In today’s briefing:
- TIGER Theme ETF “Tour Leisure” Rebalancing Projections: Hanatour, Asiana, Kangwon Land, & T’way Air
- Japan Apparel Diversification: TSI Tries New Markets
- FTSE TWSE Taiwan Indices: Quiddity Primer
- Workman Wins as Decathlon Closes Japan Stores
- Japan Apparel Reset: Onward Looks to E-Commerce for Growth
- Sanyo Shokai: More Unfulfilled Promises
TIGER Theme ETF “Tour Leisure” Rebalancing Projections: Hanatour, Asiana, Kangwon Land, & T’way Air
- This ETF’s AUM has decreased by 17% over the past three months to ₩200B. It has 18 constituents, and it is unlikely that there will be any addition/deletion.
- The first thing to note is Hana Tour because the increase in the number of shares through an offering will be reflected its the market cap right before the rebalancing.
- Among the top stocks by market cap, Asiana Airlines (020560 KS) (+0,.20x ADTV) and Kangwon Land (035250 KS) (-0.21x ADTV) will likely have a significant passive impact.
Japan Apparel Diversification: TSI Tries New Markets
- TSI seems to be following a strategy of diversify or die. It is using its vast cash resources to invest in and build new businesses with some success.
- But it also has a couple of compelling brands in strong growth sectors, particularly in golf, providing growth of nearly 50% last year in one case.
- This isn’t enough to sustain overall growth however and more needs to be done to get on to a more secure footing.
FTSE TWSE Taiwan Indices: Quiddity Primer
- The FTSE TWSE Index family covers the 150 largest stocks listed in the Taiwan Stock Exchange Corporation (TWSE).
- In this index family, Quiddity will primarily focus on the FTSE TWSE Taiwan 50 Index and FTSE TWSE Taiwan Mid-Cap 100 index.
- In this insight, we will have a look at the selection criteria and the historical price performance of past Rebalance Events.
Workman Wins as Decathlon Closes Japan Stores
- Decathlon entered the Japanese retail market in 2017 with the opportunity to take a significant share of a growing sports and athleisure sector.
- But the French firm is already retreating: it will close its two stores and focus on online and wholesaling.
- The market is poorer for but it does leave the market wide open for Workman – which built a consumer chain to combat Decathlon – to become dominant.
Japan Apparel Reset: Onward Looks to E-Commerce for Growth
- All of Japan’s big apparel firms have radically restructured but there is a lot more work to be done.
- Onward has done a great job of transitioning to e-commerce but this is not enough to sustain the business and provide new sources of growth.
- Trading will improve but slowly and more dynamism is needed in brand development and marketing.
Sanyo Shokai: More Unfulfilled Promises
- Sanyo Shokai has posted losses in every year since FY2016 despite promising a return to profit on an annual basis too.
- Its latest 3-year plan is typically optimistic but, equally typically, lacks real substance as to just where this growth will come from.
- Of all Japan’s larger apparel firms, Sanyo Shokai has the least promising outlook and that is saying something.
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