The 720_ Global Views, MediaTek, BEKE, Coupang, China Spirits, US Internet

Summary of Key Points from Conference Call Industry Overview - US GDP Growth Forecast: The 2025 US GDP growth forecast has been downgraded from 2.4% to 1.7% on a Q4/Q4 basis, marking the first below-consensus forecast in 2.5 years. This downgrade is attributed to more adverse trade policy assumptions rather than recent economic data, which remains relatively strong [1][1][1]. Company-Specific Insights MediaTek - Automotive Sector Growth: MediaTek's earnings estimates have been raised due to expected growth in the automotive Total Addressable Market (TAM). By 2026E/2027E, the automotive business is projected to contribute 3.6%/6.8% to total revenue, up from 1.8% in 2025E. This growth is driven by market share gains in automotive cockpit SoC solutions and upgrades to mid to high-end segments with higher Average Selling Prices (ASPs) [2][4][4]. BEKE (KE Holdings) - Southbound Connect Inclusion: KE Holdings' H-shares have been included in the Southbound Connect, which is expected to support share price growth. Southbound turnover share in the Hong Kong exchange has increased to over 20% year-to-date, with southbound holdings averaging 8% of total share count. The company is also seeing strong secondary home transaction momentum post-Chinese New Year [4][4][4]. Coupang - Earnings Growth and Operating Leverage: Coupang is expected to achieve over 20% top-line growth in 2025E, driven by Product Commerce and Developing Offerings. The company anticipates significant operating leverage from 2027, with a potential to reach over 10% adjusted EBITDA margin by that year [4][4][4]. GDS - P-REIT Issuance: GDS announced its first monetization of data center assets in China through a sale to a private REIT, receiving Rmb1.2 billion in net cash proceeds. This transaction is seen as a step towards recycling capital for further investments in AI infrastructure [5][5][5]. China Spirits - Sales Management Measures: Leading spirits companies, including Wuliangye, are implementing sales management measures that are expected to lead to positive sales growth in 2025. Channel inventory has decreased significantly, and wholesale prices have increased during the Lunar New Year [8][8][8]. Macro Insights - High-tech Manufacturing in China: High-tech manufacturing has been a significant growth driver in China, contributing an average of 1.1 percentage points to annual real GDP growth over the last decade. The sector is expected to continue outperforming the broader manufacturing sector, contributing an average of 1.0 percentage point to GDP growth from 2025 to 2029 [9][9][9]. Additional Notes - US Internet Sector: The Q4'24 earnings review highlights key themes such as investment in AI and consumer health, with several large-cap stocks rated as Buys [10][10][10]. - Germany's Fiscal Shift: Political changes in Germany are expected to unlock significant public spending, potentially benefiting various sectors beyond defense [12][12][12]. This summary encapsulates the critical insights from the conference call, focusing on industry trends, company-specific developments, and macroeconomic factors that could influence investment decisions.