Manufacturing CAPEX – time to take a breath
■ The latest industry news flow suggests that yoy growth of manufacturing CAPEX is peaking, in our view.
■ We highlighted the CAPEX recovery theme (based on JMTBA and Komtrax data) in Oct 2020, but we believe it’s time to take a breath, as the simple recovery story has been priced in.
■ We suggest investors review their positions on manufacturing CAPEX names, such as Precision Tsugami (China) [1651.HK], FII [601138.CH] and Haitian Precision [601882.CH], as the macro and industry situations are becoming less favorable.