Thematic (Sector/Industry)

The broader Topix index declined by 1.6% on the week, but remains up 17% year-to-date.
Shares in Koito rose 26% after the company unveiled a new MTP and a substantial ¥50 billion stock buyback program.
We believe that the med-tech space is worth watching. Nippon Active Value, Asset Value Investors and ValueAct are all now involved in the space.

[Blue Lotus Daily]:LI/ 1211 HK/ XPEV/ NIO

LI/ 1211 HK/ XPEV/ NIO: In the 12th week of 2024, new energy vehicles continued to maintain steady growth, BYD once again led and Li fell behind again（///////）
1211 HK : China to challenge Biden’s electric vehicle plans at the WTO (+)
NIO US: NIO US revised down C1Q24 delivery target. (+)

[Blue Lotus Daily – TMT Update]:NTES/BABA

NTES：Source stated that NetEase is developing a 6V6 Marvel IP third-person shooter game.（+）
BABA US : Analyst Call hosted by Alibaba regarding the withdrawal of the Cainiao IPO？（/）
BABA US : Alibaba to launch LLM for advertising. (+)

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Mar 29

Daily Brief Thematic (Sector/Industry): Ohayo Japan | S&P Hits Record: Japan Passes Budget and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | S&P Hits Record: Japan Passes Budget
AUCTUS ON FRIDAY – 28/03/2024
[Blue Lotus Daily]:1810 HK/ATAT/LI/XPEV/NIO/1211 HK

Ohayo Japan | S&P Hits Record: Japan Passes Budget

US Market Wrap: S&P 500 hits record, Dow inches higher; tech stocks lag.
Japan Budget: Parliament passes ¥112 trillion budget, emphasizing defense spending, inflation mitigation, and earthquake recovery.
Stocks Update: Mercari introduces Eco Mercari Delivery; Kubota’s construction equipment business grows; Mitsubishi Electric expands digital workforce.

AUCTUS ON FRIDAY – 28/03/2024

By Auctus Advisors

ADX Energy (ADX AU)C; target price of A$1.00 per share: Logging results at Welchau further derisk the discovery – The logging program has confirmed open fracture networks and vuggy porosity (matrix porosity) essential for well productivity coincident with hydrocarbon shows between 1346 m and 1702 m measured depth.
This represents 356 m of gross interval across three interpreted lithological sequences.
This compares with only 115 m of liquids-rich gas shows announced previously.

[Blue Lotus Daily]:1810 HK/ATAT/LI/XPEV/NIO/1211 HK

1810 HK: Multiple reports show that Xiaomi‘s new car reservations very popular, but is it effective to skip professional test drives and directly market to the car buyers?（/）
ATAT: Atour tests a 50% discount promotion on Sunday, bodes well for occupancy rates and revenue.(+)
LI/1810 HK/XPEV/NIO/1211 HK:The Cyberspace Administration of China publishes regulations on cross-border data flows, which may clear the way for Tesla FSD to enter China（////-/-//）

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Mar 28

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks Set New Record and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Stocks Set New Record
Global Semiconductors: Winners Emerge as Fund Allocations Hit Record Highs
[Blue Lotus Daily – TMT Update]BABA/BIDU/PDD/1024 HK/3690HK

Ohayo Japan | Stocks Set New Record

US stocks rebounded Wednesday, with the S&P 500 setting a new record and the Dow surging over 475 points.
Japan plans to ease residency rules for foreign entrepreneurs, expanding eligible funding sources to meet capital requirements, often challenging for startups.
Mitsubishi Heavy Industries (7011) aims to develop a next-generation airliner by 2035, involving multiple private-sector companies.

Global Semiconductors: Winners Emerge as Fund Allocations Hit Record Highs

By Steven Holden

Semiconductor Sector Hits Historic Highs: Record allocations highlight investor confidence in the sector as second phase of bull market drives allocations to fresh peak.
Country Dynamics Shift: Peak Ownership in Taiwan, USA, Netherlands, while German Semiconductor holdings see strategic pullback through Infineon closures.
TSMC, ASML, and NVIDIA establish dominance, reflecting investors’ preference for companies at the forefront of technological innovation, while traditional players like Infineon, Intel, and Texas Instruments face declining investor interest.

[Blue Lotus Daily – TMT Update]BABA/BIDU/PDD/1024 HK/3690HK

BABA/BIDU: Alibaba and Baidu follow up on long text LLM, the rise of startups is negative for Baidu（//-）
BIDU: Apple and Baidu Held Talks on Ernie Bot Pre-Installing IPhone IOS18（+）
BABA/PDD: Alibaba opens direct from factory 1688 store on Taobao (+/-)

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Mar 27

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Nvidia Loses Steam and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Nvidia Loses Steam
SC on Standardisation Rate for Medical Procedures: Likely Impact on Listed Hospital Players
Weekly Sustainable Investing Surveyor – NWeek Ended March 22, 2024

Ohayo Japan | Nvidia Loses Steam

The S&P 500 closed lower for the third consecutive session. Consumer confidence slips to lowest level since November
Meiji’s chocolate-themed “Mushroom Mountain” earphones vanished in 10 minutes, leaving fans craving more of the sweet sound experience.
Kirin’s “Sunny Wind” beer blows in with a refreshing taste and a breeze of tradition preservation.

SC on Standardisation Rate for Medical Procedures: Likely Impact on Listed Hospital Players

By Nimish Maheshwari

Supreme Court’s warning to enforce CGHS rates on private hospitals sparks market concerns, leading to a significant correction in hospital company stock prices.
Failure to standardize hospital pricing raises questions about patient affordability, quality of healthcare, and financial viability of private hospitals, impacting investors and healthcare consumers alike.
Explore the complexities of healthcare regulation, implications for hospital companies, and potential investment opportunities amid the evolving landscape of standardized medical treatment costs.

Weekly Sustainable Investing Surveyor – NWeek Ended March 22, 2024

By Water Tower Research

The WTR Sustainable Index was down by 1.1% W/W versus the S&P 500 Index (up 2.3%), the Russell 2000 Index (up 1.6%), and the Nasdaq Index (up 3.0%).
Energy Technology (12.5% of the index) was up by 1.5%, while Industrial Climate and Ag Technology (55.5% of the index) was up by 1.4%, ClimateTech Mining was down 3.0% and Advanced Transportation Solutions (24.2% of index) was down 8.1%.
Top 10 Performers: GOEV, AMTX, ZEV, LICY, LIDR, EVTV, FFIE, KULR, MVST, NEOV

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Mar 26

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Wall Street Ends Lower and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Wall Street Ends Lower
Global Easing Combined with a Resumption of Industrial Growth Is a Good Set-Up for Commodities
Furniture/Furnishings Weekly – SCS Results In Line; Home Sales Surprise on the Upside

Ohayo Japan | Wall Street Ends Lower

US stocks lost ground on Monday, the start of a holiday-shortened week, as investors await Friday’s inflation data
The Personal Consumption Expenditures (PCE) report is due on Friday, despite it being a market holiday. Core PCE expected to be up 2.8%
IHI Corp (7013) anticipates a 110 billion yen operating profit in fiscal year ending March 2025, rebounding from an 80 billion yen loss due to engine quality issue

Global Easing Combined with a Resumption of Industrial Growth Is a Good Set-Up for Commodities

By Rikki Malik

Central banks have set the stage for the next inflationary wave by moving to an easing bias despite higher inflation
The Federal Reserve, the BoJ, the ECB and the SNB all tilt to easing
US deficit spending together with China and Germany exiting an industrial recession bode well for industrial commodities

Furniture/Furnishings Weekly – SCS Results In Line; Home Sales Surprise on the Upside

By Water Tower Research

Steelcase delivered a solid fourth quarter and provided guidance consistent with our pre-release outlook.
Orders and pre-order customer activity remains positive. The results confirm that the post-pandemic slump in office furniture is ending, if not over.
Corporate customers are more active, particularly in the US.

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Mar 25

Daily Brief Thematic (Sector/Industry): Ohayo Japan | New Tech Highs and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | New Tech Highs
Siltronic To Exit Small Diameter Wafer Market by 2025
Social Surge

Ohayo Japan | New Tech Highs

US stocks closed mixed on Friday with the Nasdaq Composite hitting a new high amidst optimism over a potential reversal in interest rate hikes
Analysts anticipate a 10% rise in EPS for the Nikkei’s 225 constituents in fiscal 2024, with electronics and precision instruments leading the charge, driven by expected semiconductor demand growth
ANA Holdings, parent company of All Nippon Airways, announced plans to slash daytime air cargo rates, aligning them with trucking costs, in anticipation of an impending truck driver shortage

Siltronic To Exit Small Diameter Wafer Market by 2025

By William Keating

Ferrotec’s production of 150mm wafers in China has increased >6x since 2019
Siltronic’s production of 150mm and smaller wafer diameters is no longer profitable
China likely now self-sufficient in the supply of 150mm and smaller diameter silicon wafers. Next milestone: 200mm wafers.

Social Surge

By subSPAC

The last week was packed with SPAC activity including deals, terminations, and new IPOs.
A high-profile SPAC merger was approved by shareholders potentially netting billions to the former president.
Also, a sustainable plastics company terminates a previously announced deal, and a SPAC plans to take an IoT-focused firm public.

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Mar 24

Daily Brief Thematic (Sector/Industry): [Blue Lotus Daily – TMT Update]:SHEIN/PDD/NTES/6618 HK and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

[Blue Lotus Daily – TMT Update]:SHEIN/PDD/NTES/6618 HK

[Blue Lotus Daily – TMT Update]:SHEIN/PDD/NTES/6618 HK

SHEIN/PDD: France to restrict sales of fast – fashion (-/-)
NTES: After The Release of The New Expansion Pack For <Beyond the World>, It Climbed to the 3rd Position on iOS Games Grossing Chart in China (+)
6618 HK：JD Health’s revenue in 2H23 exceeded expectations, while profits fell short, and revenue and profit guidance for 2024 both worse than consensus（-）

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Mar 23

Daily Brief Thematic (Sector/Industry): Japan Weekly | Real Estate Inflates; Nidec Benefits from AI and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Japan Weekly | Real Estate Inflates; Nidec Benefits from AI
[Blue Lotus Daily]300274SZ/300750SZ/LI/NIO/1211HK/Huazhu/Atour/XPEV/9926 HK
AUCTUS ON FRIDAY – 15/03/2024
Tech Talk – WTR Technology Conference – AI and Crypto

Japan Weekly | Real Estate Inflates; Nidec Benefits from AI

The Nikkei and Topix indexes surged by 5.63% and 5.33% reaching all-time highs
Real Estate majors were the biggest movers in Japan. Beneficiaries of higher inflation and continuation of easy monetary policy
Nidec is reinventing itself again. EV traction motors will remain a core driver, but investors can now get excited by the AI thematic

[Blue Lotus Daily]300274SZ/300750SZ/LI/NIO/1211HK/Huazhu/Atour/XPEV/9926 HK

300274SZ/300750SZ/LI/NIO/1211HK: Jan+Feb new energy export data show that wind power is picking up, and inverters has reached inflection point, while lithium batteries and electric vehicles are exchanging prices for volume(+/-/-/-/-)
Huazhu/Atour: Huazhu guided conservative RevPAR outlook for 2024, citing weak business travel demand.（-）
LI/1211 HK/XPEV/NIO: In 2024’s 11th week, BYD continued to accelerate while fell back, yet the overall acceleration of new energy vehicles bodes well for the whole year (/)

AUCTUS ON FRIDAY – 15/03/2024

By Auctus Advisors

ADX Energy (ADX AU) C ; target price of A$1.00 per share: Very high impact exploration well encounters gas and condensate in Austria – The Welchau well (ADX WI: 75%) encountered 115 m of liquids-rich gas shows in the primary target formation (Steinalm Formation) between 1452 m and 1567 m.
The deepest gas shows were encountered at a depth of 1645 m.
The well has reached TD at 1733 m. The Steinalm Formation intersection in the well is in line with the pre-drill prognosis.

Tech Talk – WTR Technology Conference – AI and Crypto

By Water Tower Research

Artificial intelligence (AI) is all the buzz, but for good reason.
AI is being used to automate and optimize many tasks previously thought to be beyond computers.
WTR will be hosting a hybrid conference on April 10-11 in New York City to discuss how AI can propel the business prospects of smaller companies.

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Mar 22

Daily Brief Thematic (Sector/Industry): Show Me The (Dividend) Money (Part II) – Play on Japanese High Dividend Yielding Stocks and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Show Me The (Dividend) Money (Part II) – Play on Japanese High Dividend Yielding Stocks
Ohayo Japan | Stock Surge
Japan No Longer Cheap, at Fair Value Territory. Time to Be Selective!

Show Me The (Dividend) Money (Part II) – Play on Japanese High Dividend Yielding Stocks

By Mohshin Aziz

Given Japan’s meteoric share price surge in 2024, it is harder to find high yielding stocks
The high-yielding blue chip stocks were extremely popular with retail investors, and the value is now on the lesser known small-cap stocks
Our recommendations are Japan Tobacco (2914 JP) and Sankyo Co Ltd (6417 JP). For financial stocks, Tokai Tokyo Financial Holdin (8616 JP) .

Ohayo Japan | Stock Surge

Stocks continued their upward trajectory on Thursday, extending gains from the previous session to reach new record highs.
Micron Technology soared 14% on strong earnings, bolstering the semiconductor sector, while megacap tech stocks like Microsoft contributed to gains
The U.S. has accused Apple (AAPL -4.09%) of monopolizing the smartphone market, potentially upending the tech giant’s business model

Japan No Longer Cheap, at Fair Value Territory. Time to Be Selective!

By Mohshin Aziz

Tokyo Stock Exchange (TSE) and Bank of Japan (BOJ) coordinated efforts are working: deflation is over, equity values surging, and cash ratio as percentage of household assets is declining
Japanese investors’ participation in the equity run is modest, foreigners are buying more. While it seems unlikely at the moment, the pertinent question remains, “When will they stop dancing?”
Valuations are on par with historical averages and at similar gaps against developed market peers. The easy money had been made, Japan should be moved to tactically NEUTRAL soon.

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Mar 21

Daily Brief Thematic (Sector/Industry): Contrarian Moves: Promoter Buying During Indian Equity Downturns and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Contrarian Moves: Promoter Buying During Indian Equity Downturns
Bank of Jiujiang – Rare Announcement Expecting at Least 30% Profit Decline
Ohayo Japan | Fed Holds the Line
[Blue Lotus Daily – TMT Update]:NTES/ZTO/1519 HK/BABA/PDD/3690 HK/SHEIN
[Blue Lotus Daily]：300750 SZ/NIO/BGNE/1810 HK

Contrarian Moves: Promoter Buying During Indian Equity Downturns

By Nimish Maheshwari

Promoter buying reflects insider confidence in the company’s future, often driven by access to undisclosed positive developments and growth opportunities.
Increased promoter stake may indicate that the market has undervalued the company, potentially presenting an opportunity for investors to buy at a discount.
Consider the broader market environment, company fundamentals, and industry trends alongside promoter buying activity to form a comprehensive investment thesis.

Bank of Jiujiang – Rare Announcement Expecting at Least 30% Profit Decline

By Daniel Tabbush

The bank’s announcement that it expects at least a 30% decline in profit due to impairments is rare, in its clarity, not unexpected in the content.
There may be gaining momentum for banks in Greater China to more clearly show their credit metrics, which given economies there, are not likely to be positive.
Credit costs to loans have been in decline at this bank, and the surge they are forecasting, is understandable; perhaps partly given developments at China Evergrande?

Ohayo Japan | Fed Holds the Line

US markets surged to new all-time highs on Wednesday following the Federal Reserve’s decision to maintain its benchmark lending rate at 5.25%
The Japanese government faces pressure to streamline finances following the Bank of Japan’s decision to end negative rates
Japan welcomed 2.79 million visitors in February, a record for the month since the start of the COVID-19 pandemic, driven by travel during Lunar New Year holidays

[Blue Lotus Daily – TMT Update]:NTES/ZTO/1519 HK/BABA/PDD/3690 HK/SHEIN

NTES: <Identity V> Has Reached a New High In Download Rankings In The Past 12 Months (+)
ZTO/1519 HK/BABA/PDD: Parcel volume last week grew 21% yoy (+)
BABA/SHEIN: AliExpress launches new subsidies to attract woman’s apparel merchants (+/-)

[Blue Lotus Daily]：300750 SZ/NIO/BGNE/1810 HK