Manufacturing CAPEX – moderated further
■ We believe that the latest JMTBA and Komtrax data on May 21 marks the near-term yoy peak in the current cycle.
■ We highlighted the CAPEX recovery theme (based on JMTBA and Komtrax data) in Oct 2020, but we believe the latest industry figures support our view that the simple recovery story has been priced in.
■ We continue to suggest investors review their positions on China’s manufacturing CAPEX names, such as Precision Tsugami (China) [1651.HK], FII [601138.CH], Haitian [1882.HK] and Haitian Precision [601882.CH], as the macro and industry situations have become less favorable.
■ We also continue to believe that Impro Precision [1286.HK] can be treated as proxy for the overseas CAPEX recovery theme.