Investment Rating - The report does not explicitly provide an investment rating for the industry or companies discussed Core Insights - China's July exports missed expectations at 7.0% year-on-year compared to a 9.5% consensus, while imports exceeded expectations at 7.2% year-on-year against a 3.2% consensus. The strength in imports may be attributed to more working days, and the export miss does not necessarily indicate lower export volume. In June, export value increased by 8.6% year-on-year, with export volume rising by 16.7% year-on-year. The report suggests that Chinese exports can remain strong in the near term, although the medium-term outlook is less certain [1][3] - Headline CPI inflation in July rose to 0.5% year-on-year, up from 0.2% in June, driven entirely by higher food price inflation. Core CPI inflation decreased from 0.6% year-on-year in June to 0.4% in July, with services price inflation also edging down from 0.7% to 0.6%. The overall economic picture indicates a persistent supply and demand imbalance alongside weak price inflation [3] - China's net foreign direct investment (FDI) reached a new low in Q2, influenced by both rising outward FDI and declining inward FDI. The People's Bank of China's Q2 Monetary Policy Report indicated a continued effort to lower financing costs for corporates and households. Given recent US recession fears and the potential for tariff escalations, the report recommends going short on the Chinese Yuan against the CFETS basket due to weak economic fundamentals and an easing monetary policy [5][6] Summary by Sections Trade Data - July exports were 7.0% year-on-year, missing the 9.5% consensus, while imports were 7.2% year-on-year, exceeding the 3.2% consensus. The report indicates that the export miss does not imply lower export volume, as June saw an 8.6% increase in export value and a 16.7% increase in export volume [1][3] Inflation - Headline CPI inflation rose to 0.5% year-on-year in July, up from 0.2% in June, driven by food prices. Core CPI inflation fell to 0.4% year-on-year from 0.6% in June, indicating a persistent imbalance in supply and demand [3] Foreign Direct Investment - China's net FDI flows reached a new low in Q2, with both outward and inward FDI trends contributing to this decline. The report suggests a bearish outlook on the Chinese Yuan due to weak economic fundamentals and ongoing monetary easing [5][6]

13 August 2024 | 10:31AM HKT 2131d4eaf4cb4d50b1d51c8af07b64b4 Wistron (3231.TW): Better 3Q24 ahead on AI servers ramp up, PCs and general servers recovery; Product mix and larger scale to support GM We remain positive on Wistron post 2Q24 results and July revenues, which are both in line with our estimates. We expect a better 3Q24 ahead with stronger seasonality, PCs and general servers recovery on new product cycle, and AI servers ramp up on better GPU supply. Although there are still some uncertainties in ...

13 August 2024 | 10:18AM HKT Wiwynn (6669.TW): 2024 Nl +79% YoY, in line; ASIC Servers and General Servers to drive growth in 2H24; Buy Wiwynn delivered in-line 2Q24 results, sustaining strong YoY growth on low base last year (Read more in our results first take). We expect sequential top-line growth in 3Q/4Q24E, up 82%/ 68% YoY, with gross margin at 9.5%, above its historical level of ~8% on continuous NRE (non-recurring engineering) charges on new AI server projects. We expect ASIC (Application Specific I ...

13 August 2024 | 8:06AM BST Valneva SE (VLS.PA): 2024 First Take: Weak Dukoral sales drive topline miss requiring significant step up to meet guidance Valneva reported 2024 earnings with revenue coming in at €38.1m, 13%/11% below GSe/Company-compiled consensus estimates of €43.8mn/€42.7mn driven by product sales which were 13%/8% below (refer to Exhibit 2 for comparison vs Visible Alpha Consensus Data for individual products). Within this, Ixario sales grew 96% YoY (52% QoQ) and were 6%/24% above GSe/Visibl ...

13 August 2024 | 8:45AM BST 2131d4eaf4cb4d50b1d51c8af07b64b4 UK: June Labour Market—Private Sector Regular Pay in Line with Our Expectations, but Unemployment Rate Comes in Lower BOTTOM LINE: Private sector regular pay growth came in at 5.2% on a three-month year-on-year basis in June, in line with our expectations but slightly above the BoE's August MPR projection. The seasonally adjusted month-on-month pace came in at 0.35%, in line with our forecast and below the 0.50% average pace seen in the first five ...

9 August 2024 | 10:36PM HKT _ Focus Media Information Tech (002027.SZ) 2Q24 Review: Accelerating ad revenue with 5% dividend yield; Buy Buy 0007.SZ 12mPrie Target: Rmb7.50 Prie: Rmb5.78 Upside: 9.8% We maintain our Buy rating on Focus Media while raise our 12-m TP to Rmb7.5 (30% upside) post its strong 2Q24 results (see our note) and mgmt call.The stock has dropped 3% post results despite the headline revenue beat (+10% yoy vs. ÍGSe of +4%, Visible Alpha Consensus of +4%), NI beat (+13% yoy, 9% ahead of GSe ...

12 August 2024 | 2:24AM HKT Angel Yeast (600298.SS): Earnings Review: DD% yoy growth in Jul but mainly on low base; Sequential improvement expected for 2H24 The Company reported 1H24 results on Aug 7th with better-than-feared NI mainly on admin cost savings and government grants while sales broadly in line. The company hosted online briefing on Aug 9, at 10AM HKT, key highlights include: 1) Recent update: In domestic, the company registered strong DD% growth in July but still tracked behind the monthly targ ...

9 August 2024 | 10:25PM SGT _ EM Weekly Fund Flows Monitor All EM Asian markets saw foreign selling this week, led by A-shares and Taiwan; US$18bn outflows since July peak; Not much HF de-grossing in Japan Foreign (FII) flows / positioning n EM Asian region saw selling (-US$6.5bn) across markets this week, led by A-shares (-US$2.1bn) and Taiwan (-US$2bn). Korea (-US$1.2bn), India (-US$1.1bn) and ASEAN (-US$0.1bn) also saw net outflows wow. n EM Asia ex-China has seen little net foreign buying this year afte ...

11 August 2024 | 4:13PM HKT _ China Insurance Framing and quantifying industry responses to lower yields; Buy China Life H, Ping An H/A, NCI H up to Neutral In response to declines in long-term bond yield, the regulator has asked lifers to reduce product pricing rates and improve expense efficiency, in order to stabilize long-term margin. We believe share prices have not reflected the potential benefits of lifers' responses in a lower yield environment. Within, we provide a framework to quantify the negativ ...

China: PBOC reiterated supportive stance and called for refinement of monetary policy framework in Q2 monetary policy report 10 August 2024 | 6:30PM HKT Bottom line: The PBOC maintained an easing bias in its Q2 monetary policy report with more focus on counter-cyclical adjustment to support economic growth and refinement of monetary policy framework. In the statement, the central bank pledged to "create a favorable monetary and financial environment for achieving the full-year economic and social developmen ...