In today’s briefing:
- HK Connect SOUTHBOUND Flows (To 23 Feb 2024); Selling of Consumer Stocks, But Big Buys of SOEs
- Mainland Connect NORTHBOUND Flows (To 23 Feb 2024): Foreigners Buy, Natl Team Buys; Retail Sells
- Asian Dividend Gems: Youngone Holdings
- Hasbro Inc: Increased Utility of Tabletop & Expansion Into Video Games Space & 5 Other Major Drivers! – Financial Forecasts
- DoorDash Inc: What Is Their Master Plan to Dominate Global Markets? – Major Drivers
- Genuine Parts Company: Why Are They Carrying Out The Expansion and Scaling of Company-owned Stores? – Major Drivers
- When Will Deflationary Mindset of Managers Disappear? Some Companies Have Begun to Change, Though
HK Connect SOUTHBOUND Flows (To 23 Feb 2024); Selling of Consumer Stocks, But Big Buys of SOEs
- A great week for HK and Chinese shares, especially the larger caps. Mainland indices were up 8 days in a row to Friday, helping HK shares stay bid.
- Net SOUTHBOUND buying was HK$20.0bn in the first post-holiday week. LOTS of SOEs on the net buying side.
- Remarkable this past week, was a new tendency to net sell names which were up a lot and net buy names which haven’t performed as well.
Mainland Connect NORTHBOUND Flows (To 23 Feb 2024): Foreigners Buy, Natl Team Buys; Retail Sells
- The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
- Last week saw NORTHBOUND net BUY RMB 10.7bn of A-shares on strong average activity after RMB +16.1bn, +9.9bn and +12.1bn the three weeks before. More National Team buying this week.
- Five of the top ten buys among liquid NORTHBOUND stocks were finance. Again. Info Tech saw net selling. Again. People trading long gamma now instead of short gamma.
Asian Dividend Gems: Youngone Holdings
- Youngone Holdings is an attractive deep value stock. Net cash (including short term investments) was 1.1 trillion won at the end of 3Q 2023 (79% of market cap).
- Youngone Holdings is the holding company of Youngone Group. Youngone Corp is best known for its OEM apparel business for major branded companies such as The North Face and Patagonia.
- We found Youngone Holdings using Smartkarma’s Smart Score Screener system.
Hasbro Inc: Increased Utility of Tabletop & Expansion Into Video Games Space & 5 Other Major Drivers! – Financial Forecasts
- Hasbro Inc.
- concluded its fourth quarter and 2023 full-year earnings report with a focus on the positive effects of the company’s refocusing strategy and a cautious outlook for 2024.
- Chris Cocks, the CEO, outlined the recent strategies of Hasbro, which centered on their philosophy of fewer, bigger, better, leading to a reduction in SKUs and an emphasis on high-impact products.
DoorDash Inc: What Is Their Master Plan to Dominate Global Markets? – Major Drivers
- DoorDash reported its Q4 2023 earnings, with the company’s representatives including co-founder, chair, and CEO, Tony Xu, and CFO Ravi Inukonda, discussing its investment strategies, outlook and financial performance.
- Notably, in international markets and new verticals, DoorDash is seeking to find product-market fit and grow efficiently.
- The company sees significant potential due to lower penetration levels, with investments destined towards improving product market fit, expanding its restaurant and retailer base, and launching subscription programs.
Genuine Parts Company: Why Are They Carrying Out The Expansion and Scaling of Company-owned Stores? – Major Drivers
- Genuine Parts Company’s (GPC) latest Q4 2023 earnings reveal the company had a strong performance throughout the year, achieving a strong and solid fiscal year.
- GPC’s total sales in 2023 exceeded $23 billion, a nearly $1 billion increase from the previous year, aligning with the company’s expectations.
- Total company segment profit margins also improved by 50 basis points to nearly double digits, marking the third consecutive year of double-digit earnings growth for GPC. On top of this, the company returned $788 million to shareholders and reported a 68th consecutive annual increase in dividends.
When Will Deflationary Mindset of Managers Disappear? Some Companies Have Begun to Change, Though
- Overseas investors have increased buying Japanese stocks in anticipation of acceleration in profit growth due to the shift to inflation. This is consistent with the trends of ROE and TOPIX.
- As far as ROE trends are concerned, neither share buybacks nor dividends are sufficient. It may be said that many managers are still dominated by a deflationary mindset.
- Companies with high foreign shareholdings are seeing changes that are starting to use cash more effectively. However, it’ll take time, as most companies will start to move after asking around.
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