In today’s briefing:
- BABA Triple Low or More to Go?
- JD Logistics (2618 HK) – Asset Light Model Yet to Yield Higher Returns?
- Bilibili (BILI): Upgrade to Buy for First Time Before 4Q21 Result
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
BABA Triple Low or More to Go?
- BABA’s slide has been in line. Two key directional break points stand out that will drive the intermediate cycle. The current technical reading remains weak.
- MACD has drifted higher into the neutral zone while price has traded in a bearish flat range setting up a sell. MACD will be coiled for a fresh down leg.
- Well defined directional break points lies at 135 (trendline and price pivot) and 100 (triple low support).
JD Logistics (2618 HK) – Asset Light Model Yet to Yield Higher Returns?
- JD Logistics is a logistics distribution service platform that provides logistics solutions in China through its nationwide warehouse and distribution logistics network
- Unlike its peers, it does not directly invest in warehouse assets but instead leases them from its parent company JD.com, which theoretically confers advantages of an “asset light” strategy
- JD Logistics has yet to yield such benefits to date, but its upcoming full year 2021 results could help investors determine potential ROA and margin improvement trends
Bilibili (BILI): Upgrade to Buy for First Time Before 4Q21 Result
- BILI’s stock price has plunged significantly over the past year.
- We believe the revenue growth will be stable in 4Q21.
- We believe all business lines remains promising except for advertising.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
S&P and Nasdaq saw a risk-on move, up 1.6% and 2.5%. Sectoral gains were led by IT and Consumer Discretionary, up 2.7% and 2.1% each. The US 10Y Treasury yield rose by 5bp to go back above the 2% mark to 2.03%. European markets were also higher with the DAX, CAC and FTSE up 2%, 1.9% and 1.1% each. Brazil’s Bovespa closed 0.8% higher. In the Middle East, UAE’s ADX was up 0.3% and Saudi TASI closed 1.2% higher. Asian markets have opened broadly higher with Shanghai, HSI, STI and Nikkei up 0.7%, 1.3%, 0.1% and 2.1% respectively. US IG CDS spreads were 1.9bp tighter and HY CDS spreads were 9.5bp tighter. EU Main CDS spreads were 1.8bp tighter and Crossover CDS spreads were 8.8bp tighter. Asia ex-Japan CDS spreads were 2.3bp wider.
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