[Chinese] 2024/8/23 - South East and East England Regional Market Report
Market news
【United States】
According to data from the US Census Bureau, the number of new housing starts in the US fell 6.8% month-on-month in July this year, falling to 1.238 million units per annualized, lower than market expectations of 1.33 million units, the biggest drop since March, in contrast to the 1.1% increase after the renovation last month.
US initial jobless claims and business activity data show that the economy is still gradually cooling
The number of jobless claims in the US first rose last week, but it seems to have stabilized at a level consistent with the gradual cooling of the labor market. This should create conditions for the US Federal Reserve to start cutting interest rates next month.
The US Department of Labor said that in the week ending August 17, the number of first-time jobless claims increased by 4,000, to 232,000 after seasonal adjustments. Economists surveyed by Reuters had previously estimated 230,000 people.
[China]
Tencent $TENCENT (00700.HK)$ The support for “Goku” reached a record level of popularity on the first day of its launch
“Black Myths: Goku” is an action-adventure game based on the famous mythical novel “Journey to the West”. Shortly after its global launch on Tuesday, more than 1.3 million people went live on Steam at the same time.
The launch of “Goku” attracted a great deal of attention, partly because unlike many blockbusters supported by Tencent, it was entirely developed by a local studio game science. Tencent invests in the Hangzhou-based developer and is responsible for domestic distribution of games on the WeGame platform.
[Asia Pacific]
19 IT companies in Taiwan increased their revenue by 21.6% in July, and TSMC reached a record high
The combined revenue of the 19 major Taiwanese companies supplying semiconductors and digital products to global IT giants increased 21.6% in July over the same period last year. Revenue related to artificial intelligence (AI) has increased dramatically. World semiconductor giant TSMC $Taiwan Semiconductor (TSM.US)$ The revenue reached a record high based on monthly data.
Nihon Keizai Shimbun compiled statistics on the operating income of 19 major companies in the IT related field in Taiwan. The results showed that the total amount in July was NT$1.4062 trillion, an increase for 5 consecutive months. Of these, revenue increased for 15 companies and decreased for 4.
The supply chain revealed that Samsung Electronics (005930.KP) and SK Hynix (000660.KP) have issued notices that DDR5 prices will rise by more than 15% in a single quarter.
The Bank of Korea kept the standard interest rate unchanged at 3.5%, in line with market expectations; lowered the GDP growth forecast for this year to 2.4% from 2.5% in May, and lowered the CPI surge forecast to 2.5%.
[Japan]
70% of Japanese companies exceeded market expectations in terms of profit between April and June
Between April and June, the net profit of 70% of the surveyed Japanese companies exceeded market expectations, mainly due to developments in the automotive industry and artificial intelligence sector, as well as the favorable impact of the depreciation of the yen.
Nihon Keizai Shimbun counted about 130 listed companies that achieved net profit between April and June, and at least three securities companies made profit forecasts. The statistics do not include financial institutions and companies that have not made internal forecasts for the fiscal year ending March 2025.
Japan's Ministry of Home Affairs and Communications announced a report on Friday that Japan's consumer price index (core CPI) increased 2.7% a year after excluding fresh food in July, in line with market expectations, and was higher than the 2% target set by the Bank of Japan for 28 consecutive months.
[Pan-Southeast Asia]
Malaysia's economy accelerated to 5.9% year-on-year in the second quarter. The growth rate was higher than market expectations, the fastest growth rate in a year and a half. The quarterly growth rate also accelerated to 2.9%, benefiting from strong growth in household expenses, exports and investment.
Thailand's National Economic and Social Development Commission said on Monday that in the second quarter ending June, Thailand's gross domestic product (GDP) grew 2.3% year-on-year, higher than the median forecast of 2.2% growth, and the local economy grew 1.5% year-on-year in the first quarter.
Indian IT company Infosys, according to people familiar with the matter $Infosys (INFY.US)$ As a support partner for the cloud migration agreement signed between Coca Cola and Microsoft in April, it is likely to earn more than 0.1 billion dollars in revenue.
The Bank of Thailand kept the base interest rate at a high of 2.5% for more than 10 years on the 21st, holding on for five consecutive times. This resolution is in line with the general expectations of the market. Despite calls from some people to start an easing policy when economic recovery is uncertain, the central bank's monetary policy committee decided to keep interest rates unchanged by a vote of 6 to 1.
Company news
[Japan]
Toyota $Toyota Motor (7203.JP)$The plan is to introduce large-scale “integrated die casting (Gigacast)” casting equipment for integrated molding of car body parts at our factory in Aichi Prefecture as early as 2024. This will be the largest casting facility in Japan, and is planned to be used to test parts for pure electric vehicles (EVs), etc.
Japanese semiconductor manufacturing equipment manufacturer Disco $Disco (6146.JP)$ A local corporation responsible for sales and technical support services will be established in India as soon as September, with the intention of supporting semiconductor manufacturers entering India to establish factories.
SoftBank Group $SoftBank Group (9984.JP)$ A $0.13 billion Asian AI Startup Fund will be added. Furthermore, according to reports in the Financial Times quoting anonymous sources, SoftBank and Intel had discussed the production of AI chips to compete with Nvidia, but due to Intel's difficulties in meeting SoftBank's production and speed requirements, no agreement was reached on the relevant plans.
According to the “Japan Economic Daily”, due to 7&I Holdings $Seven & i Holdings (3382.JP)$ Involving potentially sensitive industries, Alimentation Couche-?$#@$, a leading Canadian convenience store company, is expected to obtain prior approval from the Japanese authorities before completing the proposed acquisition of 7&I Holdings.
Mitsubishi UFJ Financial Group $Mitsubishi UFJ Financial Group (8306.JP)$ It was announced on Tuesday that 24 million shares of US Regional Bank U.S. Bancorp (USB) shares have been sold on the market, and the sale amount is expected to reach 1 billion US dollars.
Mitsubishi UFJ Financial Group $Mitsubishi UFJ Financial Group (8306.JP)$It was announced that its MUFG Bank will invest an additional 27.988 billion Indian rupees (approximately 49 billion yen) in DMI Finance Private Limited (DMI Finance), a well-known digital financial services provider in India.
Sharp $Sharp (6753.JP)$ The factory in Sakai City has stopped producing LCD panels for TV. Following the discontinuation of production, the number of production bases for LCD panels for television in Japan went to zero. SoftBank is in talks to invest nearly 100 billion yen (about 684 million US dollars) in Sharp to buy part of the Sharp Sakai Factory to build an artificial intelligence data center, but the viability of the deal is still unclear.
[Asia Pacific]
Exchange documents show that TSMC $Taiwan Semiconductor (TSM.US)$ An agreement was signed with Innchuang Optoelectronics on Thursday to purchase its plant and ancillary facilities, with an estimated value of NT$17.77 billion (US$0.531 billion). The asset is located in Tainan City and has acquired an area of 317,444 square meters and will be used for TSMC's operation and production.
According to the news, Samsung Electronics (005930.KP) will launch the next generation of HBM4 memory streaming at the end of this year to prepare for mass production of 12-layer stack HBM4 products at the end of next year.
Samsung Electronics (005930.KP) plans to build a semiconductor packaging production line in Vietnam, but the factory site has not yet been finalized. According to the news, Samsung has obtained various incentives from the Vietnamese government.
[China]
2024 Baidu $BIDU-SW (09888.HK)$ The Yunzhi Conference will open on September 25-26. The theme of this year's Baidu Yunzhi Conference is “Wisdom · Transition”. Baidu Smart Cloud will launch various cloud and AI products such as infrastructure, large models, development tool chains, and AI native applications.
Kuaishou $KUAISHOU-W (01024.HK)$ Total revenue for the second quarter increased 11.6% year over year to 31 billion yuan, and adjusted net profit increased 73.7% year over year to 4.68 billion yuan. AIGC marketing material consumption from marketing customers peaked at 20 million yuan per day; live streaming business revenue fell 6.7% year over year to 9.3 billion yuan.
Xiaopeng Motors $XPENG-W (09868.HK)$ In the second quarter, 30,207 vehicles were delivered, up 30.2% year on year; total revenue was 8.11 billion yuan, up 60.2% year on year; net loss attributable to the company's ordinary shareholders was 1.28 billion yuan, compared with a loss of 2.8 billion yuan in the same period last year.
JD Group $JD-SW (09618.HK)$ According to an announcement on the Hong Kong Stock Exchange, it spent approximately US$390 million to repurchase its shares on August 21, 2024, and has made full use of the repurchase limit of the US$3 billion share repurchase plan approved in March 2024.
Xiaomi Group $XIAOMI-W (01810.HK)$ The latest financial report shows that in the first half of 2024, the company realized revenue of 164.395 billion yuan, an increase of 29.6% over the previous year, and adjusted net profit of 12.666 billion yuan, an increase of 51.3% over the previous year.
Alibaba $BABA-W (09988.HK)$ According to the announcement, the conversion of the company's voluntary listing to the primary listing on the Hong Kong Stock Exchange will take effect on August 28.
Search engine giant Baidu Group (9888.HK) announced that net profit for the second quarter (non-GAAP) was 7.4 billion yuan, down 8% year on year, but better than market expectations; during the reporting period, smart cloud business grew, and online revenue continued, and macro resistance declined year on year.
Chinese Internet giant - NetEase $NTES-S (09999.HK)$ According to the announcement, both non-GAAP net profit and profit fell year-on-year in the second quarter, which was lower than market expectations. Although revenue from gaming and related value-added services increased by nearly 7% year-on-year during the period, gross margin also increased.
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