ChinaScope Daily Dim Sum

Tuesday, October 30, 2012

Profit of Industrial Enterprises Up 7.8 Percent YoY in Sep

Source: National Bureau of Statistics, ChinaScope Financial (Data)

+ According to data released by the National Bureau of Statistics on October 27, the profit of industrial enterprises above designated size (with annual revenue of above CNY 20 million) in September was CNY 464.3 billion, up 7.8 percent year-on-year, a turnaround from the five straight month growth slide.

+ The profit of industrial enterprises above designated size in the January-September period was CNY 3.52 trillion, down 1.8 percent year-on-year, 1.3 percentage points lower than the decline in the January-August period. The enterprises’ prime operating revenue increased 10.2 percent year-on-year to CNY 65.72 trillion.

+ In the January-September period, the profit of state-owned and state-controlled enterprises was CNY 1.01 trillion, down 11.8 percent year-on-year, while that of private enterprises increased 15.6 percent year-on-year to CNY 1.09 trillion.

Supported by demand from fiscal stimulus projects, profit growth of industrial enterprises above designated size improved in September.

If you'd like to receive a daily e-mail update of ChinaScope Daily Dim Sum Newsletter, please contact us:newsletter@chinascopefinancial.com. If you'd like to try out ChinaScope Database, apply for a trial here

Wednesday, October 24, 2012

China Mobile: 12Q1-Q3 Net Profit CNY 93.3 Bn, Up 1.4 Percent YoY

Source: Company Disclosure, ChinaScope Financial (Data)

+ According to the 12Q3 results of China Mobile (0941: HKG; CHL: NYSE), the company’s operating revenue and net profit in the first three quarters were CNY 408.6 billion and CNY 93.3 billion, up 6.4 percent and 1.4 percent year-on-year respectively.

+ Over the 12Q1-Q3 period, the company’s monthly net addition of subscribers exceeded an average of 5.4 million. Total number of 3G subscribers reached 75.6 million in the reporting period. It reported the average revenue per user (ARPU) of CNY 67.

+ China Mobile is said to raise its 2012 earnings target in order to appear more favorable ahead of the performance appraisal to be administered by the State-owned Assets Supervision and Administration Commission at the end of this year. However, China International Capital Corporation (CICC) estimated that the company may not perform so well in the last quarter of 2012 due to competition in the middle- and low-end market and the launch of iPhone 5. China Mobile is behind its competitors in distributing iPhones in mainland China.

+ Related Data: Company Data

Compared with last year, average user revenue remains low due to tight government regulation on telecom prices. Wireless data traffic of China Mobile (0941: HKG; CHL: NYSE) continues its strong momentum driven by the company’s efforts to expand in the 3G market.

Wednesday, October 17, 2012

China Encourages Enterprises to Improve Export Structure

Source: Xinhua, ChinaScope Financial (Data)

+ CHEN Deming, China’s Minister of Commerce, stated on October 15 that local commerce regulatory bodies should implement the foreign trade stabilization measures introduced by the State Council earlier. Furthermore, Chinese foreign trade enterprises should improve the structure of their export products in the face of complicated and grim foreign trade situations.

+ In early September, the State Council introduced a series of measures to stabilize foreign trade growth. These measures include the acceleration of export tax rebates process, expansion of export credit insurance, and simplification of administrative procedures, to name a few.

Amidst fettering global demand, policy makers have intensified support to the export sector through vehicles such as tax rebates. September’s surprisingly high export growth suggests that the measures have garnered some success.

Friday, October 12, 2012

TCL’s LED TV Sales Surge in Sep

Source: Company Disclosure, ChinaScope Financial (Data)

+ TCL Corp. (000100: SHE) announced that the sales of LCD TVs in September increased 43.8 percent year-on-year to a monthly-high of 1.9 million sets. During that same time period, 1.53 million LED TVs were sold, equaling 80.5 percent of total sales volume of LCD TVs.

+ Among TCL’s total LCD TV sales were 1.19 million sets (up 37.5 percent) sold in the Chinese market in September, and 705,800 sets (up 55.8 percent) sold in overseas market.

In the rapidly growing smart TV market, Skyworth Digital Holdings (0751: HKG) is quickly catching up with TCL Corp. Since the smart TVs are android based, entry barriers are low and the competition fierce.

Lenovo Bests HP in PC Shipment in 12Q3

Source: Netease, ChinaScope Financial (Data)

+ According to Gartner Research, Lenovo Group (0992: HKG) shipped 13.77 million units, accounting for 15.7 percent in the global PC market in 12Q3. With the result, the company has replaced HP as the top PC manufacturer in the world.

+ In the same quarter, HP shipped 13.55 million units for 15.5 percent of the market share.

Lenovo (0992: HKG)’s market share gain can be attributed to their low prices which are reflected in the company’s relatively modest gross margins. It is notable that net margins returned to positive after Mr. Liu’s return as chairman in 2009.

PetroChina to Invest CNY 3.2 Bn in Xinjiang

Source: Xinjiang Daily, ChinaScope Financial (Data)

+ Construction of PetroChina’s (PTR: NYSE; 0857: HKG; 601857: SHA) chemical fertilizer project located in the city of Aksu in Xinjiang started yesterday. Total investment in the project will be CNY 3.2 billion.

+ Upon completion in 2015, the chemical fertilizer project will produce 450,000 metric tons of synthesis ammonia and 800,000 metric tons of urea annually. PetroChina’s sales revenue derived from the project is expected to be approximately CNY 1.3 billion a year, and its profit and tax gained from the project will likely exceed CNY 80 million a year.

Urea production is only a tiny part of PetroChina’s (PTR: NYSE; 0857: HKG; 601857: SHA) business, but the fertilizer industry is a strategic focus of the government as it supports the agricultural sector and makes it possible to utilize coal in regions with lack of transportation.

Thursday, October 11, 2012

Vanke: Sep Sales Value CNY 12 Bn, Down 3.76 Percent YoY

Source: Company Disclosure, ChinaScope Financial (Data)

+ According to the sales results released by China Vanke (000002: SHE), the company’s sales volume was 1.05 million square meters in September, down 2.78 percent year-on-year, and sales value was CNY 12.04 billion, down 3.76 percent year-on-year.

+ Over the first nine months of this year, China Vanke made 9.08 million square meters in sales volume, up 7.93 percent year-on-year, and CNY 96.32 billion in sales value, down 0.78 percent year-on-year.

+ In September, the company launched nine real estate projects, which are located in the cities of Guangzhou, Dongguan, Qingdao, Qinhuangdao, Kunshan, Guiyang, and Kunming.

+ Related Data: Company Data

China Vanke (000002.SHE)’s land purchases have returned to last year’s level, reflecting restored faith in the sector and the company’s strong cash position.