Group 1: Global Market Overview - The MSCI ACWI global index closed at 1,038.33, with a weekly change of 0.3% and a yearly change of 22.4% [6] - The MSCI Emerging Markets index increased by 2.2% over the week and has a yearly change of 39.2% [6] - The US market saw the Dow Jones decrease by 0.3% weekly, while the S&P 500 and Nasdaq fell by 0.4% and 0.7% respectively [6] Group 2: Bond Market Insights - The US 10-year Treasury yield rose to a four-month high, reflecting a decrease in market expectations for interest rate cuts [7] - The yield on US investment-grade bonds is at 4.87%, with a weekly change of 3 basis points [7] - Emerging market bonds showed a yield of 5.94%, with a 0 basis point change over the week [7] Group 3: Currency and Commodity Performance - The US Dollar Index increased by 0.3% over the week, while the Euro/USD decreased by 0.3% [8] - WTI crude oil futures rose by 0.5% to $59.44, while Brent crude oil futures increased by 1.2% to $64.13 [8] - COMEX gold prices rose by 2.1% to $4,595.40, reflecting a strong performance in the precious metals sector [8] Group 4: Japan Market Focus - The potential for early elections in Japan could benefit the ruling Liberal Democratic Party, which may lead to economic growth [28][30] - Concerns over fiscal sustainability may pressure the yen and increase bond yields, with expectations for the Bank of Japan to raise rates by 25 basis points by April [36] - Companies like Kioxia and Kajima Construction are expected to benefit from a strong government, particularly in the technology and nuclear sectors [39] Group 5: Malaysia Market Focus - Malaysia's economic growth is projected to slightly decline in 2026, with companies like 99 Speedmart and Gamuda being highlighted as safe investments in emerging markets [48][50]

Market Overview - Chinese markets experienced a pullback after a brief rally, with semiconductor and power equipment sectors performing well[3] - European markets showed high volatility, with the defense sector leading gains despite overall declines[3] - U.S. markets fell as Trump's comments shifted expectations for the next Federal Reserve chair, reducing rate cut expectations[3] Economic Indicators - The U.S. 10-year Treasury yield surpassed 4.2%, the highest level since September of the previous year[4] - Trump's announcement of tariffs on eight NATO countries led to rising bond yields in Europe and Japan[4] Federal Reserve Leadership Speculation - Trump expressed a desire for Hassett to remain as NEC chair, impacting market predictions for the next Fed chair, with Warsh now seen as the likely candidate[5] - The market is awaiting the Supreme Court's decision on Trump's dismissal of Fed Governor Cook, which could affect Fed independence[5] Key News Highlights - Trump announced a 10% tariff on goods from Denmark and seven other European countries, increasing to 25% in June if a Greenland acquisition deal is not reached[5] - The U.S. industrial output unexpectedly increased in December, with prior month figures revised upward[5] Stock Market Performance - U.S. indices closed lower, with the Dow down 0.17% to 49,359 points, and the S&P 500 down 0.06% to 6,940 points[9] - In Europe, the FTSE 100 fell 0.04% to 10,235.29 points, while the CAC 40 dropped 0.65% to 8,258.94 points[9] Asian Market Trends - The Taiwan stock market rose 1.9% to 31,408 points, while other Asian markets showed mixed results, with declines in mainland China and Hong Kong[19] - The Hang Seng Index closed at 26,844.96 points, down 0.29%[11] Commodity and Currency Movements - Gold and silver prices reached historical highs following Trump's tariff announcements[4] - The U.S. dollar index rose slightly to 99.39, with the dollar against the yuan at 6.970[25] Investment Insights - The semiconductor sector is expected to benefit from strong AI demand, despite challenges in the supply chain[23] - Companies like Ningde Times are facing headwinds from slowing EV sales and rising lithium prices, but their market position remains strong[13]

Investment Rating - The report does not explicitly provide an investment rating for the company [5]. Core Insights - The report aligns with the views of CITIC Lyon Research, indicating that Kajima Corporation's new orders will shift towards more profitable infrastructure, nuclear power plants, and factory projects, enhancing the company's profitability [5]. - The data center business is expected to improve construction profit margins, and a decrease in U.S. interest rates could lead to increased capital gains for the company [5][7]. Summary by Relevant Sections New Orders and Profitability - Kajima Corporation is predicted to secure more profitable projects, particularly in nuclear power plants, semiconductor factories, and office buildings, with the restart of nuclear power plants driving demand for data center construction in the coming years [6]. Capital Gains Potential - As of the first half of the fiscal year 2026, the company holds real estate assets valued at 1 trillion 3.3 billion yen, with 520 billion yen in Japan and 810 billion yen overseas (50% of which is in the U.S.). A decrease in U.S. interest rates could allow the company to realize capital gains through the sale of logistics assets [7]. Share Buyback and Cross-Shareholdings - The company is expected to implement a 30 billion yen stock buyback, funded by the reduction of cross-shareholdings, with proceeds from this reduction anticipated to be used for buybacks in fiscal year 2027 [8]. Catalysts - Potential catalysts for the company include: 1) Disclosure of factory orders; 2) Improvement in construction profit margins; 3) Increased capital gains from asset sales [9]. Company Overview - Kajima Corporation is one of Japan's four major general construction companies, historically closely linked with Mitsui Fudosan. The company's business primarily focuses on private sector construction projects, a trend expected to continue, with nearly three-quarters of orders coming from Japan's domestic private sector over the past decade. Its overseas real estate business, primarily focused on U.S. logistics development, has become another pillar [11].

Market Overview - A-shares experienced fluctuations with the Shanghai Composite Index down 0.33% to 4,112.60 points, while the Shenzhen Component rose 0.41% and the ChiNext Index increased by 0.56%[14] - The Hang Seng Index closed at 26,923.62 points, down 0.28%, with the Hang Seng Tech Index falling 1.35% to 5,828.35 points[9] - U.S. stock markets saw the Dow Jones rise 0.60% to 49,442.4 points, while the S&P 500 and Nasdaq increased by 0.3% and 0.2%, respectively[6] Economic Indicators - The People's Bank of China lowered various relending rates by 25 basis points, aiming to enhance bank lending and stabilize credit growth[4] - U.S. initial jobless claims were lower than expected, indicating strong labor demand, which contributed to a rise in the dollar index[25] - International oil prices dropped over 4% due to reduced geopolitical risks in Iran, with WTI crude oil at $59.19 per barrel[25] Sector Performance - In the U.S., Goldman Sachs reported a strong Q4 2025 earnings growth of 11.75% year-on-year, with record stock trading revenue of $4.31 billion[7] - The semiconductor sector, particularly TSMC, raised its capital expenditure forecast to $52-56 billion, reflecting strong demand for AI chips[21] - In Hong Kong, the real estate sector showed resilience, with major developers like New World and Sun Hung Kai seeing stock price increases of 24.4% and 17.3% year-to-date, respectively[11] Investment Insights - The Chinese government is expected to maintain a cautious approach to further monetary easing, with a potential 10 basis point cut in the reverse repo rate anticipated for the year[4] - The demand for AI computing power is projected to grow significantly, with domestic cloud providers expected to increase their capital expenditures[16] - The bond market saw a strong performance, with U.S. Treasury yields rising due to robust economic indicators, particularly in the labor market[28]

Investment Rating - The report indicates a positive outlook for the company, with expectations of accelerated sales growth in the second half of 2025 [5]. Core Insights - The company is projected to benefit from improved product mix, declining raw material prices, and cost savings in sales management, leading to an expansion in gross and net profit margins [5][6]. - All business segments are expected to achieve double-digit year-on-year growth, driven by promotional activities in the tea beverage sector and an increase in the number of beverage heating cabinets in stores to support winter sales [5]. - The packaging water segment is anticipated to recover its market share, with sales expected to reach 91% of the 2023 level in 2025, continuing to grow in 2026 [6]. Summary by Sections Company Overview - The company is a market leader in China's packaged drinking water and beverage industry, focusing on providing healthy and high-quality drinks [9]. - Major products include packaged drinking water, tea beverages, juices, and functional drinks, with packaged drinking water and tea beverages contributing 47% and 30% of total revenue, respectively, as of December 2023 [9][10]. Revenue Projections - Revenue growth for the second half of 2025 is expected to exceed management's guidance for the year, with all business segments projected to achieve double-digit growth [5]. - The tea beverage segment is expected to perform exceptionally well due to promotional activities and favorable comparisons to the low base in the second half of 2024 [5]. Catalysts - Key catalysts for growth include further market share acquisition in the packaging water business, declining PET prices, faster-than-expected macroeconomic recovery, continuous new product launches, and strong growth in the sugar-free tea beverage segment [7].

Investment Rating - The report maintains a positive outlook on Lenovo Group, with expectations of net profit growth in the third quarter of fiscal year 2026, driven by robust PC shipments and stable profit margins [4]. Core Insights - Lenovo's PC business is expected to remain resilient, with a projected year-on-year revenue increase in the third quarter of fiscal year 2026, despite rising memory prices impacting profit margins [4][5]. - The Infrastructure Solutions Group (ISG) is anticipated to approach breakeven in operating profit margins, with profitability expected in the fourth quarter of fiscal year 2026 due to product mix optimization and sales team restructuring [4]. - Lenovo's strong bargaining power and large-scale procurement capabilities position it favorably against competitors, allowing it to better manage cost pressures and transition towards the high-end market [4]. Summary by Relevant Sections Company Overview - Lenovo is the largest PC brand globally, holding a 24% market share in sales. The company has expanded its global footprint through acquisitions and joint ventures in the PC, smartphone, enterprise server, and cloud service sectors [8]. - Approximately 80% of Lenovo's revenue comes from laptops and desktops, while 10% is derived from smartphones and another 10% from servers, services, and software [8]. Revenue Breakdown - The revenue distribution by product category is as follows: Intelligent Devices Group (73.1%), Infrastructure Solutions Group (14.6%), and Solutions and Services Group (12.3%) [9]. - The revenue distribution by region is: Asia (39.8%), Americas (34.5%), Europe (17.3%), and Middle East & Africa (8.5%) [9]. Catalysts - Key catalysts for Lenovo's growth include a rebound in global PC shipments, continuous market share expansion in the PC segment, AI PC launches boosting shipments and profit margins, and improved profitability prospects in the server business [6].

Market Overview - A-shares opened high but closed lower, with the financing margin ratio adjustment cooling the market; Hong Kong stocks rose, driven by AI applications boosting tech stocks[3] - European markets slightly retreated, with energy and resource stocks performing well; US stocks weakened, particularly in tech, while healthcare and resource stocks supported the market[3] Economic Indicators - China's December exports increased by 6.6% year-on-year, significantly above the expected 2.2%, while imports rose by 5.7%, also exceeding expectations of a 0.3% decline[5] - The resilience in non-US exports, particularly in the semiconductor and automotive sectors, contributed to the stronger export performance[5] Commodity and Forex Markets - Safe-haven demand lifted metal prices, with gold, silver, tin, and copper reaching new highs; oil prices fell nearly 3% in early Asian trading due to geopolitical tensions easing[4] - The US Treasury yields declined by 2-5 basis points, with the yield curve flattening amid increased demand for safe assets[4] Stock Market Performance - The Dow Jones closed at 49,149.6, down 0.1%; S&P 500 fell 0.5% to 6,926.6; Nasdaq dropped 1.0% to 23,471.8[7] - In Latin America, the São Paulo Stock Exchange index rose by 2.0%, while the S&P Mexico IPC index increased by 1.6%[8] Sector Highlights - In the Hong Kong market, the Hang Seng Index rose by 0.56%, driven by tech stocks, particularly in AI applications, with Alibaba Health surging by 18.9%[10] - The energy sector in the US saw a notable increase of 2.26%, while the non-core consumer goods sector led declines with a drop of 1.75%[8] Fixed Income Market - The primary market saw $12.6 billion in investment-grade bonds issued, with strong demand reflected in an average oversubscription of 5.6 times[30] - Asian investment-grade bonds showed positive sentiment, with spreads generally narrowing due to strong buying interest[30]

Investment Rating - The report indicates a positive investment outlook for WuXi AppTec, with a consensus target price of HKD 131.35, suggesting potential upside from the current price of HKD 110.8 [13]. Core Insights - WuXi AppTec reported a 9% year-over-year revenue growth for Q4 2025, with adjusted net profit increasing by 36%, exceeding market expectations by 2% and 3% respectively [5]. - The strong performance is attributed to the company's robust CRDMO integrated business model and significant growth in the WuXi TIDES business, alongside China's competitive position in the global small molecule supply chain [5]. - Looking ahead to 2026, earnings realization in the Chinese healthcare sector is expected to be more critical than valuation expansion [5]. Summary by Sections Financial Performance - WuXi AppTec's revenue for 2025 increased by 15.8% to CNY 45.5 billion, with core business sales rising by 21.4%, surpassing previous guidance by 3-4% and Bloomberg consensus by 2% [8]. - Adjusted net profit rose by 41.3% to CNY 15 billion, again exceeding market expectations by 3% [8]. - The company has shown a 41% year-over-year increase in order volume for the first nine months of 2025, significantly outpacing the global average growth rate of 14% [8]. Business Overview - WuXi AppTec operates as a global enterprise with services spanning small molecule R&D and manufacturing, biologics R&D and manufacturing, cell and gene therapy R&D and manufacturing, medical device testing, and molecular diagnostics and genomics [9]. - The company provides comprehensive services throughout the R&D cycle, supporting global innovation and transformative therapies [9]. Market Position - WuXi AppTec's order growth visibility is superior to its peers, with expectations for continued outperformance in 2026 [8]. - The potential for margin expansion exists through the divestiture of low-margin clinical CRO businesses and an acceleration in order growth in 2026 [8].

Investment Rating - The report does not explicitly provide an investment rating for Jardine Matheson Holdings [4][5]. Core Insights - 2026 is expected to be a significant year for Jardine Matheson, with strategic updates from Astra and Jardine C&C, as well as share buybacks and insider purchases [4][5]. - The report expresses a positive outlook on the share buyback strategy, suggesting it will enhance per-share value and indirectly benefit shareholders [4][5]. - The potential for asset disposals remains, provided they align with financial or strategic rationality [6]. Summary by Sections Company Overview - Jardine Matheson is a Singapore-listed conglomerate with major holdings including 53% of Hongkong Land, 78% of DFI Retail, 85% of Mandarin Oriental, and 85% of Jardine C&C [9]. - The company operates with a philosophy of granting operational autonomy to subsidiaries, allowing the headquarters to focus on strategic planning and group structure optimization [9]. Financial Performance - Revenue breakdown shows Astra contributing 57.1%, DFI Retail 25.4%, Jardine Pacific 5.9%, and Hongkong Land 5.1% [10]. - Geographically, 96.6% of revenue comes from Asia, with minimal contributions from Europe (1.6%), the Middle East and Africa (0.3%), and the Americas (1.4%) [10]. Stock Information - As of January 13, 2026, the stock price is $73.43, with a market capitalization of $22.09 billion [12]. - The consensus target price from Refinitiv is $75.57 [12]. Catalysts - Key catalysts include large-scale share buybacks and dividend growth driven by core earnings from DFI Retail, Hongkong Land, Astra, and Mandarin Oriental [7]. - The potential sale of the Mandarin Oriental's East Hotel project to a third party is highlighted as another significant catalyst [7]. - A recovery in the Chinese real estate market is expected to boost Hongkong Land's profitability and trigger a revaluation [7].

Investment Rating - The report maintains a positive outlook on the stock of Pan-Pacific International Holdings (PPIH), expecting robust demand for discount retail formats and sustained strength in inbound consumption [5]. Core Insights - PPIH has reported a continuous increase in same-store sales for 43 months, achieving a year-on-year growth of 3.0% in December despite a high base of 6.9% in November [5]. - The discount business grew by 3.7% on a high base of 6.6%, while the general merchandise store (GMS) segment saw a growth of 1.2% on a base of 3.5% [5]. - The company plans to open 25 new discount stores in FY2026, indicating a strategy to expand its footprint in the current inflationary environment [5]. - The report highlights that despite negative calendar effects, both discount and GMS segments continue to grow, with overall store sales increasing by 4.3% [5]. Summary by Sections Sales Performance - Same-store sales have shown resilience with a 4.3% year-on-year increase, although the previous month's growth was 8.5% [5]. - The total number of stores increased by 26 to 662, with discount stores increasing by 28 to 533 [5]. Consumer Behavior - The report notes a 1.4% increase in foot traffic for discount stores and a 2.2% increase in average transaction value [5]. - The demand for private label (PB) products is expected to remain strong due to consumer price sensitivity, potentially allowing the company to gain market share [5]. Product Category Performance - In terms of product categories, electronics saw a decline of 4.9%, while groceries and food categories grew by 5.7% and 4.6%, respectively [5]. - The discount business is projected to have sufficient growth potential despite a rising base, with expectations of 3% growth in discount business and 2% in GMS for FY2026 [5]. Strategic Factors - Key factors influencing the company's performance include the ability to maintain revenue growth momentum and the impact of inbound consumption on the discount store segment [6]. - The report emphasizes the importance of the sustainability of the private label growth story and the company's cost control measures [6].