In today’s briefing:
- [Blue Lotus Daily – TMT Update]:BABA/ZTO/JD/PDD/1519 HK/1219 HK/1024 HK
- Ohayo Japan | Stocks Fall off Waller; English Please
- AI Industry Structure and Business Model: What Inning is It?
- China’s Pet Food Market – Attractive Investment Opportunities Would Bring Handsome Returns
- [Blue Lotus Daily]: NIO/LI/XPEV/TSLA/1211 HK/TCOM/780 HK/ATAT/HTHT
- SPAC Talk – Why More SPAC Liquidations Are in the Cards
- Better Logistics, Slower Shipping, Lower Costs, Higher Profits
- The Highlights – Cannabis News for the Week Ending January 12, 2024
[Blue Lotus Daily – TMT Update]:BABA/ZTO/JD/PDD/1519 HK/1219 HK/1024 HK
- BABA/ZTO/JD/PDD/1519 HK: Taobao/Tmall plans to direct traffic to stores and logistics providers with better service (+/+/-/-/-)
- 1219 HK/PDD/SHEIN/BABA: Temu negotiating with J&T for cooperation in overseas last-mile services (+)
- 1024 HK: Kuaishou’s Playlet Business Expanding Rapidly, DAU Reaches 270 Million(+)
Ohayo Japan | Stocks Fall off Waller; English Please
- Fed Governor Christopher Waller appeared to push back against expectations for as many as six rate cuts this year.
- TSE set to enforce English disclosures for all approximately 1600 companies listed on Prime market starting March 2025, aiming to attract a broader base of foreign investors
- Nikkei Futs +0.8% premium; Asahi planning to hike wages +6%; Fujitsu acknowledges need to compensate Post Office victims;
AI Industry Structure and Business Model: What Inning is It?
- What inning is AI in?
- If history is a guide, it’s hard to predict the twists and turns of a new market growing from nothing.
- Here’s my humble attempt at estimating AI penetration and my thoughts on the run-rate business of AI models and industry structure.
China’s Pet Food Market – Attractive Investment Opportunities Would Bring Handsome Returns
- Due to the decline in China’s marriage/fertility rates, pets will play an important role in childless/dink families. Single economy is another driving force for the increase in pet penetration rate.
- Pet food, as a high-frequency and rigid-demand area, is the largest market.As increasing China’s pet owners are attracted by domestic brands, import substitution space in staple food subsector is significant.
- As an important incremental market with high certainty, the investment opportunities in China’s pet food market cannot be missed. We analyzed three companies worth investors’ attention.
[Blue Lotus Daily]: NIO/LI/XPEV/TSLA/1211 HK/TCOM/780 HK/ATAT/HTHT
- XPEV/1211 BYD: Tesla announced price reduction for Model 3 and Model Y(-)
- TCOM/780 HK: 4Q23 inbound and outbound travel recover to 82% of 2019 level, mainly from Hong Kong and Macao(-)
- ATAT/HTHT: National Migration Administration introduced five facilitation measures to attract foreigners to China (+)
SPAC Talk – Why More SPAC Liquidations Are in the Cards
- SPAC IPOs continue on snooze control. Last year saw just 31 SPAC IPOs priced, raising an aggregate of $3.8 billion in gross proceeds, down from 86 and $13.4 billion in 2022.
- This makes 2023 the quietest year for SPAC IPOs since 2016, when 13 IPOs raised $3.5 billion.
- As we start the third week of 2024, the SPAC market remains dormant, with no new pricings to report yet.
Better Logistics, Slower Shipping, Lower Costs, Higher Profits
- New regulations due in April are forcing Japan’s logistics industry to evolve rapidly and seek efficiencies to offset a drastic shortage of drivers.
- Most firms are aware of the long-term gains that removing inefficiencies in the current system will lead to and should result in improved operating margins.
- The government announced new support policies and many consumers say they are willing to accept slower deliveries, which should lower costs for e-commerce.
The Highlights – Cannabis News for the Week Ending January 12, 2024
- It was another strong week for cannabis stocks, with the US cannabis MSOS ETF gaining 3.40% and the global YOLO ETF increasing 1.06%.
- Since the US Department of Health and Human Services (HHS) announcement on August 30, MSOS is +69.07%, while YOLO is +34.82%.
- We are in the midst of a catalyst-driven rally, driven by the potential to get to Schedule III and remove the 280E tax burden, which affects plant-touching US operators.
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