Grab (NASDAQ: GRAB ) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge I'm a 19 year old passionate trader managing a 6 figure portfolio trying to and beating the major indexes with my stock picks. I am focused mostly on growth stocks, particularly stocks that implements AI into the ...

Founder-Run Companies Overview - Founder-run companies constitute less than 5% of the S&P 500 index but account for nearly 15% of the total index's market capitalization, highlighting their significant impact on the market [2] - Notable founder-led companies include NVIDIA, Amazon, Meta, Tesla, Berkshire Hathaway, and Netflix, with technology firms leading the market capitalization [2] Performance and Investment Potential - Founder-led companies have shown superior performance, with a Harvard Business Review study indicating a market-adjusted return of 12% over three years, compared to a negative 26% for companies with professional CEOs [6] - Current appealing stocks in the founder-run category include Netflix, Meta, DoorDash, and Robinhood Markets [6] Meta Platforms - Meta, with a market capitalization of $1.8 trillion, is the largest social media platform and has a first-mover advantage in social networking [8] - The company is focusing on AI tools to enhance business messaging and customer support, with expectations of reaching over 1 billion users with its AI assistant [9] - Meta is investing heavily in AI infrastructure and developing augmented reality technologies through partnerships, which will drive long-term growth [10] Netflix - Netflix, valued at $502.7 billion, transitioned from a DVD rental service to a leading streaming provider, supported by a diverse content portfolio [11][12] - The company is aggressively investing in original content to maintain its market position against competitors like Disney+ and Apple TV+ [13] - Netflix's 2025 revenue projections range from $43.5 billion to $44.5 billion, with an operating margin of 29% [15] Robinhood Markets - Robinhood, with a market capitalization of $92.5 billion, is expanding its services internationally, including tokenized U.S. stocks for EU investors [16][17] - The company operates nine business lines, each generating over $100 million in annualized revenues, and aims to diversify its revenue streams [18] - Robinhood is focused on becoming a global player, expanding into the Asia-Pacific region, and currently holds a Zacks Rank 1 [19] DoorDash - DoorDash, valued at $105.9 billion, is the largest food delivery platform in the U.S. with a 56% market share [20][21] - The company is enhancing its logistics efficiency and advertising contributions, which are positively impacting its margins [21] - DoorDash is pursuing international expansion through acquisitions and partnerships to strengthen its market position [21]

Market Concentration - A merger between two Indonesian companies would control approximately 80% of ride-hailing and 66% of food delivery in South-East Asia [1] Regulatory Concerns - The proposed tie-up faces potential obstacles due to reservations from Indonesian officials [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **China Internet** sector, focusing on **e-commerce** and **food delivery** competition among major players like **Alibaba**, **JD**, and **Meituan** [1][12][8]. Core Insights and Arguments - **Competitive Landscape**: The ongoing competition among Meituan, JD, and Alibaba is intense, with significant financial implications. Alibaba has announced **RMB50 billion** in food delivery incentives, while JD has indicated **RMB30 billion** in investments for the same purpose [12][13]. This competition is expected to last into **2026**, potentially exceeding **RMB100 billion** in total costs [13]. - **Profitability Concerns**: The companies are struggling to grow profitably due to overlapping target markets, with **600-800 million MAUs** and **200-250 million core DAUs** competing for the same consumer base [9][55]. The expectation is that the transactional platforms will find it increasingly difficult to achieve sustainable profitable growth without engaging in destructive competition [9][68]. - **Market Sentiment**: There is a prevailing negative sentiment among investors regarding the sector, but recent tactical positioning suggests that stocks may have room for a rebound [8][18]. The normalization of competition, aided by government regulation, could lead to improved conditions for Alibaba and JD [8][17]. - **Earnings Estimates**: The estimates for JD and Alibaba have been reduced due to higher-than-expected food delivery losses and spending plans. The companies are expected to experience material earnings damage through the September quarter [12][95]. Additional Important Insights - **User Subsidy Limits**: The companies are reaching the limits of their user subsidy budgets, with JD managing a quarterly spend of **RMB10 billion** [3]. The expectation is that the competitive intensity will moderate, allowing for a focus on service quality and unit economics rather than just order volume growth [17]. - **Market Dynamics**: The competition is leading to increased multi-homing among users, with Meituan retaining a larger share of unique merchants compared to JD and Ele.me [15][16]. This indicates a potential long-term advantage for Meituan in the food delivery market, despite the overall profit pool shrinking [16]. - **Valuation Metrics**: The valuation metrics for the companies indicate that JD and Alibaba's shares appear cheap in a context where food delivery losses are expected to moderate [4][20]. The adjusted P/E ratios for JD and Alibaba are **7.8x** and **12.9x** respectively for 2026 [11]. Conclusion - The China Internet sector, particularly in e-commerce and food delivery, is facing significant challenges due to intense competition and profitability concerns. While there are signs of potential normalization and recovery, the long-term outlook remains cautious as companies navigate overlapping markets and regulatory pressures.

Summary of the Conference Call on the China Internet Sector Industry Overview - **Industry**: China Internet Sector, specifically focusing on food delivery platforms - **Key Companies Mentioned**: Ele.me, Meituan, JD, Alibaba Core Points and Arguments 1. **Regulatory Intervention**: The State Administration for Market Regulation (SAMR) summoned food delivery platforms on July 18, 2025, to rectify aggressive promotional practices and promote rational competition, aiming for a healthy ecosystem that benefits all stakeholders [2][3] 2. **Comparison with Previous Summons**: The current regulatory focus has shifted from the sound growth of the platform economy to the sustainable development of the catering and service sector, indicating a more targeted approach to address specific industry issues [2] 3. **Impact of Subsidies**: Substantial subsidies have artificially boosted demand but have led to negative consequences such as: - Diminished in-store dining experiences - Reduced profit margins for restaurants, especially SMEs - Increased waste generation - A low-price mindset among consumers, risking long-term price deflation in the industry [2] 4. **Short-term Sentiment**: The regulatory summons is expected to enhance short-term market sentiment, with stock prices of Meituan, JD, and Alibaba increasing by 3-5% following the announcement [3] 5. **Investment Strategies**: Platforms are likely to adopt a more ROI-focused approach, transitioning from direct subsidies to tiered discount vouchers, which could help alleviate pressure on the catering sector [3] 6. **Long-term Industry Changes**: Anticipated structural transformations include: - Consolidation within the catering sector, favoring chain stores over SMEs - Increased customer price sensitivity due to heightened competition - Platforms accepting lower margins as part of their sales and marketing strategies [4][6] 7. **Stock Implications**: - Near-term recovery expected for Meituan, followed by JD and Alibaba, with Meituan poised for the most significant rebound due to its lagging performance [7] - Medium-term outlook suggests potential lower valuation multiples for Meituan and JD if competition persists, despite confidence in their operational capabilities [7] Additional Important Insights 1. **Market Dynamics**: The entry of e-commerce giants into the food delivery sector is primarily driven by the need to attract new traffic and protect market share, especially as Meituan expands into other e-commerce categories [3] 2. **Fulfillment Costs**: There is a risk of excessive investment in fulfillment infrastructure, which may not align with consumer demand for rapid delivery [6] 3. **Regulatory Risks**: The evolving competitive landscape and regulatory changes pose significant risks to the sector, impacting monetization and operational strategies [13][14][18] This summary encapsulates the key discussions and insights from the conference call regarding the current state and future outlook of the China Internet sector, particularly focusing on food delivery platforms.

Core Viewpoint - Ele.me has launched the AI Smart Helmet X3, which enhances AI capabilities, efficiency, and safety for delivery riders, aiming to improve their work experience and delivery safety [1][2]. Group 1: AI Capabilities - The AI Smart Helmet X3 features a groundbreaking upgrade with the industry's first AI assistant for riders named "Xiao E," allowing riders to perform various tasks through voice commands [2]. - The AI assistant can proactively trigger actions in specific scenarios, such as order announcements, rider location confirmations, and reminders for potential delays [3]. Group 2: User Adoption and Feedback - Since the nationwide rollout of the AI assistant in June, it has covered millions of riders and has recorded over 1.6 billion proactive service instances [4]. - The "Rider Day" initiative, launched on the 17th of each month, includes pilot testing of the Smart Helmet X3 at various rider stations, gathering feedback for continuous improvement [5]. Group 3: Safety Features - The Smart Helmet X3 includes advanced safety features such as collision detection and posture detection, enhancing rider safety during their deliveries [7][8]. - It is equipped with a 50-meter visible automatic sensing tail light, noise-canceling headphones, and can operate in temperatures ranging from -20°C to 60°C [8]. Group 4: Navigation and Efficiency - The software upgrade introduces indoor navigation maps, which help riders efficiently locate merchants in complex shopping areas, improving delivery speed [9][10]. - The indoor navigation feature is currently available in 30 shopping centers, with plans to expand to over 300 centers nationwide in the next six months [9][10]. Group 5: Rider Benefits and Promotions - The "Smart Equipment Care" program offers various benefits, allowing riders to purchase the Smart Helmet and smart headphones at discounted prices, with some riders eligible for free equipment [10]. - New riders can receive a free helmet and headphone set upon completing initial tasks, promoting the adoption of smart equipment [10].

Core Viewpoint - Meituan is actively engaging in discussions regarding the challenges and impacts of price wars in the food delivery industry, emphasizing the need for fair competition and sustainable practices among businesses [1][5]. Group 1: Industry Challenges - The influx of new platforms has led to a significant market investment of 800 billion in subsidies, resulting in aggressive price wars that have decreased average order values by 7 to 10 yuan and reduced merchant income by 15% [1][2]. - Many merchants express concerns that the reliance on high subsidies creates a "false prosperity," as customer retention diminishes once subsidies are removed, leading to a decline in both order volume and average order value [1][2]. - The pressure from price wars disproportionately affects small and medium-sized businesses, which struggle to compete against larger brands that can absorb the costs of subsidies [3][4]. Group 2: Operational Impacts - The fluctuation in order volumes due to subsidies increases operational stress on frontline staff, as businesses must hire additional employees to manage peak orders, leading to higher labor costs and potential declines in service quality [2][3]. - The price sensitivity of consumers has shifted, with many opting for lower-priced items, which has further compressed profit margins for businesses that rely on higher-quality offerings [3][4]. Group 3: Recommendations and Future Directions - Experts suggest that platforms should allocate resources more effectively to create a fair competitive environment, allowing for diverse market development and reducing the negative impacts of price wars on smaller businesses [4][5]. - Meituan has announced plans to invest in infrastructure, including the establishment of 1,200 "Raccoon Canteens" and the expansion of satellite stores, to support the growth of various restaurant brands and enhance operational efficiency [6].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The report provides a daily update on the fixed - income market, including bond price changes, new issuances, and macro - news. It also analyzes the profit situation of WESCHI and gives investment suggestions [1][7][8]. Summary by Relevant Catalogs Trading Desk Comments - Yesterday, GUOTJU priced a 3 - year floating - rated bond at SOFR + 60 (IPT at SOFR + 115). In KR, spreads of DAESEC/SHINFN/NACF 26 - 30s widened by 1 - 2bps. HYNMTR Float 30 tightened 8bps, and HYNMTR 5.3 29/HYNMTR 3.5 31 tightened 2 - 4bps [1]. - In Chinese IGs, BABA/HAOHUA 28 - 35s were unchanged to 1bps tighter, while MEITUA 30 widened 2bps. In financials, BBLTB/KBANK 31 - 40s tightened 2 - 4bps, and NANYAN/BNKEA 30 - 34s tightened 2 - 3bps [1]. - In insurance, SHIKON/CATLIF 34 - 35s were unchanged to 1bp tighter. MYLIFE/NIPLIF 54 - 55s and SUMILF/FUKOKU Perps were up 0.1 - 0.3pt. In AT1s, NWG 7.3/BNP 7.375/HSBC 6.95 Perps were up 0.2 - 0.8pt [1]. - In HK, AIA/CKHH 30 - 35s tightened 1 - 2bps under buying from PBs. LIFUNG 5.25 Perp was 3.1pts higher, and LIFUNG 5.25 08/18/25 was up 0.1pt. Li & Fung launched a tender offer for LIFUNG 5.25 Perp up to USD50mn at USD55 and mandated a 3.5 - year USD bond issuance [1]. - HYSAN/FAEACO Perps were up 0.2 - 0.5pt. LASUDE 26 was up 0.7pt. Media reported Lai Sun Development has been working on a HKD3.5bn 5 - year loan refinancing deal. NWDEVL 27 - 31s/Perps were unchanged to 0.4pt lower [1]. - In Chinese properties, ROADKG 28 - 30s were 0.5 - 3.6pts lower, and ROADKG Perps were unchanged to 0.2pt lower. Outside properties, WESCHI 26 was up 0.2pt. FOSUNI 25 - 28s were up 0.3 - 0.5pt. MONMIN 30 was up 0.7pt, closed 2.6pts higher WTD [1]. New Issuances - TEMASE priced 5 - year, 10 - year, and 30 - year CNH bonds at par to yield 1.85%, 2.05%, and 2.55% (IPT at 2.3%, 2.55%, and 3.05%) respectively [2]. - CHMEDA priced 5 - year and 10 - year CNH bonds at par to yield 2% and 2.3% (IPT at 2.55% and 2.85% area) respectively [4]. - Jiaozuo State - owned Capital Operation (Holding) Group issued a 150 - million 3 - year bond at a 6.5% coupon rate, unrated [12]. Morning Updates - This morning, the new CNH TEMASE 1.85 30/TEMASE 2.05 35 were 0.1 - 0.2pt lower, while TEMASE 2.55 55 was 0.5pt higher from ROs at par. The new CNH CHMEDA 2 30/CHMEDA 2.3 35 were unchanged to 0.1pt lower. VLLPM 29 was up 0.5pt [3]. - WESCHI 4.95 07/08/26 was up 1.0pt this morning post - positive profit alert. HYUELEs were unchanged this morning as SK Hynix 2Q25 EBITDA rose 47% yoy to KRW12.7tn (cUSD9.1bn) [3]. Macro News Recap - On Wednesday, S&P (+0.78%), Dow (+1.14%), and Nasdaq (+0.61%) were higher. Trump said countries will face tariffs ranging from 15% to 50% ahead of an 1 Aug '25 deadline. The US may impose a 15% tariff on EU goods. UST yield was higher on Wednesday, with 2/5/10/30 - year yields at 3.88%/3.94%/4.40%/4.95% [7]. Desk Analyst Comments - West China Cement (WESCHI) expects the profit attributable to owners to increase 80 - 100% yoy to RMB696 - 774mn in 1H25, driven by overseas cement revenue, mainland China cement sales, property sales profit, and reversal of impairment losses [8]. - WESCHI plans to use proceeds from non - core asset sales to partly repay its WESCHI 4.95 07/08/26 due in Jul '26. The company also plans to sell other assets and offshore projects for bond repayment [9]. - Despite potential recovery in the Chinese cement market, caution remains regarding WESCHI's ability to remit cash from African operations. The full and timely repayment of the bond is uncertain. The report maintains a neutral rating on WESCHI 4.95 07/08/26 and prefers BTSDF 9.125 07/24/28 and EHICARs in the China HY space [10]. News and Market Color - Regarding onshore primary issuances, 123 credit bonds were issued yesterday with an amount of RMB119bn. Month - to - date, 1,592 credit bonds were issued with a total amount of RMB1,699bn, a 16.6% yoy increase [14]. - Adani Ports is in the race to set up a logistics park in north India. San Miguel buys a 3.8% stake in First Pacific - owned Meralco for PHP3.9bn (cUSD68.4mn) [14]. - Fosun will early redeem USD178.857mn FOSUNI 5.95 10/19/25 at 101 on 22 Aug '25. China Hongqiao seeks a USD300mn - equivalent three - year loan [14]. - JD.com will create a virtual restaurant chain. Media reported Lai Sun Development has been seeking an HKD3.5bn loan refinancing deal, but about half of the lenders have yet to commit [14]. - Li & Fung says no covenant restriction on perp refi, and the final plan depends on EBITDA. Rakuten sells JPY bonds for JPY30bn (cUSD204mn) for 5G projects [14]. - Sands China 2Q25 adjusted property EBITDA climbs 0.9% yoy to USD566mn. Viceroy alleges Vedanta's promoters siphon margins from Hindustan Zinc [14]. Top Performers and Underperformers | Top Performers | Price | Change | Top Underperformers | Price | Change | | --- | --- | --- | --- | --- | --- | | LIFUNG 5 1/4 PERP | 51.4 | 3.1 | ROADKG 5 1/8 01/26/30 | 22.8 | - 3.6 | | NSANY 5 1/4 07/17/29 | 100.9 | 1.1 | ROADKG 6.7 03/30/28 | 26.5 | - 1.7 | | NWG 7.3 PERP | 102.3 | 0.8 | ROADKG 6 03/04/29 | 25.8 | - 1.7 | | MONMIN 8.44 04/03/30 | 97.4 | 0.7 | GRNLGR 5 7/8 07/03/30 | 21.9 | - 0.9 | | LASUDE 5 07/28/26 | 52.0 | 0.7 | ROADKG 5.2 07/12/29 | 25.9 | - 0.6 | [5]

Core Viewpoint - The article discusses the recent regulatory intervention by the market supervision authority regarding aggressive subsidy practices in the food delivery industry, signaling a need for platforms like Ele.me, Meituan, and JD to adjust their promotional strategies to avoid excessive competition and ensure fair practices [2][4]. Group 1: Regulatory Actions and Industry Response - On July 18, the market supervision authority held talks with major food delivery platforms, emphasizing the need to regulate promotional behaviors and indicating that the aggressive subsidy wars must change [2][4]. - Prior to the talks, various regional restaurant associations had called for a halt to extreme subsidies, highlighting the negative impact on traditional dining establishments and the unsustainable pressure on restaurant profits [4][6]. Group 2: Impact on Businesses - Some businesses, like "Yixin Rice Ball," reported a nearly 30% increase in orders since May, primarily driven by delivery services, while maintaining a gross margin of around 65% despite participating in subsidy wars [6][8]. - However, many businesses experienced a decline in average profit margins by 10% to 30% during subsidy campaigns, as increased order volumes were accompanied by lower average transaction values [6][7]. Group 3: Challenges Faced by Restaurants - Restaurants are facing operational challenges due to sudden spikes in low-priced orders, which disrupt service quality and delivery efficiency, leading some to withdraw from platform partnerships [7][8]. - The disparity in resource allocation favors larger chain brands, leaving smaller businesses struggling to compete for visibility and customer engagement on these platforms [7][10]. Group 4: Future Considerations - Experts suggest that the ongoing subsidy wars should not be simplistically categorized as "involution" but rather viewed as a complex interplay of market dynamics that could lead to improved operational efficiencies and data-driven management for smaller businesses [10][11]. - The focus should shift towards establishing fair subsidy rules and ensuring equitable distribution of traffic among all merchants, with an emphasis on long-term sustainability and quality competition rather than short-term price wars [11][12].

Core Viewpoint - The competition in the food delivery industry remains intense, with both JD.com and Meituan launching physical collective stores to enhance their service offerings and operational efficiency [1][9]. Group 1: JD.com Initiatives - JD.com opened its first offline delivery store, "Qixian Xiaochu," which experienced overwhelming demand, leading to system adjustments that restricted orders from outside delivery areas [1][6]. - The store's popularity was evident as delivery personnel faced long wait times, with some orders being canceled due to excessive delays [1][6]. - JD.com plans to invest 10 billion yuan to recruit "dish partners" and aims to establish 10,000 Qixian Xiaochu stores nationwide within three years [9]. Group 2: Meituan Developments - Meituan announced its "Raccoon Kitchen" initiative, planning to build 1,200 locations over the next three years, starting with nine in Beijing [9]. - The Raccoon Kitchen will serve as a centralized delivery kitchen, providing infrastructure for various restaurant businesses, emphasizing transparency and traceability in food preparation [9]. Group 3: Market Dynamics - The surge in orders at JD.com's Qixian Xiaochu was attributed to increased consumer awareness following its opening, indicating a strong market response to new entrants [6][9]. - The competitive landscape is evolving, with both companies adopting different business models to capture market share in the food delivery sector [9].