Equity Bottom-Up

• Shanghai Junshi Bioscience Co. Ltd. (1877 HK)’s oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.
• However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.
• PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.

• SMIC will spend ~US$5bn in Capex in 2022, of which only the Beijing Fab is 12”, and Shenzhen and Tianjin are 8” Fabs.
• SMIC has three major trends: 1) the local demand is booming rapidly, 2) Auto, industry and others have developed actively, and 3) Huawei’s event had made a great impact.
• We note SMIC’s capacity of each Fab is an estimation because 1) the local governments’ subsidies are somewhat complicated, and 2) it is involved with three local governments in 2022.

• Vipshop has underperformed, on a 12-month basis, due to a slowdown in active user growth, which has spilt over into slower revenue growth and contracting earnings.
• Material equity investments, accompanied by strategic cooperation agreements, by Tencent and JD.com in December 2017 catalysed significant user growth over the subsequent 3 years.
• The recent de-rating once again flags Vipshop as an attractive takeover target for its current strategic shareholders and broader eCommerce rivals, including nascent disruptors and live-streaming operators.

• Pc Partner posted record results with revenue and profits increasing by 99%% and 1,047% respectively. The final 1.61 HKD dividend was below my 2 HKD estimate but still solid.
• Cash grew to 3.1 b HKD vs a market cap of 4.37 b HKD, or 70% of market cap. By end of FY22 cash could be 100% of market cap.
• The outlook is mixed with short-term ASP pressure into 2Q22 but longer-term optimism into 2H22. As always visibility is low but offset by a cheap valuation and large cash buffer.

• Burning Rock Biotech (BNR US) shares plunged 35% since I published bearish insight on the company in November. Weak Q3 results, slower recovery, and the U.S.-China conflict remained major overhangs.
• However, the shares are now trading at two-week high, as the company received approval for its second NGS kit in China and reported slightly better-than-expected Q4 results.
• Investors should continue to avoid Burning Rock shares for near-term and wait for COVID cases to subside in China and resolution of the U.S.-China conflict.

• Analyst meeting came out with positive tone. Cloud and cybersecurity businesses should grow rapidly over the next few years.Current inventory stock provides 4 to 6 months buffer from Chinese lockdown 
• We believe that cloud and cybersecurity will drive earnings at a CAGR of 18.5% between 2021-24E, led sales growth at 8.6% CAGR and slightly improved margins. Management maintains strong outlook 
• We expect 1Q22E earnings at Bt201m(+6%QoQ, +6%YoY)driven QoQ by GPM expansion. We recommend accumulating shares now as earnings in 1H22 should be the lowest of the year due to seasonality.

• Mitra Keluarga Karyasehat Tbk (MIKA IJ) booked a strong set of FY2021 results driven by both COVID treatments and the start of a recovery in its core base case business.
• The company is back on an expansion tack in 2022, with increased capex and new hospital openings plus an increasing focus on digital initiatives.
• Mitra Keluarga Karyasehat Tbk (MIKA IJ) remains a core proxy for the growing penetration of healthcare in Indonesia and valuations are attractive versus history.

• HHC is one week away from hosting its investor day and the Company has already presented value creation initiatives.
• HHC has a portfolio of non-core assets management has been slowly selling to go along with the funds from operation HHC’s master planned communities (“MPC”) generate.
• HHC’s stock continues to undervalue the funds from operation the MPCs are generating

• Has the Russia/Ukraine Conflict’s Impact On Tire Retail Distribution and Manufacturing Been Priced In?
• Have The Impact of Higher Raw Materials Costs Already Been Factored Into Margin Expectations?
• Will Gasoline Prices Negatively Impact Miles Driven and Slow Replacement Cycles?

• We reiterate our BUY rating for M with a target price of Bt61.0 based on 25xPE’22E, Asia ex-Japan consumer staple sector.
• We expect M to report net profit of Bt393m in 1Q22 (+343%YoY, -2%QoQ) driven by a positive same-store-sales-growth (SSSG) in three main brands (MK, Yayoi, and Laem Charoen Seafood) 
• We forecast earnings to bounce back to Bt2.2bn in 2022 and continue to grow at 14%CAGR(2023-24) supported by 1) solid recovery in SSSG after resuming dine-in services together with restoring 

• Maintain BUY with a target price of Bt149.Our BUY call reflects steady earnings growth,resilient asset quality, and compelling valuation. Our valuation is derived from the Gordon Growth Model (ROE 9.5%
• Net profit will likely rise 2% YoY (+30% QoQ) in 1Q22 given higher net interest income from elevated loans and lower provisions.
• The S&P Global Rating downgrade will likely have minimal impacts on SCB’s fundamentals.

• It seems investors are starting to move past the fears of Japan Tobacco’s exposure to Russia and Ukraine with shares rising 6% following a steep decline alongside Russia’s Ukraine invasion.
• Meanwhile, we expect the company’s OP to continue trending upwards with the weakening yen helping the International Tobacco segment and price hikes benefiting the Domestic business.
• If OP reaches the 2014 level, we think Japan Tobacco (2914 JP) shares could go up around 90% to ¥4,000 per share over the next 12 months.

• Yesterday Sony officially announced the new structure for its popular PlayStation Plus service with three tiers including some streaming options. 
• The details had been mostly leaked already and there were no major surprises but pricing looked extremely reasonable. 
• Below we compare the plans against Xbox Game Pass and explain why this demonstrates a far better understanding of the industry on Sony’s part.

• Nintendo is up 25.2% since we turned genuinely bullish on the name at the end of Nov. 
• The weakening yen has helped significantly and should lead to a small overshoot on the dividend as well. 
• However, they just announced a delay of the Breath of the Wild sequel and we think this is a good time to take profit.

• Toyota announced record overseas production in February putting up a data point to suggest supply chain issues are genuinely easing. 
• March is likely to prove more challenging due to some production stoppages but the trend looks clear. 
• That it comes at a time when the yen is weak and oil prices encourage hybrid demand is an additional boon for Toyota.

• Sinotrans (598 HK) has a record year in FY21 with recurring earnings increased 44% YoY. Margin for 4Q21 has shown some improvements against 9M21. 
• Management is generally cautiously optimistic for this year, but also highlighted weaker visibility for the outlook given high base, sporadic COVID-19 outbreak and geopolitical uncertainties. 
• We expect slower earnings growth in FY22, with e-commerce segment being the best-performing. We see lesser credit and asset impairments, and it is cheap at 3.7x PER and 10% yield. 

• Shenzhen International (152 HK) posted 11% profit decline for FY21, with Shenzhen Airlines the main drag. Stripping this and one-off items out, its bottom line would have grown by 46.6%.
• Logistics growth pipeline is highly visible, and this adds to potential gains from logistics park transformation and strategic offload of matured and suitable projects through REIT or private fund.
• The stock remains a deeply undervalued asset play at just 0.48x P/B. Its willingness to share gains with investors has put its dividend yield at 10.4% on current share price.

• Onward is proving adept at moving sales online even as its turnover drops dramatically as it restructures and slashes old stores – some 1,700 stores in two years. 
• It now wants to integrate the remaining stores better with online and targets 50% of sales from e-commerce within three years.
• This won’t be enough to offset lost sales at department stores but should mean improving returns for long-term investors.

• We reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
• Net profit will likely rise 6% YoY (+14% QoQ) in 1Q22 given higher net interest income from elevated loans and an improvement in cost to income ratio.
• We expect minimal impacts from S&P Global Rating downgrade from “BBB+” to “BBB”. 

• Poplar is one of the few remaining small CVS chains in Japan and is struggling.
• It is now trying a new format of mini stores to take merchandise to the customer.
• This may not be enough and it will likely cede more of its stores to Lawson.

• On 29 March, Hanwha Asset Management launched the first local stocks-focused, aerospace & UAM (Urban Air Mobility) themed ETF named ‘ARIRANG iSelect Aerospace & UAM ETF’.
• The share prices of the 18 stocks included in this ETF are up on average 6% YTD, outperforming KOSPI which is down 7.8% in the same period.
• As of 30 March, iSelect Aerospace & UAM ETF had a market cap of 10.1 billion won which is likely to increase much higher in the coming months. 

• TSMC is still focusing on their delivery targets for 3nm and 2nm for the next goals.
• Nvidia CEO Mr. Jensen Huang said he wants to diversify his company’s suppliers as much as possible, and he will consider working with Intel. 
• We have to leave a big question mark that Intel declares to deliver 3~4 technologies within 2024.

• Kunlun Energy (135 HK) posted a 43.6% YoY growth in net profit for FY21, which is ahead of peers like ENN Energy (2688 HK) and CR Gas (1193 HK). 
• While 2H21 gas sales segment is weaker, the contraction of dollar margin for Kunlun is light at 3.8% YoY. The other gas utilities companies are seeing 12-15% decline.
• Its net cash reached Rmb3.3bn at end-FY21, and number of new city gas projects reached 17 in 2H21, vs. 13 only in 1H21, indicating good pick-up in momentum. 

• Shares are now up 1% in the quarter despite investment losses as 87% of assets are US$-linked
• A recovery for Alibaba, reports of ARM monetization and the $2bn sale of its stake in Cruise has eased leverage concerns with LTV back to 22% and CDS prices falling
• This report includes detail on Softbank dollar exposure, calculations for LTV on a quarterly and daily basis and updates to our usual NAV discount/VF performance tables

• Shougang Fushan Resources (639 HK) is in deep value territory with coking prices averaging over 2600 RMB/ton for the year ( Vs. last years average of 2000 RMB/ton)
• The stock trades at 2.6x PE, 0.8x EV-EBITDA with a 22% dividend yield at current spot prices of 2950 RMB/ton, making this an extremely cheap value play. 
• Further buffer is provided by net cash of 6.7 bn HKD, representing 44% of the market capitalization. Fushan can trade up to 3.50 HKD (20% upside) in the near term.

• Sea Ltd’s (SE US) decision to exit India came as a surprise but looks like a prudent move given the heightened risk for Shopee there post the FreeFire ban.
• The move will allow Sea Ltd (SE US) to focus its attention and resources on a more profitable markets such as Brazil, which is already seen as a core market.
• Sea Ltd’s growth model is intact with losses in its core e-commerce markets declining fast on a per order basis. Valuations are less challenging on 3.4x FY2023E EV/Sales.

• Both monthly active users and time on site grew strongly in 4Q21.
• Live streaming revenue recovered quarter over quarter in 3Q21 and 4Q21.
• Operating loss decreased in 4Q21, compared to the first three quarters in 2021.

• We believe Kimly is a yummy, undervalued re-opening, F&B play in Singapore. 
• With Singapore increasingly reopening for travel and reducing various COVID related restrictions, this could have a positive impact on the company’s F&B business. 
• As such, we have a positive view of Kimly and we believe this stock is well poised to outperform the market in the next 6-12 months. 

• JD Health (6618 HK) reported results on Monday. Revenue grew 60.7% YoY to RMB17.0bn (vs consensus RMB14.9bn) while OP losses expanded to RMB808m from RMB48m a year ago.
• Similar to 1H2021, huge share-based payment expenses were the reason for increase in Operating losses, excl. these, JDH made a healthy OP of RMB1.8bn, an OPM of 10.4%.
• JDH’s online healthcare business is still at an early stage and the company has taken several initiatives to explore more opportunities and capitalise on digital transformation in the healthcare sector.

• Non-Casino Thailand could be starting to get serious about legalizing casinos. Demos are solid if they make the move.
• Las Vegas Sands, seems the prime candidate to become the first mover if that market does make the major legislative move.
• LVS CEO Goldstein said last week that the company was engaged in serious talks with a possible third Asian nation on a major IR move there.

• Due to the lack of differentiated and frontier enough target layout, the commercialization potential would be more easily questioned, with high uncertainty of having the next NBP level products.
• CSPC has made easy money from a few large varieties/generic drugs for many years, but is destined to make the business transformation more difficult, because the “opportunity cost” is high.
• CSPC’s products have lost their pricing power. Therefore, when its valuation is very low or the entire sector is moving upward, this stock could be traded due to positive momentum.

• Shopee, the e-commerce arm of Singapore-based Sea Ltd (SE US), announced today that they are shutting down operations in India due to global market uncertainties.
• We feel this could turn even the most hopeful followers of Sea Ltd as they must be running out of angles to justify their bullish calls on the company.
• We think, Sea Ltd shares could easily fall below the pre-COVID level once it starts losing these ardent followers.

• With the BOJ being forced to step in to hold 10 year rates under 0.25% today the yen is under increasing pressure. 
• There are naturally a variety of stocks which are likely to benefit from this multi-decade breakout of the yen dollar. 
• Mazda is one of the best plays here in our view and we lay out the rather simple case below.

• Share price sell-off is overdone as the prospect of the war worsening is less likely.
• Channel checks have shown that EV sales remain upbeat despite the war.
• The long-term prospect to participate in the growing EV industry through battery housing and body parts remain intact. 

• Meituan (3690 HK) reported 4Q2021 results on Friday. Revenue grew 30.6% YoY to RMB49.5bn (vs consensus RMB49.0bn) and reported operating losses of RMB5.0bn vs RMB2.9bn in 4Q2020 (vs consensus RMB7.0bn).
• Since 2Q2022, Meituan’s revenue growth has started decelerating with demand for online and food and grocery deliveries has been slowing down.
• Meituan’s 4Q2021 results were better than expected but we expect the company’s earnings to remain under pressure with new regulation on food delivery commission and resurgence of Covid-19.

• PVR Ltd (PVRL IN) & Inox Leisure (INOL IN) announced a stock merger. The merger would be in a ratio of 3:10, creating the largest multiplex company in India. 
• Synergies include more bargaining power, better F&B margins and more ad revenues 
• Thanks to COVID’s impact, the merger may not require approval from CCI. 

• Yum China Holdings, Inc (YUMC US) board has expanded share repurchase program by $1bn to total $2.4bn amid the tougher operating environment due to Omicron outbreak.
• Omicron outbreak spread widely in March across China, Yum China saw its March first 2-week SSSG is down 20% year-over-year and 1Q22 operating profit will likely be down 40-50% year-over-year. 
• We continue to think Yum China is the best-run restaurant chain in China. It has resilient business model to navigate through pandemic. Risk/reward is more compelling to own Yum China.

• We initiate coverage of KKP with a BUY rating and a target price of Bt79. Our valuation is derived from a Gordon growth model (ROE 13.5%, growth 2%),implying 1.2x PBV’22E
• Steady growth ahead on continued lending growth and a potential reduction in credit costs
• Resilient asset quality and high loan loss reserves against NPLs

• FY21 result of Xinjiang Goldwind (2208 HK) is healthy, though behind expectations due to impairments. We see them not recurrent into FY22, and this should be positive to earnings.  
• Management sees some margin decline for WTG segment but the expectation of over 30% volume growth should offset the impact. Orderbook is secured at 16,874.4MW.
• Growth in power servicing is the bright sport with target revenue growth for 50%. Goldwind also plans to also add 0.5-1GW of generating capacity annually at wind farm development segment.

• On 28 January, the government (Ministry of Land, Infrastructure and Transport) announced that it has recommended the heaviest punishment of the cancellation of the construction license for HDC Hyundai Development.
• Seoul city government said it will make a decision on the fate of HDC Hyundai Development within six months.
• Rather than a complete, permanent cancellation of the company’s business license, a more likely scenario is about 6 to 12 months of temporary business operation suspension, in our view. 

• For the three commercialized products (fruquintinib, surufatinib and savolitinib), they are facing challenges from different aspects. 
• The lack of blockbuster products and promising targets indicates that Hutchmed’s current pipeline does not have core competitiveness, which means Hutchmed’s position in the industry is not in first echelon.
• In fact, Li Ka-shing’s positioning and original intention for Hutchmed is not on innovative drugs. So, big but not strong has always been the pain point of the Company.

• Toshiba possesses technologies of vital importance to Japan’s economic competitiveness and national security: nuclear power, quantum cryptography and discrete semiconductors.
• Any changes in ownership or management that would undermine or leak these technologies would probably not be tolerated.
• LightStream’s Mio Kato writes that Toshiba itself is attractive but the drama surrounding it is decidedly looking bad for business. He remains negative on the stock.

• Prodia (PRDA IJ) released an exceptionally strong set of FY2021 results, driven partly by COVID testing but coupled by a pick-up in its core testing business and especially esoteric testing.
• It continues to see increasing tests per visit with revenue per visit increasing at the same time. Its digital strategy is working well further driving growth through an omnichannel approach.
• Prodia (PRDA IJ) continues to look dramatically undervalued versus its Indian diagnostic peers given its quality and growth prospects and remains our top Indonesian healthcare pick.

• The stock is down 54% over the past year despite 41% revenue growth. We see 3 key drivers in 2022.   
• Appier is growing rapidly in the US, a much bigger market than its home market of North Asia. 
• Appier is at the forefront of digital transformation, benefitting from structural DX of marketing functions and increased use of 1st party data.

• Siloam International Hospitals (SILO IJ) held an analyst briefing recently to highlight the strong recovery of its base-case business, with very little contribution from COVID-related treatments by year-end.
• Revenues on a monthly basis have hit record highs in December and January, with increased efficiencies and improving profitability due to cost controls.
• Siloam International Hospitals (SILO IJ) remains an interesting recovery play but it has emerged even stronger from the pandemic and valuations are attractive versus peers and history. 

• Meituan’s total revenue continued to rise strongly by 31% in 4Q21.
• Initiatives businesses are losing money, but two of them are in leading positions.
• We believe the stock has a 20% upside for this year.

• Akeso has a very high starting point, and was regarded as the leader of domestic second-tier biotech companies. However, in current unfavorable market sentiment, it’s necessary to re-examine the Company.
• In Akeso’s pipeline, there are some valuable and differentiated candidates, especially in the field of bispecific antibodies. Its R&D capability is also well recognized.
• However, due to the rich pipeline, related clinical trials will drain money fast. So, investors are advised to be cautious until Akeso has ensured sustainable and stable cash flow.

• There is a strong recovery in Shangri-La Asia (69 HK) in 2H21 as its losses narrowed 36.4% HoH and by 57.5% YoY – hotels and investment properties are primary drivers.
• 1Q22 momentum is solid with occupancy outside of Hong Kong and mainland China saw good YoY rebound. In FY21, room rates in France, Australia and UK have surpassed 2018 levels.
• Refinancing for FY22 has almost completed, implying minimal liquidity risks. Trading at 76% discount to adjusted NAV of HK$25.44, the stock is way too cheap.

• Sequoia Capital India, one of the key shareholders of Freshworks (FRSH US) , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. 
• According to SEC filings, venture capital firm acquired ~5 million Freshworks (FRSH US)  shares at an average price of $17.38 per share. 
• We believe that strong insider buying may indicate a bottom in Freshworks (FRSH US)  stock after significant multiple compression in the technology software sector. 

• PolyNovo Ltd (PNV AU) develops, manufactures, and markets artificial dermal templates. The company has only one marketed product and 88% of total revenue comes from the U.S.
• Although U.S. business is on high trajectory, the company’s drive to expand sales team and pipeline progress are putting pressure on the profitability, which do not justify the superior valuation.
• I would like to wait for PolyNovo to become profitable post its investment for growth, start offering multiple differentiated products, with sizable presence in OUS markets, to have higher conviction.

• The Nikkei reported today on rumblings between Korean battery suppliers and their American customer OEMs. 
• The crux of the dispute is about technology access and risks of technology leakage which are normal in the scheme of things.
• However, expiring LFP patents which we have flagged are likely to result in this dispute going badly for battery suppliers.

For our next Corporate Webinar with Meta Health Limited (MCOM SP), we are glad to welcome Dr. Vas Metupalle, Chief Medical Officer and Dr. Bernard Ng, Executive Director at 5Digital, Meta Health’s fully-owned healthcare platform company.

In the upcoming Webinar, Dr Vas and Dr Bernard will share a short company presentation, after which they will engage in a fireside chat with Smartkarma Analyst, Sameer Taneja. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 5 April 2022, 17:00 SGT.

Meta Health was previously known as Metal Component Engineering and was founded in 1987 in Singapore. With consistent focus on quality and engineering innovation, the company has expanded its customer base by serving MNC, EMS, and SME globally. Meta Health recently diversified into the healthcare technology and services industry with investment into GainHealth Pte. Ltd., a direct-to-consumer and high-growth omni-channel health and wellness platform. The Company is vertically integrated with licensed clinics with pharmacy, online self-branded ecommerce portals, and product placements on regional ecommerce portals.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

• Our negative recommendations from December – especially Paytm – worked better than our positive ones, given 1Q22 market conditions; we see much value in payment companies but we remain selective
• Based on our screens, we continue to favour Mastercard in the megacaps, we stick with PagSeguro and Getnet, adding Nexi which looks very oversold, despite its fundamental headwinds
• We take Paytm off the sell list, but we remain negative on DLocal on its very demanding valuations, and we add Kakao Pay to the negative list

• We have put together the historical financial data for Rakuten Bank going back to FY14 as reported by parent Rakuten Group, which uses IFRS and is on a December year-end
• As a separate company, Bank looks more local using J-GAAP accounting and a March year-end. So when the IPO filing comes our data will need to be updated/converted
• As we discussed last week, the IPO of Rakuten Bank could help surface the value of fintech assets although heavy losses for the mobile business keep us on the sideline

• We reiterate our BUY rating for SAPPE with a target price of Bt32.0 based on 22xPE’22E,close to its five-years average trading range and average of Asia-ex Japan consumer staple sector
• SAPPE is beverage exporter with 65% of sales from oversea. In 2021, logistic cost surged to Bt341m (+251%YoY) as it provides a freight contract for distributors and pass most
• Average container freight decreased to US$8800 per 40ft box in March 2022 from it peak at US$10,000 per 40ft box in Sep 2021. We believe freight rate to continues 

• JTower (4485 JP) has signed a deal to buy 6,002 DoCoMo towers for ¥106bn validating its long term growth potential and its central position as Japan’s infrastructure-sharing company
• The headline numbers are maximums and could take years to realize as JTower grows to the scale required
• Conversely it is not a large deal for DoCoMo but the first mobile tower sale/leaseback transaction in Japan highlights an industry shift towards more efficient capital deployment

• Nubank remains challenged, in our view, based on rising customer acquisition costs (especially in its Mexican and Colombian expansions), high capital absorption and maturing consumer credit portfolios adding to delinquencies
• Banco Inter has a better balanced portfolio than Nubank with its mortgage book, which should mean lower hurdles on delinquency and capital consumption, although customer acquisition costs remain clear headwinds
• The two Brazilian digital banks’ premium valuations are hard to justify on growth potential; our research models’ base assumptions show that Nubank shares, in particular, trade on very rich valuations

• We are initiating coverage of Ecovyst (ECVT) with a Buy Rating and $18 target
• ECVT has gone through a transformation in aligning the Company for growth and free cash flow generation that has yet to receive much investor attention
• ECVT is experiencing growth from its ecoservices solution for renewable fuels, specifically renewable diesel

• The latest announcement by the SG Multi-Task Force to further relax COVID-19 restrictions is a major positive catalyst.
• Its hybrid taxi accounted for more than 50% of its entire fleet as of end-December 2020. It remains on track to replace all diesel taxis with hybrid models by 2023.
• Investors will be paying a discounted valuation for the cash flow if they own Comfortdelgro Corp (CD SP) compared to its peers which trades at a much higher EV/EBITDA.

• Among many e-commerce names, MonotaRO Co Ltd (3064 JP) is one of the most promising with operating profitability predicted to improve by 200 bps to 14.0% by 2023.
• Unlike many e-commerce players, the company doesn’t strain itself financially while pursuing revenue growth through expansion.
• At 35.8x OP, MonotaRo is not cheap to be outright bullish. However, it is a reasonable long hedge to allow you to short a lot of other names in e-commerce.

• Sales of analytical and measuring instruments, medical systems and industrial machinery are all doing well. Aircraft equipment lags, but should improve next fiscal year.
• Guidance has been raised three times and now calls for an 8% increase in sales and a 23% increase in operating profit in FY Mar-22.
• Not compellingly cheap, but worth looking at from a long-term perspective.

• Novatek’s monthly revenue is increasing above 20% YoY from July 2020.  However, the growth trend seems slowing down from 1Q22.
• The price for DDIC (Display Driver IC) is the lowest among in the foundry companies’ products although its demand quantity can be large, which gives its actual price bargaining power.
• Somehow, the end demand still needs a Display with related ICs for the application. So, there must be some certain suppliers to complete the supply chain.

• Bukalapak (BUKA IJ) is rapidly broadening its exposure to a greater range of services, with the latest move increasing its exposure to gaming, a potential future cash cow. 
• We have already seen Bukalapak (BUKA IJ) making bold moves into digital banking through Allo Bank Indonesia and a direct commitment to online groceries through AlloFresh with Trans Retail Indonesia.
• We continue to focus on the improving fundamentals of Bukalapak (BUKA IJ) and its growing ecosystem and would use any short-term trading anomalies to accumulate the stock.

• Adobe’s stock has pulled back 35% since November, a far larger drawdown than megacap software peers on fears of pulled in growth for Creative Cloud.
• Weak initial guidance for 2022 was reiterated this past week, implying reacceleration in 2H22.
• Price increases should serve as a tailwind in 2H22, providing a good entry point on a quality compounder that is trading at 5 year trough multiples.

• In the context of both the war and the pandemic, the blood products market would be a field of high-quality investment. 
• Due to strict policy supervision, the number of plasma stations is the core competitiveness of enterprises in this industry, which basically determines the scale and outlook of blood products enterprises. 
• With the background of state-owned enterprise and also having the most plasma stations among peers,Tiantan Biological Products (600161 CH) has an innate advantage over other competitors, with more certainty in long term.

• CSPC Pharmaceutical Group (1093 HK) shares climbed nearly one-month highs after strong 2021 results and new drug approval. The company has recommended final dividend of HKD 0.10/share.  
• 2021 revenue increased 12% y/y to RMB28 billion, mainly driven by the growth in the finished drug businesses. This has eased concern of CSPC’s revenue sensibility to pricing headwind.
• The company is on track to launch more than 30 innovative and new-formulation drugs, and over 60 generic drugs in the next five years.

• The war in Ukraine has been driving up the share prices of Korean steel producers including Posco (005490 KS), Hyundai Steel (004020 KS), and KG Dongbusteel Co., Ltd. (016380 KS).
• On 20 March, the Azovstal steel plant, which is owned by Ukrainian steel and mining group Metinvest, was badly damaged by Russian shelling.
• The war in Ukraine has resulted in reducing the steel supply in Ukraine and raising the steel prices globally. Korean steel producers have been key beneficiaries of these events.

• Cimc Enric Holdings (3899 HK) posted a set of encouraging result for FY21. It achieved a 37.4% YoY growth in 2H21 even after a 77.5% growth in 1H21. 
• Management suggests that gross margin will improve in this year as measures have been taken to cope with the factors that lead to the 2.3pp contraction in FY21.
• Hydrogen energy is a bright spot – though contribution is still small, it expects to at least double its revenue in FY22, and remains bullish on the long term prospects.