China Industrial Automation Sector: Thoughts ahead of 3Q22 results, 3Q22 market view: Some improvement in Sep; overall trends still mixed. 5G tracked higher outside China in 4Q21 on the new iPhone ramp up and Samsung's rising push in the mid-tier, lifting units to 560mn, above CS 545mn and the high-end of market expectations 500-550mn. China's local companies, who may only represent 4%/17%/17% of the global substrate/HDI/FPC market by 2021, will gain share in these high-end segments and outgrow global peers. If Brent crude remained at US$120/bbl, India's current account would weaken by almost 3 pp of GDP. Asia Pacific Strategy - 2H outlook: Challenging times with some silver linings. STAR Board in Shanghai had 94 IPOs that raised Rmb112 bn with higher valuation multiples when the listing regime reform in Hong Kong resulted in 17 companies raising HK$117.3 bn. China Consumer Appliances and ecommerce Sectors: Beyond the pandemic: Winners and losers in the decade of disruptive channel shifts. Post our prior note on the M&A landscape in China pharma/biotech, we analyze China pharma/biotech's cross-border licensing deals from Jan-2008 to Jun-2022. The conference tone was uniformly positive. EMS and PC/NB ODMs underperformed while semis kept orders intact. For the most relevant services and products, choose your regional site. In the current down cycle, the larger-than-previous decline in property sales and continued home price weakness indicate more signs of policy relaxation. Taiwan tech well behind due to China's virus control measures. The Credit Suisse Research Institute is managed by a dedicated executive committee made up of the head of the institute and the bank's most senior researchers. Indeed ESG is at the forefront of investors' concern for the energy sector, but we think the market might have discounted oil equities too much and ignored any fundamental improvement and earnings recovery, similar to what CS Global Equity Strategy Team highlighted last month. We are c25% below government/industry targets in 2030E, pricing in planning delays and limited seabed rights; We expect developers to consolidate. Oil prices have rallied 42% since end-November and are now fast approaching US$100/bbl. Jan-2021 discounts are still +4 pp YoY steeper at 24% but have narrowed from +6 pp in Dec 2020. APAC Energy Sector Welcome (back) to the US$100/bbl oil era. Opening up and reform on China and Hong Kong stock markets has created a positive feedback loop with increasing activities on both primary and secondary markets. These developments augur well for the entire value chain including battery makers and mineral producers. FYP slid 3.6% on: (1) shrinking agency force, (2) unrecovered long-term insurance demand, (3) likely competition with HMB. China's equity capital markets are undergoing a significant re-alignment. Movie box office was the second-best in history and hotel RevPAR also posted a strong recovery. Asia Semiconductor Sector - 2H22 preview: Stocks lead into the correction, should also lead into the next recovery. Execution. We take July's overall macro data announced on 15 Aug as slightly negative for construction machinery demand. China Chemical Sector: Polyester filament yarns: Consolidating into a new era. In a follow-on to our China semiconductor reports, including China's ascent and supply chain localisation, this report updates on the US-China policy implications, China's manufacturing, design and tech supply chain, and the fabless industry map. Localisation is a multi-year trend in advanced industrial machinery markets and domestic companies would benefit more from the upcycle. Based on our projection, renewables (solar and wind) as a percentage of China's energy mix (~5% in 2020E) is set to double in 14th FYP (10%) and triple in 15th FYP (16%). The momentum of the automation market has weakened since March and this has led to an outlook downgrade from MIR on China Automation market to flattish, from 8% previously. Tesla has become the largest automaker by market cap. Stocks that we like on fundamentals and strong leverage to our top-down themes include DBS, KB Financial, Cathay Financial, Infosys, Rio Tinto, Zijin Mining and Nickel Mines. Credit Suisse Sep 2017 - Present5 years 7 months Greater New York City Area Covering stocks in the Healthcare Facilities & Managed Care space. China Semiconductor Sector: A greener world powered by better power discreteIGBT and SiC MOSFET. After the record outflow in July, August sees SB selling pressure easing. Overall skincare (excluding 'medicinal') growth increased to 54% YoY, while colour cosmetics growth declined to 20% YoY. China's stocks had a roller coaster ride in the week of 14 March, when a drastic turnaround was triggered by Chinese Vice Premier Liu He's chairing a meeting in response to market volatility and investor concerns. China Consumer Sector: 2021 Outlook: Out-of-home consumption to gain steam. We expect tower crane sales to keep growing; loader and pump truck should see a much milder decline than excavator and truck crane. Our ability to provide certain products and services depends on such laws and the licenses we possess, as well as our determination of a number of other factors, including our clients qualifications or other eligibility criteria. Sporadic virus outbreaks may make investors concerned about potential disruption, but improved testing infrastructure along with concerted administrative measures can contain contamination quickly. Combined expertise and resources enable us to deliver distinct coverage with leading content and solutions across products and regions. We see more positive demand in sub-sectors including auto (driven by EV), Apple (higher visibility), ARVR and datacom (short-term adjustment, but mid-term demand intact). Here we focus on China (CN). China Sportswear Sector: A fashion for fitness. China Market Strategy: Embracing carbon neutrality. The key trend is a "return home" with increased listings occurring on the STAR board and a dramatic increase of large IPOs and secondary listings in Hong Kong. While Hong Kong market volumes have been volatile, Southbound investor share of gross turnover remains strong at 32% (accelerating from 30% last month). We expect a cautious outlook for 1Q23 and 2023, with front-loaded declines reflecting still-weak consumer tech demand, rising semi inventory, broadening softness to server and industrial and downstream cuts to deplete their own high inventory. China Technology Sector: Outlook 2021 A bright year ahead with multi-structural themes. Property remained one of the key challenges, and new loans to the household sector sharply contracted. China is experiencing the hottest summer in 60 years, making power shortage a growing threat to its bumpy economic recovery. On a positive note, the government is ready to launch multiple stimulus measures to pump up consumption. Gross turnover impact remains significant at around 11% of A-share turnover, while the Northbound free float stake is currently around 8%. APAC Quantitative & Systematic Strategy: Southbound sentiment tracker: Record outflow likely driven by mutual fund redemption. There is a growing global focus on sustainable development, particularly in the post- COVID19 world. China Sportswear Sector: CS monthly online tracker Jan-2023: Softening but not concerning. We expect the internet consumer loan balance to reach Rmb8.4tn by 2025E, implying a robust 2022-25E CAGR of 9.7%. We continue to expect a favourable global oil S/D balance for 2021, which should be supportive to the oil price recovery as seen YTD. Looking forward to 2021, Compared to gradually improving infrastructure and unexciting property investment, consumption should become a major driver of economic growth, in line with government policy. 1H results could boost confidence. However, most of our macro experts believe China's economy will recover in 2022. Despite short-term (ST) challenges, we stay positive on long-term growth as it is set to grow after stumbling in 1H22, with a 12% CAGR over 2022-25. We expect demand weakness to persist in 1H setting up a trough in earnings and FAB utilization in 1H23. China Market Strategy: China Back to Spend 2: Recovery in better shape. Recent concern is overdone. Our analysts from China, as well as from relevant global sectors, take this CQi study into consideration and discuss the most important issues related to this theme for their respective sectors and identify key investment themes. China Market Strategy: How to position post new year rally? A troubled global outlook likely to limit absolute performance, but we believe Asia can be fairly resilient within challenging global context. Global xEV Battery Value Chain Separator: The road to next-generation LiBS. Hydrogen: A new frontier: Part 2: A primer on the APAC value chain. China Insurance Sector: Beneficiaries of a healthier bond yield. Dry Bulks: The Russia-Ukraine conflict, weaker China economic trends, and high commodity prices may drag underlying demand. APAC Quantitative & Systematic Strategy: China mutual fund positioning - 2022 review. Chinese brands to further gain share (especially in sportswear and cosmetics). Higher oil prices hurt the current account, add to inflationary pressures and increase sensitivity to Fed rate hikes. We believe automotive, substrate, high-density interconnect (HDI) and flexible printed circuit (FPC) are growth drivers. Operating data also weakened. Asia Pacific Strategy: Input costs pressures identifying the weak links. China remains determined to develop a domestic semiconductor ecosystem, with an ultimate goal of being independent from the US, or with the least reliance on US technologies. According to GGLED, there were nine major new mini/micro LED projects announced in China in 2020, with a total investment of Rmb17 bn. We remain constructive about long-term fundamentals of the insurance sector, but anticipate an uneven recovery in 2021 following severe disruption of sales by COVID-19. China Market Strategy: Chinas reopening tracker (2) - Spring is coming! China is the second-largest source of "unicorns" in the world. This brings 1Q21 to +37% YoY growth, which we deem as healthy demand. The three telcos/BAT had only completed 37%/45% of their FY21E capex in 1H21; the expected acceleration in capex should be a core earnings improvement driver for the communication infrastructure supply chain. Global Industrials Sector 4Q21 China industrial robot market update from MIR Solid 4Q21 with 2022 growth estimate raised to 21%; localisation continues. We believe the China PD-1 market could reach Rmb40-45 bn peak sales by 2030E, given the large cancer patient population, PD-1's fundamental roles and a long-term annual pricing of Rmb30k, which corresponds to ~1.3 mn patients on PD-1 at peak. We see consumers' interest in TCM could be increasing modestly. We expect the sector to be potentially range-bound in 2H22, as macro factors face uncertainties, including Covid resurgences, while sector fundamentals remain stable or even slightly positive. 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