In today’s briefing:
- Ohayo Japan | Market Rallies with a Shot of Starbucks
- Dividend Stocks For Market Turbulence: China A-Shares Market
- Japan Morning Connection: Softbank, Sapporo, Kose
- # 45 India Insight: ONGC, Oil India Price Premium, JSW Steel Acquisition, Adani Green RE Target
- [Blue Lotus Daily-TMT Update]:PDD US/CPNGUS/4385JP/4689JP/4755JP/BABA US/1024HK/JD US/3690HK/700HK
- Bunge Q2 Results Disappoint. Lower Margins Eclipse Strong Volume Growth.
- [Blue Lotus Daily]:ATAT US/TCOM US/1810 HK/AAPL US/1519 HK/ZTO US/XPEV US/2454 TT/QCOM US/LKNCY US
Ohayo Japan | Market Rallies with a Shot of Starbucks
- Stocks surged on Tuesday, with major indices edging closer to record highs as investors reacted positively to a key inflation report
- Starbucks saw a significant 24.5% stock increase after naming Chipotle CEO Brian Niccol as its next leader
- Japan reported a 8% year-on-year increase in July machine tool orders, reaching 124 billion yen. This marks the third consecutive month of growth
Dividend Stocks For Market Turbulence: China A-Shares Market
- Shanghai Index is trading at cheap levels based on P/E, P/BV, and P/CF, both against its own history and the valuation gap against other major markets.
- Many companies are paying good dividends, the top-10 highest yielding stocks averages at 12.5%. Dividend cover is solid (>1x), and all are big MCAP with decent ADTV (>USD2m).
- Investors have been underweight China for a long time. Even high quality blue chip stocks are trading at single-digit PE and paying dividends >7%.
Japan Morning Connection: Softbank, Sapporo, Kose
- ARM +5.7% will help lift 9984 Softbank which is lagging some of the other high-beta plays in Japan giving it plenty of room to rebound further.
- The market is going to like the news that 2501 Sapporo is finally listening to activist investors who have been angling for the firm to divest some of its large R/E holdings.
- 4922 Kose is looking more interesting after it’s failure to rebound looks to have been caused by a negative read from 4911 Shiseido’s poor numbers rather than anything company specific.
# 45 India Insight: ONGC, Oil India Price Premium, JSW Steel Acquisition, Adani Green RE Target
- ONGC, Oil India to Price New Gas at 20% Premium over the APM price.
- JSW Steel buys a 66.67% stake in M Res NSW for $120 million.
- Adani Green Energy aims for a 30% CAGR in renewable capacity.
[Blue Lotus Daily-TMT Update]:PDD US/CPNGUS/4385JP/4689JP/4755JP/BABA US/1024HK/JD US/3690HK/700HK
- PDD US/CPNG US/4385 JP/4689 JP/4755 JP: Temu to launch semi-consignment in Japan and South Korea in October (+/-/-/-/-)
- BABA US: Alibaba upgrades it AI generated fashion model tool (+)
- BABA US: Alibaba’s C2C platform Idle Fish to charge commissions in September (+)
Bunge Q2 Results Disappoint. Lower Margins Eclipse Strong Volume Growth.
- Bunge’s Q2 results disappointed markets, leading to a huge selloff as both EPS and revenue missed analyst estimates.
- Bunge’s agribusiness segment experienced margin compression despite surging volumes resulting in shrinking profits.
- The refined and specialty oils segment faced headwinds from lower selling prices. Milling emerged as a bright spot, driven by cost optimization.
[Blue Lotus Daily]:ATAT US/TCOM US/1810 HK/AAPL US/1519 HK/ZTO US/XPEV US/2454 TT/QCOM US/LKNCY US
- Consumer Industry Update:Hubei province takes the lead in implementing the home appliance replacement policy (+)
- ATAT US/TCOM US:The year-on-year decline in hotel RevPAR narrowed in the second week of August, showing resilient in hotel demand.(+/+)
- ATAT US/TCOM US: MCT plans to cut the prices of scenic spot tickets, bodes well to tourism demand. (+/+)
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