Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Thematic (Sector/Industry)

<p>This Summer we visited over a dozen premium handbag stores in New York City and Honolulu in order to better understand the issues facing Coach and its peers in the evolving luxury retail space. We learned that an apparent change in spending habits by Asian visitors to North America, combined with ongoing weakness in Japan, Hong Kong, and Macau, will likely limit <a href="https://www.smartkarma.com/entities/13644" target="_blank" data-smartkarma-citation="entities:13644:1">Coach Inc (COH US)</a> revenue growth in FY17 (June 2017) and FY18, making consensus Sales and EPS targets difficult to meet. Longer term, a growing reliance on US outlet stores and a push into smaller Tier-3 and Tier-4 cities in China may undermine the Coach brand. We believe our conclusions – mostly negative – have implications not only for Coach and its premium handbag peers, but also for any luxury retail brand that relies heavily on Asian tourism and consumption for growth.</p>

This Summer we visited over a dozen premium handbag stores in New York City and Honolulu in order to better understand the issues facing Coach and its peers in the evolving luxury retail space. We learned that an apparent change in spending habits by Asian visitors to North America, combined with ongoing weakness in Japan, Hong Kong, and Macau, will likely limit Coach Inc (COH US) revenue growth in FY17 (June 2017) and FY18, making consensus Sales and EPS targets difficult to meet. Longer term, a growing reliance on US outlet stores and a push into smaller Tier-3 and Tier-4 cities in China may undermine the Coach brand. We believe our conclusions – mostly negative – have implications not only for Coach and its premium handbag peers, but also for any luxury retail brand that relies heavily on Asian tourism and consumption for growth.

Summer (Mis-)Adventures in Luxury Retail: Why to Avoid Coach (6388:HK / COH:US) For Now

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

<p>A recent entertaining and thought-provoking read on this site, <a href="https://www.smartkarma.com/insights/why-the-car-you-currently-own-is-the-last-car-you-will-ever-buy" target="_blank" data-smartkarma-citation="insights:5272">Why the Car You Currently Own Is the Last Car You Will Ever Buy</a>, raises many controversial issues, not least of which is the premise in the headline, one that we would dispute. It should be said that we don't entirely disagree with the basic premise, which is that car ownership in many sections of society may well go down, and as a consequence go down in aggregate. However, the mechanism for this is probably not technological, but…</p>

A recent entertaining and thought-provoking read on this site, Why the Car You Currently Own Is the Last Car You Will Ever Buy, raises many controversial issues, not least of which is the premise in the headline, one that we would dispute. It should be said that we don't entirely disagree with the basic premise, which is that car ownership in many sections of society may well go down, and as a consequence go down in aggregate. However, the mechanism for this is probably not technological, but…

The Future of Car Ownership - More, or at Least Different, Not Less - An Alternative View

Chief Investment Officer, KIS Capital Partners

Josh Best

Chief Investment Officer

Boutique absolute return fund manager

KIS Capital Partners

KIS Capital Partners is a boutique absolute return fund manager based in Sydney, Australia with an Asia ex Japan trading focus. We believe that an absolute return fund should be risk and performance focused with strong attention to investment differentiation. Absolute return funds should not be asset gatherers. We invest alongside our clients in liquid and transparent markets with a focus on pragmatic and vigilant risk management.

<p><strong>The arrival of the autonomous car is set to be the greatest disruptive force in the transport industry since the advent of the private automobile.</strong> From making personal car ownership obsolete to alleviating the burden placed on hospitals by road accidents, autonomous cars will permeate all aspects of society. But what do we mean by an ‘autonomous’ car?</p><p>According to the National Highway Traffic Safety Administration (NHTSA) there are 5 levels of autonomy. This ranges from Level 0, the driver controls the vehicle at all times, to Level 4, the driver is not expected to control the vehicle at any point during the trip. Today, car manufacturers are adding increasing levels of autonomy to their vehicles. Both Tesla’s Model S and Renault-Nissan’s Infiniti Q50, for example, come with Level 2 autonomy, giving the car lane-changing, acceleration and braking abilities.</p><p><strong>The focus of this piece will, however, be on the imminent arrival of Level 4 autonomy and the disruption it will cause across a variety of industries.</strong></p>

The arrival of the autonomous car is set to be the greatest disruptive force in the transport industry since the advent of the private automobile. From making personal car ownership obsolete to alleviating the burden placed on hospitals by road accidents, autonomous cars will permeate all aspects of society. But what do we mean by an ‘autonomous’ car?According to the National Highway Traffic Safety Administration (NHTSA) there are 5 levels of autonomy. This ranges from Level 0, the driver controls the vehicle at all times, to Level 4, the driver is not expected to control the vehicle at any point during the trip. Today, car manufacturers are adding increasing levels of autonomy to their vehicles. Both Tesla’s Model S and Renault-Nissan’s Infiniti Q50, for example, come with Level 2 autonomy, giving the car lane-changing, acceleration and braking abilities.The focus of this piece will, however, be on the imminent arrival of Level 4 autonomy and the disruption it will cause across a variety of industries.

Why the Car You Currently Own Is the Last Car You Will Ever Buy

Senior Investment Analyst, Black Crane Investment Mgmt Ltd

Perry Tan, CFA, CAIA, FRM

Senior Investment Analyst

Black Crane Investment Mgmt Ltd

<div>Jet.com was a $600m company last year before further fund raising.</div><div>It is now valued at $3.3bn after Wal-Mart's cash and stock acquisition announced earlier.</div><div>Jet.com charges a $49.99 per month annual fee to its customers and promises the lowest prices (they priced below Amazon and other competitors).</div><div>Their strategy backfired and suffered losses because they did not sign up with enough partner merchants and as a result, Jet.com employees had to sometimes buy from competing merchants at a loss, in…</div>

Jet.com was a $600m company last year before further fund raising.It is now valued at $3.3bn after Wal-Mart's cash and stock acquisition announced earlier.Jet.com charges a $49.99 per month annual fee to its customers and promises the lowest prices (they priced below Amazon and other competitors).Their strategy backfired and suffered losses because they did not sign up with enough partner merchants and as a result, Jet.com employees had to sometimes buy from competing merchants at a loss, in…

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

<p><strong><em>Pokémon GO and the world of container shipping as we knew it</em></strong></p><blockquote><p> <em>“Dad, have you heard of <strong>Pokémon Go</strong>, can kids play it, when can I download it”, “Dad, for this birthday can you download for me the <strong>Lego Marvel's Avengers </strong>game”, “ Mom, can you please download this character for me”. </em></p></blockquote><p><em>That is my 9-year-old son asking for his reward after he has done his homework. A portion of his pocket money is now spent on the iTunes app store, that is the share lost by traditional retailers. He does love Lego and buys</em>…</p>

Pokémon GO and the world of container shipping as we knew it “Dad, have you heard of Pokémon Go, can kids play it, when can I download it”, “Dad, for this birthday can you download for me the Lego Marvel's Avengers game”, “ Mom, can you please download this character for me”. That is my 9-year-old son asking for his reward after he has done his homework. A portion of his pocket money is now spent on the iTunes app store, that is the share lost by traditional retailers. He does love Lego and buys…

DMER Shorts: Pokémon GO and the World of Container Shipping as We Knew It

United States

Dick's Sporting Goods, Inc. operates as a sporting goods retailer that manages stores primarily in the eastern and central United States. The Company owns stores that offers a broad selection of brand name sporting goods equipment, apparel, and footwear.

Burlington Stores, Inc. owns and operates clothing retail stores. The Company offers, through its stores and internet sites, men's, women's, and children's apparel. Burlington Holding operates within the United States and Puerto Rico.

Tractor Supply Company operates a retail farm store chain in the United States. The Company provides farm maintenance products, animal products, general maintenance products, lawn and garden products, light truck equipment, work clothing, and other products.  Customers include hobby, part-time, and full-time farmers and ranchers, as well as rural customers, contractors, and tradesman.

Murphy USA Inc. produces and distributes petroleum products. The Company engages in refining, marketing, and transportation of oil and gas products. Murphy USA provides products and services worldwide.

Ulta Beauty, Inc. operates a chain of beauty stores. The Company offers cosmetics, fragrance, skin, and hair care products, as well as salon services. Ulta Beauty serves customers throughout the United States.

Williams-Sonoma, Inc. retails cooking and serving equipment, home furnishings, and home accessories through retail stores, mail order catalogs and e-commerce. The Company offers its merchandise under the Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, and West Elm.

GameStop Corporation operates specialty electronic game and PC entertainment software stores throughout the United States, Australia, Canada and Europe. The Company stores sell new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise.

Penske Automotive Group, Inc. operates franchised automobile dealerships. The Company's franchises are located throughout the United States, Puerto Rico and the United Kingdom.  Penske Automotive sells new and used vehicles as well as offers maintenance and repair services on all brands it represents.

Ross Stores, Inc. operates two brands of off-price retail apparel and home accessories stores. Ross Stores offers name brand and designer apparel, accessories, footwear, and home fashions at discount prices.

CarMax, Inc. sells at retail used cars and light trucks. The Company purchases, reconditions, and sells used vehicles in its superstores and franchises throughout the United States.

FAST RETAILING CO., LTD. operates a chain of clothing stores, UNIQLO, throughout Japan and in other markets overseas including UK, China, Hong Kong, South Korea, US, France, Singapore and Russia.  The Company designs, manufactures, and retails its own line of casual clothing.

Hotai Motor Company Ltd. operates as an automobile dealership. The Company sells and services new and used cars and trucks in Taiwan.

Nitori Holdings Co., Ltd., is based in Hokkaido and operates a furniture retail chain.  The Company sells living room furniture, storage furniture, dining furniture, office furniture, beds, and interior goods.  Nitori Holdings also sells original brand merchandise and imported merchandise.

Hennes & Mauritz AB (H&M) designs and retails fashions for women, men, teens, and children.  The Company sells a variety trendy, sporty, and classic garments in addition to accessories such as jewelery, bags, and scarves, and cosmetics. H&M owns and operates stores in many European countries and the United States.

Chow Tai Fook Jewellery Group Limited retails jewelry.  The Company sells rings, necklaces, earrings, pendants, bracelets, and small statues.  Chow Tai Fook Jewellery operates retail stores in China, Hong Kong, Macau, Taiwan, Malaysia, and Singapore.

JB Hi-Fi Limited is a music and electronic goods retailer in Australia.  The Company operates stores at sites located in most Australian States.  Products include consumer electronics, car sound systems, music and DVDs.

ABC-MART, INC. plans, develops, wholesales, and retails shoes.  The Company also plans and develops brand name shoes such as VANS and G.T. HAWKINS.  ABC-Mart imports and wholesales shoes, apparel, bags, and sundries as well.

HIKARI TSUSHIN, INC. is a mobile telecommunication service subscription agency. The Company also operates telecommunication services stores, HIT SHOP, which sell cellular telephones, and related goods.  Hikari Tsushin also sells office automation equipment and insurance.

L'Occitane International S.A. is a global, natural and organic ingredient based cosmetics and well-being products enterprise.  The Company designs, manufactures and markets a wide range of cosmetics and well-being products based on natural and organic ingredients sourced principally from or near Provence.

Sanrio Company, Ltd. manufactures and sells character goods including gift merchandise, greeting cards, and stationery products.  The Company also produces books, magazines, and movies, and though its subsidiary, operates restaurants and amusement parks.

O'Reilly Automotive, Inc. retails and supplies automotive aftermarket parts, tools, supplies, equipment, and accessories.  The Company sells its products to do-it-yourself customers and professional mechanics or service technicians. O'Reilly operates stores throughout the United States.

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O'Reilly Automotive (ORLY US)

Summer (Mis-)Adventures in Luxury Retail: Why to Avoid Coach (6388:HK / COH:US) For Now

This Summer we visited over a dozen premium handbag stores in New York City and Honolulu in order to better understand the issues facing Coach and...

Daniel Hellberg

The Future of Car Ownership - More, or at Least Different, Not Less - An Alternative View

A recent entertaining and thought-provoking read on this site, Why the Car You Currently Own Is the Last Car You Will Ever Buy, raises many...

Pelham Smithers Associates

Why the Car You Currently Own Is the Last Car You Will Ever Buy

The arrival of the autonomous car is set to be the greatest disruptive force in the transport industry since the advent of the private automobile....

KIS Capital Partners

Wal-Mart's Acquisition of Jet.com

Jet.com was a $600m company last year before further fund raising.It is now valued at $3.3bn after Wal-Mart's cash and stock acquisition announced...

Perry Tan, CFA, CAIA, FRM

DMER Shorts: Pokémon GO and the World of Container Shipping as We Knew It

Pokémon GO and the world of container shipping as we knew it “Dad, have you heard of Pokémon Go, can kids play it, when can I download it”, “Dad,...

Drewry Maritime Financial Research

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