In today’s briefing:
- China Consumption Weekly (25 Mar 2024): Xiaomi, Alibaba, Xpeng, Maoyan, JD Health, JD.com
- BABA’s Babies: They’re All Grown Up Now! Sun Art Retail: A Restructuring Opportunity
- MT / Meituan (3690 HK): 2023 – Broke Even for First Year
- Taiwan Tech Weekly: Key Taiwan Server Names Soar; Raising TSMC Growth Target; Memory Rally
- Japanese Banks – Cash Balances and the BoJ’s Negative Interest Rate Policy Exit
- Tesla Q1 Trends: Rockslide
- Monthly Container Shipping Tracker | February Spot Rates Strong | Volume Firm, Too | (March 2024)
- Kunlun Energy (135 HK): Delivering Resilience
- Far East Hospitality Trust (FEHT): Swift Effect
- Monthly Chinese Express Tracker | ASPs Still Under Pressure | Weaker X-Border Volume? | (March 2024)
China Consumption Weekly (25 Mar 2024): Xiaomi, Alibaba, Xpeng, Maoyan, JD Health, JD.com
- Xiaomi released healthy financial results inspite of the shrinking market.
- Alibaba Freshippo founder, Mr. Hou, retired from his role as the CEO of Freshippo.
- JD began to provide aftermarket service to BYD, the largest new energy vehicle producer.
BABA’s Babies: They’re All Grown Up Now! Sun Art Retail: A Restructuring Opportunity
- It’s time to revisit the network of Alibaba’s ( Alibaba Group Holding (9988 HK) ) affiliated listed companies for near term investment opportunities
- After investing in an ecosystem of online and offline companies over the last 10 years, Alibaba is rapidly restructuring its businesses to refocus on its most profitable opportunities
- Sun Art Retail (6808 HK) will benefit from the synergies of Baba’s restructuring
MT / Meituan (3690 HK): 2023 – Broke Even for First Year
- Total revenue grew by 22.6% YoY in 4Q23, three percentage points higher than we expected.
- MT’s operating profit broke even for the fiscal year 2023.
- We conclude an upside of 113% and a price target of HK$188. Buy.
Taiwan Tech Weekly: Key Taiwan Server Names Soar; Raising TSMC Growth Target; Memory Rally
- Key Taiwan Server Names Soar; Delta Electronics Major Winner of Nvidia’s Conference
- TSMC (2330.TT; TSM.US): Raising Growth Target to 25%+ YoY in 2024F
- Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit
Japanese Banks – Cash Balances and the BoJ’s Negative Interest Rate Policy Exit
- The Japanese banks’ share prices have barely moved following the Bank of Japan’s exit from negative interest rates; is it largely discounted or does the continued accommodative stance instil caution?
- Japanese banks will benefit from 100% of their deposits at the BoJ earning 0.1%, as opposed to 40% of bank deposits which was the case up to the 20th March
- We believe our positive recommendations are all geared into higher domestic interest rates; we highlight Resona, Mizuho and Suruga in this report for their high cash and at bank balances
Tesla Q1 Trends: Rockslide
- You know it’s bad when Tesla’s delivery trends blow through even my lowest estimates, which already had trailed market projections.
- With no help from the hapless CyberTruck which, not surprisingly, continues to shoot Tesla in the foot.
- See my latest Q1 and full-year estimates—which still prove to be too high.
Monthly Container Shipping Tracker | February Spot Rates Strong | Volume Firm, Too | (March 2024)
- Strong uptick in price momentum in February reflects booming spot market
- February container throughput growth in key regions also firm, up 7.4% Y/Y
- We suggest Short Evergreen vs Long Maersk (or ZIM) pair trade idea
Kunlun Energy (135 HK): Delivering Resilience
- Kunlun Energy (135 HK)‘s 2.2% drop in core earnings in FY23 is distorted by the expiry of exploration rights of oilfield projects. All other segments have done well.
- FY24 outlook is positive – reduction in E&P distortion, addition of more city gas projects, higher utilisation of LNG plants and terminals, and optimisation of gas pricing mechanism.
- Net cash of Rmb20.4bn equals 29% of market capitalisation, providing room for a higher dividend payout. A re-inclusion into the HSI is not totally out of the cards.
Far East Hospitality Trust (FEHT): Swift Effect
- Taylor Swift concerts in Singapore has increased both hotels’ occupancy rate and daily rate
- Far East Hospitality Trust (FEHT SP) share price has not moved much since the Swift concert.
- There is a slim chance FEHT hotels did not participate in the upside during Swift event, but the odds are higher that FEHT hotels will participate in the upside.
Monthly Chinese Express Tracker | ASPs Still Under Pressure | Weaker X-Border Volume? | (March 2024)
- Headline February numbers look pretty good — but they’re misleading
- On a combined basis, January-February data show ASPs still under pressure
- Recent results from ZTO and J&T Global have been unimpressive, in our view
💡 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
