In today’s briefing:
- APAC Luxury Industry Series: Luxury Travel Shines Amid Challenges for Traditional Luxury Goods
- Times Neighborhood (9928 HK): China Property Play With High Margin of Safety
- AMFI Stock Reclassification Preview (June 2023): Outperformance Continues
- Tesla’s Panicky Q2: Everything Must Go!
- XxxLutz/Home24: Final Chance to Abandon the Boat
- Having Ended Its Traditional Role, TOPIX Faces Several Challenges
APAC Luxury Industry Series: Luxury Travel Shines Amid Challenges for Traditional Luxury Goods
- While traditional luxury brands may encounter challenges as affluent Chinese consumers shift to local high-end brands, there are still opportunities within small niches in the luxury sector.
- Luxury travel, driven by trends like micro trips and the increasing number of High-Net-Worth Individuals, represents a potential area of growth in the luxury sector.
- The thriving luxury travel market opens up investment potential in sectors such as luxury hotels and premium cosmetics.
Times Neighborhood (9928 HK): China Property Play With High Margin of Safety
- Times Neighborhood (9928 HK) is a China property management company headquartered in the Big Bay Area, trading at 3x 2023 P/E and below net cash.
- China property management as a sector has lost most of its value given close relationship with China property. However, there are still some investable property management companies.
- Upcoming catalysts include interim results in August, potential favorable policies in China property sector, and potential shareholder actions.
AMFI Stock Reclassification Preview (June 2023): Outperformance Continues
- We see 7 stocks moving from MidCap to LargeCap, 8 stocks moving from LargeCap to MidCap, 9 stocks from SmallCap to MidCap, and 10 stocks from MidCap to SmallCap.
- The expected migrations from SmallCap to MidCap have outperformed the other migrations and some stocks have seen large price moves over the last couple of weeks.
- Active managers would have started realigning their portfolios and that could continue for a couple of weeks. Unwind long positions into strength.
Tesla’s Panicky Q2: Everything Must Go!
- Prices have been slashed and slashed again, on top of expensive incentives like free charging, cheap leases, & juicy subsidies.
- But Tesla has been unable to ease elevated inventory in key markets.
- This signals even record deliveries will produce lower quality revenue and disappointing margins & profits for the second quarter.
XxxLutz/Home24: Final Chance to Abandon the Boat
- Following the additional acceptance period and settlement, XXXLutz has increased its stake up to c.94.65% of Home24 (H24 GR).
- The Bidders, together with XXXLutz KG, have entered into a delisting agreement with home24, at the same time they will launching a delisting offer, at the prior offer price, €7.5/share.
- The offer price was fair in my view. Liquidity will become razor thin post offer and there will be no domination and P&L transfer agreement. Tender regardless of acquisition price.
Having Ended Its Traditional Role, TOPIX Faces Several Challenges
- The TSE is in a long-term battle to improve the quality of the prime market while maintaining lax listing standards that do not fit the prime market concept.
- If passive funds move to JPX Prime 150 Index, which would increase the divergence between stock prices of high quality and low quality companies, it might motivate the companies more.
- If there is little difference between performance of TOPIX and JPX Prime 150, the passive funds will be satisfied with this index, and the TOPIX engagement problem will be eliminated.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
