Mengxi-Huazhong Railway Co, "which will be "a legal entity for the project of the planning, construction, production and operation of West Inner Mongolia-Central China Railway". The JV will be set up with an initial registered capital of 1B yuan, "which is expected to progressively increase to 54B yuan".

Metallurgical Corp of China Ltd (1618) said newly-signed contracts in January-July amounted to 140.2B yuan, down 24.2% YoY.

Sino-Ocean Land Holdings (3377) posted 1H net income up 10% to 1.2B yuan on revenue of 7.8B yuan, down 14%. 1H contracted sales grew 11% to 13.8B yuan, equivalent to 51% of the Co's annual target.

China Power International Development (2380) is placing up to 456M shares at HK$2.04-2.16 per share to raise up to HK$985M and is planing to issue convertible bonds, reported Hong Kong Economic Journal citing a term sheet.

Harbin Electric Co (1133) unveiled 1H net income up 21.4% YoY to 701M yuan on revenue of 11.2B yuan, down 23.6%.

TCC International Holdings (1136) reported 1H net income down 70.4% YoY to HK$269M on revenue of HK$5.3B, up 2.4%.

Inner Mongolia Pingzhuang Energy (000780) posted 1H net income up 4.1% YoY to 409M yuan on revenue of 1.9B yuan, flat compared to a year earlier.

Yunnan Copper Industry Co (000878) reported 1H net income down 53.4% YoY to 268M yuan on turnover of 18.5B, up 11.2%.

Shandong Gold Mining (600547) unveiled 1H net income up 34.0% YoY to 1.4B yuan on revenue of 25.4B yuan, up 27.9%.

Xi'an Aircraft International Corp (000768) said 1H net income surged 277.5% YoY to 52M yuan on turnover of 4.5B yuan, up 36.3%.

Google Trend HK - popular searches: Soho China (410)

China Resources Land (1109), China Resources Enterprises (291): 1H results expected.

China Merchants Bank (3968), China Merchants Bank (600036), Financial Street Holding (000402), Wanxiang Qianchao Co (000559), Shijiazhuang Yiling Pharmaceutical Co (002603), China Pacific Insurance Group (2601), China Pacific Insurance Group (601601), Inner Mongolia Baotou Steel Rare-Earth Hi-Tech (600111), Zhejiang Juhua Co (600160), China Hainan Rubber Industry Group Co (601118), Meihua Monosodium Glutamate Group Co (600873), Kailuan Energy Chemical (600997), Beijing Urban Construction Investment & Development (600266), Shanghai Great Wisdom Co (601519), Huatai Securities (601688): 2Q results expected.

Hongkong Electric Holdings (6): ex-div HK$0.62 Weichai Power (000338): ex-div CNY0.1 Haitong Securities (600837): ex-div CNY0.15

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