In today’s briefing:
- Ohayo Japan | Stocks Edge Higher
- Japan Morning Connection: Can JP Semi-Cap Names Continue to Buck the US Tech Weakness?
- China Strategy: What Are Some Other High Dividend Yield Options?
- #83 India Insight: JSW to Acquire MG India, Maruti Unveils EV Vision, Temasek to Invest in Haldiram
- Singapore Market Roundup (08-Jan-2025): DBS cautious on SG retail, bullish on premium groceries.
- Biopharma Week in Review – January 6, 2025
- Furniture/Furnishings Weekly SCS 3QFY25 Earnings; Winner Takes Most in US Retail
- Mat-Chem Notes – Looking Ahead by Looking Back at 2024
Ohayo Japan | Stocks Edge Higher
- Stocks wavered as investors weighed the Federal Reserve’s December meeting minutes, which hinted at a slower pace of policy easing
- Fast Retailing, parent company of Uniqlo, has announced salary hikes to attract and retain top talent amidst intensifying competition
- Sumitomo Rubber Industries will acquire the Dunlop tire brand rights for Europe, North America and Oceania from Goodyear Tire & Rubber for $526 million
Japan Morning Connection: Can JP Semi-Cap Names Continue to Buck the US Tech Weakness?
- Yesterday saw a notable rotation out of recent momentum winners in Japan towards oversold quality such as SPE.
- EU defence names generally stronger on concerns over Trumps Greenland/Denmark comments may be mild positive for JP heavies.
- Power semi weakness in the US at least partially over news Renesas is cutting workforce on weak auto chip sales.
China Strategy: What Are Some Other High Dividend Yield Options?
- There are 26 companies with dividend yields of over 9% in FY25 based on consensus forecasts. With the slowdown in the US rate cut, they look attractive this year.
- The top 5 are China New Higher Education (2001 HK), GreenTown Management (9979 HK), Lever Style (1346 HK), Paradise Entertainment (1180 HK), and Pacific Textiles (1382 HK).
- Key risks are their small-cap nature, potential issues with corporate governance, and low earnings quality when compared with banks and telcos.
#83 India Insight: JSW to Acquire MG India, Maruti Unveils EV Vision, Temasek to Invest in Haldiram
- JSW Group is set to acquire Everstone Capital’s 8% stake in MG India, raising its ownership to 43%. While strengthening its position, JSW will still fall short of majority control.
- Maruti Suzuki India (MSIL IN) unveils its ‘e For Me’ vision for electric mobility, focusing on the e VITARA electric SUV and an ecosystem to support EV adoption.
- Temasek Holdings Pte Ltd (TMSK SP) is set to acquire a minority stake in Haldiram Snacks for a valuation of $10-$11 billion.
Singapore Market Roundup (08-Jan-2025): DBS cautious on SG retail, bullish on premium groceries.
- Despite softness in Singapore retail, DBS remains optimistic about premium groceries, focusing on that market.
- UOB Kay Hian’s top Malaysian stock picks include JS-SEZ, benefiting from property, construction, and energy sectors.
- DBS raises ratings for PropNex & APAC Realty to ‘buy’, citing a strong new launch pipeline in 2025, and sold SingPost shares.
Biopharma Week in Review – January 6, 2025
- Welcome to a new year and we are excited for the innovation and therapeutic breakthroughs that biopharma will reveal this year, while navigating through any changes in the regulatory and M&A environment.
- For our first Biopharma Review report in 2025, we cover the news that we missed during the holiday break.
- On the obesity front, NVO’s CagriSema fell short of expectations, while the FDA reaffirmed LLY’s GLP-1 shortage resolution, bearing bad news for HIMS and LFMD.
Furniture/Furnishings Weekly SCS 3QFY25 Earnings; Winner Takes Most in US Retail
- It was a relatively quiet holiday-shortened trading week.
- The Water Tower Research Commercial/Contract Furniture Index was down (-2.5%) and the Residential Manufacturers & Suppliers Index was down (-0.3%), while the Home Goods Retailers Index was up 2.0% in a week where the large-cap indexes modestly declined (-0.5%) and the R2K was up 0.9%.
- SCS posted solid 3QFY25 results (on December 18), noting that while FY25 demand has been a bit weaker than expected at the beginning of the year, recent activity suggests demand (finally) may be inflecting, especially in the Americas segment (~3/4 of revenue).
Mat-Chem Notes – Looking Ahead by Looking Back at 2024
- WTR-CMI in 2024. Last year was difficult for specialty chemicals and materials stocks, with our WTR-CMI Index posting a rather modest 5% gain for the year, affected by >40% Y/Y declines in lithium stocks.
- The index’s performance was well off the pace of the Russell 2000 and S&P 500, which posted returns of 10.8% and 24%, respectively, driven by the extraordinary gains of the “magnificent seven” tech and media stocks.
- On a positive note, RYAM’s stock price nearly doubled during the year, driven by an improving pricing environment, better sales mix, and cost containment efforts, as well as the ramp-up of the company’s Biomaterials business.
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