4 stocks to watch as supply chain disruption eases with China reopening

  • Companies with operations in China will benefit from China’s decisive reopening
    ° An end to sudden lockdowns and supply chain disruptions is positive even as demand uncertainties may persist in the near-term amid the global manufacturing slowdown,

    ° With CNY holiday coming to an end, business/operations should resume swiftly on the back of soon-to-peak COVID situation, China Center for Disease Control and Prevention reported that 80% of its population has been infected in the current outbreak,

    ° The government’s pro-growth shift to revive domestic demand encourages a swift resumption of economic activities, with domestic activities to see the fastest recovery
    Monitor China PMI and China Export data for signs of recovery with the shift in zero-COVID policies, following an expected trough in 4Q’22-1Q’23

    Yantai Intl Container TermiOperated by Hutchison Port Holdings, Yantian International Container Terminal is a deep water port in Shenzhen

    Improvements in production/consumption, mobility and trade should bode well for shipping and logistics names like Hutchison Port Holdings Trust (HPHT) and Mapletree Logistics Trust (MLT)
    ° HPHT: 2Q’22 revenue contribution – CN, 74%, and HK, 26%,
    ° MLT: 1H’22 gross revenue – CN, 23%, 21%, AUM – CN

    Relief for tech manufacturers like Nanofilm and Aztech on the supply side, though waning global demand still poses as a key overhang for these stocks
    • Equities may move ahead of industry: SOX Index saw a 17% YTD return on optimism of inventory correction ending soon, and most results have yet to disappoint massively
    • Pause in the Fed’s hiking cycle as a catalyst: DBS analysts noted that recovery of the tech sector could happen as early as 1Q’23, i.e., with the peaking of the Fed Fund Rate

Share Prices

Counter NameLastChange
AEM Holdings2.860-
Avi-Tech Electronics0.275-
Best World2.4000.050
Broadway Ind0.092-
China Sunsine0.4750.010
Food Empire0.9150.015
Fortress Minerals0.395-0.015
Geo Energy Res0.3150.015
Golden Energy1.0100.040
GSS Energy0.038-0.002
ISDN Holdings0.4900.025
IX Biopharma0.0770.001
Jiutian Chemical0.0710.001
KSH Holdings0.335-
Leader Env0.0700.002
Medtecs Intl0.1390.001
Meta Health0.0240.002
Nordic Group0.460-
Oxley Holdings0.141-0.001
REX International0.126-0.001
Sinostar PEC0.162-0.013
Southern Alliance Mining0.6000.005
Straco Corp.0.450-
Sunpower Group0.370-
The Trendlines0.091-
Totm Technologies0.083-0.002
UG Healthcare0.1640.007
Uni-Asia Group1.000-0.010
Wilmar Intl4.150-
Yangzijiang Shipbldg1.2500.050

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