In today’s briefing:
- Japan Strategy Weekly | City Index Cashes in on Furukawa
- [Blue Lotus China New Consumer Weekly, 8/52] Existing Home Recovers First Post CNY
- [Blue Lotus Non-US Internet Weekly, 8/52]: Is JD’s Entry to Catering Real or Just Posturing?
- DeepSeek Rally Creates More Winners in SaaS/IaaS Sectors
Japan Strategy Weekly | City Index Cashes in on Furukawa
- Furukawa’s stock surged after announcing shareholder-friendly measures, including asset sales, a buyback, and a dividend hike; activist City Index takes some profits.
- The Japanese market faced a volatile week, ultimately closing lower, with the Nikkei declining by 1% – a mix of strong macro data, tariffs, and yen moves
- Daifuku surged 25% on strong earnings, cost savings, and a robust FY25 order outlook, reinforcing confidence in long-term growth.
[Blue Lotus China New Consumer Weekly, 8/52] Existing Home Recovers First Post CNY
- A translated article shows why Chinese are refrained from buying new homes but not so on buying existing homes. The Chinese link is here. English here by Qwen;
- XPeng, Xiaomi, Zeekr and BYD recovered above the line post CNY in EV delivery, LI, Tesla, LEAP and Luxeed in line, AITO, Deepal and NIO are below the line;
- CATL’s JV with Didi is a serious threat to NIO.
[Blue Lotus Non-US Internet Weekly, 8/52]: Is JD’s Entry to Catering Real or Just Posturing?
- After JD.com announced it would insure catering riders with social security, Meituan followed suit. Then JD clarified its intension was only to insure a newly established rider force from scratch;
- Trump announced American First Investment Policy. Frankly we don’t see anything new. It will affect sentiment, maybe;
- SASAC calls for SOE’s to adopt AI. This is a real positive to Alibaba.
DeepSeek Rally Creates More Winners in SaaS/IaaS Sectors
- China’s DeepSeek is catalyzing growth opportunities in the Software as a Service (SaaS)/ Internet as a Service (IaaS) sectors by integrating AI solutions for platforms, service providers and software applications.
- DeepSeek has democratized AI and brought forward significant demand for AI services for enterprises and consumers. US hyperscalers will struggle to monetize their AI services as inexpensive models will proliferate.
- Companies like Kingsoft Corp (3888 HK) , Kingdee International Software (268 HK) , Chinasoft International (354 HK) , Vobile Group (3738 HK) , and Inspur International (596 HK) will benefit.
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