In today’s briefing:
- Shimano (7309): Bumpy
- Japan’s Governance: Demae-Can (2484) 2QFY8/2022 Briefing
- Tesla (TSLA): Shanghai’s Lockdown Killing Whole Chinese Automobile Supply Chain
Shimano (7309): Bumpy
- Giant Manufacturing (9921 TT) , one of Shimano’s top customers, is reportedly having a production issue and can only sort it out by the end of this year.
- Shimano Inc (7309 JP) is no longer Japan-centric but a global company with customers all over the world.
- Low valuation gives an illusion that it is cheap historically but expects a bumpy road ahead.
Japan’s Governance: Demae-Can (2484) 2QFY8/2022 Briefing
- The E-Commerce Model, which is a source of revenue, is seeing a decline in profit margins while marketing costs remain high.
- In the Delivery Model, the profitability of Outsourced Delivery is improving, but it has yet to break even. Demae-Can intends to seek opportunities in retail delivery to accelerate break-even process.
- Demae-Can plans to achieve the operating loss for FY8/2022 to 50 billion yen, but hasn’t indicated when it returns to black-ink due to the competitive environment in food delivery business.
Tesla (TSLA): Shanghai’s Lockdown Killing Whole Chinese Automobile Supply Chain
- Many automakers said they suspended their productions due to the lockdown of Shanghai.
- A vice minister of Industry and Information Technology announced that 666 companies will resume production in Shanghai.
- We believe it is hard to resume the automobile soon because of the complication of a vehicle and the traffic jams around Shanghai.
Before it’s here, it’s on Smartkarma
