Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Uncertain trading ahead of the vote tomorrow likely to be carried over to Japan.</li>
<li>Palantir big beat after hours sets a positive tone for all things AI.</li>
<li>Can Ibiden rerate as an NVDA name after being a play on INTC for so long?</li>
</ul>


Uncertain trading ahead of the vote tomorrow likely to be carried over to Japan.
Palantir big beat after hours sets a positive tone for all things AI.
Can Ibiden rerate as an NVDA name after being a play on INTC for so long?


Japan Morning Connection: Palantir Sets Positve Tone for All Things AI

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

Equity Bottom-Up

Panasonic Corporation manufactures electric and electronic products. The Company produces home appliances, car navigation systems, digital devices, computer peripherals, telecommunications, industrial equipment, and electronic parts. Panasonic has associated companies around the world.

<ul>
<li>Panasonic blew out consensus forecasts in Q2 and trades at 60% of book value. </li>
<li>Jtekt missed but raised its dividend, which was already very high. </li>
<li>Aisin missed, but by a trivial amount, and the price/book value fell back to a level that marked support on multiple occasions since the Pandemic started.</li>
</ul>


Panasonic blew out consensus forecasts in Q2 and trades at 60% of book value. 
Jtekt missed but raised its dividend, which was already very high. 
Aisin missed, but by a trivial amount, and the price/book value fell back to a level that marked support on multiple occasions since the Pandemic started.


Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Simplex Holdings, Inc. provides system information technology solutions. The Company offers system consulting, system development, system operation and maintenance, and other services.  Simplex Holdings serves financial institutions across worldwide.

<ul><li>Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System Integration Project.</li><li>We believe positive factors such as continued strong demand for DX services, improving profitability at Operation Service, and high order visibility outweigh this temporary event.</li><li>However, we do seek clarity in terms of understanding the company’s strategic direction over its insurance solutions. </li></ul>

Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System Integration Project.We believe positive factors such as continued strong demand for DX services, improving profitability at Operation Service, and high order visibility outweigh this temporary event.However, we do seek clarity in terms of understanding the company’s strategic direction over its insurance solutions. 

Simplex Holdings (4373 JP) - Positive Underlying Growth Trend, Though Clarity Needed

Japan Specialist

Mark Chadwick

<ul>
<li>Wall Street retreated Monday as investors positioned themselves ahead of the U.S. presidential election and an anticipated Federal Reserve rate decision this week.</li>
<li>Traders are pricing in a 98% chance of a quarter-point rate cut at Thursday's Fed meeting, following September's half-point reduction.</li>
<li>The Ministry of Defense has awarded Mitsubishi Heavy Industries a 56 billion yen contract to develop a new missile designed to intercept hypersonic weapons</li>
</ul>


Wall Street retreated Monday as investors positioned themselves ahead of the U.S. presidential election and an anticipated Federal Reserve rate decision this week.
Traders are pricing in a 98% chance of a quarter-point rate cut at Thursday's Fed meeting, following September's half-point reduction.
The Ministry of Defense has awarded Mitsubishi Heavy Industries a 56 billion yen contract to develop a new missile designed to intercept hypersonic weapons


Ohayo Japan | Prez Race and Fed Decisions

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

FUJITEC CO., LTD. mainly manufactures elevators, escalators, and sky-parking systems by the orders from customers.  The Company also provides installation and repair services.  Fujitec has manufacturing bases in overseas including the USA, Singapore, Taiwan, and South Korea.

<ul>
<li>On 30 October, an FT <a href="https://www.ft.com/content/d237189f-d372-474d-981e-c1d3b32c3c8c" target="_blank" rel="noopener">article</a> appeared which pushed <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> shares sharply higher. The headline? <em>"Japanese lift maker Fujitec explores sale to private equity"</em>
</li>
<li>The next day, mid-day, Fujitec "<a href="https://www.fujitec.com/uploads/2024/10/241031_hodo_en.pdf" target="_blank" rel="noopener">corrected</a>" the record, saying the articles (FT and others, presumably) contained "inaccuracies", including that "Fujitec is working to find a buyer."</li>
<li>They mention they have received a preliminary and non-binding initial proposal. The stock continued higher after that. Now investors have to decide how attractive an elevator/escalator business really is.</li>
</ul>


On 30 October, an FT article appeared which pushed Fujitec Co Ltd (6406 JP) shares sharply higher. The headline? "Japanese lift maker Fujitec explores sale to private equity"

The next day, mid-day, Fujitec "corrected" the record, saying the articles (FT and others, presumably) contained "inaccuracies", including that "Fujitec is working to find a buyer."
They mention they have received a preliminary and non-binding initial proposal. The stock continued higher after that. Now investors have to decide how attractive an elevator/escalator business really is.


Japan
Insights on Japan

Japan Morning Connection: Palantir Sets Positve Tone for All Things AI

Uncertain trading ahead of US vote likely to carry over to Japan. Palantir's big beat sets positive tone for AI. Can Ibiden rerate as an NVDA name...

Andrew Jackson

Panasonic (6752): Blows Past Consensus

Panasonic outperforms in Q2, trading at 60% of book value; Jtekt misses but raises dividend; Aisin misses slightly, price/book value falls to...

Michael Allen

Simplex Holdings (4373 JP) - Positive Underlying Growth Trend, Though Clarity Needed

Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System...

Astris Advisory Japan

Ohayo Japan | Prez Race and Fed Decisions

Investors on Wall Street cautious ahead of U.S. election and Fed rate decision, while Mitsubishi Heavy Industries secures contract for new missile...

Mark Chadwick

Fujitec (6406 JP) - On the Block?

Fujitec may be on the block. An FT article suggests the company is talking to PE firms (wholly unsurprising) and the firm's "clarification" says a...

Travis Lundy

Japan Morning Connection: Palantir Sets Positve Tone for All Things AI

​Uncertain trading ahead of US vote likely to carry over to Japan. Palantir's big beat sets positive tone for AI. Can Ibiden rerate as an NVDA name...

Andrew Jackson

Panasonic (6752): Blows Past Consensus

​Panasonic outperforms in Q2, trading at 60% of book value; Jtekt misses but raises dividend; Aisin misses slightly, price/book value falls to...

Michael Allen

Simplex Holdings (4373 JP) - Positive Underlying Growth Trend, Though Clarity Needed

Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System...

Astris Advisory Japan

Ohayo Japan | Prez Race and Fed Decisions

​Investors on Wall Street cautious ahead of U.S. election and Fed rate decision, while Mitsubishi Heavy Industries secures contract for new missile...

Mark Chadwick

Fujitec (6406 JP) - On the Block?

Fujitec may be on the block. An FT article suggests the company is talking to PE firms (wholly unsurprising) and the firm's "clarification" says a...

Travis Lundy

Uncertain trading ahead of US vote likely to carry over to Japan. Palantir's big beat sets positive tone for AI. Can Ibiden rerate as an NVDA name...

Panasonic outperforms in Q2, trading at 60% of book value; Jtekt misses but raises dividend; Aisin misses slightly, price/book value falls to...

Investors on Wall Street cautious ahead of U.S. election and Fed rate decision, while Mitsubishi Heavy Industries secures contract for new missile...