Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria

Equity Analyst - Fundamental & Thematic

Fundamental Research on Listed Indian Companies

Sree Capital

Sree Capital is a platform to share fundamental research on listed Indian companies. We do this research for our own investment

Equity Bottom-Up

<ul>
<li>In this Insight, we review our hits and misses across the key Asian geographies of China, Japan and India in H1 CY2026.</li>
<li>We review the our top performing ideas in each geography and key reasons for the stock price movement.</li>
<li>Similarly we review the underperformers in each geography and present the likely reasons for the same.</li>
</ul>


In this Insight, we review our hits and misses across the key Asian geographies of China, Japan and India in H1 CY2026.
We review the our top performing ideas in each geography and key reasons for the stock price movement.
Similarly we review the underperformers in each geography and present the likely reasons for the same.


H1 CY2026: A Review of Our Hits and Misses Across Japan, China and India

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The sharp surge in Omicron-driven local cases has driven more stringent measures by local governments. On ground in Shanghai, we see more tightened measures being implemented over the weekend. </li>
<li>The measures will reduce a lot of foot traffic and lower discretionary spending appetite in Mar, and this will negatively weigh on many 1Q22 results to be announced in late-Apr. </li>
<li>We advocate a long staples, short discretionary strategy in the near term. Also, travel sector will be hit, and on net-net basis, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> looks to be a loser.</li>
</ul>


The sharp surge in Omicron-driven local cases has driven more stringent measures by local governments. On ground in Shanghai, we see more tightened measures being implemented over the weekend. 
The measures will reduce a lot of foot traffic and lower discretionary spending appetite in Mar, and this will negatively weigh on many 1Q22 results to be announced in late-Apr. 
We advocate a long staples, short discretionary strategy in the near term. Also, travel sector will be hit, and on net-net basis, Meituan (3690 HK) looks to be a loser.


China on the Ground: Escalating Measures to Combat Omicron and What Stocks Are Impacted?

<ul>
<li>Various figures for the Chinese New Year holidays suggested that the domestic tourism market is lukewarm in 2022. However, there are evidences that high-end consumption is better than low-end.</li>
<li>Weak cross-province tourism and low-end spending are likely negative to <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a>, <a href="https://www.smartkarma.com/entities/maoyan-entertainment" target="_blank" data-smartkarma-citation="entities:27451:1" rel="noopener">Maoyan Entertainment (1896 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-pictures-group-ltd" target="_blank" data-smartkarma-citation="entities:20724:1" rel="noopener">Alibaba Pictures (1060 HK)</a> and <a href="https://www.smartkarma.com/entities/imax-china-holding-inc" target="_blank" data-smartkarma-citation="entities:888:1" rel="noopener">IMAX China Holding (1970 HK)</a>.  </li>
<li>Good duty-free sales and high-end spending are beneficial to <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corp-ltd" target="_blank" data-smartkarma-citation="entities:12278:1" rel="noopener">CTG Duty Free Corp (601888 CH)</a>, <a href="https://www.smartkarma.com/entities/fosun-tourism-group" target="_blank" data-smartkarma-citation="entities:27439:1" rel="noopener">Fosun Tourism (1992 HK)</a>, <a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> and <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a>. </li>
</ul>


Various figures for the Chinese New Year holidays suggested that the domestic tourism market is lukewarm in 2022. However, there are evidences that high-end consumption is better than low-end.
Weak cross-province tourism and low-end spending are likely negative to China Southern Airlines (1055 HK), Maoyan Entertainment (1896 HK), Alibaba Pictures (1060 HK) and IMAX China Holding (1970 HK).  
Good duty-free sales and high-end spending are beneficial to CTG Duty Free Corp (601888 CH), Fosun Tourism (1992 HK), Fosun International (656 HK) and Chow Tai Fook Jewellery (1929 HK). 


2022 Chinese New Year Holidays - Some Winners and Losers

<ul>
<li>We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.</li>
<li>In Japan its <a href="https://www.smartkarma.com/entities/rohm-co-ltd" target="_blank" data-smartkarma-citation="entities:2953:1" rel="noopener">ROHM Co Ltd (6963 JP)</a>,<a href="https://www.smartkarma.com/entities/suzuki-motor-corp" target="_blank" data-smartkarma-citation="entities:732:1" rel="noopener">Suzuki Motor (7269 JP)&amp;</a><a href="https://www.smartkarma.com/entities/mazda-motor-corp" target="_blank" data-smartkarma-citation="entities:20528:1" rel="noopener">Mazda Motor (7261 JP).</a>In Indian auto its <a href="https://www.smartkarma.com/entities/mahindra-mahindra-ltd" target="_blank" data-smartkarma-citation="entities:16441:1" rel="noopener">Mahindra &amp; Mahindra (MM IN)</a>,<a href="https://www.smartkarma.com/entities/maruti-suzuki-india-ltd" target="_blank" data-smartkarma-citation="entities:733:1" rel="noopener">Maruti Suzuki India (MSIL IN)</a> &amp;<a href="https://www.smartkarma.com/entities/ashok-leyland-ltd" target="_blank" data-smartkarma-citation="entities:20104:1" rel="noopener">Ashok Leyland (AL IN)</a>
</li>
<li>In China it is <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group-limited" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK), </a><a href="https://www.smartkarma.com/entities/midea-group-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> and <a href="https://www.smartkarma.com/entities/yadea-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22706:1" rel="noopener">Yadea (1585 HK)</a>.</li>
</ul>


We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.
In Japan its ROHM Co Ltd (6963 JP),Suzuki Motor (7269 JP)&amp;Mazda Motor (7261 JP).In Indian auto its Mahindra &amp; Mahindra (MM IN),Maruti Suzuki India (MSIL IN) &amp;Ashok Leyland (AL IN)

In China it is Chow Tai Fook Jewellery (1929 HK), Midea Group (300 HK) and Yadea (1585 HK).


Shortlist Of High Conviction Ideas Across Japan, China, India - June 2026

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

<ul>
<li>Record-breaking 2020 Singles-day Shopping Festival may produce some insights regarding brands winning Chinese consumers;</li>
<li>But most winning brands cannot derive an investable business in China, given the prevalent lack of persistently high ROIC.</li>
<li>We hand-pick four companies that are investable from TMall's Singles-day top brand list.</li>
</ul>


Record-breaking 2020 Singles-day Shopping Festival may produce some insights regarding brands winning Chinese consumers;
But most winning brands cannot derive an investable business in China, given the prevalent lack of persistently high ROIC.
We hand-pick four companies that are investable from TMall's Singles-day top brand list.


Quick Picks: Top Investable Brands From The 2020 Singles-Day Shopping Festival

Hong Kong

Chow Tai Fook Jewellery Group Limited is a leading luxury jeweler that manufactures and sells a wide range of jewelry products, including gem-set, platinum, k-gold, and gold jewelry, as well as distributing watches. The company operates a vertically integrated business model, from diamond sourcing and manufacturing to retail and after-sales services, through both physical stores and online platforms. It was founded in 1929 and is headquartered in Hong Kong.

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Chow Tai Fook Jewellery (1929 HK)

H1 CY2026: A Review of Our Hits and Misses Across Japan, China and India

A review of stock performance in China, Japan, and India in H1 CY2026, highlighting top performers and underperformers with key reasons for stock...

Sreemant Dudhoria

China on the Ground: Escalating Measures to Combat Omicron and What Stocks Are Impacted?

Omicron combating measures have been stepped up over the weekend and this will make a dent on the Mar operations of many companies. This will be...

Osbert Tang, CFA

2022 Chinese New Year Holidays - Some Winners and Losers

2022 Chinese New Year figures showed marginal decline domestic tourists, and pointed to better high-end consumption performance than low-end. We...

Osbert Tang, CFA

Shortlist Of High Conviction Ideas Across Japan, China, India - June 2026

Blowout retail sales volume growth for Maruti Suzuki (Suzuki Motor) in June. With two days still remaining in the month, retail sales volumes are...

Sreemant Dudhoria

Quick Picks: Top Investable Brands From The 2020 Singles-Day Shopping Festival

Most winning brands cannot lead to an investable business in China, but here are our four hand-picked rare species that are investable from TMall's...

Urbem Capital

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

H1 CY2026: A Review of Our Hits and Misses Across Japan, China and India

​A review of stock performance in China, Japan, and India in H1 CY2026, highlighting top performers and underperformers with key reasons for stock...

Sreemant Dudhoria

China on the Ground: Escalating Measures to Combat Omicron and What Stocks Are Impacted?

Omicron combating measures have been stepped up over the weekend and this will make a dent on the Mar operations of many companies. This will be...

Osbert Tang, CFA

2022 Chinese New Year Holidays - Some Winners and Losers

2022 Chinese New Year figures showed marginal decline domestic tourists, and pointed to better high-end consumption performance than low-end. We...

Osbert Tang, CFA

Shortlist Of High Conviction Ideas Across Japan, China, India - June 2026

Blowout retail sales volume growth for Maruti Suzuki (Suzuki Motor) in June. With two days still remaining in the month, retail sales volumes are...

Sreemant Dudhoria

Quick Picks: Top Investable Brands From The 2020 Singles-Day Shopping Festival

Most winning brands cannot lead to an investable business in China, but here are our four hand-picked rare species that are investable from TMall's...

Urbem Capital

A review of stock performance in China, Japan, and India in H1 CY2026, highlighting top performers and underperformers with key reasons for stock...