In today’s briefing:
- Ohayo Japan | US Recovery Fizzles Out; Not so Super Micro
- China Strategy: Re-Assessing the Rmb Exchange Impacts
- Japan Morning Connection: 6758 JP, 6920 JP, 7936 JP
- # 42 India Insight: Tata Motors New EV, Airtel Postpones Right Issue, SBI Wealth Management
Ohayo Japan | US Recovery Fizzles Out; Not so Super Micro
- Early gains in US stocks fizzles out; Vix volatility index remains elevated at around 28 points
- Mixed bag of Japanese earnings; auto makers Honda and Mazda both post decent numbers on yen weakness and just having the right product in the market
- Super Micro shares dropped 15% on Q4 results, highlighting supply-chain issues. This creates a potential buy opportunity for Nidec, down 12% since Q1.
China Strategy: Re-Assessing the Rmb Exchange Impacts
- The companies that suffered exchange losses in FY23 due to Rmb depreciation will now benefit from potential Rmb appreciation in 2H24 and FY25. Meanwhile, gainers will become losers.
- The beneficiaries are Air China Ltd (753 HK), Shenzhen International (152 HK), China Southern Airlines (1055 HK), Xinjiang Goldwind (2208 HK), and China Eastern Airlines (670 HK).
- Fosun Tourism (1992 HK), China East Education (667 HK), and China Communications Construction (1800 HK) may need to book exchange losses (vs. gains in FY23).
Japan Morning Connection: 6758 JP, 6920 JP, 7936 JP
- Plenty of names which continue to look oversold in the recent volatility after posting better than expected numbers yesterday including Sony and Lasertec.
- Puma -12.6% after 2Q numbers and guidance missed, setting a negative tone for sportswear including 7936 Asics which has been in play after strong earnings and recent large share placement.
- Numbers for Shiseido and Kose point to diverging paths, which looks conducive for the 4922-4911 pair setup.
# 42 India Insight: Tata Motors New EV, Airtel Postpones Right Issue, SBI Wealth Management
- Tata Motors introduces the Tata.ev app to help EV owners find and navigate to reliable charging stations.
- Bharti Airtel postpones the call for INR15,000 crore of its rights issue.
- SBI will deploy 2,000 executives to enhance its wealth management services, aiming to attract high-net-worth individuals.
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