Category

Thematic (Sector/Industry)

Sep 19
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | JR East and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | JR East, Matsukiyo, IHI
  • About the CXO Plunge After Biden Signed National Biotechnology and Biomanufacturing Initiative
  • Weekly Stock Bullfinder – Week of 9/19

Japan Weekly | JR East, Matsukiyo, IHI

By Mark Chadwick

  • The Nikkei was down -3.4% over the past week (-4.3% YTD); the yen was flat at ¥142/$ (-24.1% YTD)
  • Shares of travel and tourism related companies advanced on hopes for a rebound in inbound tourism as Japan aims to ease travel restrictions in October
  • Shares of IHI slumped 9% in the week. We are interested in the energy segment that is geared to nuclear re-starts and longer-term, ammonia. 

About the CXO Plunge After Biden Signed National Biotechnology and Biomanufacturing Initiative

By Xinyao (Criss) Wang

  • CXO sector plummeted after Biden has officially signed the National Biotechnology and Biomanufacturing Initiative. In our impression, all sharp declines of CXO were mostly due to geographical conflicts/overseas policy disturbances.
  • We remain conservative about CXO’s outlook. If investors still choose to invest in CXO, there are some questions to ponder based on the general environment of Sino-US confrontation.
  • As tensions between China and the US escalate, it may no longer be possible to think on the basis of “common sense”. Investors are advised to think “outside the box”. 

Weekly Stock Bullfinder – Week of 9/19

By Weekly Stock Bull Finder

  • This upcoming week, stock market and business news is anticipated to be dominated by the U.S. Federal Reserve and global central banks racing to hike interest rates in coordinated fashion in attempts to constrain demand and reel in inflation back to central bank target levels.
  • Already, Wall St. Journal reported and Fed “whisperer” Nick Timiraos has indicated that yet another outsized interest rate hike of 75bps appears to be on the way as the Fed plays catch up to the 2 year Treasury yield.
  • Fed Chair Jay Powell’s press conference commentary on Wednesday will again be scrutinized for any hints of the Fed’s plans to either slow or stop the pace of the current monetary policy tightening cycle.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 18
0

Daily Brief Thematic (Sector/Industry): GEM Weekly (9 Sep 2022): China Macro Activity Data; Tencent and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • GEM Weekly (9 Sep 2022): China Macro Activity Data; Tencent, NetEase, TSMC, Tencent Music
  • China Healthcare Weekly (Sep.16) – Industry Clearing, Bottom of Healthcare Sector, Endogenous Growth

GEM Weekly (9 Sep 2022): China Macro Activity Data; Tencent, NetEase, TSMC, Tencent Music

By Wium Malan, CFA

China Healthcare Weekly (Sep.16) – Industry Clearing, Bottom of Healthcare Sector, Endogenous Growth

By Xinyao (Criss) Wang

  • We still haven’t seen the “industry clearing”. When an industry no longer has entry barriers/first mover advantage, it will inevitably bring about the collapse of expectations for the future.
  • If the total retail sales of consumer goods do not maintain well, the probability of endogenous growth problems is high, which will be reflected in the decline of companies’ valuation.
  • It’s more reasonable for the share prices of those companies that have entered VBP to rise. For those that haven’t been included in VBP, the risk is much higher.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 16
0

Daily Brief Thematic (Sector/Industry): Semiconductors Just Beginning a Long Slide and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Semiconductors Just Beginning a Long Slide
  • Chinese Miner Joins Vale in Building Second Nickel Refining Plant in Indonesia
  • European Energy Crisis Boosts Demand for China-Made Electric Blankets

Semiconductors Just Beginning a Long Slide

By Jim Handy

  • Semiconductor revenues continue to fall. which appears to be a repeat of the collapse in 2019
  • Spot market prices, a leading indicator, are soft for both DRAM and NAND flash
  • It is likely that semiconductor revenues will end the year by returning to the trendline of their historical growth of 3.9%

Chinese Miner Joins Vale in Building Second Nickel Refining Plant in Indonesia

By Caixin Global

  • Chinese miner Zhejiang Huayou Cobalt has clinched a deal with the Indonesian nickel unit of Brazilian mining giant Vale S.A. to build a second plant in the country
  • Huayou and PT Vale Indonesia Tbk plan to build the facility in Sorowako, Indonesia, where they will use the high-pressure acid leach (HPAL) process.
  • The plant was designed with an annual production capacity of around 60,000 tons of nickel in MHP form.

European Energy Crisis Boosts Demand for China-Made Electric Blankets

By Caixin Global

  • European customers have sparked a boom in Chinese exports of products such as electric blankets and heaters, as well as energy-intensive industrial goods
  • The cost of electricity on the continent has shot sky high due to embargoes on Russian gas imports by numerous European countries and the U.K. following its invasion of Ukraine
  • As a result, from January through July China’s exports of electric blankets to European countries jumped 97% year-on-year and electric heaters 23%

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 14
0

Daily Brief Thematic (Sector/Industry): The Stocks to Own in Asia – Vol. 38 and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • The Stocks to Own in Asia – Vol. 38
  • Indian Generic Pharmaceutical Companies: The US Business Is Recovering Slowly
  • The Stocks to Own in ASEAN – Vol. 40

The Stocks to Own in Asia – Vol. 38

By Dr. Andrew Stotz, CFA

  • We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
  • Six stock remains, and eight stocks added to our portfolio
  • Since its inception, it has generated a before-fee total return of 93% versus the MSCI Asia ex Japan of 55%

Indian Generic Pharmaceutical Companies: The US Business Is Recovering Slowly

By Tina Banerjee

  • Most of the large Indian pharmaceutical companies have reported double-digit revenue growth in their respective U.S. business in Q1FY23. New launches are mostly offsetting the impact of price erosion.
  • Although the companies are still facing price erosion in the U.S. market, the pace has slowed down. Price erosion seems to be near its bottom.
  • Dr. Reddy’s Laboratories (DRRD IN) and Zydus Lifesciences Ltd (ZYDUSLIF IN) remain our top picks. Aided by new launches both the companies are seeing sustainable recovery in U.S. business.

The Stocks to Own in ASEAN – Vol. 40

By Dr. Andrew Stotz, CFA

  • We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
  • Portfolio changes: Six stocks remain, and eight stocks added to the portfolio
  • Since its inception, the portfolio has generated a before-fee total return of 184% versus MSCI ASEAN’s 24%

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 12
0

Daily Brief Thematic (Sector/Industry): Weekly Stock Bullfinder – Week of 9/12 and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Weekly Stock Bullfinder – Week of 9/12

Weekly Stock Bullfinder – Week of 9/12

By Weekly Stock Bull Finder

  • One theme going into 2022 was the expectation by many market participants that China COVID-19 cases would slow and lockdowns would be discontinued which would allow China’s economy to reopen and participate in the post-COVID global recovery.
  • However, despite sitting here in September 2022, China’s “COVID zero” policy has continued and has baffled outside observers who have been attempting to understand why such harsh policies continue to exist.
  • There have been shifting ideas of whether a reversal of China’s COVID zero policy would occur leading up to or after China’s National People’s Congress beginning October 16th where Xi Jinping is expected to secure a third term as China’s leader.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 11
0

Daily Brief Thematic (Sector/Industry): E-Commerce in Japan 2021-22: Another High Growth Year and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • E-Commerce in Japan 2021-22: Another High Growth Year
  • GEM Weekly (9 Sep 2022): China FX, Inflation, South Africa GDP; Tencent, Prosus, Naspers
  • Wynn Resorts Ltd: Among the Best Value Propositions if and when Macau Reopens
  • China Healthcare Weekly(Sep9)-Innovative Device Policy,Commercial Success Definition,Don’t Be Fooled

E-Commerce in Japan 2021-22: Another High Growth Year

By Michael Causton

  • E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.
  • Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.
  • This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.

GEM Weekly (9 Sep 2022): China FX, Inflation, South Africa GDP; Tencent, Prosus, Naspers

By Wium Malan, CFA

  • The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
  • Macro data points:Chinese foreign reserves, currency, net exports and inflation data, South Africa GDP
  • Companies mentioned:Tencent (700 HK), Prosus (PRX NA), Naspers (NPN SJ)

Wynn Resorts Ltd: Among the Best Value Propositions if and when Macau Reopens

By Howard J Klein

  • Wynn parent shares have historically traded significantly above peers due to its upscale player focus in Las Vegas that has remained central in its two Macau properties.
  • The remaining headwind in China’s covid policy has no certain duration. Until then, Wynn’s Las Vegas and Boston properties offset some negative impacts of Macau cash burn.
  • Its 52 week high to date hit $105.90, far above peers equally hammered by Beijing zero tolerance policies.

China Healthcare Weekly(Sep9)-Innovative Device Policy,Commercial Success Definition,Don’t Be Fooled

By Xinyao (Criss) Wang

  • NHSA will set aside a certain market to provide space for innovative medical devices/consumables to explore the market in addition to centralized procurement. However, we tend to be cautiously optimistic.
  • We think it is important to clarify for investors what constitutes “commercialization success” – That is to generate revenue at scale and stable profitability through the sale of drugs.
  • All the products that covered by VBP begin to lose logic. Don’t be fooled by those positive interpretations. We are bearish on the sectors with downward logic in long cycle. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 10
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Renova and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Renova, Mitsubishi Motors, Mercari

Japan Weekly | Renova, Mitsubishi Motors, Mercari

By Mark Chadwick

  • The Nikkei was up +2.15% over the past week (-2% YTD): the yen was 1.2% weaker at ¥142/$
  • The news was focused on the sharp drop in the yen with even the BoJ Governor Kuroda noting some undesirable effects
  • The proportion of female directors rose to 9%, a slight increase over 7.4% in the previous year

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 09
0

Daily Brief Thematic (Sector/Industry): Global Emerging Markets: Reporting Season Summary and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Global Emerging Markets: Reporting Season Summary, 2Q2022
  • How New U.S. Chip Restrictions Could Hit China’s Smart Car and Cloud Firms

Global Emerging Markets: Reporting Season Summary, 2Q2022

By Wium Malan, CFA

  • The 200 largest weighted companies in the GEM index reported average EPS growth of +32.6%y/y for 2Q22, an acceleration from what was reported for 1Q22.
  • 61% of companies delivered positive sales surprise, up from 58% in 1Q22, whilst 56% delivered positive EPS surprise, down from 64% in 1Q22.
  • Historically, there has been a massive difference in relative share price performance between the largest positive versus negative surprise generators, for 3 months after the reporting date.

How New U.S. Chip Restrictions Could Hit China’s Smart Car and Cloud Firms

By Caixin Global

  • New U.S. export restrictions on certain microchips used for machine learning could distrupt China’s development of autonomous driving technology and data centers, market insiders fear
  • The export restrictions on Nvidia’s A100 and forthcoming H100 graphics processing units (GPU) will affect Chinese carmakers’ research into autonomous driving
  • The Nvidia A100 is a GPU chip with 7-nanometer nodes while the H100 is a model with 4-nanometer nodes that is expected to hit the market this quarter

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 08
0

Daily Brief Thematic (Sector/Industry): Japan Telecoms – Strong Dollar a Boon for NTT and Softbank Group and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Telecoms – Strong Dollar a Boon for NTT and Softbank Group, Bad for Mercari
  • European Recession – 3 Japanese Stocks to BUY for a Rebound
  • PCAOB and CSRC‘s Agreement on Audit Terms Could Fail – The Real Test of China ADRs Lies Ahead

Japan Telecoms – Strong Dollar a Boon for NTT and Softbank Group, Bad for Mercari

By Kirk Boodry

  • Within our coverage, NTT and Softbank Group are the main beneficiaries of a stronger dollar. NTT benefits operationally as it generates c. $18-20bn in overseas revenue
  • Softbank benefits in valuation terms as c. 90% of the portfolio is dollar-linked. The forex move from ¥115 to ¥144 boosts asset value by ¥2.4trn or  ¥1,500/share (net)
  • ECommerce play Mercari gets 30% of revenue from the US but that segment is losing money and a stronger dollar expands that on a yen P&L

European Recession – 3 Japanese Stocks to BUY for a Rebound

By Mark Chadwick

  • The European economy is heading for a recession due to surging energy costs
  • We believe that equity markets have already discounted this severe situation to a large extent
  • As governments respond with aggressive fiscal measures, we believe 3 Japanese stocks will be key beneficiaries

PCAOB and CSRC‘s Agreement on Audit Terms Could Fail – The Real Test of China ADRs Lies Ahead

By Xinyao (Criss) Wang

  • The Statement of Protocol signed between PCAOB and CSRC/MOF is good for China concept stocks in the short term, but it doesn’t mean the risk of delisting is completely eliminated.
  • From the statements of the two sides, there are still some differences. What the US side emphasizes is “full authority”, but China requires “principle of reciprocity” of regulatory cooperation.
  • It’s difficult to reach final agreement.The trend of China concept stocks delisting from US and relisting on HKEX/A-share would not change. Investors are advised to prepare for Black Swan event.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 07
0

Daily Brief Thematic (Sector/Industry): India Banks – Better Macro and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • India Banks – Better Macro, Better Micro
  • Asia Gaming: All in on the Philippines as Events Signal Exponential Growth Ahead

India Banks – Better Macro, Better Micro

By Daniel Tabbush

  • New macro data for India suggests a strong economic backdrop
  • Granular corporate data shows improving financial metrics, positive for banks
  • SBIN is an interesting state-bank alternative to ICICI, considering market capitalization

Asia Gaming: All in on the Philippines as Events Signal Exponential Growth Ahead

By Howard J Klein

  • Some see Macau recovery facing a longer than anticipated ramp part of which is beyond the pandemic shutdown of China, but in Beijing’s overall ideological anti-gaming stance.
  • ASEAN gaming is already on the recovery ramp with the Philippines leading the way.
  • Over 50 million overseas Chinese live in ASEAN nations. They have a generally higher gaming proclivity as well as on average, a higher per capita GDP.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free