In today’s briefing:
- Good Morning Japan |GOLDILOCKS?: Higher Rates, Strong USD=Higher Equities; In JP, Mr Yen Says 120
- China TMT Update(Feb.11-14): PDD, FUTU, BIDU
- India Electronic Manufacturing Services – Growth, Risks and Valuations
- China Agricultural Sector: A Read into China Central Document No.1
- BIFMA Monthly Industry Report
- Weekly Sustainable Investing Surveyor: Week Ended February 10, 2023
Good Morning Japan |GOLDILOCKS?: Higher Rates, Strong USD=Higher Equities; In JP, Mr Yen Says 120
- OVERSEAS. SPX Rise as Cycicals/Tech bid; Higher Rates; Strong USD, No problem ! Market seems to have concluded that higher rates+strong economy is a workable outcome.
- JAPAN. NKY Futs +0.4% vs Cash; USDJPY weakens to 134.1; Weak Yen Narrative to dominate; Do not say to “Mr Yen” who sees 120 ; BULLISH Inbound but priced in
- DAILY NUGGET. BayCurrent Consulting (6532) – Still lot of tailwinds..still BULLISH.
China TMT Update(Feb.11-14): PDD, FUTU, BIDU
- Positive to PDD: Temu aired its commercial at the Super Bowl
- Negative to FUTU: Bright Smart Securities downsizing the mainland account
- Positive to BIDU: Updates on Baidu’s ChatGPT-similar product “ERNIE Bot”
India Electronic Manufacturing Services – Growth, Risks and Valuations
- EMS – offers a four-fold opportunity over the medium term
- Know the risks and challenges to attaining this strong growth
- Read this note for opportunity, risks, incumbent positioning and valuations
China Agricultural Sector: A Read into China Central Document No.1
- China’s Central Document No.1 emphasizes the need to boost the agricultural industry and improve well-being of the peasants. We see the directions positive for the agricultural sector.
- Direct beneficiaries are Sinofert Holdings (297 HK), China Xlx Fertiliser (1866 HK), First Tractor Co H (38 HK) and Xinjiang Tianye Water Saving Irrigation (840 HK).
- Growing rural affluence is positive to BYD (1211 HK), Haier Smart Home (6690 HK) and Pinduoduo (PDD US), while cold chain network buildout is good to Shenzhen Intl (152 HK).
BIFMA Monthly Industry Report
- This note addresses the Business Institutional Furniture Manufacturers Association’s (BIFMA) Monthly Market Pulse (MMP) of incoming orders and sales for December 2022.
- Normally, ~50+ BIFMA member companies voluntarily submit monthly sales and orders to a national accounting firm that aggregates and reports composite data.
- Neither BIFMA nor any individual member ever has access to the raw data.
Weekly Sustainable Investing Surveyor: Week Ended February 10, 2023
- WTR Sustainable Index: During the week ended February 10, 2023, the WTR Sustainable Index outperformed the broader market, rising 0.2% W/W versus the S&P 500 Index (down 1.1%), the Russell 2000 Index (down 3.4%), and the Nasdaq Composite Index (down 2.4%). Advanced Transportation Solutions (70% of the index) drove the outperformance, rising 1.7% , while Energy Technology (9% of index) was down 5.0% and Industrial Climate and Ag Technology was down 2.2%.
- Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 24.5x versus 18.4x for the S&P 500.
- Consensus estimates changes: During the week ended February 10, 2023, there were five increases (three in Energy Technology and two in Industrial Climate and Ag Technology) 2022 revenue estimates. There were decreases in 2022 revenue estimates for two companies each in Advanced Transportation Solutions and Industrial Climate and Ag Technology.
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