In today’s briefing:
- Ohayo Japan |BIG TECH BACK ! NUGGET: Nidec Succession Headaches-Resolution in Sight But…
- Graphcore. A Cautionary Tale For Would-Be NVIDIA Challengers
- China TMT UpdateXPEV/TESLA/Nayuki/PDD/4385.JP/ 4689.JP/4755.JP: Pre-Sales of G6, Temu Comes to Japan
- The Stocks to Own in Asia – Vol. 41
- The Stocks to Own in ASEAN – Vol. 43
- SPAC Talk : SPACs and the AI Wave
- Tech Talk: Cybersecurity : What’s the Latest? How Big Is It? Who Is in the Game?
- The Cyclicality of China Healthcare – Policy Environment, the Industry, and Investment Opportunities
- JD/PDD/E-Commerce Sector Report: JD May Have Better-Than-Expected Performance in 618
Ohayo Japan |BIG TECH BACK ! NUGGET: Nidec Succession Headaches-Resolution in Sight But…
- OVERSEAS. NDX100 +1.8% SOX +3.3% vs. SPX +0.9% DOW +0.6%; Tech back ahead of Fed; Energy a different story as Oil fell on D-S worries; All eyes remain on CPI/Fed
- JAPAN. NKY Futs +0.7% premium vs Cash; Japan lead yesterday vs US..rarity; Expect continued Equity follow through; Seino HD(9076) -Massive Buyback, Div hike; TOYOTA-Path to Solid State Battery Commercialization?
- NUGGET. Nidec Succession Resolution in Sight, but Nagamori Premium May Dissappear
Graphcore. A Cautionary Tale For Would-Be NVIDIA Challengers
- Once valued at ~$2.8 billion, the former UK Unicorn is but a shadow of its original self.
- Their IPU design was far too ambitious from the outset leading them to over promise and under deliver.
- Unless you are a Google or an Amazon, designing and building your own AI processor from scratch to compete with NVIDIA is a fool’s errand.
China TMT UpdateXPEV/TESLA/Nayuki/PDD/4385.JP/ 4689.JP/4755.JP: Pre-Sales of G6, Temu Comes to Japan
- XPEV: XPeng begins pre-sales of G6 with starting price at RMB 225k (+)
- Nayuki: Chabaidao finished a round of private equity financing at RMB18bn valuation
- PDD/ 4385.JP/ 4689.JP/ 4755.JP/ AMZN.US/ Shein: Temu could soon launch in Japan (+/-/-/-/-/-)
The Stocks to Own in Asia – Vol. 41
- We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
- Portfolio changes: One stock remains and 13 stocks are added
- Since its inception, it has generated a before-fee total return of 116% versus the MSCI Asia ex Japan of 60%
The Stocks to Own in ASEAN – Vol. 43
- We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
- Portfolio changes: Four stocks remain, 10 stocks added to our portfolio
- Since its inception, the portfolio has generated a before-fee total return of 181% versus MSCI ASEAN’s 24%
SPAC Talk : SPACs and the AI Wave
- There are no new SPAC IPOs to report for month of June so far, nor any new IPO registrations.
- YTD, there have been only 15 IPO pricings, of which six came in February, and only nine new S-1 registrations have been filed thus far.
- The SPAC IPO pipeline stands at just 45 versus a number that peaked at 310 in September 2021.
Tech Talk: Cybersecurity : What’s the Latest? How Big Is It? Who Is in the Game?
- The global cybersecurity market was valued at $105 billion in 2022 and is projected to grow to $266 billion by 2027, a CAGR of 8.9%.
- The number of cyberattacks is growing at a significant rate.
- In 2021, there were more than 6.5 billion cyberattacks worldwide.
The Cyclicality of China Healthcare – Policy Environment, the Industry, and Investment Opportunities
- Policies will determine the development direction of the industry, which would then determine the profit model of companies. Companies that align with policy direction would outperform in the coming cycle.
- The prosperity of the industry would determine the development trend of companies. For China healthcare, without a significant policy shift, it would be difficult for industry beta to emerge.
- Domestic companies cannot achieve successful commercialization/internationalization mainly because they don’t have excellent enough products. It must be innovation that keeps companies alive and then thrive, rather than relying on policy changes.
JD/PDD/E-Commerce Sector Report: JD May Have Better-Than-Expected Performance in 618
- Our recent channel check suggests that JD’s YoY growth during this year’s 618 major promotion event may exceed 15%, higher than the 10% growth seen in 2022.
- The increase in air conditioner sales due to hot weather and the boost in sales of subsidized products are expected to be the main drivers.
- We raise JD’s TP to US$ 32 and lower PDD’s TP to US$ 91 but have maintained JD’s SELL rating and PDD’s BUY rating.
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