Daily Morning Watch - 22 August 2012

SINGAPORE

Asia Pacific Breweries Ltd (APB): Singapore state investor Temasek Holdings is said to have sold its stake of appx. 1.4% in the Co to Heineken reported Reuters.

Keppel Corp (KEP) said Floatel International Ltd have confirmed with it a $315M contract for a semisubmersible accommodation platform.

Wilmar International (WIL): ex-div S$0.02

US indices closed lower on Tuesday. On the US economic data front, there was no major data. Stocks in the diversified financials and banks sectors traded higher while shares in the telecommunication services and technology hardware & equipment sectors were under pressure. Looking at some US corporate releases, Tech Data Corp (TECD -5.58% to $49.24) posted 2Q net sales down 8% YoY to $5.96B with a diluted EPS of $0.88 ($1.17 expected) compared with $1.10 the year before. Separately, Best Buy (BBY -1.38% to $17.91) reported 2Q net income down 91% to $12M, or $0.04 a share. Ex-items, EPS was $0.20 vs $0.31 expected by analysts. After the US market close, Dell (DELL) posted a 2Q adjusted EPS of $0.50 vs $0.45 expected ($0.54 a year ago) on revenue of $14.48B vs $14.63B expected, down 8% YoY.

In Europe, UK budget deficit was £557M in July vs a surplus of £2.84B a year earlier. Regarding the stocks, Straumann Holding dropped as 2Q results disappointed. This morning, the Nikkei225 index opened lower, but remains supported by its rising ST & MT moving averages.

CHINA - HK

Hong Kong 's CPI climbed 1.6% YoY in July (vs +3.4% expected) vs +3.7% in June according to the government.

China Coal Energy (1898) announced 1H net income fell 8.2% YoY to 5.1B yuan on revenue of 45.4B yuan, up 5.4%. Separately the Co said it has agreed with its parent group to form a JV called Chinacoal Finance, which the Co expects will "further lift the standard of capital management and improve the allocation of capital". The JV, to be owned as to 91% by the Co and 9% by the parent, will start with a registered capital of 3B yuan.

China Shenhua Energy (1088) reported July commercial coal production up 9.1% YoY to 25.2M tons, coal sales down 1.6% to 31.6M tons and power output dispatch up 9.9% to 17.53B kWh. For January-July, commercial coal production rose 10.7% YoY to 181.0M tons, coal sales climbed 13.6% to 253.7M tons and power output dispatch increased 14.4% to 113.19B kWh.

Sinopec (386) may suspend production in Argentina considering the country's oil industry policies reported local newspaper Buenos Aires Economico.

Hong Kong & China Gas (3) posted 1H net income up 27.8% YoY to HK$4.1B on revenue of HK$12.5B, up 19.7%, citing growth in profit from mainland businesses and a one-off net gain. The Co declared an interim dividend of HK$0.12 per share, the same as in the previous year.

China Oilfield Services (2883) unveiled 1H net income up 15.8% YoY to 2.4B yuan on revenue of 10.0B yuan, up 23.0%.

China BlueChemicals (3983) reported 1H net income down 11.8% YoY to 908M yuan on revenue of 5.0B yuan, up 5.1%.

Yuexiu Property (123) announced 1H net income up 15.9% YoY to 903M yuan on revenue of 4.8B yuan, down 10.4%. 1H property contracted sales surged 132.5% to 7.1B yuan, equivalent to 71% of the Co's annual sales target.

China Rongsheng Heavy Industries Group (1101)'s plummeted 82.3% YoY to 216M yuan and operating profit fell 42.6% to 859M yuan on revenue of 5.4B yuan, down 37.2%.

Dongfang Electric Corp (1072) posted 1H net income down 19.1% YoY to 1.2B yuan on revenue of 20.0B yuan, up 1.3%.

Haier Electronics Group (1169) reported 1H net income up 21.0% YoY to 712M yuan and operating profit up 23.8% to 998M yuan on revenue of 26.3B yuan, up 8.4%.

Belle International Holdings (1880) said 1H net income rose 11.7% YoY to 2.2B yuan on revenue of 16.0B yuan, up 15.4%.

Golden Eagle Retail Group (3308) posted 1H net income up 1.1% YoY to 619M yuan on sales of 8.1B yuan, up 16.6%. 1H same store sales growth remained stable at 8.6%.

Shanghai Pharmaceuticals (2607) reported 1H net income down 14.5% YoY to 1.1B yuan on revenue of 33.6B yuan, up 30.0%.

China Everbright (165)'s 1H net income plunged 51.0% YoY to HK$767M.

Google Trend HK - popular searches: CNOOC (883)

Henderson Land Development (12), PetroChina (857), Bank of Communications (3328), China Telecom (728), Bank of Communications (601328), ZTE Corp (763), Sinopharm Group Co (1099), ZTE Corp (000063), PetroChina (601857): 1H results expected.

Tangshan Jidong Cement (000401), Jiangsu Zhongnan Construction Group (000961), Jiangsu Yanghe Brewery Joint-Stock (002304), Beijing Dabeinong Technology Group (002385), Beijing Capital Development (600376), Shenergy (600642), CSR Corp (601766), Shenzhen Agricultural Products (000061): 2Q results expected.