Monday Newsline:China Manufacturing;Sinopec

The HSBC China PMI Index came in even lower in March than it did in February,falling to 48.1 from 48.5.Below 50 means the manufacturing sector is contracting.Still,this poor number raised expectations that China would enact stimulus measures,sending the MSCI Asia Pacific index up 0.85% in Monday trading.*
Sinopec's Q4 net profit fell 35% year on year as improved refining profits lost out to lower upstream earnings.The 13.8 billion yuan profit was way lower than the 20.5 billion consensus forecast.
Profits were squeezed by a drop in oil exploration and production profit partly caused by lower world oil prices.Lower prices also hurt its chemical division,as did an increase in domestic production capacity.
To improve its performance,the oil and gas major will sell up to 30% of its marketing and distribution division,which is a vast network of some 3,000 petrol stations,plus convenience stores,pipelines and storage facilities.The sale could raise up to 20 billion.It will also cut capex by 4.2%.*
South Korea's KOSPI index surged 10.61%,bolstered by shipbuilding stocks rising on the day.Daewoo Shipbuilding soared 4.61%,while Hyundai Heavy Industries added 1.98%.*
Sinopec Shanghai Petrochemical Co Ltd(SHI),Daewoo Shipbuilding&Marine(DWOTF:OTC US),Hyundai Heavy Industries Co Ltd(HYHZF:OTC US)

Hyundai Heavy Busy In Africa

South Korean industrial titan Hyundai Heavy Industries has won an approximately 900 million dollar contract to build two offshore gas platforms in Nigeria.The deal is with a U.S. integrated oil company such as Exxon Mobil or Chevron,a person familiar with the matter disclosed.
Hyundai Heavy will carry out the entire project,from engineering,procurement,construction and installation to commissioning of the offshore platforms.
Hyundai Heavy was founded in 1972.It leads the world in shipbuilding tonnage,and is also active in the engineering and building of industrial plants;engines and machinery;construction equipment;electrical systems;and green energy.
The Hyundai Spirit is defined as Creative Wisdom;Positive Thinking;and Unwavering Drive.
iShares MSCI South Korea Index Fund(EWY)

Hyundai Heavy's China Plans

Hyundai Heavy Industries is building a plant in China for heavy duty bulldozers.The factory will initially produce 8,000 of the three and five ton machines a year,ramping up to 10,000 within five years.They are also planning to produce heavy equipment in Brazil,Africa and the Middle East,inspired by their success in China.They entered the Chinese market in 1995,and their Chinese operations account for 50% of their global sales.
Besides manufacturing construction equipment,Hyundai Heavy has a shipbuilding division that is number one globally,with 15% of the world market.The company also produces electrical systems,industrial plants and offshore structures.Hyundai Heavy is a component of South Korea's KOSPI composite stock price index.In the U.S.,the company trades on the OTC pink sheets.