Thematic (Sector/Industry)

• CSPC Pharmaceutical entered into an exclusive license agreement with AstraZeneca for the global development, manufacture, and commercialization bad cholesterol lowering drug candidate YS2302018.
• Ono Pharmaceutical entered into a license agreement with LigaChem Biosciences for LCB97, a pre-clinical stage antibody-drug conjugate (ADC) aimed at being a first-in-class drug in the field of solid tumors.
• The U.S. International Trade Commission (ITC) has issued final ruling in favor of Hugel. This should accelerate Hugel’s business expansion in the U.S.

• Resilient macro data fueled an all-time high for the S&P 500 (+1.1% week-on-week), suggesting continued optimism in the market.
• In Japan, equities performed well with the Nikkei +2.5% and Topix +0.5% higher as earnings remained supportive.
• With earnings reports from major companies like ASML, DISCO, and TSMC approaching, semiconductor stocks may dictate overall market moves next week.

• Seven Taiwan semi companies from our list of sixteen are now showing negative YoY monthly growth as of September 2024, up from just three a month earlier
• Companies with a strong exposure to the AI Acceleration market are on track for strong revenue growth YoY in 2024. ASPEED is on track to double revenues this year. 
• For many of the remainder, what tepid growth they had been experiencing may be starting to stall. Watch this space. 

• GeoPark (GPRK US)C; Target price US$26 per share: Downtime and blockades continue to impact production.
• All eyes on Argentina – 3Q24 production was 33,215 boe/d with production in Colombia still impacted by downtime and blockades (we expected 34.6 mboe/d).
• Production at Llanos-34 continues to decline.

• The Global Emerging Markets Weekly summarises the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: China NDRC press briefing, South Korean interest rates
• Companies mentioned:Tencent (700 HK), Baidu (9888 HK), Samsung Electronics (005930 KS)

• Tech largely down in the US after AMD’s AI event failed to impress with somewhat conflicting CPI and jobless data.
• A strong print for Fast Retailing will add to short-seller woes although some brokers have started cutting estimates after the outsized move.
• 7&I announced a flurry of restructuring initiatives aimed at raising corporate value and fending off Couche-Tard before its too late.

• Resourceful Auto’s IPO saw a staggering subscription of 400 times, but its current market price is half its IPO value, revealing a troubling trend in SME IPOs.
• Many SME IPOs exhibit a “subscription mirage,” creating misleading impressions of value, while underlying businesses often lack sustainable operations and liquidity.
• Investors must prioritize fundamental analysis and awareness of liquidity risks over hype, especially in a market increasingly resembling Ponzi-like characteristics.

• NIO US/XPEV US/1810 HK/LI US: Electric vehicle sales were strong during the two weeks of the National Day holiday, with NIO, Leap, Zeekr, Xiaomi and Tesla performing better(///////)
• Consumer sector: Steady Growth in Catering and Retail Consumption During the National Day Holiday(+)
• Consumer sector: WeChat reports 20% YoY increase in transaction volume during National Day Holiday (+)

• Transition from the Internet era of servers to the AI era of backend
• Software advancements are outpacing silicon capabilities
• Question raised about who will benefit from advances in AI technology, particularly in terms of hardware market competitiveness

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

• We must recognize the wide variance in credit growth rates across Asian countries
• There are critical implications for differences in net interest income growth and profit
• Credit metrics also tend to move in tandem with loan growth rates, as does GDP growth

• One of the sectors we like for the next phase of the Japanese stock market
• The market is not giving the benefit of the doubt to monetisation of its property portfolio
• The core  railway business is back to pre-Covid 19  levels

• 3690 HK: Meituan’s Overseas Version, Keeta, Launches in Riyadh, Saudi Arabia(/)
• PDD US/BABA US/JD US: PDD to provide double compensation for overpriced product (//-/-)
• 700 HK/BABA US: Taobao now accessible through webpages in WeChat (+/+)

• Stocks advanced for a second straight session Wednesday, with the S&P 500 and Dow Jones Industrial Average closing at record highs
• Japan’s Prime Minister Ishiba dissolved parliament for an October 27 snap election, seeking mandate amid low public support due to a fundraising scandal
• Canadian retailer Couche-Tard has increased its takeover offer for Seven & i Holdings to $47 billion, up from $38.5 billion

• Risk on sentiment takes hold ahead of key CPI print tomorrow; yen weakness will drive the NKY higher.
• Big gains for Japanese department store duty-free sales over the Chinese Golden week holiday bodes well for the likes of Isetan Mitsukoshi.
• Cat 5 Hurricane Milton making landfall should put further pressure on the JP non-life/P&C plays Sompo, MS&AD and Tokio Marine.

• There is a sharp and accelerating rise in deposits with Hong Kong’s banks, likely from Mainland China in part
• There is no offsetting lending volume, where loan growth remains still negative, not a positive combination for net interest income
• The LDR for Hong Kong’s banks is fast approaching the distressed levels seen during the Global Financial Crisis (GFC)

• At least 10% deposits will invest in Chinese stocks in the future.Together with US$2 trillion capital that stranded overseas will flow back, 3,500 Shanghai Composite Index is just the beginning.
• After the monetary policy, we expect to have accompanying fiscal stimulus policies introduced. However, short-term challenge lies in the uncertainty of macro environment that potential depression/Middle East war might bring.
• Investors can consider taking profits in time for the surge in Chinese stocks,and then prepare to position themselves for the inflation trade opportunities that the dollar depreciation will bring later.

• We analyzed the historical data of wars and its impact on financial markets.
• Nifty 50’s performance shows short-term fluctuations post-conflict but generally stabilizes, highlighting market resilience and investor sentiment shifts during uncertainty.
• Diversification, Long term investment perspective and Govt Bonds help in these kind of situation to make portfolio stable.

• Last month, the DOE published a paper about the commercial liftoff of Advanced Nuclear. 
• Larry Ellison mentioned that SMRs (Small modular reactors) will power data centers in the future, and Microsoft will unshutter 3 Mile Island for one last puff of a half-smoked cigarette. Just a few years ago, it was closed for economic reasons.
• This is going to be the first in a series about Nuclear Power. Today, I’ll talk about Nuclear Reactors and the basics.

• NVDA lifts markets on comments from Hon Hai Chairman that demand for Blackwell was ‘crazy’.
• Oil related names in JP will follow US lower on the drop in oil, despite Hurricane Milton having the potential to disrupt production.
• HK futures finding off the lows overnight should point to upside for related China names in Japan to start; Gamers to be sold heavily after PIF sale.

• U.S. stocks rebounded Tuesday as oil prices retreated, easing Middle East tensions concerns
• Tech stocks led gains, with Nvidia and Broadcom up 4% and 3% respectively
• The Tokyo Stock Exchange’s CEO emphasizes the growing importance of shareholder dialogue in Japan’s corporate governance reform.

• TCOM US: Overseas Travel for National Holiday Grow Faster than Domestic Travel, Potentially Signaling the End of Consumption Downgrading (+)
• PDD US: PDD announces another support plan for “quality merchants” (/)
• BABA US/JD US/002352 CH: E-commerce players intensify logistics competition in Hong Kong (////-)

• 300750 CH/1211 HK:A fire broke out at CATL’s Fujian factory, negatively affecting its safety image (-)
• 1211 HK:BYD recalls close to 100,000 vehicles, mainly produced in 2022-23 (/)
• 1519 HK/ZTO US: Parcel volume collection +40% yoy in prior week (+)

• The South African All Property Index (J803) continued its strong 2024 run in September, rising by 5.16% for the month, taking the index’s 2024 Total Return to 29.73%.
• The third quarter saw a 19.14% total return, and all three months delivered positive returns. On a rolling one-year basis, the J803’s Total Return has been very robust at 46.98%. 
• The sector shrugged off concerns that it may start to run out of steam, and as several companies posted better than expected annual results and pre-close updates during the month.

• Two decades ago, graphene hit the headlines after two professors at University of Manchester managed to isolate a slice of the just one-atom thick substance using scotch tape
• Marketed as being 200 times stronger than steel, graphene rapidly gained “wonder material” status and spawned a tidal wave of graphene based products, companies and investment opportunities
• At least four “Graphene” companies listed on London’s AIM, collectively once worth north of $1 billion, have either delisted or been reduced to penny stock status. 

• Server related names higher after some big sales numbers and new product launches from SMCI should be a positive for Nidec
• Watch for P&C weakness in Japan following losses for peers overnight as Hurricane Milton intensifies as it approaches the Florida coast line
• Oil back above $80 will continue to push related names higher; possible refiner pair with 4 days of TPX FFW selling for recent outperformer Idemitsu

• U.S. stocks declined on Monday as Treasury yields hit multi-month highs and oil prices surged
• Essilor Luxottica, the global eyewear giant behind Ray-Ban, has acquired a 5.10% stake in Nikon
• Tokyo Metro announced IPO preliminary share pricing of 1,100-1,200 yen, with final pricing to be determined through book-building from July 8-11

• Weekly HFD for large US banks are turning positive in several areas, making the mosaic even stronger than if just as single series were improving
• Loan growth for the largest US banks is now positive even if low, but moving from a negative rate of growth, the trajectory is a steady improvement
• Loan loss reserves growth is lowering, suggesting bettering LGD and PD while large time deposit growth is down substantially, improving liquidity risk (which can impact credit)

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, HIMS and unapproved GLP-1 sellers (LFMD) were put on notice by the FDA.
• KZR’s study was stopped and placed on clinical hold, but the stock rose.

• A mixed week for furniture and furnishings stocks as technology stocks once again drive the market.
• The Water Tower Research Commercial/Contract Furniture Index (-1.7%) and Home Goods Retailers Index (-3.9%) were both down for the week, while the Residential Manufacturers & Suppliers Index (+1.2%) was up.
• The Mass Retailers Index was basically flat (+0.1%), while the three major indexes were all down modestly, with the S&P 500 and DJ30 both down (-0.2%) and the R2K down (-0.8%).

• China announced significant economic measures to stimulate its markets and address ongoing challenges
• The S&P 500 started Q4 on a volatile note with concerns around the U.S. labor market, Middle East tensions, East Coast port strikes, and the approaching U.S. presidential election
• This week, the Nikkei experienced significant volatility, closing 1,193 points lower, marking its first weekly decline in four weeks

• US stocks rallied Friday, with the S&P 500 gaining 0.9% to 5,751 and the Dow adding 300+ points to set a new record
• Japanese companies’ capital investments in China dropped 16% year-on-year in Q2 2023, falling below European investments for the second consecutive quarter
• Yaskawa Electric reported its first quarterly order growth in two years, with a 1% increase to ¥126.3 billion.

• Japan to follow US higher on the much better-than-expected jobs report and the yen back to 148.9
• Exporters including the Autos with high US exposures as well as Inbound related laggards such as Isetan Mitsukoshi and Shiseido/Kose should see sentiment improve
• The strong US data should also help the JP Shippers rebound after dropping -8.2% on Fri on the end of the US port workers strike

• The Global Emerging Markets Weekly summarises the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: Chinese PMI data, South Korean trade and inflation data.
• Companies mentioned:NIO (9866 HK), ByteDance (1439927D CH), Bharti Airtel (BHARTI IN), Samsung Electronics (005930 KS)

• China’s NMPA aims to redouble efforts to facilitate research and market registration of homegrown innovative drugs, while speeding up the introduction of novel foreign drugs to the domestic market.
• Since the BoJ interest rate hike in July, the Yen appreciated ~5% to ¥142.74. Considerable amount of appreciation may be dilutive on the overall performance of export-oriented healthcare industry.
• Sigma Healthcare (SIG AU) has offered remedial measure to alleviate preliminary anti-competition concerns raised by ACCC in relation to its proposed merger with CWG.

• HK and China RE stocks on average rallied 20% and 174% respectively, since the US started rate cut and China’s huge economic stimulus
• Based on trading flows, positioning, and valuation, it is not too late to chase the rally.  The timing, the language and the form of Chinese policy announcements are un-precedented
• Don’t fight against Beijing!  We analyze upcoming catalysts and risks.  Next Tuesday is a key time to watch due to potential policy window and trading resumption of Chinese equities. 

• This report is almost entirely based on datamined from technical publications related to patents and innovations in the area of Odontology.
• The industry will see significant consolidation as mid-sized and smaller players with inspired innovations are be bought out as the industry seeks more cost-efficient distribution channels
• Among the listed companies 3M Co (MMM US) , Dentsply International (XRAY US) , Align Technology (ALGN US) , Envista Holdings (NVST US)  & Straumann Holding (STMN SW) stand out. 

• AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price A$0.75 per share: Welchau is about oil rather than gas: perhaps smaller but higher value boe – Welchau is now interpreted as a light oil rather than a gas condensate discovery based on detailed analysis of samples recovered from the well and other well data.
• While this means that the energy equivalent hydrocarbon volumes may be smaller than the original pre-drill estimates, onshore oil can be more valuable than gas to a small company due to the ability to produce and progressively develop a field without having to first prove up sufficient reserves to underwrite a pipeline and secure a gas contract.
• Welchau is estimated to hold 90-95% oil and the production from Welchau-1 could be trucked to a point of sale or to ADX’s existing 3,000 bbl/d Anshof facility for processing when stable flows can be established.

• This note is a weekly (select weeks on SK) curated selection of Chinese news articles and company announcements focused on developers in distress
• We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
• We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to the sources

• With the HSI surging 21.2% since 24 Sep and many stocks have even doubled, the strategy in the HK and China markets will move to chase the laggards.
• Among the underperforming HSI constituents, China Resources Power (836 HK) and China Mobile (941 HK) are the better candidates to pick up performance. 
• For HSCEI, Zijin Mining Group Co Ltd H (2899 HK) and China Shenhua Energy Co H (1088 HK) have lagged but their stories are interesting and should regain momentum.

• U.S. stocks edged lower Thursday as investors remained cautious ahead of Friday’s crucial jobs report, with the S&P 500 dropping 0.2%
• Bank of Japan board member Noguchi suggests further interest rate hikes should be slow and cautious to protect the economy
• UBE announced its largest-ever acquisition, buying LANXESS’s urethane business for €460 million (¥73.6 billion).

• Something remarkable has happened in the department store sector. A year ago, both big city stores and those in the regions were all still well behind sales levels in 2010. 
• But stores in the largest 10 cities exceeded 2010 sales levels by 2% last year. Emphasising the yawning gap, regional stores extended their losses with sales down 42% on 2010.
• The elite have also suddenly started making money. A lot of it. We now have a (very profitable) luxury retail sector and a (poor returning) middle-market general merchandise store sector.

• The packaging sector is making a comeback as key material spreads have been rising  which is being reflected in Q1FY25 results of the companies.
• What makes this sector more interesting is certain promoters of these companies are buying share of the company from the open market along with fund infusion by some big investors
• The biggest risk remains for the sector is pricing pressure and demand-supply mismatch but it seems bottom is being made for the sector

• Big move higher for oil set to spike the JP oil major Inpex although the refiners have large outstanding short interests and may squeeze
• The higher oil price is negative for Japan’s utilities which have yet to restart reactors and are dependent on oil/gas imports to fuel their thermal generation
• Details are limited on a potential Seven Bank stake sale by 7&I, but there should be room for upside as shorts continue to cover

• Announcement of a free resource for money miners in the lithium space
• Discussion about upcoming quarterly season and potential moves by Gina in Lion Town
• Consideration of cash burns, balance sheet pressure, and potential takeover scenarios in the mining industry

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