No Change to Southern Airlines' Airbus Orders
China Southern Airlines Ltd (NYSE: ZNH, SHA: 600029, HKG: 1055), the nation's biggest carrier by passenger traffic, is not canceling or delaying orders for Airbus planes despite a spat between China and Europe over the latter's carbon emissions scheme, president Si Xianmin said. The airline's fourth A380 is scheduled to be delivered by September and the fifth by early 2013. China Southern Airlines is the nation's only carrier that has ordered Airbus's flag jumbo jet, which is currently used for domestic service and is expected to operate international flights by the end of this year.
Chilled Domestic and Foreign Markets Dent China Railway
China Railway Group Co (SHA: 601390, HKG: 0039) posted ¥459.7 billion in revenues and ¥6.69 billion in net profits for 2011, down 2.9% and 9.6% respectively from the year before as the Chinese government slashed railway projects after last July's deadly high speed train crash. The unrest in North Africa and the Middle East, where the group had business, were also blamed for the worse performance.
CSR Earnings Up 53% on Strong Overseas Revenue
CSR Corp (SHA: 601766, HKG: 1766), one of China's top two railway equipment manufacturers, posted ¥80.71 billion in revenues and ¥3.86 billion in net profits for 2011, up 23.9% and 53% respectively from the year before. Overseas revenue, which surged 161.8% to ¥6.13 billion, was cited for the strong performance.
Interest Income Lifts Citic Bank
China Citic Bank Corp (SHA: 601998, HKG: 0998) said its net profit rose 43% to ¥30.82 billion in 2011, fueled by interest incomes, which was up 35% to ¥65.11 billion representing 90% of its total operating revenue. The lender's capital adequacy ratio was 12.27% as of the end of 2011, up from 11.31% a year earlier.
Baosteel Net Profit Hit by Lower Prices
Baoshan Iron & Steel Co (SHA: 600019), China's most profitable mill, said its net profit slid 43% to ¥7.36 billion in 2011 as a result of lower steel prices caused by weak demand for construction and automobiles amid sluggish macroeconomic conditions. It was its first yearly decline in earnings since 2008. Baosteel's revenue was up 10% to ¥222.86 billion last year.
Higher Costs Hurt Hainan Airlines
Hainan Airlines Co (SHA: 600221), China's fourth largest carrier, posted ¥26.27 billion in revenues and ¥2.63 billion in net profits for 2011, up 21% and down 13% respectively from the year before. Increased fuel costs and administrative and financial expenses were blamed for the decline in earnings. Its passenger traffic grew 10% to 20.46 million people last year.
Suning Net Profit Rises 20%
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, posted ¥93.89 billion in revenues and ¥4.82 billion in net profits for 2011, up 24.4% and 20.2% respectively from the year before. Strong sales from second and third-tier cities helped boost revenue. Suning had 373 net openings last year, taking the total number of stores to 1,724, including 10 in Japan.
Haier Net Profit Rises 20%
Qingdao Haier Co (SHA: 600690), a leading Chinese home appliance manufacturer, posted ¥73.66 billion in revenues and ¥2.69 billion in net profits for 2011, up 13.9% and 20.1% respectively from the year before. It led China's refrigerator and water heater markets with an 8.86% and 19.78% share respectively, and its air conditioner market share was 10.67%, ranking third nationwide.
$1 = ¥6.3