Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<ul>
<li>In Q4 2024, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> ranked fourth in China (mainland) smart phone market, achieving the highest annual growth among the top vendors at 29%.</li>
<li>Chinese government's recently expanded subsidy program now covers smartphones and wearables, with a 15% subsidy for products priced under CNY6,000. This could boost demand growth in 2025.</li>
<li>China's smartphone market rebounded in 2024, driven by affordable premium designs driving upgrade demand in the mass market while innovations like GenAI, foldables, and proprietary systems attracted high-end users.</li>
</ul>


In Q4 2024, Xiaomi Corp (1810 HK) ranked fourth in China (mainland) smart phone market, achieving the highest annual growth among the top vendors at 29%.
Chinese government's recently expanded subsidy program now covers smartphones and wearables, with a 15% subsidy for products priced under CNY6,000. This could boost demand growth in 2025.
China's smartphone market rebounded in 2024, driven by affordable premium designs driving upgrade demand in the mass market while innovations like GenAI, foldables, and proprietary systems attracted high-end users.


Xiaomi Corp: China Smartphone Market—Steady Growth in 2024. Subsidy to Spur Demand in 2025

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Third week in a row with declining participation in the rally.</li>
<li>Information technology the hottest sector with all names up more than double digits, all but 2 stocks closing at a 52-week high and median implied vols at 96th percentile.</li>
<li>Single Stock option volume registers the two highest days in the last 3 months but Call trading as a percentage of the total slipped week over week.</li>
</ul>


Third week in a row with declining participation in the rally.
Information technology the hottest sector with all names up more than double digits, all but 2 stocks closing at a 52-week high and median implied vols at 96th percentile.
Single Stock option volume registers the two highest days in the last 3 months but Call trading as a percentage of the total slipped week over week.


EQD | Hong Kong Single Stock Options Weekly (February 02 – 07): Rally Narrows, Info Tech Hot

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>From the superlative September (US$24.2 bn net buy), onshore investors' net Southbound buying dipped in October (US$11.9 bn) and November (US$15.7 bn). Xiaomi, Alibaba, PopMart and Meituan were bought most.</li>
<li>The most sold stocks during October-November were SMIC, Hua Hong Semi, Innovent Biologics. Enthusiasm for semiconductor and biotech seems to be cooling off, though we believe biotech focus should revive.</li>
<li>Investors' sustained preference is for stocks catering to domestic consumption that are able to adopt AI to improve productivity and expand their cash-generating businesses. Internet platforms fall in this silo.</li>
</ul>


From the superlative September (US$24.2 bn net buy), onshore investors' net Southbound buying dipped in October (US$11.9 bn) and November (US$15.7 bn). Xiaomi, Alibaba, PopMart and Meituan were bought most.
The most sold stocks during October-November were SMIC, Hua Hong Semi, Innovent Biologics. Enthusiasm for semiconductor and biotech seems to be cooling off, though we believe biotech focus should revive.
Investors' sustained preference is for stocks catering to domestic consumption that are able to adopt AI to improve productivity and expand their cash-generating businesses. Internet platforms fall in this silo.


Asian Equities: Southbound Zeal Dips; Some Established Themes Looking Tired, Others Rejuvenated.

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Trump 2.0 AI policies spark debate and criticism with a focus on nationalism and economic protectionism, dividing opinions.</li><li>China launches new low-altitude economy department to drive future growth, while Apple establishes Shanghai subsidiary to enhance AI integration in the country.</li><li>Nvidia CEO confirms growing CoWoS-L production capacity, but Apple faces crisis in China with 25% drop in iPhone shipments despite market dominance. Vietnam semiconductor push hindered by power supply challenges, prompting Asian countries to counter Trump 2.0's aggressive policies swiftly.</li></ul>

Trump 2.0 AI policies spark debate and criticism with a focus on nationalism and economic protectionism, dividing opinions.China launches new low-altitude economy department to drive future growth, while Apple establishes Shanghai subsidiary to enhance AI integration in the country.Nvidia CEO confirms growing CoWoS-L production capacity, but Apple faces crisis in China with 25% drop in iPhone shipments despite market dominance. Vietnam semiconductor push hindered by power supply challenges, prompting Asian countries to counter Trump 2.0's aggressive policies swiftly.

Tech Supply Chain Tracker (18-Jan-2025): Trump AI policies

<ul><li>AI server BBU status being monitored to ensure no issues on the artificial intelligence server, ensuring smooth operations.</li><li>TSMC's global update highlights Japan, US, and Europe's progress, showcasing Taiwan's chip giant's influence worldwide.</li><li>Xiaomi investing in GPU cluster for faster processing, China's Hua Hong appoints Intel veteran as President, South Korea investing $24.79 million in chip R&amp;D projects.</li></ul>

AI server BBU status being monitored to ensure no issues on the artificial intelligence server, ensuring smooth operations.TSMC's global update highlights Japan, US, and Europe's progress, showcasing Taiwan's chip giant's influence worldwide.Xiaomi investing in GPU cluster for faster processing, China's Hua Hong appoints Intel veteran as President, South Korea investing $24.79 million in chip R&amp;D projects.

Tech Supply Chain Tracker (03-Jan-2025): Check AI server BBU status.

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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Xiaomi (1810 HK)

Xiaomi Corp: China Smartphone Market—Steady Growth in 2024. Subsidy to Spur Demand in 2025

As Xiaomi's stock hits new highs, drawing investor attention to our recent insight that highlighted how it would be a prime beneficiary of...

Devi Subhakesan

EQD | Hong Kong Single Stock Options Weekly (February 02 – 07): Rally Narrows, Info Tech Hot

Participation declines for the third consecutive week, with information technology sector leading the charge. Single stock option volume surges,...

John Ley

Asian Equities: Southbound Zeal Dips; Some Established Themes Looking Tired, Others Rejuvenated.

Southbound buying dipped in October-November. Focus remains on stocks catering to domestic consumption & AI adoption. Semiconductor & biotech zeal...

Manishi Raychaudhuri

Tech Supply Chain Tracker (18-Jan-2025): Trump AI policies

Trump 2.0 AI policies stir controversy with focus on nationalism and protectionism, China boosts low-altitude economy, Apple expands AI integration...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (03-Jan-2025): Check AI server BBU status.

Global AI and chip industry updates: TSMC flourishing, Xiaomi investing in LLM, Hua Hong's new President, South Korea's R&D projects, Micron's...

Tech Supply Chain Tracker

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Xiaomi Corp: China Smartphone Market—Steady Growth in 2024. Subsidy to Spur Demand in 2025

As Xiaomi's stock hits new highs, drawing investor attention to our recent insight that highlighted how it would be a prime beneficiary of...

Devi Subhakesan

EQD | Hong Kong Single Stock Options Weekly (February 02 – 07): Rally Narrows, Info Tech Hot

Participation declines for the third consecutive week, with information technology sector leading the charge. Single stock option volume surges,...

John Ley

Asian Equities: Southbound Zeal Dips; Some Established Themes Looking Tired, Others Rejuvenated.

​Southbound buying dipped in October-November. Focus remains on stocks catering to domestic consumption & AI adoption. Semiconductor & biotech zeal...

Manishi Raychaudhuri

Tech Supply Chain Tracker (18-Jan-2025): Trump AI policies

Trump 2.0 AI policies stir controversy with focus on nationalism and protectionism, China boosts low-altitude economy, Apple expands AI integration...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (03-Jan-2025): Check AI server BBU status.

Global AI and chip industry updates: TSMC flourishing, Xiaomi investing in LLM, Hua Hong's new President, South Korea's R&D projects, Micron's...

Tech Supply Chain Tracker

Southbound buying dipped in October-November. Focus remains on stocks catering to domestic consumption & AI adoption. Semiconductor & biotech zeal...