EVENTS:   The Great Reset: AI, Geopolitics and The End of The Cheap Chips - MS Hwang/Counterpoint Research - 10 Feb 26   Making Weather Pay – The Outlook For Global Commodities - James Roemer/Best Weather - 11 Feb 26     ROADSHOWS: Thematic Research Based Ideas - David Scott /CHA-AM Advisors   •   London   06 - 06 Feb 26       Commodities Research with a Focus on Oil and Energy - Kathleen Kelley /Queen Anne's Gate Capital   •   London   10 - 10 Feb 26       Predictive Investment Models for Idea Generation and Risk Management - Hugh Vuillier /Variant Perception   •   New York   16 - 19 Feb 26      
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Company Research

Denso (6902)

Consumer Discretionary

LightStream Research

Mio Kato provides his take on the crossholdings sell-down - the trend of governance reform in Japan continues with Toyota, Toyota Industries and Aisin selling shares of Denso. Denso is buffering some of the flow impact by repurchasing roughly half of the shares to be sold. While the size of these moves is relatively large, Mio believes their impact could be disproportionately large for the market as a whole. He considers this to be further confirmation of the relatively positive backdrop for asset allocation away from China and into Japan, especially in the long-term.

Edition: 175

- 08 December, 2023


Geely Auto (175 HK)

Consumer Discretionary

Entext

Sean Maher adds Geely to his autonomous driving thematic basket which also includes Denso, Renesas and General Motors. Sean notes that Geely is planning a 2024 commercial Level 4 self-driving launch (much sooner than consensus expectations). He is seeking more China exposure this year - the country is starting to lead in automated deployment and local stocks have derated dramatically despite world class IP. On the big question re. whether Level 4+ autonomy needs Lidar - Sean would continue to bet on ‘belt and braces’ hardware redundancy winning and the Chinese crashing the cost of Lidar sensors as they scale up.

Edition: 127

- 21 January, 2022