Thematic (Sector/Industry)

• Adobe shares surged 16% in after-hours trading following better-than-expected Q2 results.
• Tesla shareholders ratified CEO Elon Musk’s contentious 2018 pay plan at the annual meeting in Austin
• Kirin Holdings plans to acquire the remaining 67% of Fancl, aiming to fully own the skincare and supplement company amid declining beer sales.

• Global semi sales for April ’24 were $46.4 billion,  +15.8% YoY & +1.1% MoM
• WSTS now forecasts a 16.1% increase in 2024 semi sales, up from 13.1% in their previous forecast
• We think the WSTS forecast for Memory is too high & their forecast for Logic is too low. Excluding memory, the WSTS forecast reflects just 3.1% growth in 2024.

• Aging population, coupled with under-development of retirement pensions, is the major headwind against enhancing consumption; 
• The headroom of urbanization as a driver for enhanced consumption is not as big as depicted;
• Residential housing has, over the years, become the social safety net for the Chinese. Therefore, the bust of the property market takes many years, if not decades, to heal. 

• Ambuja Cements (ACEM IN) to Acquire Penna Cement for Rs. 10,422 Crore
• Puravankara Projects (PURVA IN) raising 1000 Cr via QIP and Vodafone Idea (IDEA IN) approved 2458 Cr Preferential allotment
• Upcoming 53rd GST Council Meeting to Address Key Taxation Issues

• JPMorgan’s new fund focuses on obesity treatments, especially popular yet scarce GLP-1 drugs
• Chinese automakers sold more cars than US brands, marking a significant market shift
• Tesla shares rise as Musk anticipates shareholder approval of his controversial $56 billion pay package

• 1211 HK/300750 SZ: Geely and SK Group sign cooperation agreement to deepen cooperation in batteries and components.(-/-)
• BEKE US: PBoC urge local governments and banks to implement the affordable housing re-lending program.(+)
• LKNCY US: Luckin expands its non-coffee drinks, selling 5.08 million cups of lemonade in a week(/)

• BABA US/9699 HK/DADA US /JD US /PDD US /ZTO US /1519 HK/3690 HK:Taobao/Tmall to open one-hour delivery option to merchants on its platform (+/+/+/-/-/-/-/-)
• NTES US: NetEase showcased their latest tactical shooter game, <FragPunk>, which is expected to launch in 2025.(+)
• TCOM US/ATAT US : Travel consumption remained moderate during the Dragon Boat Festival.(-/-)

• Although this note does not encapsulate a trade idea, the fallout from the Capital Management Limited’s (Segantii) insider dealing case has impacted certain event trades, as the fund winds down.
• On the 2nd May, the SFC commenced criminal proceedings against Segantii, its founder/  director/CIO Simon Sadler, and former trader Daniel La Rocca.
• In the Eastern Magistrates’ Court this morning, we heard the prosecution’s request to transfer the case to the District Court. 

• US CPI remained flat over previous month and rose 3.3% over May last year – a slight deceleration
• The Federal Reserve concluded its two-day policy meeting on Wednesday by keeping interest rates unchanged in the 5.25%-5.50% range
• Japanese companies announced record share buybacks of ¥9 trillion ($57 billion) from January to May, up 60% from the previous year.

• With the “Postcard” series, our objective is to bring to our readers on-ground insights based on interactions across key channels located in tier 2 and tier 3 locations.
• Uttar Pradesh (UP) is crucial in Indian politics with the most Lok Sabha seats and has a diverse economy focused on agriculture, services, and manufacturing.
• We are trying to be optimists, but it’s hard to ignore the ground realities, especially when compared to a much less developed and smaller nation like Nepal. 

• The best-of-the-breed constituents are those that outperformed HSI YTD, rallied more than the Index in the Apr-May rebound, and retreated less than the Index in the May-Jun retreat. 
• Only 4 out of the 82 HSI members made it – China Hongqiao (1378 HK), Tencent (700 HK), China Construction Bank (939 HK), and Orient Overseas International (316 HK). 
• Their fundamentals look to stay strong, while both valuation and dividend yield appear to remain undemanding despite share price strengths. 

• Tata Motors Ltd (TTMT IN) and Dollar Industries guided for their upcoming years and expansion strategy.
• India’s Retail Inflation eases to Lowest Since May 2022, now market is waiting for rate cut.
• HCL Technologies (HCLT IN) to Establish Product Innovation Centre for Olympus in Hyderabad

• Initially planned around meeting a Chairman of an exciting listed company (to be covered separately), Altraman’s recent trip to Manila quickly morphed into a slew of meetings with other enterprises.
• His first stop was the Philippines Stock Exchange (PSE.PS) – the holding company itself being a potential play on the market as a whole, where he learned of catalysts such as soaring fintech-driven retail investor participation and government reforms to slash transaction costs.
• Further afield in Quezon, Altraman met with D&L Industries (DNL.PS), a raw materials manufacturer serving many of the country’s blue chips and multinationals. 

• 1024HK:  Kuaishou has launched its AI video generation tool “Kling” and has begun invite-only testing.(+)
• BABA US/BIDU US: Alibaba publishes GPT-4 level AI LLM model Qwen2 (+/-)
• NTES US:NetEase announced that <World of Warcraft Classic> will begin a public server stress test on June 11th. The Blizzard platform“Battle.net“has already opened for login today.(+)

• 300750 SZ: US lawmakers called to ban CATL and Gotion batteries to US.(+)
• 1211 HK/XPEV US/NIO US/1810 HK:BYD’s two models equipped with DM-5 exceeded 80,000 pre-order in two weeks.(//-/-/-)
• LI US/XPEV US/NIO US/1810 HK: /In the 23rd week of 2024, LI’s electric vehicle deliveries is leading the way, but most of them have fallen back.(///////)

• April, which along with October is the month when many Japanese FMCG brands adjust prices, saw far fewer price hikes this year compared to 2023. 
• Even so, numerous major brands still announced hefty price increases for later in the year.
• Meanwhile, government subsidies for utility costs are ending and the weak Yen is an increasing concern for many consumer-facing companies. 

• UBS merger with Credit Suisse sparks concerns over reduced competition and higher financing costs
• EU announces tariffs on Chinese electric vehicles, risking trade tensions with China
• Preliminary wage deal at BHP’s Spence copper mine averts potential costly strike

• SEBI released consultation paper to reassesses stock derivatives eligibility criteria in line with the market growth.
• Aiming to improve liquidity and reduce manipulation with new entrants and removal of some illiquid stocks.
• Nuvama released list of stocks that can be possible part/exit from F&O if this consultation paper implemented.

• U.S. stocks mostly climbed on Tuesday, driven by a surge in Apple Inc., which soared 7.3% to a new record, marking its largest gain since November 2022
• Japan and the U.S. to enhance defense industry cooperation, focusing on joint missile production, ship and aircraft repair
• Daiwa Securities Group will acquire a 25 billion yen ($159 million) stake in Japan’s Aozora Bank, raising its ownership to about 20%.

• ASPEED blazing a trail with 92.9% YoY revenue growth in May
• Quanta, WiWynn, TSMC and Nanya all > 30% YoY revenue growth in May
• TSMC looking likely to exceed 30% YoY revenue growth in 2024

• Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;
• If we trim the consumption of Japan and US by adopting China’s definition, China actually over-consumes, both by GDP and by individual categories;
• If we expand and align China, Japan and US to consist the same categories, the conclusion of China underconsumption becomes true. The categories belong to an older and wealthy society. 

• State Bank Of India (SBIN IN) and Union Bank Of India (UNBK IN) Board Approves Fundraise in form of Debt and Equity
• Tata Steel Ltd (TATA IN)‘s £1.25 Billion Investment at Risk Amid UK Political Uncertainty
• Jubilant Foodworks (JUBI IN)’s India Reaches Milestone of 2,000 Stores, Plans Further Expansion

• Apple (AAPL US) ’s AI debut was going to be a complicated one considering challenges highlighted privacy concerns over partnership with Chat GPT.
• General Motors (GM US) Approves $6 Billion Share Buyback Amid Strong Gasoline Vehicle Demand
• Alaska Air Group (ALK US) Loses Appeal in $160 Million Trademark Case with Virgin America (VA US) Group

• There’s a gold rush in the world of AI for not just GPUs, but for datacenters and the power connections that supply them.
• Imagine this, you just bought 100,000 GPUs from Nvidia and you don’t have a place to put them or the power to feed them.
• Not being first to market is a huge cost, as the GPU pay back times are very quick right now even for the H100.

• The WTR Sustainable Index was down 3.6% W/W versus the S&P 500 Index (up 1.3%), the Russell 2000 Index (down 2.1%), and the Nasdaq Index (up 2.5%).
• Energy Technology (14.6% of the index) was down by 4.6%, while Industrial Climate and Ag Technology (58.5% of the index) was down by 3.4%, ClimateTech Mining was down 8.5%, and Advanced Transportation Solutions (21.0% of index) was down 2.9%.
• Top 10 Performers: RCKTF, NVVE, ROOF, CVW, GMGMF, NAAS, WPRT, OESX, COMM, AMSC

• Nvidia’s 0.8% rise, following its 10-for-1 stock split, and Meta Platforms’ nearly 2% jump propelled the S&P 500’s tech sector up by 0.3%
• At WWDC24, Apple unveiled major updates, including “Apple Intelligence” AI features across its devices, and integration of OpenAI’s ChatGPT with Siri.
• Hitachi Energy plans an additional $4.5 billion investment by 2027 to enhance its global manufacturing, R&D, and digital capabilities, doubling its recent three-year investments

• Intel, AMD & Qualcomm all lined up in support of Microsoft’s CoPilot+ PC program during the Computex 2024 keynotes last week.  
• While Qualcomm is all in and AMD mostly too, Intel’s support is more passive agressive in nature. We outline how & why this is the case
• On Friday June 7, reacting to customer feedback, Microsoft announced that their CoPilot+ Recall feature will now become disabled out of the box by default. Ouch!

• Overall, the surge in CAPEX in India reflects a positive outlook for the economy, with investments in infrastructure and emerging sectors driving growth and innovation.  come.
• The strong balance sheet of companies and healthy tax collections further support this trend, indicating a sustainable path towards economic development. 
• As CAPEX continues to rise and investments in key sectors increase, India is poised for continued growth and prosperity in the years to

• Gail India (GAIL IN) to Invest Rs 60,000 Crore in Ethane Cracker Project in Madhya Pradesh.
• Suzlon Energy (SUEL IN) Director Resigns Citing Governance Concerns in his letter
• Masdar, JSW Energy Ltd (JSW IN), Torrent Power (TPW IN) , and More Eye Enel’s Indian Assets

• Much ado has been made about Nvidia’s valuation recently surpassing Apple’s, standing at a gobsmacking $3 trillion.
• For context, it would take you nearly 100,000 years to count to 1 trillion.
• But where there’s sky there’s limit, and NVDA is no exception. So the question begs: has NVDA’s valuation flown too close to the sun?

• Noble expands fleet and operations, acquiring Diamond Offshore in major merger
• Southwest shares soar as Elliott Investment plans $2 billion recovery strategy
• Europe attracts Chinese EV makers with incentives despite looming EU tariffs

• A rough week for smaller-cap stocks without AI exposure.
• The WTR Commercial/Contract Furniture Index (-6.9%), Residential Manufacturers & Suppliers Index (-1.4%), and Home Goods Retailers Index (-1.3%) underperformed the Dow (+1.2%), S&P 500 (+1.2%), and Mass Retailers Index (+1.9%), all of which benefited from the growing AI hype this week.
• This performance seems to be partly due to the overall weakness of small caps, with the Russell 2000 clocking in (-1.7%).

• It was a lackluster week for cannabis stocks, with the US cannabis MSOS ETF sliding 3.87%, while the global YOLO dropped 4.27%.
• Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) was the only major MSO in the black, as investors were modestly encouraged by the Boston Beer Company (NASDAQ: SAM) conversation.
• Last Tuesday, we learned Green Thumb Founder, Chairman, and CEO Ben Kovler sent a letter to Boston Beer’s Founder and Chairman James Koch proposing a merger between the two companies. 

• The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: China Caixin PMI, South Korean trade and inflation data.
• Companies mentioned:Taiwan Semiconductor (TSMC) (2330 TT), Trip.com Group (9961 HK), JD.com (9618 HK), Lenovo (992 HK), Alibaba Group Holding (9988 HK), Meituan (3690 HK)

• Overall, the introduction of the price-linked tick size mechanism by the NSE is a positive development as it leads to improving market efficiency and enhancing price discovery. 
• This move is likely to benefit investors by reducing slippage costs and improving liquidity, especially for small-cap and mid-cap stocks. 
• The move is also evidence of intense competition between NSE and BSE. BSE earlier was the only exchange to offer reduced tick size.

• Global markets retained their positive momentum as weak U.S. economic data renewed concerns about the growth outlook.
• Next week is set to be eventful, with the FOMC and Bank of Japan meetings on the agenda. The FOMC, expected to maintain policy rates, might offer few surprises.
• Oil prices, after a five-day decline, rebounded as OPEC+ extended production cuts through 2025.

• April marked the record-breaking streak of eleventh consecutive month of record-high global temperatures and the 48th consecutive April above the 20th-century average.
• NOAA predicts a 61% chance that 2024 will be the warmest year on record and a 100% chance it will rank in the top five.
• One hundred national records have been broken for extreme heat since 2014. Death Valley in US holds record at 54.4C. Competition to break that is not too far.

• Rapid growth in India’s senior living sector, fueled by demographic changes and preferences for quality elderly care and lifestyle options.
• India’s rising needs of senior care and startups and listed companies growing in the space
• Under penetrated market, evolving needs and preferences of seniors; underscores investment potential in senior living; emphasizes the importance of specialized care for ageing populations.

• RBI keeps the repo rate at 6.5% for the eighth consecutive meeting.
• Adani Ports & Special Economic Zone (ADSEZ IN) secured a Letter of Intent for Kolkata Port’s container terminal.
• Tata Steel Ltd (TATA IN) in talks with Dutch government for €3 billion decarbonisation funding.

• NIO US: NIO’s losses expanded in the first quarter of 2024, and C2Q likely will see better numbers.(/)
• NIO US:  Nio plans to launch the 3rd brand in December to target low end market.(/)
• LI US: LI L6 production capacity ramps up and delivery cycle shortens(+)

• Regular readers of this blog may know that I love tinkering with setups.
• Recent profitable ideas of late have come from identifying mispriced situations primed for profit e.g. TDS-PV and FF .
• Whilst a lot of focus in investing is on deep diving the fundamentals, the first easy pennies are often acquired via identification of a profitable set-up and thus, being able to identify profitable patterns is an important skill to hone.

• Microsoft’s $650 million investment in Inflection under FTC investigation for potential undisclosed acquisition.
• Texas introduces TXSE Group, backed by BlackRock, challenging NYSE and Nasdaq dominance.
• Saudi Aramco’s $11.2 billion stock offering supports Saudi Arabia’s economic transformation.

• Criterium Energy (CEQ CN) C: target price of C$0.35 per share: Re-iterating production guidance – 1Q24 production was 802 bbl/d with average realized price of US$82/bbl.
• This is in line with our expectations.
• Operating netbacks for the period stood at C$2.2 mm, also in line with our expectations.

• We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
• Portfolio changes: Four stock remains, 10 stocks added into portfolio
• Since its inception, it has generated a before-fee total return of 187% versus the MSCI Asia ex Japan of 78%

• We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
• Portfolio changes: Five stocks remain, nine stocks added to our portfolio
• Since its inception, the portfolio has generated a before-fee total return of 255% versus MSCI ASEAN’s 30%

• Singapore’s major banks – DBS, OCBC, and UOB – have set sector-specific emissions targets for indirect emissions related to financial activities, known as Scope 3 “financed” emissions.
• Collectively, these sector targets span ten carbon-intensive sectors, represent S$200+ billion in corporate loan portfolios, and cover the majority of the banks’ total financed emissions.
• Financed emissions targets facilitate decarbonisation of emissions-intensive clients, reducing climate-related risks and creating opportunities for new and innovative financial products.

• China’s toll road sector has gone up by 47.4% since 2022, but it remains an excellent yield play with an average yield of 7.2% and 7.8% in FY24 and FY25.
• 1Q24 profit is solid, with 3-year forecast earnings CAGR at a healthy 6.5%. Anhui Expressway H (995 HK) and Jiangsu Expressway (H) (177 HK) have the most consistent DPS trend.
• We like Jiangsu Expressway (H) (177 HK) for its track record and growth prospects. As a relative underperformer in the sector, it is poised to catch up.

• Goldman Sachs: Coalition Management Key for BJP as Economic Stability Persists
• Zee Entertainment Enterprises (Z IN) to Raise Rs. 2,000 Crore Following Sony Deal Fallout, Spicejet Ltd (SJET IN) is also planning to raise funds in coming months
• RBI Approves Kotak Mahindra Bank (KMB IN)’s 70% Stake Sale in Insurance Arm to Zurich Insurance

• ECB Delivers ‘Hawkish’ Rate Cut Amid Revised Inflation and Growth Projections
• Devon Energy Missed Out on the US Oil and Gas Mega-Deal Wave
• Salesforce to Launch Flagship AI Center in London, Part of $4 Billion UK Investment

• 3690 HK: The prevalence of short-distance trips bodes well for Metiuan, albeit long-distance trips remain lukewarm.(+)
• 700 HK: NPPA Released the June Import Game Code Approvals, and Tencent’s <VALORANT Mobile> received approval.(+)
• SHEIN/4385 JP: SHEIN expands its C2C shopping platform into Europe (+/-)

• The S&P 500 surged to a new high of 5,354.03, driven by Nvidia’s record-breaking performance and optimism around potential Federal Reserve rate cuts
• Japanese space debris remover Astroscale achieved a $1 billion market valuation on its Tokyo Stock Exchange debut.
• Shares of Lasertec fell 9% to 35,130 yen on June 5, closing 8% lower at 35,560 yen. The drop followed a report by Scorpion Capital alleging fraudulent accounting.

• The Indian market saw correction due to a lower mandate for the ruling government in the current elections hinting towards moderate policy-level reforms. 
• Election outcome is having impact on ruling government’s various agendas and reforms.
• Historical trends suggest this crisis creates opportunities for long term investing

• Nvidia’s stock soars 15%, aiming to make shares more accessible
• TotalEnergies invests £450 million in UK power plant, enhancing renewables
• Consolidation trend observed in Singapore’s office market amid tech shifts

• Hindalco Industries (HNDL IN) Postpones Novelis Corporation (0620365D US) IPO Amid Market Considerations
• Tata Motors Ltd (TTMT IN)‘s Tata Motors Finance to Merge with Tata Capital
• National Stock Exchange (NSEIN IN) Sets World Record for Highest Number of Transactions in a Single Day

• Paul Karazuba is the vice president of marketing at Expedera, an NPU IP startup in Silicon Valley.
• NPU, or neural processing unit, is a key topic of discussion in the podcast, with its unique ability to process at a much lower wattage compared to CPU and GPU cores.
• The necessity for dedicated NPU cores in running AI workloads, to allow CPU and GPU cores to focus on other tasks, is highlighted by both Paul and Austin.

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

• India’s stock market dropped $386 billion after election results showed a narrower-than-expected lead for Modi
• Intel’s CEO introduced new AI products at Computex, challenging Nvidia’s market dominance
• Chinese companies rush to raise funds amid a stock market rebound, driven by investor optimism and future uncertainty

• Weaker-Than-Expected job openings data prompted hopes for Fed rate cuts, pushing Treasury yields down for the fourth consecutive day
• A coalition of over 400 Japanese companies plans to establish a $1 billion fund by September to enhance hydrogen supply chains
• UNIQLO’s May 2024 same-store sales in Japan, including online, rose by 8.4% year-on-year, attributed to strong business during the Golden Week holiday

• McDonald’s uses price pack architecture with varying prices for different purchasing methods
• Pricing strategies raise questions about fairness, data privacy, and macroeconomic implications
• Surge pricing in fast food is already present, similar to dynamic pricing in other industries

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

• What will be implication in case of weaker Modi & BJP mandate?
• Public Sector and State-Owned Bank Shares Plunge whole day after poor BJP tally during counting.
• Improvement in Tata Steel Ltd (TATA IN)‘s credit profile by FY25 and Higher RoCE for Bharti Airtel (BHARTI IN) and Reliance Industries (RIL IN) 

• PDD/SHEIN/AMZN: U.S. CBP suspends customs brokers handling cross-border parcels for Temu and SHEIN (-/-/+)
• BABA US/JD US/PDD US/3690 HK:The upcoming regulatory policies on internet platform fees should not be overly negatively interpreted(///////)
• BABA US/JD US/3690 HK/1810 HK:Beijing Follows up with Subsidies for Replacing Old Appliances with New Ones, but National Subsidies Are Still Lacking(+/+/+/+)

• BEKE US:  Takeaways from Beike Investor Day on June 3(/)
• 9926 HK: Akeso adds sales rights to AK112 in developing countries, possibly preparing for overall sale(/)
• 1211 HK/ LI US: BYD launches fifth-generation hybrid petrol-electric technology, which can run 2,100 kilometers on full-tank+full-battery(///)

• Welcome back to the portfolio updates series!

• I recently read Michael J. Mauboussin’s book, More Than You Know, which is full of practical investment lessons drawn from various fields not necessarily related to investing.

• The quote below is from a chapter discussing market efficiency and cautioning investors against misusing behavioral finance to conclude that humans are irrational, and therefore, markets must be irrational as well.