Few surprise to come, focus on 2016 and after
Few surprise to come ; Technip gave precise guidance
Q4 publication should not bring many surprises in terms of earnings, as
Technip reiterated its guidance in January when it launched its synthetic
bond (revenues were seen slightly above initial guidance). The subsea
segment is expected to post more strong results, with an EBITDA margin of
20%, while the Onshore/Offshore EBIT margin should continue to recover
and reach 4.8%.
Watch the cash
In January, Technip said its adjusted net cash position will significantly
exceed the position reported at the end of Q3 (EUR1.3bn). We will monitor it
closely; as it could have a positive impact on our SOP valuation (a link to net
contract advances or year-end phasing of WCR will have no effect on it.)
2016 message?
Technip should also give guidance for 2016, and its message on the
environment and any potential expectation of recovery will be important.
we reinstate our OW rating, Now for the hard work of bringing the Nokia efficiency model to Alcatel Lucent
chops as a cost cutter. In addition to announced synergies, we see
possible further synergies based on the record of previous deals, and also
upside potential from turning around (or if not possible selling), ALU’s lossmaking
optical business. There are also potential margin gains in wireless
from industry consolidation which we do not factor. We reinstate our
Overweight rating (from Not Rated) with a €7 Mar-17 target price.
From wireless equipment to full service “data shoveller”. The merger of
Nokia and Alcatel Lucent has created a full service end to end “data
shoveller” with top-3 market shares in wireless equipment (RAN), routing
& wireline access. It is also fourth ranked in optical communications.
Optical coupled with company consolidation related wireless cuts provide
the most significant potential for margin upside at the combined company.
€900m synergies understated, but not as understated as the most
bullish estimates: Despite considerable restructuring, ALU’s 2015 gross
margin of 36% was below Nokia’s 38.3%. If Nokia improves ALU’s gross
margin to the original Nokia level, it would add €325m to the original ALU
EBIT. This would imply €575m of synergies would come from opex.
€575m is only 8.5% of the combined companies’ 2015 opex. After the
merger of Nokia and Siemens networks businesses, opex declined by €700m
(17%) after 3 years, ie ‘12 vs. ’08. That deal indicates Nokia potentially has
more cuts possible than guided. 17% is likely too high a figure because there
was more overlap between Nokia & Siemens’ networks businesses. We
believe a 13% cut versus separate costs could be achieved, meaning Nokia
could achieve opex synergies of €890m, equivalent to overall synergy of
~€1.2bn. If synergies similar to those for NSN were achieved, we estimate a
figure of €1.5bn, which we believe possible but not clearly achievable.
Valuation and upside: If Nokia were able to achieve €1.2bn of synergies,
then our 2018E EPS for the company would be €0.49. On this assumption,
Nokia is trading at 11x ‘18E earnings. Since its ‘13 restructuring, Nokia has
traded at 15-20x forward PE. If only announced €900m synergies can be
achieved, then the stock is trading at 12.3x, still below recent multiples. In
case of €1.5bn synergies, the stock is trading at 10x.
Upgrade to Neutral; many headwinds remain but news flow over next six months is biased to the positive
next several years. Our 2016-18E EPS are little changed, moving 0.3% / 4.0%
/ 3.4% (Table 1). However, we upgrade to Neutral (OW) for several reasons
discussed below. We increase our Dec-16 price target to 690p from 395p. We
now value the stock by applying a target P/E multiple of 16x to our 2020E
EPS of c59p (previously we used our 2017E EPS), discounted back 4 years.
No profit warning last week and no warning likely in next six months:
We expected RR to cut its guidance last week due to growing macro
headwinds across the group. However, management said that it has been
more prudent with its November 2015 guidance than we had thought. We
cannot rule out further EPS downgrades if macro conditions deteriorate,
and/or certain industry trends deteriorate (eg. the number of parked RR aero
engines increases); but this looks much less likely in the next six months.
Mindset of many investors has changed: RR clearly looks very expensive
based on its depressed earnings in the next several years. However, many
investors now seem willing to value RR on potentially much higher profits
towards the end of this decade / early next decade. RR may or may not
achieve this but we struggle to go against this more positive sentiment.
New management making improvements: Financial disclosure has
improved. Communications with investors/analysts have also improved. A
new cost reduction plan is in place; however, we think much greater cost
reduction is needed if RR is to achieve its 2020-2025 profit targets.
New accounting rule could result in higher reported profit: RR could
implement the new IFRS 15 rule on revenue recognition in 2017. CFO
David Smith says his main goal from any accounting changes would be to
make RR simpler for investors to understand. One option could be to write
off at least a portion of the engine losses / “pulled forward profit” that RR
has previously capitalised, so that this would no longer need to be amortised
against future aftermarket profits. A side effect of this simplification would
be to allow RR to report higher future EBITA margins. This happened with
risk-revenue sharing partners when RR implemented IFRS in 2004-2005.
* Barring a major change in end markets, risk-reward more balanced
We have been cautious on STMicro based both on valuation but also structural issues faced by the
company (e.g. MEMs competition and the fact that pruning the portfolio is difficult given its employee
base is in high cost areas – 45% in France and Italy). Concerns over cyclicals have seen the stock fall
almost 50% from its 12-month high (22/4/15), shrugging off recent in-line results, further restructuring
and progress with new business lines (FDSOI). We use a scenario analysis and reverse valuation and
conclude: 1) If top line were to deteriorate to the same extent as '08/09 (-21% ex. wireless), the stock
could fall to €2.1/share assuming a valuation of 0.4x EV/Sales, but 2) excluding a major down-turn the
risk-reward is more balanced given the stock is implying 2% revenue growth and 6.3% margins. We
upgrade to Neutral from Sell.
* Fundamental concerns remain
While it has reduced its revenue break-even through a succession of opex reductions, fixed costs remain
relatively high such that we estimate that a 12% reduction in revenue would result in the business
becoming loss-making at the FCF level. It should be noted that we estimate that even allowing for the
full reduction in cost at the business to be pruned (set top boxes/home gateways), STMicro revenue
would have declined 3% y-o-y in 2015. It is also worth noting that "other income" which includes R&D
grants was over 90% of FY15 adjusted EBIT.
* Forecasts lowered
We have lowered our forecasts for '16E/'17E/'18E EPS to reflect a slightly weaker revenue (UBS recently
lowered its US GDP forecasts) and slightly less optimistic timing on the cost take-out in DPG than
previously modelled. It should be noted that at this juncture, and in alignment with UBS economists, we
do not assume that we are headed into another major down-cycle ('09 group revenue fell 21% y-o-y
excluding wireless vs. UBSe -1% for FY16E).
* Valuation: Falls to €4.7/share
Reflecting our lower forecasts, our DCF-based valuation (WACC 9%, g 2%) falls to €4.7/share from
€5.6/share. STMicro trades on 0.7x EV/Sales for a 6% EBIT margin '17E. We upgrade to Neutral on a
more balanced risk-reward.
* Change in capital structure still a possibility
Agreement with the French government appears to have been reached, but there is still a possibility it
will be revised as early as 2017. We reassess below the approaches that Renault-Nissan could possibly
take. We think likely outcomes include the status quo or a strengthening of the alliance with Daimler,
but we consider a number of possible scenarios. We also created an Interactive model for scenario
simulation.
* Improving the quality of the Renault-Nissan alliance is essential
Total sales/production volume for Renault and Nissan combined is at 9m vehicles, which ranks among
the world leaders, but most of those vehicles are small or midsize. With both companies earning an
operating margin at or below the median, their critical challenge is to improve quality, i.e., profit
margins. We also think greater cooperation with Daimler would bring significant benefits from the
perspective of complementing the alliance's ADAS and other leading-edge technologies and
strengthening its luxury car business.
* Notable expansion of cost-cutting in uncertainty-riddled FY16
Benefits from cost-cutting grew to €3.8bn in FY14, and the alliance is targeting even more cost
reductions, €4.3bn, in FY16. Cost reductions will be key to driving profit growth for both Renault and
Nissan in FY16, when global demand is expected to worsen.
* Investment stance: Renault BUY, Nissan BUY
Renault is well positioned to show best-in-class revenue growth in Europe thanks to the new launches
and "sales to partners". This should translate into higher margins and improving cash conversion. We
also like the EM optionality (Iran, India, China, Russia and Brazil). For Nissan, we hope for an expansion in
cost reduction towards achieving mid-term plans and SUV growth in China.
Dow+1.59% S&P+1.65% Nasdaq+2.21% Russell+1.54%
US MArket Closed higher helped by rebound of oil, WTI crude ended its day higher by 5.5% at $30.65/bbl, on speculation that OPEC ministers would convince Iran to cooperate on a production freeze. However, while Iran voiced support for market stabilization efforts, the country has yet to agree to take part in yesterday's proposed production freeze. Energy (+2.9%) and technology led the other sectors while materials (+2.0%) and consumer discretionary jockeyed one another. On the flipside, countercyclical utilities (-0.2%), telecom services (+0.3%),consumer staples (+1.0%), and health care (+1.3%) rounded out the board. IBB+2.9%. Volume were in line with 1.2bil shares. UsAfter Hours CVO +73.6%, CLD +17.3%, GLOB +11.1%, LDRH +10.7%, JACK -19.5%, TYL -10.6%, ARRS -10.5%, CSLT -5.4%, IM+23% on Tianjin bif @ $38.90, ATHX+21% on Phase 1 results, AERI +17% on +ve phase 3, ANAD +8.5% on improved bid @0.78/sh (vs 0.66). Asian equity markets continue to march higher, buoyed by another strong session of gains on Wall St. Oil prices are still trending upward, as Iranian officials appear to have given a nod to efforts to stabilize the market. Post-close API inventories also showed a surprising draw. The latest set of Fed meeting minutes also predictably underscored increasing concern about the impact of global volatility on US economy and inflation, with many members judging that volatility has increased. China CPI hit a 5-month high but miss consensus at 1.8% V 1.9%E, with m/m CPI maintaining 0.5% growth as in December. In Japan, January merchandise trade balance was slightly better than consensus, but components were again underwhelming. Exports fell -12.9% v -10.9%e and Imports fell -18.0% v -15.8%e, with shipments to Asia and China down over 17% and those to US and Europe down in mid-single digits.
Nikkei +2.28% Hang Seng +1.90% Shangai -0.28%
Eur$1.1145 CNH 6.5227 CNY 6.5178 JPY 113.76 GBP 1.4281 CHF 0.9906 RUB$ 75.3324 WTI$ 31.18(+1.48%)
S&P +0.09% EuroStoxx +0.28% Dax +0.13% SMI -0.37%
Macro :
- Finra Set to Vote on Bond Markup Disclosure Rules, Ketchum Says
- Dombrovskis Says EU Must Continue Work on Cleaning Up Bad Loans
- Brazil Cut to BB From BB+ by S&P
- Saudi Arabia Cut to A- from A+ by S&P, Outlook to Stable
- Moscovici Sees ‘No Bias’ Against U.S. Firms in EU Tax Probes
- Germany’s Gabriel Wants Re-Industrialization of EU: Handelsblatt
Keep an eye on :
- ABN NA : ABN Amro CEO, CFO Buy Company Shares, Regulatory Filings Show
- AC FP : Accor 2015 Ebit In Line With Ests., Sales Miss
- AF FP : Air France-KLM 4Q, 2015 Ebitda, Rev. Beat Ests.
- BAMNB NA : BAM Posts 2015 Profit, Expects 2016 Pretax Result to Rise
- CAP FP : Cap Gemini 2015 Sales Rise 12.7%; Div. Plan Beats BDVD Forecast
- CWI AV : Conwert Plans Squeeze-Out of ECO Business-Immobilien Holders
- CSGN VX : Credit Suisse Investor Harris Backs Thiam on Overhaul Plans
- DB1 GY : Deutsche Boerse Targets 10%-15% Profit Growth in 2016
- ELG GY : Elmos 4Q Sales Rise 3%; EPS Down 31%; Sees Moderate Rev. Growth
- ERA FP : Eramet 2015 Ebitda EU92m vs EU363m Y/y
- FDR FP : Fonciere Des Regions 2015 Recurring Net Rises 6% to EU333m
- FNAC FP : Fnac 2015 Rev. Misses Ests., Says Darty Purchase on Track
- GET FP : Groupe Eurotunnel FY 2015 Net EU100m; Est. EU115m
- KBC BB : KBC 4Q Net Misses on Goodwill Impairment; CET1 Climbs to 14.9%
- NESN VX : Nestle 2015 Organic Sales Growth In Line With Ests. Nestle Sees 2016 Organic Growth In Line With 2015
- NEX FP : Nexans 2015 Operating Loss Widens, Confident of 2017 Targets Nexans Chairman Frederic Vincent to Retire March 31
- OMV AV : OMV 4Q Adj. Net EU180m vs Est. EU145m; Proposed Div. EU1/Share
- ORI SS : Oriflame 4Q Ebitda Meets Estimates, Sales Below
- RAND NA : Randstad Reports Solid 4Q; Revenue Matches Est., Dividend Beats
- TTK GY : Takkt 2015 Sales In Line With Ests.; Ebitda, Ebit Beat, Takkt Plans 35%-45% Dividend Payout Ratio to Ensure Consistency
- TEMN SM : Temenos Upgraded at Berenberg on Visibility; PT Raised 70%
- TFI FP : TF1 2015 Revenue Matches Est., Sees Poor Visibility in 2016
- UBSN VX : Knight Vinke CEO Won’t Rule Out Reinvesting in UBS: Reuters
- VIV FP : Vivendi’s Canal Plus, BeIn to Announce Pact Thursday: Les Echos
- VOLVB SS : Volvo Cars Operating Profit Triples in 2015 on Record Deliveries
>>> Up
*A2A RAISED TO BUY VS NEUTRAL AT GOLDMAN SACHS
*AKASTOR ASA RAISED TO BUY AT NORDEA
*ANGLO AMERICAN RAISED TO HOLD VS REDUCE AT HSBC
*AUTO TRADER GROUP PLC RAISED TO OVERWEIGHT AT JPMORGAN
*CEZ RAISED TO NEUTRAL VS SELL AT GOLDMAN SACHS
*CREDIT AGRICOLE RAISED TO NEUTRAL VS UNDERPERFORM AT MEDIOBANCA
*EFG INTERNATIONAL RAISED TO HOLD VS REDUCE AT KEPLER CHEUVREUX
*ENEL RAISED TO NEUTRAL VS SELL AT GOLDMAN SACHS
*HANNOVER RE RAISED TO HOLD VS SELL AT DEUTSCHE BANK
*HENNES & MAURITZ RAISED TO NEUTRAL VS SELL AT GOLDMAN
*ROLLS-ROYCE RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*STMICRO RAISED TO NEUTRAL VS SELL AT UBS
*SVENSKA HANDELSBANKEN RAISED TO HOLD AT HSBC
*SWEDBANK RAISED TO BUY AT HSBC
*TEMENOS GROUP RAISED TO BUY VS HOLD AT BERENBERG
*TERNA RAISED TO NEUTRAL VS SELL AT GOLDMAN SACHS
>>> Down
*BP CUT TO ADD VS BUY AT ALPHAVALUE
*EDP RENOVAVEIS CUT TO SELL VS NEUTRAL AT GOLDMAN SACHS
*FORTUM CUT TO SELL VS NEUTRAL AT GOLDMAN SACHS
*GN STORE NORD CUT TO SELL VS NEUTRAL AT UBS
*IMERYS CUT TO REDUCE AT HSBC
*LEGRAND CUT TO HOLD AT JEFFERIES
*NOVOLIPETSK STEEL CUT TO HOLD AT SOCIETE GENERALE
*RWE CUT TO SELL VS REDUCE AT ALPHAVALUE
*TOTAL CUT TO REDUCE VS ADD AT ALPHAVALUE
*VERBUND CUT TO SELL VS NEUTRAL AT GOLDMAN SACHS
>>> PT Change
>>> Initiation
*ASSA ABLOY RATED NEW HOLD AT BERENBERG; PT SEK148
*ATLAS COPCO RATED NEW BUY AT BERENBERG; PT SEK215
*CASSIOPEA ASSUMED NEUTRAL AT CREDIT SUISSE, PT CHF33
*DORMA+KABA RATED NEW BUY AT BERENBERG; PT CHF655
*INVESTEC RATED NEW BUY AT RENCAP; PT 580P
*IPSEN RATED NEW BUY AT SOCGEN; PT EU62
*KONE OYJ RATED NEW HOLD AT BERENBERG; PT EU39
*NOKIA REINSTARED OVERWEIGHT AT JPMORGAN, PT EU7
*SANDVIK RATED NEW SELL AT BERENBERG; PT SEK63
*SCHINDLER HOLDING RATED NEW SELL AT BERENBERG; PT CHF140
*SEPURA RATED NEW BUY AT PEEL HUNT, PT 210P
*SKF AB RATED NEW BUY AT BERENBERG; PT SEK165
*STEVEN MADDEN RATED NEW BUY AT JEFFERIES
>>> Call
>> Stock
*ABN AMRO ADDED TO BENELUX TOP PICKS AT KEPLER CHEUVREUX
*ACCIONA REMOVED FROM GOLDMAN SACHS CONVICTION LIST, KEEPS BUY
*EDP ADDED TO GOLDMAN SACHS CONVICTION SELL LIST
*HERA REMOVED FROM GOLDMAN SACHS CONVICTION LIST, KEEPS BUY
*SWISS RE REINSTATED BUY AT DEUTSCHE BANK, PT CHF107
Asian Market Update: China CPI rises on food costs; Soft Australia employment renews the case for more easing
***Economic Data***
- (CN) CHINA JAN CPI Y/Y: 1.8% V 1.9%E; 5-month high
- (CN) CHINA JAN PPI Y/Y: -5.3% V -5.4%E; 47th straight month of decline; smallest decline in 7 months
- (JP) JAPAN JAN TOTAL MERCHANDISE TRADE BALANCE: -¥646B V - ¥658BE; ADJUSTED TRADE BALANCE: ¥119.4B V ¥61.6BE
- (AU) AUSTRALIA JAN EMPLOYMENT CHANGE: -7.9K (biggest decline in 9 months) V +13.0KE; UNEMPLOYMENT RATE: 6.0% (4-month high) V 5.8%E
- (NZ) NEW ZEALAND FEB ANZ CONSUMER CONFIDENCE INDEX: 119.7 V 121.4 PRIOR; M/M: -1.4% V +2.3% PRIOR
- (NZ) NEW ZEALAND Q4 PPI INPUT Q/Q: -1.2% V +1.6% PRIOR; PPI OUTPUT Q/Q: -0.8% V +1.3% PRIOR
- (NZ) NEW ZEALAND JAN ANZ JOB ADVERTISEMENTS M/M: -3.2% V +0.7% PRIOR
***Index Snapshot (as of 05:30 GMT)***
- Nikkei225 +2.9%, S&P/ASX +2.3%, Kospi +1.1%, Shanghai Composite +0.6%, Hang Seng +2.4%, Mar S&P500 +0.3% at 1,929
***Commodities/Fixed Income***
- Apr gold -0.2% at $1,209/oz, Mar crude oil +2.0% at $31.29/brl, Mar copper -0.1% at $2.07/lb
- (US) API Petroleum Inventories: Crude: -3.3M v +2.4M prior; 1st draw in 5 weeks
- (CN) PBoC said to conduct Medium-term Lending Facility (MLF) operation - financial press
- (CN) PBOC to inject CNY80B in 7-day reverse repos
- USD/CNY: *(CN) PBOC SETS YUAN MID POINT AT 6.5152 V 6.5237 PRIOR
- JGB: (JP) Japan MoF sells ¥2.28T in 0.1% (0.1% prior) 5-year JGBs; Avg yield: -0.138% v 0.016% prior; Bid-to-cover: 3.57x v 4.10xprior
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.5152 V 6.5237 PRIOR
- (JP) Japan investors net sell ¥1.3T in foreign bonds v net buy ¥1.4T in prior week; Foreign investors net sell ¥563B in Japan stocks v net sell ¥610B in Japan stocks in prior week
- USD/VEF: (VE) Venezuela Pres Maduro: Venezuela devalued its official FX rate for priority goods 37% to 10 VEF/USD from 6.3; effective tomorrow
***Market Focal Points/FX***
- Asian equity markets continue to march higher, buoyed by another strong session of gains on Wall St. Oil prices are still trending upward, as Iranian officials appear to have given a nod to efforts to stabilize the market. Post-close API inventories also showed a surprising draw. The latest set of Fed meeting minutes also predictably underscored increasing concern about the impact of global volatility on US economy and inflation, with many members judging that volatility has increased. Materials names are helping Australia to strong gains, while weaker JPY continues to lift the Nikkei. In the Asia session, USD/JPY was up as much as 50pips at 114.30, EUR/USD up 25 pips above 1.1140, and NZD/USD up about 50pips near 0.6670. AUD/USD plunged 50pips below 0.7140 on the release of softer than expected jobs data, but subsequently pared about half of those losses.
- Economic data from China saw CPI hit a 5-month high but miss consensus at 1.8% V 1.9%E, with m/m CPI maintaining 0.5% growth as in December. As govt officials warned overnight, food component was behind much of the move, with Food CPI y/y 4.1% v 2.7% prior and Non-food y/y at 1.2% v 1.1% prior. China stats bureau added that labor costs are holding up, boosting services prices. Separately, state researcher Wang reiterated that it is not wise for speculators to short CNY, just as the central bank set Yuan weaker. Another researcher with CASS estimated 2016 GDP to come down to 6.7% from 6.9% reported in 2015.
- After several months of strong employment numbers from Australia, January employment change posted its 2nd straight losing month and also the biggest job loss in 9 months. Unemployment rate edged up to a 4-month high of 6.0%, even as Participation Rate remained at 65.2%. Aggregate hours worked was the silver lining with a 4-month high of +10.9M, however the numbers did some damage to the rise of the non-mining industry narrative. Goldman Sachs economist changed their call on RBA forecasts, projecting 2 rate cuts in May and July, taking cash rate down to 1.50%. Fixed income markets have also shifted, with rates now pricing in a rate cut by Q3 of this year. RBA's Edey was more upbeat, noting China economy is still growing at a healthy rate, local banks have limited direct exposures to risk factors, and commercial property risks are manageable.
- In Japan, January merchandise trade balance was slightly better than consensus, but components were again underwhelming. Exports fell -12.9% v -10.9%e and Imports fell -18.0% v -15.8%e, with shipments to Asia and China down over 17% and those to US and Europe down in mid-single digits. February trade data will likely be progressively worse, considering that much of the recent Yen appreciation has taken place this month. Nonetheless, BOJ officials remain resolute in their remarks. BOJ Gov Kuroda reiterated economy will continue a moderate recovery, CPI will reach 2% around H1 of FY17 as inflation is improving steadily, and that negative rates will neither weigh on bank profits nor alter BOJ's JGB purchase plans. Comments from BOJ's Ishida were only slightly more tempered, noting there are some soft spots in exports and that prolonged global market volatility may in fact impact real economy.
***Equities***
US equities / ADRs:
- IM: Agrees to be acquired for $38.90/shr by .cn Tianjin Tianhai to become a Part of HNA Group in transaction valued at $6.0B cash; +23.2% afterhours
- AERI: Reports positive Rhopressa QD (netarsudil ophthalmic solution) 0.02% 12 Month Interim Safety Results for Rocket 2; +16.6% afterhours
- NVDA: Reports Q4 $0.52 v $0.32e, R$1.40B v $1.31Be; +7.2% afterhours
- MRVL: Discloses settlement with Carnegie Mellon University; will pay $750M; +6.2% afterhours
- NTAP: Reports Q3 $0.70 v $0.68e, R$1.39B v $1.45Be; announces restructuring and 12% workforce reduction; +4.0% afterhours
- MRO: Reports Q4 -$0.48 v -$0.50e, R$1.48B v $1.16Be; +3.8% afterhours
- SPWR: Reports Q4 $1.73 v $1.52e, R$1.36B v $1.28Be; +2.9% afterhours
- ABX: Reports Q4 $0.08 v $0.07e, R$2.24B v $2.40Be; -2.4% afterhours
- MAR: Reports Q4 $0.77 v $0.76e, R$3.71B v $3.72Be; -2.5% afterhours
- NEM: Reports Q4 $0.04 v $0.13e, R$1.82B v $1.75Be; -3.3% afterhours
- CF: Reports Q4 $0.76 v $0.86e, R$1.12B v $1.11Be; -4.4% afterhours
- GDDY: Reports Q4 $0.00 v -$0.03e, R$425.4M v $424Me; -5.2% afterhours
- JACK: Reports Q1 $0.93 v $1.03e, R$470.8M v $475Me; -19.1% afterhours
Notable movers by sector:
- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK -5.3% (Lunar New Year result); Tatts Group TTS.AU +0.5% (H1 result); Sydney Airport SYD.AU +2.7% (FY15 result); Perfect World Pictures 002624.CN +4.6% (agreement with Universal Pictures)
- Financials: China Galaxy Securities Co 6881.HK +4.0% (Jan result); Devine DVN.AU -24.6% (guidance)
- Industrials: Sany Heavy 600031.CN +10.0% (agreement); Bridgestone Corp 5108.JP -1.7% (FY15 result)
- Technology: Hangzhou Hikvision Digital Technology Co 002415.CN -1.4% (FY15 result); Toshiba Corporation 6502.JP +4.3% (discuss sale of appliance unit)
- Energy: Origin Energy ORG.AU +8.7% (H1 result)
- Telecom: Telstra Corp. TLS.AU +0.6% (H1 result)
- Utilities: Huaneng Renewable Corp 958.HK 13.1% (guidance)