In today’s briefing:
- Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
- Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
- Rakuten’s Netsuper Expands with New Partners
- Itochu Grabs Eddie Bauer and Barbour
Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
- Through its 43.58% ownership in lithium carbonate producer Lanke Lithium Industry, Keda Industrial Group (600499 CH) is well placed to benefit from the increase in lithium demand.
- Lanke’s capacity has recently been upgraded to 30,000 tonnes. Also, Keda is adding capacity to its own integrated anode materials factory in Fujian to capture the ever-rising demand.
- Overseas ceramic business will see solid growth from key markets in Africa as Keda raises capacity by 65% by FY23. The stock’s valuations are inexpensive relative to peers.
Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
- We are Negative on Keda Industrial over the next year due to a potential downturn in the ceramics machinery market, uncompelling valuations, and concerns about expansion into lithium battery materials.
- Keda Industrial Group is one of the world’s leading suppliers of building ceramic machinery and equipment.
- Its A-Shares listed on Shanghai Stock Exchange and it completed a private placement of GDRs listing the shares in SIX Swiss Exchange in July 2022.
Rakuten’s Netsuper Expands with New Partners
- The battle for online food sales continues to heat up, with Rakuten and Amazon squaring up to challenge for supremacy.
- Although Amazon has signed two of the largest names, Life and Valor, Rakuten is quickly catching up, last month adding Comodi-Iida to existing members, Seiyu, Beisia and Inageya.
- Other supermarket chains are already preparing to sign-up with Rakuten.
Itochu Grabs Eddie Bauer and Barbour
- A few years back, Itochu Corp (8001 JP) announced its intention to aggressively grow its consumer brand business.
- It has just confirmed deals with Eddie Bauer and Barbour after a year in which it also signed Reebok and Under Armour.
- Although a small part of the Itochu empire, the consumer brand business, alongside retail interests such as Familymart, are key to the trading firm’s longer term profits.
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