Thematic (Sector/Industry)

• Samsung Biologics signs manufacturing deals worth over $668M with European pharmaceutical company. Celltrion is acquiring iQone Healthcare, a specialty pharmaceutical distribution company in Switzerland. Kyowa Kirin collaborates for leukemia drug.
• Takeda launched Hutchmed’s colorectal cancer drug Fruzaqla in Japan. FDA has turned down Astellas Pharma’s application for label update of geographic atrophy drug Izervay. Lunit is partnering with AstraZeneca.
• Yuhan is one step ahead for European approval of Leclaza. HK inno.N signs domestic supply contract for Roche’s influenza treatment, Tamiflu. Beigene settles litigation against generic filer of Brukinsa.

• Big Tech companies are already generating significant revenue from AI. Microsoft expects to reach $10 billion in AI revenue by the next quarter, making it their fastest-growing area.
• In the third quarter of 2024 alone Microsoft, Google, and Meta collectively spent over $42 billion on AI infrastructure, primarily on building data centers and purchasing computing equipment.
• Companies are projecting continued high spending on AI into 2025 to meet growing demand. However, challenges remain, including supply constraints for AI chips

• India is experiencing a slowdown in capital expenditure (capex), both in the government and private sectors. This slowdown, largely attributed to the general elections in the Q1 of FY25.
• The central government has set an ambitious target of 50.5% capex growth in the second half of FY25 to compensate for the sluggish first half.
• The capex slowdown has resulted in reduced investment in crucial infrastructure projects, impacting key sectors such as defense, roads, and railways.

• Singapore domestic credit growth is expanding upward over several months, where there are positive implications for net interest income growth
• Growth of local loans was negative YoY in past months last year, so the delta pick up of net interest income can be strong
• Accelerating growth likely means better credit metrics, and this is what MAS data shows too; this means that credit costs can come in, improving profit growth

• The Japanese stock market experienced a lacklustre week, with the Nikkei 225 and Topix indexes closing lower by 0.9% and 0.6%, respectively
• Kadokawa’s stock surged 42% this week following a Reuters’ report that Sony is in advanced talks to acquire the company
• Tokyo Gas shares rose 19% after Elliott Investment Management disclosed a 5.03% stake in the company

• ADX Energy (ADX AU) C : Portion of deeper target at Welchau flows water on test – Two intervals (total of ~16 m) in the Steinalm formation were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.
• Gas was initially observed at surface. While the achieved flow rate highlights the high permeability of the natural fractures, the absence of hydrocarbons is disappointing and surprising given the results of the logs, the inflow of gas while drilling, the analysis of the retrieved cores (with indication of hydrocarbons) and the fact that oil samples were recovered from this interval.
• The well is now being flowed while ADX is running a downhole production logging tool to analyse the contribution of the various sections of the well to flow. 

• Total public EV charging stations (incl. temporary unavailable locations) were 73,535 as of October 30, 2024. Compared to the end of FY23, it is an increase of 13.8%.
• Total EVSE charging ports (including the temporary unavailable ports) were 202,179, up nearly 20.1% compared to the end of 2023 and up 2.6% over September 2024.
• US considerably lags behind China which had 3.39 million public charging stations at the end of October 2024.

• U.S. markets advanced Thursday, with the Dow Jones Industrial Average leading gains, rising 1.1%
• Honda Motor will begin test production of all solid-state EV batteries in January at a new facility in Tochigi prefecture,
• Nissan Motor  plans to restructure its Thai operations by fall 2025, affecting around 1,000 employees at its two Bangkok-area plants.

• Sentiment for AI related rising with NVDA de-risked and outlook strong, despite the marginal beat.
• Kioxia IPO pricing at $4.84bn supportive for memory ecosystem names.
• Deere numbers and outlook for farming lifting AG machinery names – watch Kubota.

• Trump’s new policy on renewables could have significant implications for Indian renewable players, particularly those who heavily rely on exports to the US market.
• The potential rollback of the Inflation Reduction Act and the imposition of trade barriers and tariffs could lead to a decrease in demand for Indian solar modules in the US
• Waaree Energies, Adani Enterprises, and Vikram Solar, which have a high concentration of exports in their overall revenue, are likely to be the most affected

• 1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK:In the 46th week of 2024, market demand is booming and new brands gain market share.(///////////////)
• XPEV US: Xpeng’s vehicle revenue and gross profit margin exceeded expectations in the third quarter, but service revenue was lower than expected, resulting in lower-than-expected profits.(/)
• LKNCY US: Luckin Signs Memorandum for Brazilian Coffee Bean Purchases.(+)

• Gaming Sector Update/NTES US: NPPA Releases November Domestic and Imported Game Approvals(+)
• 3690 HK/Douyin:Douyin Local Life’s Double 11 Sales Increase by 53% YoY, Indicating Rising Consumer Spending in China, Bodes Well for Meituan.(+)
• BABA US/PDD US/JD US: Taobao/Tmall launches “Go Bargain” feature (+/+/+)

• AI Continues to Grab Investor Interest as Expectations Have It Affecting Nearly Everything AI is in every company now.
• It has been having a major impact on the tech sector for some time, it accelerated in 2024, and is likely to continue driving tech in 2025.
• Every company is now building neutral networks, and this is driving growth in data centers, hardware, and specifically GFP/AI chips. 

• The S&P 500 and Nasdaq 100 ended little changed, recovering from earlier losses following Ukraine’s missile strikes on Russia
• Nvidia delivered stronger-than-expected third-quarter results, with EPS of $0.81 on $35.1 billion in revenue
• Rapidus: The Japanese government plans to invest 200 billion yen in Rapidus to support cutting-edge chip production, with total funding needs of 5 trillion yen

• SEBI is proposing significant changes to the SME IPO framework, including increasing the minimum application size, restricting the OFS component, and introducing a monitoring agency.
• SEBI proposes changes in  the allocation methodology for non-institutional investors, increasing the minimum number of allottees in an SME public issue, and introducing a mandatory profitability benchmark for companies
• The proposed changes aim to address concerns regarding investor protection and market integrity in the SME segment. 

• NVDA slight beat not enough to appease market, but strong AI outlook is positive.
• Timing may be right to look at names like TEL and Disco again now NVDA de-risked
• Qualcomm down after its IR day and concerns its future focus on Autos and IoT wont replace Apple.

• CSRC’s Market Value Management Guidelines will indirectly benefit the H-share stocks with their A-share counterparts with a P/B of below 1x.  
• Chinese banks dominated the list with below-book A-shares. China Everbright Bank (6818 HK), China Citic Bank H (998 HK), and ICBC (H) (1398 HK) are the prime beneficiaries.
• Infrastructure construction companies China Railway Cons Corp (1186 HK), China Railway Group H (390 HK), and China Comm Cons (1800 HK) are also well-positioned to gain.

• Revenues of $7.05 billion were marginally higher than midpoint of $6.93 billion, up 4% QoQ and up 5% YoY.  Guided current quarter at $7.15 billion +1.5% QoQ , +10.5% YoY
• Most WFE share prices have retreated to early 2022 levels, matching with when annual revenues first exceeded the $100 billion level
• After a 44% growth spurt in 2021, we have had three years with mostly no growth. We expect the same in 2025. Invest accordingly

• SEBI’s study reveals rising royalty payments by listed companies to related parties, highlighting doubling of payments to Rs. 10,779 crore in FY23 over a decade.
• 25% of firms pay royalties exceeding 20% of net profits, raising concerns about transparency, governance, and shareholder returns versus royalty prioritization.
• SEBI’s findings stress the urgency for enhanced royalty disclosures, policy revisions, and better scrutiny to protect minority shareholders and corporate governance standards.

• US stocks rallied on Tuesday, with the Nasdaq climbing 1%, bolstered by Nvidia’s nearly 5% surge ahead of earnings
• ASICS has significantly upgraded its medium-term management plan, raising the operating income target from ¥80 billion to ¥130 billion by December 2026
• Elliott Management, a US activist hedge fund, has acquired over 5% of Tokyo Gas shares, signaling potential discussions about the company’s asset portfolio

• The NIFTY Index (NIFTY INDEX) has witnessed a significant decline, falling below its 200-DMA, a key technical indicator, for the first time since April 2023.
• Historical analysis reveals that Nifty has traded below this level approximately 30% of the time since 1996, suggesting that this occurrence is not as unusual as it might initially seem.
• While short-term market volatility is anticipated, historical data demonstrates that the Nifty has generally recovered strongly over longer timeframes following similar dips below its 200-DMA.

• NTES US: <Eggy Party> Launches on Nintendo Switch today (+)
• JD US/BABA US/PDD US/VIPS US/3690 HK: NBS publishes social retail consumption data for October 2024 (+/+/////-)
• JD US:JD.com Launches “On-Demand Delivery Flagship Stores” for Its On-Demand Retail Business (+)

• SMCI +32% as it staves off delisting continues to set a positive tone for Nidec
• Sony reportedly looking to fully acquire Kadokawa points to more downside for Bandai Namco
• Highlights relative cheapness for Japanese game stocks as take-over targets

• There are more ‘less negative’ signs in the latest data for October/November sales, especially in the weekly data
• The policy measures for property, perceived broadly as rather underwhelming, suggest the goal of ‘stabilizing it’ remains clear, with caution about the excessive support for the sector 
• In this note, we summarize where things stand with China housing – looking at home sales, prices, inventory, land, major cities, and the policy over the past few months

• 300750 CH/1211 HK/ JKS US/601012 CH/688599 CH/002459 CH:China cancels and reduces export tax rebate for certain China’s advantageous products, forcing production capacity to be rationalize and export prices to rise.(///////////)
• 1810 HK/LI US/NIO US/XPEV US: It is said that Geely Group is preparing to merge its hybrid and pure electric brands under Zeekr（///////）
• BEKE US:Mid-November Home Transaction Growth Remains Strong in First-Tier Cities, While Growth in Second- and Third-Tier Cities Slows Down (+)

• The pace of recovery in 200 millimeters appears to have been very weak. Customers continue to respect LTA prices but we have to push out delivery timing which impacts volumes.
• China appears to have developed their own capability to fabricate wafers. Quality does not necessarily appear to be very good but there is strong pressure to comply with “Buy China” 
• The recovery in legacy applications has been surprisingly slow. At this stage we don’t know whether it is a slow recovery or in fact that there won’t be a recovery.

• The return of Donald Trump to the global trade landscape brings uncertainty and potential disruption, particularly for countries like China with high trade exposure to the US
• India, on the other hand, appears to be in a more insulated position, with lower trade dependence and stable fundamentals
• Overall, the trade dynamics between the US, China, and India will continue to evolve, shaping the future of the global economy.

• US stocks ended mixed as tech shares led a modest rebound, with Tesla surging over 5% following reports that Trump’s incoming administration may ease self-driving vehicle regulations.
• Investors are now focused on Nvidia’s upcoming earnings report Wednesday as a key test for AI-related stocks, which have been crucial drivers of market gains over the past year.
• The Japan Tourism Agency is proposing to eliminate the ¥500,000 daily cap on tax-free purchases for foreign tourists in its fiscal 2025 tax reforms

• Nidec may be back in focus on a lifeline for SMCI and heating issues for NVDA.
• Tesla and power-semis are both up on the self-driving U-turn.
• No bid for JP SPE’s recently, although Lasertec may still have further to fall.

• The WTR Sustainable Index was down 4.5% W/W versus the S&P 500 Index (down 2.1%), the cex (down 4.0%) and the Nasdaq Index (up 5.7%).
• Energy Technology (13.5% of the index) was down 1.6%, while Industrial Climate and Ag Technology (48.3% of the index) was down 3.8%, ClimateTech Mining was down 3.4%, and Advanced Transportation Solutions (20.6% of index) was down 5.5%.
• Top 10 Performers: GRB, BE, WKHS, MULN, LILM, HLGN, FGPHF, AMPS, NEOV, NOVA

• WTR-CMI last week. After the momentous US election, the stock market has rallied on expectations of lower regulations, lower taxes, and a more confrontational approach to China and other geopolitical adversaries.
• Last week saw some profit taking across the market, with the Russell 2000, which we view as a better proxy for the broader market, declining 4%, with the large- cap, tech-heavy S&P 500 posting a 2.1% decline.
• Our WTR-CMI Index of 30 specialty chemicals and materials companies fared similarly, losing 2.2% of its value. 

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, Trump named RFK Jr. to lead the HHS, placing an overhang on XBI and vaccine makers PFE, GSK, MRNA, MRK, and SNY. BNTX and MRK made moves in the PD- 1/VEGF space.
• ABBV’s costly neuro play failed, removing the main threat to BMY’s Cobenfy. AMGN was rattled by bone loss data for its obesity drug. 

• Furniture and furnishing stocks retrenched last week, in line with the broader market.
• The Water Tower Research Commercial/Contract Furniture Index declined 3.1%, the Residential Manufacturers & Suppliers Index dipped 3.0%, the Home Goods Retailers Index fell 1.0%, while the Mass Retailers Index was down 1.3%.
• The S&P 500 and DJ30 were both down 2.2% during the week, while the R2K declined 5.5%. 

• Interview with digital advertising expert Eric Suffert discussing Apple’s app tracking transparency and its impact on digital advertising
• Exploring the historical paradigms of data flow in digital advertising before and after the implementation of ATT
• Examining the hub and spoke model and the mutual benefits for advertisers and platforms like Facebook in the previous paradigm

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

• US stocks plummeted on Friday, with the S&P 500 dropping 1.3% and the Nasdaq Composite falling 2.2%.
• Investors face a sparse economic calendar next week, with Nvidia’s quarterly earnings taking center stage
• Sony Honda Mobility will showcase its luxury electric vehicle, AFEELA, at CES 2025 in Las Vegas.

• Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.
• Vesync (2148 HK), Chervon Holdings (2285 HK), and AAC Technologies Holdings (2018 HK) are more exposed given their significant US sales yet most production is still in China. 
• While the US generated over 50% of the revenue of Techtronic Industries (669 HK) and Nexteer Automotive (1316 HK), they are less exposed given their worldwide manufacturing presence. 

• AMAT numbers sends US SPE lower on Friday which should spill over into Japan.
• Trump’s Energy Secretary nomination may be a short term positive for oil and gas related, longer-term questionable.
• Both Ibiden and Renesas have potential to be rerated on their NVDA exposure, but market indifferent so far.

• Silicon wafer area shipments in Q324 amounted to 3,214 million square inches (MSI), up 5.9% QoQ and up 6.8% YoY,
• Q324 saw the combined revenues from the top four players in the segment reaching $2.5 billion, up 0.5% QoQ and up 6.5% YoY
• Top 4 EBIT amounted to just $337 million, up 1.5% QoQ but down 38.9% YoY.

• In this report we analyzed data from technical publications to review leadership in RNA related therapeutics. We have listed the top thirty.
• In terms of quantity and quality of innovations Alnylam Pharmaceuticals (ALNY US)  and Moderna (MRNA US)  are best positioned. Among private companies Senda Biosciences screened well. 
• Partnerships and acquisitions  between RNA startups and big pharma as well as between big pharma and big pharma highlight RNA’s potential versatility, risks and the necessity for RNA related exposure.

• GenScript Biotech established operations site and logistics center in Australia. Eisai has received positive opinion from CHMP recommending approval of lecanemab. Otsuka forms JV to boost IV supply in US.
• Lunit formed strategic alliance in France to expand AI solution deployment. Daiichi Sankyo and AstraZeneca submitted a new BLA for accelerated approval in the U.S. for datopotamab deruxtecan for NSCLC.
• Cellid has completed recruiting and dosing all participants in its Phase 3 clinical trial of COVID-19 vaccine targeting Omicron variant. Alembic Pharmaceutical received FDA approval for hypertension drug.

• The rural economy plays a crucial role in driving India’s growth, contributing just under half of the total GDP and providing livelihoods for about two-thirds of the population. 
• The trend which is emerging is rural economy growing faster than urban, hence we deep dive into the what and why of this trend
• The urban slowdown has caused concern for India Inc’s earning growth.

• The Japanese market ended the week on a mixed note, with the Nikkei 225 Index down 2.2%
• Stocks moves were largely dictated by earnings. Furukawa’s full year upward revision was a standout, while THK surprised the market with a punchy buyback
• Watchlist: ASICS continues to perform well and will upgrade its mid-term outlook this week. Nexon and Appier could be worth a look after recent stock price declines

• China’s over-65 demographic is projected to grow by 50% in the next decade, driving increased demand for healthcare services, eldercare, and technology.
• The healthcare sector in China presents a significant investment opportunity as the country addresses the needs of its ageing population.
• Insights from the US, where healthcare spending is closely tied to an ageing population, can inform strategies for growth in China’s healthcare market, offering potential for long-term returns.

• For psychedelics, 2024 could be defined by the disappointing outcome of the FDA’s August review decision on Lykos Therapeutics’ (formerly MAPS) NDA for its MDMA-AT candidate for PTSD.
• The FDA’s decision flew in the face of the anticipatory excitement following the NDA submission and award of breakthrough therapy designation earlier in the year following impressive results from Lykos’ two- part Phase 3 trial.
• However, as disappointing as it is, particularly for the many millions of PTSD sufferers and Lykos, which subsequently reduced its workforce by 75%, in the grand scheme of things, this is only a temporary setback.

• While our potential universe includes a broad range of branded consumer companies across the market capitalization, one corner of that universe that we have done a lot of work on over the years involves those companies utilizing a direct selling business model, which deploys a sales force of independent contractors to get their products in the hands of consumers.
• The top trend we are monitoring for 2025 is the impact that the burgeoning market for GLP-1 drugs has on the weight loss stocks.
• Two pure-play weight- loss names we monitor, MED and WW, have already been severely affected by the disruption caused by the GLP-1 drugs and have been on the defensive in recent years.

• Elections have consequences. The November 2024 elections in the US have ushered in not just a change in political landscape for the country and the makeup of the federal government but are likely to result in material changes to government policies and priorities for 2025 and beyond.
• These include international trade, the federal regulatory environment, and tax policies that can affect consumer sentiment, company strategies when it comes to capital deployment, and end market dynamics.
• While specifics could emerge in the coming months, we expect modest inflationary pressures from expected tariffs on imported goods to be largely offset by more constructive energy policies, tax incentives, and a reduced federal regulatory burden, along with a reduced federal government role in economic decision-making to lead to an improvement in economic growth in 2025.

• Arrow Exploration (AXL LN/CN)C; Target price of £0.70 per share: 1.9 mbbl/d at latest CN well.
• Water disposal infrastructure operational.
• High net cash – The fifth horizontal well at Carrizales Norte (CNB HZ-6) is producing 1.9 mbbl/d of oil (0.95 mbbl/d net to Arrow) with a water cut of 31%.

• Biopharma will navigate the uncertainty that comes with the Trump presidency and his alliance with a populist healthcare agenda, but the less regulation-minded Republicans should be good for the group, reducing scrutiny on M&A and drug prices.
• We highlight five biopharma themes and trends heading into 2025.
• Less FTC scrutiny should drive biopharma M&A. Biopharma M&A has meaningfully slowed since mid-year, adding eight deals at >$50MM after the LLY-MORF acquisition in early July, which brings the YTD total to 34 and no longer on pace to exceed 2022 (43 deals) or 2023 (38 deals).

• U.S. stocks slid on Thursday as Federal Reserve Chair Jerome Powell indicated patience on future rate cuts amid a resilient economy.
• Tesla shares tumbled 5.8% following reports that President-elect Trump’s team may eliminate EV tax credits
• SMC slashed its full-year net profit forecast to ¥167bn, down 6% year-on-year, citing sluggish recovery in semiconductor-related capital investment

• Mixed signals for JP semi’s with the positive read from ASML set to be tempered by the AMAT numbers.
• Trump cutting the $7.5k EV tax credit hitting Tesla, Rivian and power semi’s.
• Govt. names down on concerns over what Musk’s DOGE means for Govt spending.

• 3690 HK/ JD US: Yonghui Superstores and Meituan Begin Cooperation.（+/-）
• 700 HK: Tencent Announces New Mobile Game <Monster Hunter: Traveler> in Collaboration with CAPCOM (+)
• 700 HK: Ex-CAPCOM Renowned Game Producer Joins Tencent’s Lightspeed Japan Studio (+)

• 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

• BEKE US: Government cut property transaction related taxes, saving 2.5%-4.5% of transaction costs per unit(+)
• 1211 HK/TSLA US/1810 HK/XPEV US/NIO US/LI US: EV deliveries in the 45th week of 2024, Xiaomi rebounds, Tesla is strong, NIO and Xpeng are weak （///////////）
• ATAT US: Atour Pillow’s Double 11 Sales Exceed Expectations, Reaching RMB520mn（+）

• Tata Communications Divests INR 330 Crores ATM Business to TSI
• Tata Motors to Separate Passenger and Commercial Vehicles Business Segments
• LTIMindtree Opens 6,500 Sq. ft. Innovation Hub in Houston, Texas