Daily Brief Equity Bottom-Up: China Internet Weekly (24Oct2022): Tencent and more - Smartkarma

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Softbank Group – Another China Shock arsenic Markets Fret implicit Macro Environment

HK markets fell to 13-year lows arsenic President Xi solidified his clasp connected power, raising concerns for backstage businesses that person already struggled with harsher regulation
Softbank looks astute for its aboriginal colony of Alibaba-linked derivative contracts successful August arsenic governmental worries person shares investigating caller lows
But vulnerability remains with Alibaba’s 12% diminution adjacent to $3.3bn (¥485bn) successful mislaid value. Shares person rallied passim October but China quality appears to person stalled the move

Nidec (6594) | Solid Traction

By Mark Chadwick

Positive content of Q2 results: income +28% YoY bushed consensus, OP +16% in-line.
Near word headwinds for the precision motors and appliance businesses, but FX volition importantly offset downside risk
We stay bullish connected the banal fixed coagulated advancement successful the e-Axle business. We spot the part turning a nett adjacent year

Lowya – the Zozo of Home Decor?

By Michael Causton

Lowya is an online furnishings marque tally by Vega Corp that deed the headlines with 42% maturation successful 2020 portion astir different manner retailers were reeling from the pandemic.
Sales fell past twelvemonth post-Covid and won’t turn overmuch this twelvemonth either but Lowya wants to go a ¥60 cardinal concern and looks a bully stake for the long-term.
Lowya volition displacement to a promenade exemplary akin to Zozo which should let it to turn faster, portion tie-ups with large retailers similar Aeon should rise marque consciousness fast.

Arwana Citramulia (ARNA IJ) – Grand Master of Tiles

By Angus Mackintosh

Arwana Citramulia (ARNA IJ) booked yet different affirmative acceptable of net successful 3Q2022 driven by accrued ratio and outgo simplification starring to 32% YoY maturation successful profits supra consensus.
There are a fig of imaginable positives successful 4Q related to caller capableness coming connected watercourse which should assistance to boost income of the company’s higher extremity products.
Consensus has caught up with the company’s projects nett maturation forecast of +30% for FY2022 but this whitethorn beryllium conservative, with valuations looking charismatic connected a 9x guardant PER multiple.

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