Daily Brief Thematic (Sector/Industry): Five Japanese Stocks to Watch in 2023 and more

• We highlight five stocks that we have talked about in the past year
• We continue to like small cap GROWTH and we think that decarbonization will remain a key thematic
• NEC is a standout value name where we see a potential catalyst over the coming year in Open RAN

In this next webinar we will discuss Smartkarma Insight Provider, Tina Banerjee‘s high conviction ideas from Indian healthcare sector, with solid fundamental profile and strong growth prospects. Nifty Pharma index plunged ~6% from its recent peak in November. With COVID-related high bases gradually behind us, lesser pricing pressure in the U.S. market, new product launches gaining momentum, and continuous recovery in the domestic healthcare market, we expect recent pullback offers attractive entry opportunities for long-term investors. 

The webinar will be hosted on Wednesday, 18 January 2023, 17:00 SGT/HKT.

Tina Banerjee is an equity research analyst with more than 15 years of experience, and an interest in fundamentally strong global healthcare companies. She has been helping investors to find future winners in healthcare space to grow their wealth by focusing on the strength and potential of the business models of the companies. Her initiating coverage reports and pitch help investors to know ‘what to buy’, ‘why to buy’, and ‘when to buy’. Tina’s clients always remain on top of the sector with the help of her timely and detailed notes on earnings or any news update. Tina also provides a broader view on the entire healthcare sector through periodic thematic reports.

• OVERSEAS: SPX +1.3% SOX +1.3%; Optimism on soft inflation print drives stocks; Consumer+Tech lead; Apple to introduce touch screens for Mac; Off-Shore Wind Giant Vesta leads in Europe
• JAPAN: NKY Futs +0.3% vs Cash; USDJPY steady at ¥132.45; Biz lobby urgest firms to lift wages above inflatio;  Buy U/G in Lastertec, TEL,  Nexon and D/G to Nintendo
• DAILY NUGGETS:  Fast Retailing has raised the bar for corporate Japan with with their wage hikes.

• The most obvious opportunity in China healthcare at the current stage is import substitution. If import substitution is fully realized, it can bring a clear performance increase to the companies.
• In 2023, we are optimistic that China healthcare would gain more household expenditure in the “Long COVID” effect, thus generating excess returns under the logic of expanding domestic demand.
• We would recommend investors consider making layout in those non-COVID related companies in 2023.  We analyzed the outlook, investment logic and investment opportunities in medical device, biotech and CXO sectors.

• Within three months, Tesla cut its car prices twice in China.
• We believe this indicates demand in China’s auto demand might be much weaker than expected until Covid impact is eased
• Model Y’s price cuts may only hurt AITO M5. While Model 3 may challenge customers’ interest on Xpeng P7, BYD Seal and Ora Lightning Cat.

• We expect oilfield service stocks to continue to outperform in 2023 and beyond based on supportive oil price fundamentals, rising capex levels amongst E&Ps, and pricing power leading to margin expansion 
• Despite the sector’s strong fundamental tailwinds and the probability for a multi-year commodity supercycle, oilfield service companies are still trading at trough-level multiples In order to end the oil supply deficit, additional rigs are required to be deployed; providing organic growth and pricing power for oilfield service names.
• This will create another year of margin expansion for oilfield service stocks as they take advantage of operating leverage.