In today’s briefing:
- Ohayo Japan|Chips Sell Off; Micron Calls Memory Bottom; NUGGET: Katitas(8919)-Future Looks Bright
- China TMT Update-PDD/1024.HK/700.HK/Luckin/BILI: PDD Adds Live Broadcasts;Bili Changes Video Display
- Macau at the Halfway Mark Shows Resurgent Revenue Trends Improving by Month
- China CXO Has Reached a Crossroads – Time to Reconsider
- Industry Report – Chemicals & Materials Technology
Ohayo Japan|Chips Sell Off; Micron Calls Memory Bottom; NUGGET: Katitas(8919)-Future Looks Bright
- OVERSEAS. SPX Flat as Chips stocks sell off on potential new China restrictions; Fed Chair Powell keeps hawkish stance saying more hikes on the horizon; Micron calling bottom on Memory.
- JAPAN. NKY Futs +0.1% vs Cash; USDJPY 144.4; Japan FX Tsar concerned saying govt will respond “appropriately” on excessive weakness; Final Fantasy 16 off to a solid start
- NUGGET. Katitas – specialist in remodelling vacant homes. 40% YTD underpeformance vs TPX. Govt stepping up support of vacant home sector – supportive of Katitas’s business.
China TMT Update-PDD/1024.HK/700.HK/Luckin/BILI: PDD Adds Live Broadcasts;Bili Changes Video Display
- PDD/1024.HK/700.HK: PDD adds an entrance that is dedicated to viewing live broadcasts (+/-/-)
- Luckin Coffee: Luckin Coffee cooperate with OneContract Cloud to develop internal contract management system, which is intended to improve the efficiency of franchise store opening.
- BILI: Bilibili Will Change Video Display Metrics to Measure Watch Time Instead of View Counts (-)
Macau at the Halfway Mark Shows Resurgent Revenue Trends Improving by Month
- Sequential monthly increases in Macau GGR presages arrival at near 2019 pre-covid levels earlier than many have forecast. This keeps entry points attractive.
- China economy inching up to projected 4.5% GDP growth for 2023 and 5% for 2024 supports underlying confidence of continuing cycle of recovery for Macau.
- Added room, gaming and non-gaming amenities will kick in later this year and for 2024 will keep positive momentum going.
China CXO Has Reached a Crossroads – Time to Reconsider
- Investors appear to have lost faith in China healthcare following a plunge in CXO shares.But seeing the decline in CXO orders as indicator of industry’s prosperity is a lagging view.
- The logic of CXO is tied to biotech on the one hand and to overseas relationships on the other. But Biotech remains the cornerstone of the overall logical chain.
- According to the primary market situation, we’re not optimistic about CXO’s domestic business to achieve a significant recovery next year, but the overseas recovery/financing situation may improve a bit faster.
Industry Report – Chemicals & Materials Technology
- WTR-CMI last week. In a week when the broad market index (Russell 2000) declined 3.6%, our WTR-CMI index of 30 chemicals and materials technology companies modestly outperformed, dropping 2.3%.
- This nonetheless trailed the large-cap S&P 500 index, which lost only 1.8% of its value during the week.
- Benefiting from improved investor sentiment on possibly higher summer sales of insecticides, improving automotive and construction markets, and lower raw material costs that we discussed last week, ag-chem and coatings companies led the performance of our index.
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