Daily Brief Thematic (Sector/Industry): Smartkarma Webinar | Top China Trade Ideas and more

In the next installment of our Webinar Wednesdays, we go live with Smartkarma Insight Provider, Osbert Tang, CFA as he shares more about his top trade ideas in China, the latest trends, and business opportunities in the space.

The webinar will be hosted on Wednesday, 22 February 2023, 17:00 SGT/HKT.

Osbert Tang is an equity analyst with over 20 years of experience with focuses on China transport, infrastructure, industrials and utilities sectors. He has been based in Shanghai since 2003, accumulated nearly 20 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities. Osbert has received votes from top-tier institutional investors and has been a highly-ranked transport and infrastructure analyst in the Asiamoney, Institutional Investors and Greenwich surveys. In addition to his extensive experience with international investment banks including RBS, ABN AMRO (both served as Shanghai Chief Representative), Paribas Asia Equity, Maybank Kim Eng and DBS Securities, he has been a senior analyst with Moody’s Investors Service with focus on ratings of China infrastructure and related LGFV issuers. He has also worked in the area of strategic development at Sun Hung Kai Properties Limited. Osbert holds a BBA from the Chinese University of Hong Kong, an MBA from the University of Texas at Austin and a MSSc in Applied Psychology from the City University of Hong Kong. He was accredited with the CFA charter in 1997, and is a member of both British Psychological Society and Hong Kong Psychological Society.

• OVERSEAS.  SPX Futs -0.3% as US OFF ON FOR PRESIDENT’S DAY as Biden makes the trip to Ukraine;  Markets still focused inflation/rate hikes; Europe Resource Stocks bid on China Recovery
• JAPAN. NKY Futs -0.2% vs Cash; USDJPY 134.29; North Korea launches  2 more missiles as Japan cries foul;  Defense stocks in focus today? BOJ March Surprise? 
• DAILY NUGGET. Toto(5332) – Bottoming here?  Pricing in all of the US near term downside and ignoring the upside to a China recovery ?

• The launch of Hang Seng Stock Connect Hydrogen Energy Index highlights the growing importance of hydrogen energy use and will stimulate more interest in this emerging sector. 
• Weichai Power (2338 HK), ENN Energy (2688 HK), Power Assets (6 HK), Wuxi Lead Intelligent Equi-A (300450 CH) and Ningxia Baofeng Energy-A (600989 CH) are the five largest constituents. 
• We believe many of these companies are just generating a tiny portion of revenue and profit from the hydrogen initiatives, but the long-term prospects are positive. 

• The pricing trend is expected to experience higher sequential decline 1) parcel pricing is at a high point; 2) alleviated cost pressure; 3) delivery companies try to capture parcel volume. 
• The collaboration with PDD’s Temu could provide J&T a source of international order volume. For its potential IPO, J&T’s overseas operation gives more room of imagination than its domestic business.
• We downgrade SFH to SELL with TP of RMB48 due to Fengwang’s unpromising outlook .Our top pick of the Logistics sector remains ZTO. We are a buyer to JD logistics.