Consumer: NIO Inc, Fast Retailing, Tesla Motors, Shanghai Jin Jiang Capital Company Limited, Health And Happiness (H&H) and more

• NIO Inc (9866 HK) passes the velocity test and could replace ASM Pacific Technology (522 HK) in the Hang Seng Tech Index (HSTECH INDEX) at the June rebalance.
• Given the low trading volumes and the large assets tracking the Hang Seng Tech Index (HSTECH INDEX), passive trackers will need to buy around 10 days of ADV on NIO. 
• Passive trackers need to sell around 7 days of ADV on ASM Pacific Technology (522 HK). Given implementation is two months away, sell the stock on rallies. 

• We estimate that China accounts for almost 40% of Fast Retailing’s earnings. This growth engine is stalling
• The market has yet to discount these risks, despite warnings from H&M
• The stock is down 5% YTD, but trades at an 80% premium to global peers

• Tesla managed to the hit the low end of recently and substantially reduced market estimates for Q1 deliveries at 310,048.
• That was enough to top record record Q4 results—but not enough to hit ambitious market estimates for the year.
• Revenue quality improved on higher prices and mix, but profitability is less clear until we get sales results for March from China—where Tesla generates most all its profits.

• Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK)‘s Composite Doc is out. The H-Class meeting on the 26 April, with expected payment on the 17 May.
• The IFA considers the Offer to be fair and reasonable. 
• This is done and trading tight at a gross/annualised spread of 1.6%/14%. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Honghua Group
• Hopson Development
• Tata Motors ADR