In today’s briefing:
- Ohayo Japan | All Quiet Ahead of CPI; NTT Data’s Mobility Platform
- The Cockpit View: The Effect of War and Geopolitics on Aviation Companies
- China’s China Weight Loss Drug Market Update – the Negatives and the True Colors
- Furniture/Furnishings Weekly – Looking Ahead: What We Expect in 2024
- Japan’s Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward
- 2024 Trends for Direct Sellers – Looking for an Inflection Point
- The Highlights – Cannabis News for the Week Ending November 10, 2023
Ohayo Japan | All Quiet Ahead of CPI; NTT Data’s Mobility Platform
- Overseas: SPX -0.1%, Nasdaq -0.3%; Traders waiting for upcoming inflation data; Tesla +4%
- Today: NKY Futs +0.6% v cash. JPY 151.7; Japan inflation cooling; machine tool orders -21%
- JapanX: Empowering Tomorrow’s Connectivity: NTT Data Pioneering Innovation in the EV Revolution
The Cockpit View: The Effect of War and Geopolitics on Aviation Companies
- We mapped the impact of Russia-Ukraine war on aviation companies and compared it against the current Israel-Hamas war. The trends are uncannily similar
- Downside pressure lasts for two weeks, followed by a recovery. This suggests good short-term trading opportunities
- Stocks that exhibits deep value are US Global Jets ETF (JETS US), Grupo Aeroportuario Cen-Adr (OMAB US), Grupo Aeroport Del Sureste-B (ASURB MM), and Aeroportua Del Pacifica (GAPB MM)
China’s China Weight Loss Drug Market Update – the Negatives and the True Colors
- While we’re optimistic about weight loss drug business, we also need to recognize the “true colors” of relevant companies, which helps us realize “when to participate and when to exit”.
- We analyzed the negatives/”flaws” of popular companies that favored by capital: BrightGene Bio-Medical Technol (688166 CH), Hybio Pharmaceutical (300199 CH), Hainan Poly Pharm (300630 CH), Sinopep-Allsino, Kawin Technology, Highfine Biotech,etc.
- Short-Term stock price rally are mainly driven by sentiment, but future valuation still needs to be supported by performance and fundamentals. Some companies are just conceptual hype in our view.
Furniture/Furnishings Weekly – Looking Ahead: What We Expect in 2024
- Following a spate of earnings last week and major retailer earnings ahead, we pause here to reflect on where the furniture and furnishings sectors—residential and commercial/contract— are now and a peek at their likely tracks in the early 2024.
- Where are we in broad strokes? Residential: Following demand surges fueled by a once-in-a-lifetime focus by consumers on their homes during the pandemic, residential furniture and furnishings demand slumped as the focus shifted to “experiences” from goods.
- Commercial: New demand (orders) didn’t enjoy the surge (though backlog deliveries fueled reported sales).
Japan’s Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward
- Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.
- 2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.
- While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.
2024 Trends for Direct Sellers – Looking for an Inflection Point
- This year marks the fifth year in the most current downcycle for the stocks we monitor in the direct selling channel, with the brief exception of the pandemic-related benefits they reaped in 2H20 and 1H21, as a result of their product focus on health and wellness as well as their direct-to-consumer business models during the widespread lockdowns.
- Even those benefits have been mostly given back in 2022 and 2023 as consumers moved from spending on goods for the home and body to services and experiences as mobility returned to the global marketplace
- Below are the five key trends we are looking for to drive this group in 2024.
The Highlights – Cannabis News for the Week Ending November 10, 2023
- Cannabis stocks had an excellent week, with the US cannabis MSOS ETF surging 11.39% and the global YOLO ETF ending +4.07%. YTD, MSOS is -6.29% and YOLO is -21.94%, indicating that US cannabis has been outperforming Canadian and other global names.
- The week started with BAT (LSE: BATS, NYSE: BTI) making a C$124.6 million investment into Canadian operator Organigram (TSX: OGI, OTCQX: OGI).
- Most of the capital is to create Jupiter, a strategic investment pool designed to expand Organigram’s footprint and capitalize on strategic growth opportunities.
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