Rakuten has announced that the company is no longer proceeding with its Fintech reorganisation, preferring instead to enter a deep alliance with (and probably stake sale to) Mizuho. In this brief note, we address what we think Card is likely to be worth in a sale and the implications for Rakuten.
KEY HIGHLIGHTS Strategy Alpha Picks: Outperforming For Sep 24 And 3Q24 Our Alpha Picks portfolio beat the STI, rising 5.4% mom in Sep 24 and 7.9% qoq on an equal-weighted basis. Add CLI, CSSC, DFI and SATS, and remove ST for Oct 24. Update Mapletree Industrial Trust (MINT SP/BUY/S$2.50/Target: S$3.05) Further expansion in Japan with potential for redevelopment. TRADERS' CORNER Oversea-Chinese Banking Corp (OCBC SP): Trading BUY Keppel DC REIT (KD...
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
The Bulgarian stock market ended the week mixed on Friday, as the local benchmark SOFIX lost 0.2% to settle at 855.75, while the broad ones BGBX40 (168.94, +0.4%) and BGTR30 (867.82, +0.1%) ended a notch higher. The advancers equaled the decliners in our list of selected companies 13-to-13, 3 remained neutral. Speedy (SPDY, BGN 210.00, +6.6%) was the top gainer in the list, followed by Neochim (NEOH, BGN 20.20, +5.2%) and Bulgarian stock exchange (BSE, BGN 8.15, +4.5%). SOFIX member First Invest...
Rakuten has ditched its FinTech reorganization plans since it was announced six months ago. Instead, the Group is now opting to deepen the collaboration between its main arm of the FinTech segment, Rakuten Card, with Mizuho, presumably by selling a stake in Rakuten Card to the latter . While details are not disclosed yet, we share our preliminary view below.
GREATER CHINA Results New World Development (17 HK/SELL/HK$8.19/Target: HK$7.02) FY24: Temporarily halts dividends; recovery of profitability takes time. Update Alibaba Health Information Technology (241 HK/BUY/HK$3.90/Target: HK$4.70) Non-drug healthcare products and marketing business to drive growth in FY25-27. Baidu Inc (9888 HK/HOLD/HK$95.75/Target: HK$90.00) Key highlights from Baidu Cloud Intelligence Conference 2024. INDONESIA Update Bank Negara Ind...
GREATER CHINA Sector Automobile Weekly: PV sales down 4.8% yoy, missing estimates. Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV, and Geely. Top SELL: GAC. INDONESIA Update Bank Central Asia (BBCA IJ/BUY/Rp10,850/Target: Rp12,000) Strong loan growth continues; asset quality remains solid. MALAYSIA Update SD Guthrie (SDG MK/HOLD/RM4.88/Target: RM4.75) Plantatio...
GREATER CHINA Strategy PBOC Turns On The Tap The PBOC announced a series of easing measures on Tuesday. INDONESIA Update Astra International (ASII IJ/BUY/Rp5,275/Target: Rp5,800) About 70% of car and motorcycle sales to benefit from rate cut. Upgrade to BUY. MALAYSIA Results MyNews Holdings (MNHB MK/SELL/RM0.60/Target: RM0.52) 3QFY24: Results improved sequentially but disappointed consensus expectations. Valuations...
GREATER CHINA Strategy Small-Mid Cap Monthly Solid growth momentum into 8M24, reiterate BUY on Plover Bay Technologies and raise target price to HK$6.10. Sector Property Trough valuation has priced in the weak industry fundamentals and poor policy implementation; poised for potential monetary easing. INDONESIA Update Erajaya Swasembada (ERAA IJ/BUY/Rp458/...
GREATER CHINA Update Alibaba Group (9988 HK/BUY/HK$87.20/Target: HK$95.00) Key takeaways from Apsara Conference 2024. INDONESIA Update Gojek Tokopedia (GOTO IJ/HOLD/Rp63.00/Target: Rp70.00) Competition in live e-commerce to intensify. MALAYSIA Sector Consumer Sector trades at -1SD to its five-year mean but given its defensiveness, it is likely to underperform on a relative ba...
We met with all 3 of the incumbent Japanese Telcos & Rakuten in Tokyo this week. Every time we visit, we are reminded of how much better the telco industry is in Japan vs other DMs, as the MNOs continue to expand their scope of operations beyond traditional telco driving higher returns and growth.
For Mid-Autumn Festival holiday, tourism, duty-free shopping and home appliance consumption were the bright spots. Domestic tourism and duty-free shopping had the strongest recovery among mini breaks this year. For the home appliance sector, trade-in policies are beginning to stimulate consumer demand. We prefer companies that: a) are disciplined in business operation; b) have good prospects in overseas business; and c) maintain healthy inventories. We prefer Anta, Galaxy, Haidilao, Haier, Midea...
KEY HIGHLIGHTS Sector Offshore Marine Near-term concerns over the oil price, but long-term oil prices justify continued investment in the sector by oil majors and NOCs. Top pick: Seatrium. TRADERS' CORNER Singapore Tech Engineering (STE SP): Trading BUY DBS Group Holdings (DBS SP): Trading BUY
Today, Rakuten Mobile launched a new mobile plan aimed at seniors (65 years old and above). In addition, an update on its mobile subscribers figure reflected a slowdown in net additions, which was behind consensus and our forecasts for Q3. We share our thoughts below.
GREATER CHINA Sector Automobile Weekly: PV sales rebound by 14.7% yoy, beating estimates. Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV, and Geely. Top SELL: GAC. Consumer 2Q24/1H24 results wrap-up: Lowered expectations; disciplined operations matter. INDONESIA Update Sido Muncul (SIDO IJ/BUY/Rp680/Target: Rp900) ...
GREATER CHINA Sector Hong Kong Property Results wrap-up for Hong Kong developers: Navigating the cycle. INDONESIA Update XL Axiata (EXCL IJ/BUY/Rp2,270/Target: Rp2,900) Fixed broadband ARPU might increase by 10% post-acquisition of ServeCo. MALAYSIA Sector Utilities A strong 2Q24 with companies coming in broadly within expe...
GREATER CHINA Economics Trade Exports rebounded in August but outlook remains challenging. Sector IT Hardware Maintain preference for the more defensive AI-device plays as uncertainty remains high. Maintain OVERWEIGHT. INDONESIA Update Bank Mandiri (BMRI IJ/HOLD/Rp7,250/Target: Rp7,760) 7M24: Strong ...
GREATER CHINA Economics Inflation Deflationary pressures rising. Sector Construction Building on the positive development of macroeconomic policies in 2H24-2025. Internet 2Q24 results wrap-up: Overall earnings beat; 2H24 outlook remains promising. INDONESIA Small...
China’s PV insurance registrations rebounded by 10% yoy and 13% wow to 514,134 units in 26 Aug-1 Sep 24. PEV market share dropped to 49.6% from 53% in the previous week. However, Li Auto saw wow sales decline during the week. Geely’s Zeekr and Galaxy saw buoyant sales growth, driven by new models. CATL’s market share in the global EV battery market remained steady at 38% in 7M24. Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV and Geely. Top SELL: XPeng.
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