In today’s briefing:
- Ohayo Japan | Nikkei Futs Point to Strong Open
- #28 India Insight: ONGC INR 2 Crore Investment, Jupiter Wagons QIP, Indian Defence Exports Surged
- China’s E-Commerce Is Not as Bad as the Stock Prices Suggest
- Manila Trip Report – An emerging Pacific Tiger (Part 2)
- Five Trends in 2H24 – Tweaking Growth Expectations for Key Markets in 2024
- Structural Rise in the Cost of Grid Electricity to Support Rooftop Solar Installations
Ohayo Japan | Nikkei Futs Point to Strong Open
- US stocks soared to fresh all-time highs on Wednesday, buoyed by Jerome Powell’s remarks on Capitol Hill
- Uniqlo is focusing on larger flagship stores in Europe to enhance brand visibility and boost sales. Fast Retailing reports today
- Yokohama Rubber is negotiating to acquire Goodyear Tire & Rubber’s off-road tire unit for over $1 billion
#28 India Insight: ONGC INR 2 Crore Investment, Jupiter Wagons QIP, Indian Defence Exports Surged
- ONGC plans a Rs 2 lakh crore investment for net-zero carbon emissions by 2038, boosting shares
- Jupiter Wagons’ shares dropped 3% following the announcement of a Qualified Institutional Placement
- India’s defence exports surged 32.5% to Rs.21,083 crore in FY24, reflecting robust growth and global reach
China’s E-Commerce Is Not as Bad as the Stock Prices Suggest
- There have been various rumors regarding China’s consumption in general and e-commerce trend in particular. Two of the recent ones are weak 618 sales and keep-it-refunds;
- While we are in general pessimistic on Chinese consumption in the medium term, government subsidies and consumption vouchers are helping to keep consumption, especially e-commerce, going in healthy pace;
- Our TOP PICKS are Alibaba and PDD, both trading at attractive valuations of 7.4x and 9.5x CY24 P/E. Solid June consumption, positive 3Q outlook, and EPS expansion are upcoming catalysts.
Manila Trip Report – An emerging Pacific Tiger (Part 2)
In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.
With higher growth rates, less competition, and lower taxes than Macau, now may be an opportune moment for value investors looking to cash in on the gaming boom.
With a strategic focus on expansion, the operator opened another casino this year in Quezon City, which looks set to be a major driver of group revenues over the few years should it follow a similar growth trajectory to the group’s flagship property in Entertainment City.
Five Trends in 2H24 – Tweaking Growth Expectations for Key Markets in 2024
- We expect e-commerce to have a strong 2H24, allowing the sector to meet or exceed 11% growth expectations 2024 as Amazon’s same-day/one-day initiatives appear to be reviving the secular shift from brick-and-mortar retailers.
- We continue to watch other secular adoption trends, including mobile commerce (m- commerce) and buy now, pay later (BNPL), which should also help drive growth.
- Despite some signs of a slowing economy/consumer, digital advertising should have a solid 2H24 and meet/slightly exceed 9% growth expectations for the year.
Structural Rise in the Cost of Grid Electricity to Support Rooftop Solar Installations
- Factors that are accelerating the electricity consumption outlook include: the rise of datacenters and AI (see figure on top right), electrification of everything from vehicles to buildings and oil & gas infrastructure, onshoring and reshoring of industry, more severe weather patterns, and clean hydrogen (electrolysis).
- Growing Backlog of Power Projects There are a significant number of new power generation projects that are coming online and that have been proposed in the US.
- However, growing backlogs suggest that the projects may not be getting approved as fast as developers would like to see (see Figure 5).
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