Consumer: Tesla Motors, Nongfu Spring, Sky Perfect Jsat, Accor SA, Astra Agro Lestari, Heineken NV and more

• Tesla is already straining versus its record 2021 pace when MY was new, M3 was still growing, competition was still thin, regulator oversight was still lax & recalls were few. 
• CEO Elon Musk‘s vulgar “jokes” don’t help—nor does he care.
• The bills are finally coming due for Tesla—but Tesla’s workers and customers and other victims have borne the cost.

• The Hang Seng Index was meant to have 80 constituents by mid-2022 before moving to 100 members. At 66 constituents post the March review, we are not gonna make it.
• Nongfu Spring (9633 HK) and Lenovo (992 HK) will be added to the index. Nongfu’s inclusion was expected while Lenovo is a relative surprise.
• Nongfu Spring (9633 HK) will also be added to the FTSE AW Index at the March SAIR at the close on 18 March. The stock should move higher.

• Space segment revenue is growing despite Covid-19 headwinds for in-flight Wi-Fi and should continue into the next few years as new capacity is unlocked
• Investment in the media segment is likely to step up in Q4 on prootional spending for new Japan professional baseball and the Spoox streaming service
• The outlook is improving heading into 2022 as the company will lap accounting changes that made headline revenue look weaker. We’ve updated our forecasts and remain at Buy

The Europe HY Trade Book for February 2022 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.

Expecting higher earnings in 2022F

• Following the pandemic lockdowns of 2020 and 2021, Heineken is now faced with rising commodity prices.
• Although 2022 will most likely be yet another challenging year, Heineken is expanding its presence in key large markets such as China, India and Brazil.
• At the same time, the company is better positioned than most of its peers to sustain its profitability through pricing measures, backed by its strong global brand portfolio.