Thematic (Sector/Industry)

• U.S. stocks closed mixed Tuesday as investors assessed December’s Producer Price Index, which rose 3.3% annually – below expectations.
• Nintendo is reportedly poised to unveil its Nintendo Switch 2 console on January 16, with game announcements to follow
• ITOCHU Corporation plans to expand its North American building materials business through strategic mergers and acquisitions

• Physical AI is poised to be the next big thing in AI, with a “ChatGPT moment” just around the corner, according to Nvidia’s founder and CEO.
• And the rise of so-called embodied AI means two things: self-driving cars and humanoid robots.
• Harmonic Drive System is the world’s leading manufacturer of high-end harmonic drives – essential equipment for high-spec humanoid robots.

• The LA fires are not yet contained, especially in Pacific Palisades, and mortgage loan valuations are at risk
• Loan restructurings can reduce yields long term, while there should also be immediate impairments
• Many possible negative second order impacts, loan rationing, higher risk-based pricing on marginal loans, increased costs for new loans, and lower collateral values, overall

• Lawson is the third largest convenience store chain nowadays, but a recent poll revealed it to be the second most popular – and it is gaining on leader Seven Eleven. 
• The company has released a slew of new developments in the past couple of months, some of which point to the future of retailing here.
• They also show the potential for Seven Eleven Japan but only if it follows the same path.

• CGSI raises Pan-United TP to 75 cents due to positive industry outlook, potential for growth in the market.
• UOBKH reduces target price on ConfortDelGro due to rising platform fees and competition, causing concerns for future profitability.
• UOBKH highlights US office S-REITs offering attractive valuations and predicts increased revenue and patmi for SGX in 1HFY2025, while RHB reaffirms ‘buy’ rating for Marco Polo Marine. Morningstar increases target prices for Singapore banks, suggesting a bullish outlook for the sector.

• SPE in Japan was aggressively sold yesterday but moves look excessive
• US Homebuilder’s gain after KB Homes beat priced in… upside for JP names should continue
• Rohm’s outlook remains cloudy as SiC prices likely to slide further as new Chinese supply hits the market.

• Stocks were down as the Financial Conditions Index (FCI) tightened, indicating tougher financing conditions for both firms and individuals, on elevated inflation concerns and anticipation of a more hawkish Fed.
• The Water Tower Research Commercial/Contract Furniture Index declined 5.0% and the Residential Manufacturers & Suppliers Index fell 2.5%, while the Home Goods Retailers Index improved 0.3%.
• The large- cap indexes fell 1.9%, while the R2K fell 3.4%.

• Preannouncements were abundant as we approached this week’s major healthcare conference in SF.
• As investors prepped for company updates and significant news flow, signs of M&A activity were trickling in, with BIIB bidding for SAGE, LLY looking at Scorpion, and JNJ talking with ITCI.
• Last week, Medicare confirmed coverage for LLY’s obesity drug, SANA had a successful hypoimmune transplant for T1D, and VIR’s dual- masked TCE kept up with JANX. 

• Nippon Active Value Fund redeployed ~$30m from Trancom tender offer in November into existing holdings
• Meisei Industrial offers solid fundamentals, undervalued multiples (3.9x EV/EBITDA, 1x P/B), and potential for shareholder-friendly actions.
• Shinko Shoji buys back 10.36% of outstanding shares, following activist’s stake, and potentially paving the way for future buybacks.

• This is the claim made by an analyst covering IonQ after Jensen’s comments at CES 2025 last week, which tanked share prices of the top four QC proponents
• The CEO’s of both D-Wave and IonQ responded rapidly with press releases refuting his claims and sharing updated, positive news wrt their financials
• What exactly did he say that caused such a response, is he correct or is QC going to eat NVIDIA’s lunch? 

• U.S. stock indexes were mixed on Monday as energy stocks rallied while Big Tech and retail faced headwinds
• Yaskawa Electric has downgraded its full-year earnings guidance, citing weakening demand from the semiconductor industry
• ITOCHU Corporation has invested in Protium Green Solutions, a UK-based green hydrogen production equipment provider

• Market looking past new US semi restrictions with semi majors recovering off pre-market lows.
• Earnings beat for KB Homes a shot in the arm for embattled Homebuilders… watch Sumitomo Forestry and Sekisui House for upside.
• FA major Yaskawa numbers on Friday were a miss, but signs of a bottoming emerging.

• The microfinance sector sees 7.6% YoY growth, but quarterly loan book shrinks by 4.3%. Rising delinquencies, particularly in Odisha, Uttar Pradesh, and Tamil Nadu, raise concerns.
• Nippon Life India Asset Management (NAM IN)  launches the Nippon India Large Cap Fund GIFT in GIFT City, offering global investors access to India’s equity market.
• FHRAI and NRAI are challenging Swiggy (SWIGGY IN)  and Zomato (ZOMATO IN)  private labels, Snacc and Bistro, alleging market manipulation and anti-competitive practices. 

• China’s 2025 trade-in subsidies now include smartphones and ICE vehicles, but with a price caveat that excludes Apple, positive for Xiaomi and JD.com;
• China limits export of LFP battery technology, but lowers import tax again;
• ICE-Turned EV makers continue to enjoy product superiority. The watchouts for 2025 are BYD and Geely. Tesla’s sales may peter out from C2H25.

• We believe Tencent’s inclusion in the US DoD CMC List and removal from USTR’s NML are both non-events in the long run but not in the short run;
• Latest data in holiday travel, parcel volume and home sales painted robust start in 2025, but unstable equity market posts a looming threat;
• NetEase’s newly released games were well-received and above our expectations. New game pipeline also brightens outlook.

• Wuxi Biologics is selling its Ireland vaccine manufacturing facility to Merck for $500M. Astellas Pharma received approval for Vyloy in China for the first-line treatment of gastric cancer.
• FDA decision for Otsuka’s label expansion application for brexpiprazole for the treatment of post-traumatic stress disorder will be delayed. EMA has accepted Otsuka’s marketing application for HAE drug candidate donidalorsen.
• Samsung Biologics has extended collaboration with LigaChem Biosciences to provide ADC services. Pharmaessentia has announced positive topline results from phase 3 clinical trial of P1101 for Essential Thrombocythemia (ET).

• A rather inauspicious start to the year and equities tumbling 2.5% in the first trading week
• Japan should be a top performing market in 2025 – it is undervalued, buoyed by reforms and has strong domestic fund flow
• Wage growth is key this year, setting stage for a stronger economy. Semiconductor stocks were the star performers this week! 

• India’s real GDP growth for FY25 is forecast at 6.4%, reflecting a significant slowdown from FY24’s 8.2%, driven by weaker investment and industrial performance.
• The slower growth trajectory highlights the challenges in maintaining momentum, with key sectors like manufacturing and mining underperforming, signaling potential long-term structural issues for India’s economy.
• This outlook suggests a cautious approach to India’s growth, indicating that short-term consumer-driven growth may not offset the long-term impact of subdued investment and external imbalances

• OCBC downgrades UOB to ‘hold’ due to new high share price, signaling potentially limited growth opportunities.
• CGSI reinitiates coverage on Food Empire, sets ambitious new target price at $1.43, indicating strong growth potential.
• UOB Kay Hian raises Digital Core REIT’s target price to 99 US cents and maintains ‘buy’ on SingPost, with positive outlook for both companies.

• Adani Wilmar (AWLTD IN)  OFS was oversubscribed by 111.19%, prompting the company to allocate an additional 1.96 lakh shares. This sale is part of Adani Enterprises (ADE IN) exit strategy.
• HDFC Securities has surpassed Rs.25,000 crore in mutual fund assets under management (AUM), driven by strong growth in SIPs, which contribute over 40% of its AUM, well above industry averages
• GOI is likely to provide Rs. 35,000 crore in subsidies to Indian Oil Corp (IOCL IN) , Bharat Petroleum Corp (BPCL IN) and Hindustan Petroleum (HPCL IN) to compensate for LPG sales losses. 

• In the first ten days of 2025, Shanghai SSE Composite declined 5.5% and broke the key 3,200 support level. The main reason for the weakness is exchange rate;
• From November 5th when Trump won election, Renminbi exchange rate to US dollar has declined 3.3% and broke key support levels;
• The impact has started to shown in China’s residential property market. After a strong opening, new home sales quickly petered out. Whether rebound in the next few days is critical.

• The Hardman & Co Healthcare Index (HHI) has been running since 2009.
• Its main function is to highlight the attractions of life sciences investments over the long term.
• For the third year running, despite generally good returns in global markets, particularly in the US, performance in 2024 was poor, not helped by the capital-intensive nature of the sector.

• We update Klarna’s pre-IPO valuation based on recent private share transactions and that of Stripe; Indian payments company Pine Labs is reputedly looking for an IPO valuation of USD6bn
• Our 2H24 recommended shares performance was suboptimal; only two of our four longs delivered gains, and our short’s share price was strong in the “risk on” investor climate
• We downgrade Shift4 to neutral, keeping PagSeguro as our core value pick along with European value play Nexi and US megacap Visa; we keep our sell rating on Affirm

• AUCTUS PUBLICATIONS ________________________________________ Arrow Exploration (AXL LN/ CN)C; Target price of £0.80 per share: Flow rate in line with expectations at AB-1.
• Two more appraisal wells in January – The AB-1 (Alberta Llanos) exploration well is now on production at an oil rate of 658 bbl/d gross (329 bbl/d net) with 49% water cut from 62 feet of net pay in the Ubaque.
• The IP rate is in line with the expectations set out in the company’s September corporate presentation (321 bbl/d net).

• Many Chinese travelers are opting to head to destinations in East and Southeast Asia for the upcoming Lunar New Year holiday, underscoring a gradual recovery in outbound travel.
• Searches for travel to Japan and South Korea during the holiday period from Jan. 28 to Feb.4 have more than doubled on Trip.com compared with last year’s holiday period, while interest in Southeast Asia has risen by 47%, according to data provided by the travel agency.
• Japan, Thailand, Malaysia, Indonesia, Singapore, Vietnam and South Korea are the top outbound destinations for Chinese travelers during the holiday, according to hotel booking data provided by Trip.com and Qunar, another travel agency.

• The US equity markets were closed on Thursday in honour of the national day of mourning following the passing of former President Jimmy Carter.
• Fast Retailing, Uniqlo’s parent company, reported a 7.4% rise in quarterly operating profit to ¥157.6bn
• Seven & i Holdings reported a 65% drop in nine-month net profit to ¥63.6bn, citing difficulties in North American operations

• The first half of FY25 presented headwinds for the cement industry due to factors like delayed monsoon, elections amidst season and decline in the rural Demand.
• The all-India average trade cement price reached Rs 372/bag in December 2024, a 2.9% MoM increase and cement demand grew by a mere 3% in Q2FY25.
• The government’s commitment to infrastructure is evident in the 6% increase in capital expenditure for FY25 as per the Union budget and the ambitious National Infrastructure Pipeline (NIP). 

• This note is a weekly (select weeks on SK) curated selection of Chinese news articles and company announcements focused on developers in distress
• We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
• We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to the sources

• GMR Group secures Rs. 6,300 crore investment from Abu Dhabi Investment Authority (ADIA) to reduce debt of GMR Enterprises Pvt Ltd. 
• Oil & Natural Gas Corp (ONGC IN)  has partnered with BP to enhance production at the Mumbai High fields, projecting a $10.3 billion revenue increase over the next decade. 
• Private equity investments in India surged to $15 billion in 2024, a 46% increase, driven by sectors like healthcare, technology, and consumer industries.

• The two new titles released in December, <One Piece: Ambition> and <Where Winds Meet>, from Tencent and NetEase, have shown promising early results and should become major blockbusters in 2025
• For Tencent, the holiday updates for <DnF Mobile> and <Arena Breakout> have underperformed, leading us to revise our revenue expectations downward by approximately 10%.
• Bilibili’s key title, <Three Kingdoms: MDTX>, has seen a slight decline in popularity,  due to the intense competition in the SLG genre. The future seasonal updates could rejuvenate the performance.

• UOB Kay Hian raises Digital Core REIT TP to 99 US cents, highlighting positive developments in the company.
• UOB Kay Hian maintains ‘buy’ rating on SingPost, stating that divestments are progressing as planned.
• DBS notes that despite a soft Singapore retail sector, premium groceries have long-term potential for growth. UOB Kay Hian also reveals top Malaysian stock picks in property, construction, and energy sectors.

• Political policies could affect markets across the spectrum.
• The incoming administration’s more hawkish attitude when it comes to potentially destabilizing implementation of tariffs as a political rather than economic tool could result in greater volatility when it comes to commodity and finished goods pricing and availability, while its greater focus on domestic energy production and onshoring of supply chains could provide opportunities and lead to lower energy and logistics costs.

• Lower energy and feedstock costs could drive margin improvement. 

• Stocks wavered as investors weighed the Federal Reserve’s December meeting minutes, which hinted at a slower pace of policy easing
• Fast Retailing, parent company of Uniqlo, has announced salary hikes to attract and retain top talent amidst intensifying competition
• Sumitomo Rubber Industries will acquire the Dunlop tire brand rights for Europe, North America and Oceania from Goodyear Tire & Rubber for $526 million

• Yesterday saw a notable rotation out of recent momentum winners in Japan towards oversold quality such as SPE.
• EU defence names generally stronger on concerns over Trumps Greenland/Denmark comments may be mild positive for JP heavies.
• Power semi weakness in the US at least partially over news Renesas is cutting workforce on weak auto chip sales.

• There are 26 companies with dividend yields of over 9% in FY25 based on consensus forecasts. With the slowdown in the US rate cut, they look attractive this year.
• The top 5 are China New Higher Education (2001 HK), GreenTown Management (9979 HK), Lever Style (1346 HK), Paradise Entertainment (1180 HK), and Pacific Textiles (1382 HK). 
• Key risks are their small-cap nature, potential issues with corporate governance, and low earnings quality when compared with banks and telcos.

• JSW Group is set to acquire Everstone Capital’s 8% stake in MG India, raising its ownership to 43%. While strengthening its position, JSW will still fall short of majority control.
• Maruti Suzuki India (MSIL IN)  unveils its ‘e For Me’ vision for electric mobility, focusing on the e VITARA electric SUV and an ecosystem to support EV adoption. 
• Temasek Holdings Pte Ltd (TMSK SP)  is set to acquire a minority stake in Haldiram Snacks for a valuation of $10-$11 billion. 

• Despite softness in Singapore retail, DBS remains optimistic about premium groceries, focusing on that market.
• UOB Kay Hian’s top Malaysian stock picks include JS-SEZ, benefiting from property, construction, and energy sectors.
• DBS raises ratings for PropNex & APAC Realty to ‘buy’, citing a strong new launch pipeline in 2025, and sold SingPost shares.

• Welcome to a new year and we are excited for the innovation and therapeutic breakthroughs that biopharma will reveal this year, while navigating through any changes in the regulatory and M&A environment.
• For our first Biopharma Review report in 2025, we cover the news that we missed during the holiday break.
• On the obesity front, NVO’s CagriSema fell short of expectations, while the FDA reaffirmed LLY’s GLP-1 shortage resolution, bearing bad news for HIMS and LFMD. 

• It was a relatively quiet holiday-shortened trading week.
• The Water Tower Research Commercial/Contract Furniture Index was down (-2.5%) and the Residential Manufacturers & Suppliers Index was down (-0.3%), while the Home Goods Retailers Index was up 2.0% in a week where the large-cap indexes modestly declined (-0.5%) and the R2K was up 0.9%.
• SCS posted solid 3QFY25 results (on December 18), noting that while FY25 demand has been a bit weaker than expected at the beginning of the year, recent activity suggests demand (finally) may be inflecting, especially in the Americas segment (~3/4 of revenue).

• WTR-CMI in 2024. Last year was difficult for specialty chemicals and materials stocks, with our WTR-CMI Index posting a rather modest 5% gain for the year, affected by >40% Y/Y declines in lithium stocks.
• The index’s performance was well off the pace of the Russell 2000 and S&P 500, which posted returns of 10.8% and 24%, respectively, driven by the extraordinary gains of the “magnificent seven” tech and media stocks.
• On a positive note, RYAM’s stock price nearly doubled during the year, driven by an improving pricing environment, better sales mix, and cost containment efforts, as well as the ramp-up of the company’s Biomaterials business. 

• CES portfolio rebalancing happening at the beginning of the year
• Predictions for semiconductor and tech industry in 2025
• Expectations for aerospace and military spending, as well as developments in AR glasses and foldable iPhones

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• DBS upgrades PropNex & APAC Realty to ‘buy’ citing strong pipeline of new launches in 2025.
• DBS maintains neutral stance on SG stocks, predicts STI at 3,950 by 2025.
• DBS maintains ‘buy’ rating on GVT, raises target price to $1.04 due to improved front-end opportunities. Maybank considers more share buybacks from Singtel, downplays benefits of consolidation.

• Wall Street fell sharply Tuesday as strong economic data fueled concerns about prolonged high interest rates.
• Honda has partnered with Renesas Electronics to develop advanced semiconductors for next-generation electric vehicles
• Toyota Motor has secured Nvidia’s latest high-performance semiconductors to accelerate development of next-generation autonomous vehicles.

• Micron named as memory supplier for NVDA GPU’s sent Micronics 12% yesterday.
• Ibiden continues to look like a big Blackwell winner with momentum increasing off recent low.
• Big outstanding short interest for Nikon making it a squeeze ready take-over target.

• The government has advanced its target for 20% ethanol blending in petrol from 2025 to 2030 , considering recent achievements and public support.
• In current season the OMCs have floated tenders for 8.37 bn litres, against 9.7 bn litres required to achieve 20% blending target.
• The sector could see margin improvements if options for sugar price hikes or export permissions are introduced, creating a potential upside.

• The South African listed property sector had a positive month in December, capping a robust year of excellent returns.
• For 2024 the SA All Property Index rose 28.85%, outperforming the JSE’s all-share index’s +9.37% and the top 40 +6.93%.
• South African listed property thoroughly outperformed global listed property, with the EPRA Nareit Global Index’s TR lagging the J803 TR Index by 22.41% in ZAR terms for the year.

• Automobile retail sales grew by 9% in 2024, driven by strong demand for two-wheelers and passenger vehicles, while commercial vehicle sales remained flat. 
• Microsoft Corp (MSFT US)  $3 billion investment in India focuses on expanding AI and cloud infrastructure, training 10 million people in AI skills, and building sustainable data centers.
• India’s real GDP is expected to grow by 6.4% in FY25, down from 8.2% in FY24. Agriculture GVA growth projected at 3.8%, with strong performance in Public Administration and Services.

• AkzoNobel NV (“ANNV”) has requested the Board of Directors of Akzo Nobel India Ltd to consider, evaluate and start taking exploratory steps towards a potential sale of the company’s powder coatings business and its international research centre (R&D operations) to a separate indirect wholly owned subsidiary of ANNV, the company said in a regulatory filing.
• Besides, Akzo Nobel India has asked to explore the potential acquisition of decorative paints intellectual properties owned by ANNV, the company added.
• “The Board of Directors of the Akzo Nobel India, at its meeting held on January 6, 2025, took note of the above said and authorized the company’s management to commence exploratory steps as may be required to evaluate and examine the aforesaid potential transactions,” the filing said.

• Japan SPE names starting to stir day 1 of trading.
• Watch oversold previous winners for renewed interest such as Disco, Screen and TEL now China concerns are priced in.
• A good read for photoresist/semi-chem plays after TOK’s better than expected MTP yesterday.

• DBS predicts Singapore’s STI to reach 3,950 points by 2025 and maintains a ‘neutral’ stance on SG stocks.
• DBS maintains a ‘buy’ rating on GVT and raises its target price to $1.04, citing improved front-end opportunities.
• Maybank considers increasing its holdings in Singtel, downplaying the benefits of consolidation in the telecommunications sector.

• Bloomberg Audio Studios podcast featuring discussions on the US energy system, particularly electricity generation and the nuclear power industry in China
• Odd Lots podcast with hosts Tracy Alloway and Joe Weisenthal discussing the complexities of the US energy system, the growth of EVs and renewable energy in China, and the challenges in replicating China’s nuclear power development model in the US

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• US stocks mostly rose Monday, driven by gains in tech and chip stocks, as investors awaited December jobs data due Friday
• Fujitsu has approved a ¥256bn ($1.63bn) offer from Paloma Rheem Holdings for its 40% stake in Fujitsu General
• Taiheiyo Cement has purchased a California quarry and concrete plant from Grimes Rock for ¥20+ billion.

• Last year, I called 2024 the year of AI’s adolescence, and that was quite a call. I “predicted” growing pains or a tremendous growth spurt, and the immense growth spurt happened all right.
• This last year was the year of AI through and through.
• There’s a deep irony because anything related to AI had a phenomenal year while everything else languished. Surprisingly, SOXX underperformed the SPY, which seemed unheard of for the year that SOXX’s largest components ripped 100%+.

• Jubilant Foodworks (JUBI IN)  reports a 56.2% YoY revenue growth in Q3 FY25, driven by strong performance in Domino’s India. The company adds 130 new stores and partners with Coca-Cola.
• Tata Motors Ltd (TTMT IN)  surpassed Maruti Suzuki India (MSIL IN)  in 2024 car sales, driven by the success of its compact SUV, the Tata Punch
• Tata Sons has redefined its financing strategy by directing group companies, newer ventures like Tata Digital and Air India, to independently manage debt, relying on equity investments and internal accruals.

• India has become a global leader in pharmaceuticals, supplying 20% of the world’s generic drugs and 60% of global vaccine demand, with industry projections reaching $450 billion by 2047.
• India’s growth as the “Pharmacy of the World” ensures affordable medicine access globally, while driving economic growth, bolstering the biopharma sector, and strengthening global healthcare systems.
• India’s evolving pharmaceutical landscape, supported by strategic investments, policy reforms, and compliance with global standards, positions the country to further enhance its role in healthcare innovation and manufacturing.

• Eric Johnson, senior technology editor at the Journal of Commerce, brings over 20 years of experience covering logistics and technology
• Journal of Commerce is a nearly 200-year-old publication focused on the maritime containerized supply chain industry
• Freight logistics involve moving large volumes of goods from factories to distribution centers or warehouses, with multiple players involved in the process from point A to point B

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The Topix ended 2024 up 18%. By comparison, the S&P was up 25% and the Nasdaq up 30%
• Microsoft’s announced a $80 billion in AI data center spending for fiscal 2025
• The Biden administration has blocked Nippon Steel’s $14.9 billion acquisition of US Steel on national security grounds

• The cheap valuations of the Hong Kong market have driven an increase in privatisation activities. Stocks with profit, high net cash, and low P/B are likely candidates.
• We discover 29 stocks with net cash more than their market capitalisation while having a P/B of below 0.5x. Many of them are small-cap stocks.
• The cheapest five names are trading on P/B of no more than 0.2x. Also, six stocks have their major shareholders owning a significant 75% stake.

• Big AI related capex announced for MSFT should help buoy tech to start.
• Room for SPE once deemed as China plays to rebound on sales diversification.
• 2024 was a big year for momentum plays and US stock moves so far seem to point to more of the same.

• Inclusion of smartphone/tablet/smartwatch to trade-in subsidy will drive high single digit incremental growth for JD and Xiaomi, low single digit incremental growth for Alibaba in 2025;
• New Year’s Day transportation volume down, hotel consumption up, constituting a decent performance for a shorter holiday vs. last year. This bodes well for tourism for Chinese New Year; 
• China stepped up its signaling effort to Trump Administration that trade war measures will be retaliated. This week China added LFP battery technology to its own entity list.

• New and renewed trade-in subsidies on smart phone, tablet and wearables can add low to high single digit growth to major e-commerce platforms. Raising basic pension invites more questions;
• Meituan’s latest anti-fatigue and algorithm change is a way to deflect criticism of its not paying social security for its riders;
• Several games on NetEase received positive feedbacks, paving way for a rebounding 2025.