It’s been less than 2 weeks since Chinese oil major CNOOC (HKEx: 883; NYSE: CEO) announced its blockbuster plan to buy Canadian oil company Nexen (Toronto: NXY), and already we’re seeing swirls of controversy emerging in reports of insider trading and the hiring of political heavyweights around the deal. But I’m fairly certain these tales of minor intrigue are just a preview to the main show, which will see Canada and the US launch national security investigations that will ultimately sink this $15 billion deal.
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Online Wars Hit Suning, No Relief in Sight 电子商务价格战拖累苏宁业绩
Here’s a word of caution to anyone who might have thought that China’s bloody e-commerce wars may start to ease in the second half of the year as companies start to run out of cash: Don’t get your hopes too high. That’s my main conclusion after looking at newly released first-half results for Suning (Shenzhen: 0020204), one of China’s top electronics retailers that seems determined to sacrifice short-term profits in its aggressive drive to build up its fast-growing online business. The big problem in China’s e-commerce wars, which began more than a year and a half ago, has been that most players have access to huge reserves of cash from outside sources and all have indicated they will continue to use that money to fund operations no matter how much their loses mount.
Suntech, Trina in Solar Blood-Letting 光伏产业已经触底？
Just when you thought the struggling solar sector’s prolonged downturn had reached bottom, industry leaders Suntech (NYSE: STP) and Trina (NYSE: TSL) have put out announcements that seem to indicate they used creative accounting to hide the magnitude of their suffering. While these latest 2 announcements have clearly spooked investors, I’m going to take a somewhat contrarian view and say these confessions may actually be a positive sign for an industry suffering through a downturn that has lasted nearly a year and a half now, sending all major players deeply into the red. My reason is simple, namely that big players like Suntech and Trina are confessing to these problems because they think the worst of the downturn is behind them, and they want to clean up their balance sheets to position themselves for a fresh start when a recovery begins.
ZTE Stock: Long Winter Ahead 中兴股价的冬天或将很长
Amid a growing wave of setbacks for telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063), I thought it might be interesting to look at the company’s stock and whether it might be a good time to buy shares for a firm that seems to have good long-term potential despite its recent string of negative news. A quick look at the numbers leads me to conclude that despite losing nearly 60 percent of their value over the last 52 weeks, ZTE shares are probably still overpriced and are unlikely to make any major gains from their current levels over the next year.
More Solar Winds: New Dawn Coming? 看好光伏产业东西合璧
Instead of lamenting the latest blow to the embattled solar sector that this time is coming from Europe, I’m going to take a different approach today and say that perhaps the ongoing flood of resistance from the west towards Chinese solar subsidies could actually have some positive long-term effects. The reason is this: Beijing, for all its good intentions, has shown it can throw money at developing industries to quickly establish big new manufacturers with major production capabilities. But those fast-rising powerhouses tend to be relatively bad at innovation, with many of the major new advances in the solar sector still coming from the west even as a growing number of players in the US and Europe go bankrupt.
Ctrip: Time to Take a Ride? 携程：行到柳暗花明处？
I’m going to break with my usual style of starting each posting with the news, and say that shares of leading online travel site Ctrip (Nasdaq: CTRP) look like quite a bargain to me based on the non-stop sell-off of a stock for what looks like quite a solid company to me. That sell-off continued on Wednesday, when Ctrip shares lost 10 percent of their value after the company reported earnings that showed the overheated competition in China’s online travel space continues. (earnings announcement)
News Digest: July 25, 2012 报摘： 2012年7月25日
The following press releases and media reports about Chinese companies were carried on July 25. To view a full article or story, click on the link next to the headline.
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- SolarWorld (Frankfurt: SWV) Files Anti-Dumping Complaint in EU-Source (English article)
- China’s Mobile Online Game User Base Reaches 78 Mln (English article)
- Ctrip (Nasdaq: CTRP) Reports Q2 Financial Results (PRNewswire)
- Regulator OKs Minsheng Bank (HKEx: 1988) A-Share Convertible Bonds (HKEx announcement)
- Apple’s (Nasdaq: AAPL) Rivals Swoop as iPhone China Sales Flag (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Earnings: Baidu Picks Up, Huawei Hurts 百度和华为公布业绩
Leading search engine Baidu (Nasdaq: BIDU) and top telecoms equipment maker Huawei have both just announced their latest quarterly results, reflecting slowing growth both at home and abroad that each will have to deal with as the global and Chinese economies struggle. But whereas Huawei’s story looks rather dire, Baidu was able to post some solid advertising numbers, showing it remains resistant so far to a downturn that has affected many of its rivals.
News Digest: July 24, 2012 报摘： 2012年7月24日
The following press releases and media reports about Chinese companies were carried on July 24. To view a full article or story, click on the link next to the headline.
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- Baidu (Nasdaq: BIDU) Announces Q2 Results (PRNewswire)
- CNOOC (HKEx: 883) to buy Nexen for $15.1 billion in China’s largest foreign deal (English article)
- Huawei Releases 2012 H1 Results; Sales Revenue of 102.7 Billion Yuan (company announcement)
- Nearly 10,000 Taobao Merchants Closing Each Day: Report (Chinese article)
- New Oriental Education (NYSE: EDU) Sued by Investors Over SEC Investigation (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Telcos: China Mobile Slips, Unicom Rises 电信业半年回顾：中国移动滑落 联通顺势崛起
As we reach this year’s halfway point and companies start reporting their mid-year results, I wanted to take a quick look at China’s telecoms landscape and some of the major highlights over the first half of the year, including a recent surge by China Unicom (HKEx: 762; NYSE: CHU), the country’s second largest mobile carrier. China’s 3 telcos, Unicom, China Mobile (HKEx: 941; NYSE: CHL) and China Telecom (HKEx: 728; NYSE: CHA), all released their June subscriber totals late last week, revealing some subtle but interesting changes from the beginning of the year as the trio look to develop third-generation (3G) mobile services that are the wave of the future.
Doubts Linger on New Oriental, Citic Securities 新东方和中信证券料将面临更多动荡
I’d like to start off this Monday with a brief apology for my own erratic writing these last few days, as I’ve been traveling in the US and my schedule has become a bit spotty. But that said, I’ll begin this sunny Monday in Los Angeles with some postscripts to items I wrote about last week on troubled education services firm New Oriental (NYSE EDU) and leading Chinese brokerage Citic Securities (HKEx: 6030; Shanghai: 600030), neither of which is inspiring much confidence in investors these days.
