Asia ex-Japan Morning Research Summary：Read the latest Japan Equity Research Summary

Equity Research Hong Kong Open | 11 March 2015Asia ex-Japan Morning Research SummaryRead the latest Japan Equity Research Summary »This summary is compiled from research reports previously published by Barclays Equity Research. A full list of all publications isavailable on Barclays Live. VIEW SETTLEMENT DISCLOSURES, ANALYST CERTIFICATIONS AND OTHER IMPORTANT DISCLOSURES Company ResearchAU Optronics Corp. (2409.TW)CGN Power Co., Ltd. (1816.HK)Cheung Kong (0001.HK)China Merchants Holdings (0144.HK)COSCO Pacific Limited (1199.HK)Novatek Microelectronics Corp. (3034.TW)PAX Global Technology Ltd. (0327.HK)Qihoo 360 Technology Co., Ltd. (QIHU)Samsung Electronics (005930.KS)Shin Kong Financial Holding (2888.TW)Sun Pharmaceutical Industries (SUN.NS)Sunny Optical Technology (2382.HK)Tencent Holdings Ltd. (0700.HK)Wistron Corporation (3231.TW)Industry ResearchAsia Currents No. 2: Clean energy making headlinesBarclays Global Autos Valuation Sheet - 10 March 2015China Oil & Gas: Consolidation, earnings and oil pricesGlobal Current: Allegion: 2015 Investor Day; Gamesa: Offshore JV with Areva formalized; Mindray: International growth slowing, but ChinareacceleratesGlobal Diversified Miners: Big Cap Diary: Great results season; what next?Global Oil & Gas Weekly: Performance in a challenging environmentIndia Coal: Coal auctions: Key highlights from second round of auctionsMINED MATTERS 11/3/15: Sizeable drop in Chinese steel exports in Feb (as expected), but still on track to exceed the record exports of 2014Taiwan Semis and LCD Displays: Weak February sales drove down foundry leading indicatorThailand Telecom Services: Trip takeaways - competitive and regulatory risks persistThe Asia PC+ Pulse Flash (No. 101) - February review: both NB and DT/MB missed forecasts again; 1Q15 still below seasonalityMacro ResearchChina: Chinese New Year effects boost February inflation; deflation risks remain significantGlobal Macro Daily (Sydney Open): USD surge continuesIndia: BoP stays on a strong footingSingapore: The case for no more easing Publications Summary | ReportsBasic IndustriesGlobal Diversified Miners: Big Cap Diary: Great results season; whatnext?Asia ex-Japan Metals & MiningDavid Butler+44 (0)20 3134 5756david.s.butler@barclays.comBarclays, London Amos Fletcher+44 (0)20 7773 2225amos.fletcher@barclays.comBarclays, London Ian Rossouw+44 (0)20 3555 2620ian.rossouw@barclays.comBarclays, London Lourina Pretorius+44 (0)20 3555 4423lourina.pretorius@barclays.comBarclays, London Ephrem Ravi+852 2903 4892ephrem.ravi@barclays.comBarclays Bank, Hong Kong Caroline Learmonth+27 11 895 6080caroline.learmonth@barclays.comAbsa, Johannesburg 10 March 2015Sector summary - this was probably the strongest set of results we've had for a longtime: Capex was reduced in aggregate by 19% or $11bn in 2014 with a further $4bnguided down for 2015 (total reduction of $8-9bn for CY15); opex came down 5.4%and net debt fell in aggregate by $10b or 8.5%. There is still room too to furtherreduce cash outflows if commodity prices fall more. Dividends were maintained andreturns of capital delivered where expected. Meanwhile we have had another roundof interest rate and RRR cuts in China (the biggest consumer of commodities) andbetter than expected economic data out of Europe (the second biggest consumer ofcommodities). Copper and iron ore prices (together 70% of EBIT) remain subduedYTD with little sign of a pick-up in demand. We think there will be a recovery incopper pricing as the year goes on whilst bulk commodities remain flat; and, if not,then equity looks expensive.Macro watch - data improving but headwinds remain. As our global economics teamnoticed, some green shoots are appearing (Global Economics Weekly: A couple ofgreen shoots). European data is improving ahead of this weeks' asset purchaseprogramme. Flash PMI in China is above 50 again. We have had another 25bp ratecut in China following a 50bp RRR cut in February. We expect more to come whilstnoting we still see risks to the downside on our 7% GDP forecast. The US economyremains robust.Event watch - the winners and losers. All results were strong with P&L datagenerally ahead (with the notable exception of Vale). Generally, the sector producedmore (+3% in volumes) for less (a 19% reduction in capex and 5% reduction in opex). There was also a $10bn reduction in net debt, $13bn from BHP, Glen and Rio, anda 19% reduction or $11.3bn fall in capex which will continue to come down further -latest guidance was for a further c.4bn for 2015 (total reduction of $8-9bn for CY15).Vale and AAL came out as relative losers with net debt increasing by 4.2% and21.3% respectively and EBITDA falling by 42% and 18%.Commodity watch - mixed. Bulk commodity prices drifted lower, copper see-saweddriven down by a market in surplus, stronger dollar and some large positions in thepaper market. Elsewhere not much to note in base metals pricing other than thecollapsing aluminium premia following a supply response to the re