In today’s briefing:
- Ohayo Japan |Inflation Moderation Drives Stocks; NUGGET:JP Office Equip Makers- Consolidation a Must
- Nasdaq Rebalance, Nanya, Camtek, Nordic Semi, Aehr Test, and Positioning
- China TMT Update-BZ/PDD/3690/NTES/700/Douyin-PDD Launches Local Life Services Portal
- China’s VBP Policy for Pharmaceuticals – Misunderstandings, Real Impacts, and Outlook
- Industry Report Climatetech & Sustainable Investing
Ohayo Japan |Inflation Moderation Drives Stocks; NUGGET:JP Office Equip Makers- Consolidation a Must
- OVERSEAS. SPX eaks out gains as markets continue to bid inflation moderation/soft landing narrative; GS Reports the futures is better; TELSA earnings beat despite aggressive price cuts
- JAPAN. Nikkei Futures flat vs Cash; USDJPY 139.7; Inbound Tourist back in full force; Daily Goods Manufacturers form logistics alliance to combat lack of drivers; Nidec, Disco reports today
- NUGGET. JP Office Equipment Makers – could be investment opportunities if they are proactive consolidation. Falling demand and overcapacity demands aggressive industry restructuring.
Nasdaq Rebalance, Nanya, Camtek, Nordic Semi, Aehr Test, and Positioning
- A quick discussion of the companies that have reported so far, and my thoughts on the semiconductor stock space
- Pretty much the entire index is going to receive inflows at the expense of the top 8 names.
- Microsoft, Google, Amazon, Nvidia, Meta, Apple, and Tesla will all be cut from the index weight and redistributed into smaller names on July 24, 2023.
China TMT Update-BZ/PDD/3690/NTES/700/Douyin-PDD Launches Local Life Services Portal
- Boss Zhipin: Boss Zhipin MAU growth rate is higher than peers’, but still hard to monetize this year.
- PDD/3690.HK: PDD launches local life services portal (+ / -)
- NTES/700HK: The Rise of “Gaming with Influencers” on Douyin (+/-)
China’s VBP Policy for Pharmaceuticals – Misunderstandings, Real Impacts, and Outlook
- In the absence of significant decline in total pharmaceutical expenditure,the most simple logic tells us if some companies/varieties suffer loss in VBP, it inevitably means other companies benefit from it.
- For innovative drugs, imported drugs have clear advantage over domestic drugs in both absolute and relative increments. But leading MNCs have been more impacted by VBP in recent years.
- In this hundreds-of-billion-level payment transfer process, companies are actually competing to provide real clinical value, which is the key to fill the gap caused by VBP and restore companies’ growth.
Industry Report Climatetech & Sustainable Investing
WTR Sustainable Index: During the week ended July 14, 2023, the WTR Sustainable Index performed in line with the broader market, rising 2.6% W/W versus the S&P 500 Index (up 2.4%), the Russell 2000 Index (up 3.6%), and the Nasdaq Composite Index (up 3.3%). Advanced Transportation Solutions (75.1% of the index) has contributed to the index’s outperformance, rising 2.5%, while Energy Technology (6.7% of the index) was up 6.1% and Industrial Climate and Ag Technology was up 2.0%.
Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 24.8x versus 21.0x for the S&P 500.
Consensus estimates changes: During the week ended July 14, 2023, there were three increases (two in Advanced Transportation Solutions and one in Industrial Climate and Ag Technology) 2022 revenue estimates.
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