China Day Ahead: PetroChina Earnings Beat Analyst Estimates; Bank Profits

PetroChina Co., Asia’s biggest company by market value, posted a 13 percent gain in third- quarter profit, beating estimates, as the oil and gas producer increased output to benefit from higher crude prices.

Net income rose to 34.7 billion yuan ($5.2 billion), or 0.19 yuan a share, from 30.8 billion yuan, or 0.17 yuan, a year earlier, China’s largest oil and gas producer said in a statement to the Shanghai stock exchange. This compares with a mean estimate of 33.6 billion yuan in a Bloomberg survey of seven analysts.

PetroChina ramped up output this year with overseas acquisitions including an Australian coal-seam gas producer and stakes in two Canadian oil-sands projects to meet demand in the world’s fastest-growing major economy. Revenue rose 36 percent in the third quarter as U.S. crude gained 12 percent from a year earlier to average $76.21 a barrel.

Bank Earnings

Agricultural Bank of China Ltd. and Bank of China Ltd. beat analysts’ estimates for third-quarter profit by reporting almost 30 percent gains as the nation’s economic growth helped bolster credit demand and curb defaults.

Net income for Beijing-based Agricultural Bank climbed to 24.3 billion yuan ($3.6 billion), from 18.77 billion yuan a year earlier, in its first quarterly results since completing the world’s biggest initial public offering in August. Profit at Bank of China, also based in Beijing, climbed to a record 27.2 billion yuan, according to its statement yesterday.

Ping An Profit Drops

Ping An Insurance (Group) Co., China’s second-largest insurer, said profit fell 26 percent as claims rose and the company set aside greater reserves.

Third-quarter net income dropped to 3.15 billion yuan ($471 million), or 0.41 yuan a share, from a revised 4.25 billion yuan, or 0.58 yuan, a year earlier, Ping An said in a Shanghai stock exchange filing yesterday. Profit for the first nine months rose 8.8 percent to 12.8 billion yuan.

ZTE Profit Misses

ZTE Corp., China’s second-biggest maker of telephone equipment, posted a smaller-than-expected 18 percent gain in third-quarter profit as sales increased less than estimated.

Net income rose to 483.9 million yuan ($72.4 million), or 0.17 yuan a share, from 408.6 million yuan, or 0.15 yuan, a year earlier, ZTE said in a Hong Kong stock exchange filing yesterday. Projected profit was 525 million yuan, according to the median estimate of four analysts surveyed by Bloomberg News.

Sands Gains on Asia

Las Vegas Sands Corp., the U.S. casino company expanding in Asia, reported third-quarter earnings that topped analysts’ estimates after it opened a Singapore resort and benefited from gambling growth in China.

Profit excluding some items was 34 cents a share, more than the 24-cent average of 21 analysts’ estimates compiled by Bloomberg. Sales jumped 67 percent to $1.91 billion, from $1.14 billion, the Las Vegas-based company said in a statement, surpassing analysts’ $1.79 billion average estimate.

China Southern Profit

China Southern Airlines Co., the nation’s biggest carrier, said third-quarter profit surged almost 10-fold as air travel rebounded and the yuan strengthened.

Net income increased to 3.04 billion yuan ($455 million) from 284 million yuan a year earlier, the Guangzhou-based company said in Shanghai stock exchange statement. Sales increased 45 percent to 23.2 billion yuan.

SAIC Earnings

SAIC Motor Corp., China’s largest domestic automaker, said third-quarter profit increased 47 percent as it sold more cars with partners General Motors Co. and Volkswagen AG in the world’s biggest auto market.

Net income for the quarter climbed to 3.7 billion yuan ($554 million) from 2.53 billion yuan a year earlier, the Shanghai-based automaker said in a statement to the city’s stock exchange. Sales more than doubled to 81.6 billion yuan.

Jiangxi Copper Doubles

Jiangxi Copper Co., China’s biggest producer of the metal, said third-quarter profit more than doubled as economic growth boosted demand and prices.

Net income rose to 1.28 billion yuan ($192 million), or 0.42 yuan a share, from 561 million yuan, or 0.16 yuan, a year earlier, the Guixi, Jiangxi province-based company said in a Shanghai stock exchange filing. Sales climbed 50 percent to 19.6 billion yuan.

Poon Donates to Oxford

Hong Kong entrepreneur Dickson Poon, the owner of fashion retailer Harvey Nichols Plc, has donated 10 million pounds ($15.8 million) to the University of Oxford to help build a facility dedicated to the study of China.

The Dickson Poon China Centre, which will cost 20 million pounds in total, will help strengthen the university’s relations with business, government and non-governmental institutions involved with China, the university said in an e-mailed statement.

Mixed Green Messages

The Chinese government is facing contradictory criticism from the U.S. and a UN green investment program over subsidies to its clean-energy industry, a Chinese industry group said.

The U.S. government probe into a union complaint that China is unfairly subsidizing its clean-energy companies contrasts with allegations that Beijing is providing less support than it could to its wind generators, Li Junfeng, secretary general of the Chinese Renewable Energy Industries Association, said in an interview.

China Gold Reserves

China should buy more gold to diversify its foreign exchange reserves, International Business Daily, a newspaper affiliated with the Ministry of Commerce, reported.

China should increase its gold holdings if the country aspires to “internationalize” its currency, the paper said on its website, citing Meng Qingfa, a researcher at the China Chamber of International Commerce. The 1,054 metric tons of gold reserves are inadequate, compared with the 8,133 tons held by the U.S. and 3,408 tons by Germany, he was cited as saying.

Volvo China Factories

Volvo Cars, the Swedish carmaker owned by China’s Zhejiang Geely Holding Group Co., may build vehicles at as many as three plants in the country, Chief Executive Officer Stefan Jacoby said.

Volvo is committed to increasing production in China, and its board will decide on sites once it receives approvals from the country’s regulators, Jacoby said in an interview at an automotive conference in Stockholm.

MARKETS:

U.S. stocks tumbled, snapping a five-day gain for the Standard & Poor’s 500 Index, as investors speculated that the Federal Reserve’s efforts to shore up the economy will be gradual.

Alcoa Inc. and Exxon Mobil Corp. each dropped 1.3 percent after metal and oil prices declined as the U.S. dollar rose to a one-week high against the euro. Sprint Nextel Corp. slumped 9.9 percent after posting a wider-than-estimated loss. Broadcom Corp. jumped 12 percent as quarterly revenue beat analysts’ predictions.

The S&P 500 slid 0.3 percent to 1,182.45 as of 4 p.m. in New York. Futures extended losses before the open of exchanges after the Commerce Department reported that orders for U.S. non- military capital equipment excluding airplanes dropped in September. The Dow Jones Industrial Average lost 43.18 points, or 0.4 percent, to 11,126.28.

THE FOLLOWING STOCKS MAY BE ACTIVE TODAY:

Aluminum Corp. of China (2600 HK): The metal producer said it will invest 537 million yuan in a venture with its parent and other investors that will invest in and reorganize five coal- mining companies in the Jiexu area of Shanxi province. The stock fell 2.5 percent to HK$7.35.

China Shipping Container Lines Co. (2866 HK): The container vessel operator said third-quarter net income more than tripled to 2.15 billion yuan. The stock fell 1 percent to HK$3.01

China Oilfield Services Ltd. (2883 HK): The oil-production support provider said third-quarter net income was 1.25 billion yuan. The stock fell 1.5 percent to HK$11.98.

FAW Car Co. (000800 CH): The automaker said nine-month net income increased 83 percent to 1.64 billion yuan, as sales gained 40 percent to 26.8 billion yuan. The stock fell 4.6 percent to 20.84 yuan.

Fosun International Ltd. (656 HK): The steel investor said third-quarter net income fell 90 percent to 186.6 million yuan. The stock fell 0.2 percent to HK$12.20.

Regent Pacific Group Ltd. (575 HK): The investment holding company said it will sell its 40 percent stake in the Dapingzhang copper/zinc mine for $63.2 million. The stock fell 3.8 percent to 25.5 Hong Kong cents.

Shanghai Electric Group Co. (601727 CH) agreed to sell 36 sets of coal-fired super-critical thermal power generation equipment to Reliance Anil Dhirubhai Ambani Group Ltd. for $8.29 billion. The company’s third-quarter profit increased 33 percent. The stock rose 2.5 percent to 10.25 yuan.

Haitong Securities Co. (600837 CH) said its third-quarter net income fell 17.9 percent from a year earlier to 911.6 million yuan ($136.5 million), according to a statement to the Shanghai Stock Exchange. The stock declined 0.9 percent to 12.62 yuan.


EVENTS HAPPENING TODAY:
Debuts:
Sihuan (460 HK)
Global Dairy (1007 HK)

Earnings:
China Telecom (728 HK)
Sinopec (386 HK)
Bank of Communications (3328 HK)
ICBC (1398 HK)
China Cosco (1919 HK)
China Life (2628 HK)
Air China (753 HK)
China Eastern (670 HK)

BLOOMBERG TELEVISION GUESTS SCHEDULED FOR TODAY:

7:40   Inez Tenenhaum, U.S. Consumer Product Safety, Chairman
8:10   Binay Chandgothia, Principal Global Investors, CIO
8:40   Samarjit Shankar, BNY Melon, Managing Director: Global
       Strategy
10:40  Steven Sun, HSBC, Head of China Equity Strategy
12:10  Ben Collett, Louis Capital Markets, Head of Japanese
       equities
12:40  Paul Keung, Oppenheimer Investments Asia, Director/Head

To contact the editor responsible for this story: Bruce Grant at bruceg@bloomberg.net.

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