Tag Archives: Soufun

News Digest: November 13 报摘： 2012年11月13日

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The following press releases and media reports about Chinese companies were carried on November 13. To view a full article or story, click on the link next to the headline.
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  • Jingdong Mall Raises $400 Mln in New Fund Raising Round – Source (Chinese article)
  • eBay (Nasdaq: EBAY) Joins with Xiu.com to Bring Global Style to China (Businesswire)
  • SouFun (NYSE: SFUN) Announces Q3 2012 Results (PRNewswire)

Jingdong Mall Tries Gaming 京东商城有意进军网游业

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When future historians look at the early days of the China Internet, Jingdong Mall will probably be remembered as a sort of hyperactive organism that had too much money and tried to do too many things, wreaking havoc on the entire web community in the process. That’s my latest assessment of this hyperactive e-commerce giant, which also calls itself 360Buy, following the latest reports that Jingdong now plans to get into the online games business. (English article; Chinese article)

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News Digest: August 29, 2012 报摘： 2012年8月29日

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The following press releases and media reports about Chinese companies were carried on August 29. To view a full article or story, click on the link next to the headline.
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  • Baidu (Nasdaq: BIDU) Returns Fire in Qihoo (NYSE: QIHU) Search Battle (Chinese article)
  • Soufun (NYSE: SFUN) Declares Cash Dividends To Shareholders (PRNewswire)

News Digest: May 16, 2012 报摘： 2012年5月16日

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The following press releases and media reports about Chinese companies were carried on May 16. To view a full article or story, click on the link next to the headline.

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◙ Sina (Nasdaq: SINA) Reports Q1 Financial Results (PRNewswire)

◙ News Corp (Nasdaq: NWSA) to Acquire 20 Pct of Chinese Film Distributor (English article)

◙ SouFun (NYSE: SFUN) Announces Unaudited Q1 Results (Businesswire)

◙ NetEase (Nasdaq: NTES) to Launch Smartphone – Source (English article)

◙ Suntech (NYSE: STP), Krannich Solar Announce 120MW Sales Agreement (PRNewswire)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

China Tech Stocks: Dividend Plays? 中国科技股：发放股利

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Since everyone else is focusing on the rapidly slowing growth in the latest quarterly results from leading Internet company Tencent (HKEx: 700), I thought I’d take a look at a less explored part of the company’s newly issued report, namely a dividend that it quietly boosted 36 percent. The sharp increase, at least on a percentage basis, reflects a broader effort among overseas-listed China tech and Internet firms to try to rekindle investor interest in their shares, as many start to see a rapid slowdown in growth with the maturation of their markets. Let’s look at Tencent first, which saw its fourth-quarter profit rise a modest 15 percent, not exactly impressive for a company whose annual profit rose 56 percent in 2010 and which saw triple-digit gains in many previous years. (results announcement; English article) Meantime, the company announced it was raising its annual dividend to HK$0.75 per share from HK$0.55 the previous year, a 36 percent increase. In terms of actual yield, investors will still get a modest 0.4 percent return from the dividend based on Tencent’s latest closing price. But still, any return at all would be a plus for holders of Tencent shares last year, which fell 10 percent amid a broader cooling in sentiment towards overseas-listed China tech stocks after a meteoric rise in previous years. Tencent’s boosting of its dividend comes as a growing number of US-listed Chinese tech and Internet firms have rolled out first-ever dividends, with a diverse range of names including chip designer Spreadtrum (NYSE: SPRD), online game operator Giant Interactive (NYSE: GA) and real estate service specialists Soufun (NYSE: SFUN) and E-House (NYSE: EJ) all announcing dividends starting last year in a bid to support their sagging share prices. Most of these companies are relatively cash-rich and the awarding of dividends is partly acknowledgement that they don’t need the money for operations, since most are already profitable, and most don’t plan to make any major acquisitions in the near future. Furthermore, none have indicated whether these dividends will become a regular occurrence, and I suspect many will quietly retire the policy if and when their share prices start to rebound. Still, Tencent’s latest moves do reflect a new reality setting in for an increasing number of tech firms, namely that growth could slow significantly in the next few years, causing investors to look elsewhere for excitement in a market full of other high-growth stories. As that happens, look for some of the biggest names, especially cash-rich ones like Tencent, to quietly boost their dividends, providing a stable if not very exciting source of returns for investors who don’t mind the slower growth.

Bottom line: A growing number of overseas-listed Chinese tech and Internet firms will offer dividends to attract investors as their profit growth slows.

Related postings 相关文章:

◙ Real Estate Down, But E-House Jumps 房地产股票下跌，但易居上涨

◙ Soufun Looks For More Support With New Dividend 搜房网借新派息计划寻求支撑股价

◙ Shanda Plays Games With Big Dividend 盛大游戏寄望高额分红计划提振股价

Real Estate Down, But E-House Jumps 房地产股票下跌，但易居上涨

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China’s volatile real estate market is a never-ending source of news these days, with rumors cropping up just about every week about changes of heart in the government’s steadfast determination to cool the overheated market, even though Beijing consistently denies the rumors. The latest news seems to finally acknowledge the market may be bracing for a long winter, with S&P saying  Chinese developers are facing very serious risk of downgrade to their debt. But in a curious twist, E-House (NYSE: EJ), one of the nation’s top real estate services firms, seems to have excited investors with an earnings report that looks very mixed to me, including a massive loss, although the company made a relatively strong forecast for 2012 and also offered a first-ever dividend. Let’s look at the macro news first, which has S&P sounding a very bearish note on China’s real estate sector, saying many developers will be forced to refinance their debt, most likely at higher interest rates, as they are forced to slash prices to boost sluggish sales. (English article) S&P said home prices, which have been falling by low single-digit percentages since the second half of last year, could be down 10 percent year-on-year by June as developers who have been trying to keep prices steady finally give up and cut them to move inventory. The 10 percent figure looks like a good estimate considering current market trends, and I would fully expect to see it accelerate even more in the second half of the year, with year-on-year declines of 20-25 percent likely by year end, dealing a blow to the nation’s many real estate developers. Perhaps investors are expecting a boom in transaction volumes as developers are forced to lower prices, which would play to the advantage of real estate service companies like E-House that depend on transactions rather than home prices for their income. That’s one of the few reasons I can think of for the 10 percent jump in E-House shares after the company reported it swung to a $32 million net loss in the fourth quarter, as revenue slipped 6 percent. (company announcement) Investors may have been encouraged by the E-House’s announcement of a new dividend, following rival Soufun (NYSE: SFUN), which also announced a dividend last year. But at 15 cents per ADS, the payout isn’t very big, equal to about 2 percent of its last closing price. Instead, I suspect investors are excited about E-House’s forecast that 2012 revenue will rise about 25 percent this year despite the weak market, indicating that it indeed does see sales volumes picking up sharply as debt-heavy developers and home owners start selling their homes when they realize the market won’t improve anytime soon.

Bottom line: Real estate developers will come under growing pressure this year as they refinance debt at higher interest rates, while services firms will benefit from rising transaction volumes.

Related postings 相关文章:

◙ Soufun Looks For More Support With New Dividend 搜房网借新派息计划寻求支撑股价

◙ SouFun, NetEase: Slowing Growth Stories 搜房网、网易：增长放缓

◙ E-House, Blackstone Moves Auger Real Estate Rebound 中国房地产市场可能接近底部

 

net cash $392 million

SouFun, NetEase: Slowing Growth Stories 搜房网、网易：增长放缓

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The latest earnings results from real estate and online game bellwethers SouFun (NYSE: SFUN) and NetEase (Nasdaq: NTES) are showing a broader story of slowing growth, with the former in danger of slipping into the red while the latter needs to rein in its rapidly rising costs. Let’s look at SouFun first, which is taking a hit from China’s stagnating real estate market. Despite rapidly falling prices and anemic transaction volumes, SouFun managed to post 18 percent revenue growth for the quarter, which was sharply lower than its 53 percent growth for the year. (results announcement) In a cautiously positive sign, the company said revenue would grow 10-15 percent this year, meaning growth will slow but should still remain positive. One bright spot for SouFun was its listing services revenue, which makes up about 20 percent of its total and was up 38 percent in the fourth quarter. I suspect this figure will continue to be strong and perhaps even accelerate this year, as transaction volumes finally start to grow when people start to sell their homes after realizing Beijing has no plans to relax its strict restrictions on the market anytime soon. That said, the company still faces the very real prospect of joining rival E-House (NYSE: EJ) in the net loss column, which investors seem to realize, bidding SouFun stock down 9 percent after the results came out. Turning to NetEase, the company’s results look a bit stronger, with revenues up 32 percent, led by strong growth for its core online games business. (results announcement) I like the fact that the company is returning to its strength as a developer of its own games, which are more profitable than licensing titles from third-party developers, which is what most of NetEase’s rivals do. The company’s profits also posted a relatively strong 26 percent gain, though they were up just 8 percent quarter on quarter. The most worrisome sign is the company’s operating expenses, which jumped 65 percent year-on-year. It blamed that jump on marketing for new self-developed games, which is a fair enough explanation. But that kind of rapid acceleration of expenses is clearly unsustainable over the long term, and could easily kill the company’s profit growth if NetEase isn’t careful.

Bottom line: SouFun is in danger of slipping into the red as China’s real estate market stagnates, while NetEase could see profit growth stall unless it gets its expenses under control.

Related postings 相关文章:

◙ Soufun Looks For More Support With New Dividend 搜房网借新派息计划寻求支撑股价

◙ E-House Foundations Looking Outright Shaky 易居中国根基明显摇晃

◙ NetEase Makes Buzz With Buyback, Pigs 网易回购股票和养猪重大决策或在即

 

News Digest: February 16, 2012 报摘： 2012年2月16日

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he following press releases and media reports about Chinese companies were carried on February 16. To view a full article or story, click on the link next to the headline.

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◙ China Mobile (HKEx: 941) to Build Second National Call Center (English article)

◙ Apple (Nasdaq: AAPL) Asks Amazon (Nasdaq: AMZN), Suning to Drop iPad (English article)

◙ SouFun (NYSE: SFUN) Announces Q4 and Fiscal Year 2011 Results (Businesswire)

◙ NetEase (Nasdaq: NTES)  Reports Q4 and Fiscal Year 2011 Financial Results (PRNewswire)

◙ Former Acer (Taipei: 2353) China VP Named 360Buy’s CMO (Chinese article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

Soufun Looks For More Support With New Dividend 搜房网借新派息计划寻求支撑股价

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When does a 31 percent dip in your share price look good? When your rivals’ share prices have fallen by even more, or at least that seems to be the thinking at real estate services firm Soufun (NYSE: SFUN), which has just announced its second dividend in the last 4 months amid a broader sell-off that has seen many US-listed China stocks tumble by even more in the last few months. Soufun’s latest plan looks even more attractive now than the first plan announced in August (previous post), as the payout amount will remain at $1 per American Depositary Share, translating to a return of about 7.5 percent based on the company’s latest share price. (company announcement) That’s up from a payout ratio of about 5 percent for the August dividend, when the company’s shares were quite a bit higher. A growing number of US-listed companies have tried the dividend approach, including chipmaker Spreadtrum (Nasdaq: SPRD) and online game specialists Giant Interactive (NYSE: GA) and most recentlly Shanda Games (Nasdaq: GAME), betting that cash payouts will appeal more to investors than traditional share buybacks. So how effective is the dividend strategy? A quick comparison shows that while Soufun’s shares are down 31 percent since it announced its first dividend, its closest rival, E-House (NYSE: EJ) is down by an even bigger 42 percent over the same period, showing the strategy may have some effect. Of course, Soufun’s recent posting of solid third-quarter results, even in the face of China’s rapid real estate slowdown, may also be helping its stock. (previous post) For all of those reasons, Soufun may indeed look like a nice play going forward. Dividends may be good for short-term investors, helping to support stock prices and provide some definite returns in uncertain markets. But for longer term investors, there’s still no replacement for solid company fundamentals and growth prospects, meaning it still pays to check a company’s bottom line no matter how nice the dividend.

Bottom line: The dividend approach being tried by many US-listed China firms is providing some short-term support for share prices and quick returns for investors.

Related postings 相关文章:

◙ Shanda Plays Games With Big Dividend 盛大游戏寄望高额分红计划提振股价

◙ Investors Pocket Spreadtrum, Giant Dividends and Run

◙ Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

News Digest: December 14, 2011

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The following press releases and media reports about Chinese companies were carried on December 14. To view a full article or story, click on the link next to the headline.

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◙ HTC (Taipei: 2498) Sues Citi (NYSE: C) in Taiwan After Share Price Fall (English article)

◙ Sinopec, (HKEx: 386) ENN (HKEx: 2688) In $2.2 Bln Bid For China Gas (HKEx: 384) (English article)

◙ SouFun (NYSE: SFUN) Declares Cash Dividends to Shareholders (Businesswire)

◙ Alibaba Says Etao Search Engine Won’t Think About Profits For 3 Years (Chinese article)

◙ ZTE (HKEx: 763) 2011 Smartphone Sales Top 12 Mln (Chinese article)

Caterpillar Places Mining Bet With New Buy 卡特彼勒收购中资矿山机械企业押注中国矿业未来

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Caterpillar (NYSE: CAT), the US maker of heavy construction equipment used to build everything from office towers to roads, is no dummy when it comes to knowing where the future growth is, as reflected by its latest plan to buy a Chinese mining equipment company. (English article) The company announced it wants to buy ERA Mining Machinery (HKEx: 8043) for HK$0.88 per share, or a 33 percent premium over its last closing price. From my perspective, this looks like a very smart move by Caterpillar to boost its presence in an area that China has clearly earmarked for development, namely the mining sector as Beijing aims to reduce its reliance on imported iron ore and coal to feed its hungry economy. As it seeks to achieve that goal, the country’s miners, such as Shenhua (HKEx: 1088) and Yanzhou Coal (Shanghai: 600188; HKEx: 1171), as well as iron ore producers, are likely to need new equipment to develop resources not only at home, but also abroad. The move is also a smart hedge against the more traditional users of heavy construction equipment, namely the infrastructure and real estate industries, which are both overheated and look set for major slowdowns in the next 2 years. Despite the real estate industry’s cloudy outlook, Soufun (NYSE: SFUN), a leading provider of online real estate services, has just surprised the market with very strong earnings, with revenue nearly doubling in the third quarter and profit growing by an even stronger amount. (company announcement) Soufun shares plunged nearly 9 percent on Thursday before the results came out, and only bounced back slightly in after hours trading after the upbeat announcement. I expect we may see some bigger gains on Friday on this upbeat report. Still, this positive result is probably more a sign that a long-awaited correction in China’s real estate market is finally beginning rather than any improvement in the market. That’s because Soufun makes its money on transaction volumes that are finally starting to grow after months of stagnation, as many cash-needy real estate owners waiting for the market to improve finally start selling their properties at reduced prices.

Bottom line: Caterpillar’s purchase of a mining equipment maker looks like a smart move, drawing on China’s goal of boosting its self-reliance in the important energy and steel sectors.

Related postings 相关文章:

◙ China Makes Up Its Mind: Iron Ore 中国终於下决心：大幅增加国内铁矿石供应

◙ Soufun Shores Up Foundation With Strong Results, Outlook 搜房网靓丽财报和前景或预示房产业向好

◙ Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？